Mon Oct 14 04:18:00 UTC 2024: ## Hyundai IPO, Reliance Results, and Inflation Concerns Dominate This Week’s Market
**Mumbai, October 14, 2024** – This week promises to be a significant one for the Indian market, with Hyundai’s much-anticipated Initial Public Offering (IPO), Reliance Industries’ quarterly results, and crucial inflation data all set to be released.
Hyundai Motor India’s IPO, valued at a record ₹27,870 crore, will open for anchor investors today and for retail investors starting tomorrow. The offering for sale (OFS) by the parent company, Hyundai Motor Corporation, will see 17.5% of its shares offered. The IPO price band is set between ₹1,865 and ₹1,960 per share, potentially valuing Hyundai at a whopping ₹1.6 lakh crore.
However, the grey market, an unofficial indicator of IPO performance, reflects a declining interest. The premium on Hyundai shares has fallen to just ₹75, compared to ₹300 a few days ago, suggesting a more muted response than initially anticipated.
Meanwhile, Reliance Industries will release its July-September quarter results today. Analysts predict a minimum 5% increase in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), though the oil-to-chemicals (O2C) division is expected to see a decline in its EBITDA.
Further fueling market anxieties is the release of the September Consumer Price Index (CPI) based inflation data today, which is expected to provide insights into the Reserve Bank of India’s (RBI) monetary policy and potential changes to loan EMIs. While the RBI aims to keep inflation at 4%, a recent Reuters survey suggests that inflation could have climbed to between 3.60% and 5.40% in September, potentially breaching the target.
A key concern remains food inflation, which escalated to 5.66% in August. The RBI’s decision to maintain interest rates in the recent monetary policy meeting was partly influenced by the rising food inflation, further dimming chances of a rate cut in the upcoming December meeting if inflation remains above the target.
The week also sees two other IPOs in the SME segment, Lakshya Powertech and Freshara Agro Exports, both set to launch their offerings later this week.
With a crucial week ahead, the Indian market awaits to see how these events unfold and shape the investment landscape.
First Piper 