(Bloomberg) -- Before the trading day starts we bring you a digest of the key news and events that are likely to move markets.

Good morning, this is Ashutosh, an equities reporter in Mumbai. Our markets retain a positive bias even if Nifty futures point to a flat start Tuesday amid mixed cues in the region. The index promptly recovered to a key level at the close yesterday, underscoring the argument that local liquidity remains the primary market driver.  

New rules spark investor interest in holding companies 

Holding companies, which usually trade at a big discount compared to their more profitable listed units, might on a comeback trail this week. Sebi is seeking to fix this issue by starting special call auctions in October. Investors are already getting excited, with shares of Bombay Burmah Trading and Bajaj Holdings surging 20% and 6%, respectively yesterday, expecting a potential rally.

Edutech companies thrive despite Byju’s struggles

Shares of edutech firms like Shanti Educational Initiatives and Career Point have surged more than 40% this year, and companies such as Veranda Learning continue to win contracts for skills training programs. This is happening as even as the online tutoring firm Byju, once one of India’s most promising startups, faces a bunch of issues. Despite Byju’s woes, valuable investment opportunities remain in the education sector. 

Active versus passive: traders debate debt inflows before inclusion  

How much has already priced in? That’s the question on traders’ minds regarding the inclusion of Indian bonds in JPMorgan’s emerging market bond index on Friday. The $10.6 billion of inflows since September are believed to be primarily from active fund managers. Whether there’s more to come or if this is mostly it will determine how bullish tactical traders are likely to be, as roughly $2 billion of passive inflows per month are priced in over the next 10 months.

Analysts actions:

  • Ahluwalia Contracts Raised to Buy at Indsec Securities & Finance
  • Cholamandalam Investment Seeks Bids for at Least INR5b 5Y Bonds
  • Fine Organic Raised to Buy at Avendus Spark; PT 5,550 rupees
  • Krystal Integrated Rated New Buy at Edelweiss Professional Investor

Three great reads from Bloomberg today:

  • India Central Bank Policymakers Divided Over Rate-Growth Debate
  • Wall Street Shoeshiners Turn to Cleaning Sneakers to Survive
  • Singapore, Hong Kong Are Costliest Cities for Luxury Spending

And, finally..

Records continue to pour in for our equities market, now valued at over $5 trillion and challenging Hong Kong for the fourth-largest spot globally. Fueled by domestic investment, a strong macroeconomic environment, and calls for rate easing, there are no dark clouds on the horizon. Adding another jewel to its crown, India now makes up for more than 4% of the world’s stock market cap. 

--With assistance from Ronojoy Mazumdar and Chiranjivi Chakraborty.

©2024 Bloomberg L.P.