Street signs: Nifty may consolidate, air cooler makers may see gains & more

Nifty may consolidate in Jan series

The Nifty50 ended the December expiry series with losses of 1.9 per cent. The index shouldn’t see a serious drawdown if it stays above 17,350 in the near term and 17,100 (100-DMA) in the coming sessions, according to analysts. "In case of any breakdown, the intensity of the fall can lead markets (Nifty50) to touch 16,400 in a short span of time. The medium-term resistance is placed at 17,800-17,950 levels. We expect the index to consolidate and trade in a range, while action will continue in client category dominant mid- and small-cap space," said a note by Edelweiss Alternative Research.

Foreign fund house eyes assets of top Indian mutual fund

The Indian asset management industry has seen several high-profile exits of foreign fund houses in the past few years. However, this trend may reverse. After the recent acquisition of L&T Mutual Fund (MF) by HSBC MF, another mid-sized foreign fund house is looking for an acquisition in the country. "The talks are in preliminary stages and the foreign fund house is looking to buy out an AMC which is on the block for sale. The target fund house is a medium-sized player in the country having a mix of both debt and equity funds," said an industry source. With the surge in assets and emergence of new players in the MF industry, foreign fund houses are also looking to increase their footprint in India.

Air cooler makers may see gains 

The GST implementation, Covid-led work from home, and increased consumer preference for branded products have pushed up the organised sector's share in the air coolers business. Moreover, lower costs, effectiveness in dry climate areas, and eco-friendliness have also helped air coolers gain ground, even as air conditioner demand is rising. Analysts said supply-chain disruptions halted the industry’s growth for two consecutive summers. However, the organised industry is expected to soon return to mid-teen growth because of economic revival, rising temperatures, high single-digit price hikes, and steady gains from the unorganised sector. Symphony, Havells India, Crompton Greaves, and Bajaj Electricals are seen among the likely beneficiaries.