---
title: "Swiggy’s $1.3bn IPO may face lukewarm retail interest"
description: "The verdict of the US presidential election looms large over Wednesday’s session."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-11-06-swiggys-1-3bn-ipo-may-face-lukewarm-retail-interest/"
published: "2024-11-06T05:50:41"
updated: "2024-11-06T05:50:42"
lang: "en-ZA"
word_count: 414
---

# Swiggy’s $1.3bn IPO may face lukewarm retail interest

> The verdict of the US presidential election looms large over Wednesday’s session.

By Bloomberg · Published 6 November 2024, 07:50 SAST · Updated 6 November 2024, 07:50 SAST

## Key points
- As Nifty futures hint at a slight dip amidst a mixed bag of global market signals and Swiggy's IPO opens to a cautious crowd, it seems even the most beloved food delivery app might need more than just a catchy name to whet retail investors' appetites.
- Nifty futures indicate a slight dip, overshadowed by concerns over slowing earnings and foreign investor withdrawals in India.
- Swiggy’s $1.3-billion IPO opens amid lukewarm retail interest, with grey market signals suggesting muted gains.
- L&T invests $167 million in E2E Networks, highlighting Indian firms' growing focus on AI, despite global caution over inflated valuations.
- Indian government bonds remain stable ahead of the US elections, attracting foreign investment despite record outflows from equities.

## Content

Nifty futures are hinting at a slight dip, despite Asian markets mostly trading higher and US shares rallied overnight. However, concerns over slowing earnings and persistent withdrawals by foreign investors may cap any gains in India. Meanwhile, Swiggy’s IPO opens to the public, with some nerves over retail interest.

#### Swiggy’s IPO may face lukewarm retail interest

Swiggy is a household name in urban India, but that may not be enough to get retail investors excited about the food platform giant’s $1.3-billion share sale when it opens today. Indications from the grey market point to a muted listing-day gain. Combined with its rich valuation, this could make retail investors wary — similar to how they reacted to Hyundai Motor India’s recent debut. Still, foreign investors are likely to be big buyers, given their optimism about [India’s long-term consumption growth](https://www.bloomberg.com/news/newsletters/2024-10-31/slowing-sales-during-diwali-shows-scale-of-india-s-economic-slowdown), even if Swiggy’s shares don’t come cheap.

#### L&T joins AI boom with E2E stake

Engineering giant Larsen & Toubro’s move to invest $167-million in E2E Networks, a cloud computing firm partnered with Nvidia, shows how Indian conglomerates are getting more serious about AI. Just last month, [Nvidia teamed up](https://www.bloomberg.com/news/articles/2024-10-24/nvidia-ceo-targets-more-india-growth-through-fresh-partnerships)with Reliance Industries to build AI infrastructure in the country. The craze around AI is clear from the share price jumps in companies such as Black Box and Techno Electric, both of which have more than doubled over the past year. But investors in India would do well to be cautious — their global counterparts are becoming wary of overpaying for AI stocks.

#### Bonds keep their cool before coin-toss US election

Indian government bonds have been a picture of calm in the six months leading up to the close US presidential race, with benchmark 10-year yields moving within a narrow 40-basis-points range. That’s a contrast to US Treasury yields, which have swung by as much as 100 basis over the same period. [Foreign investors](https://www.bloomberg.com/news/articles/2024-10-27/global-funds-look-to-india-as-financial-market-jitters-pick-up) have certainly noticed this stability. While Indian equities saw record outflows in October, rupee bonds have enjoyed six straight months of net inflows.

**The US elections may not yet have thrown a clear winner, but for traders, what really matters is how Indian stocks perform in the aftermath of this pivotal event. Indian stocks have enjoyed a seasonal tailwind in the year following the election in the world’s largest economy, based on trends from the previous four cycles. While the recent slowdown in earnings growth has [tempered](https://www.bloomberg.com/news/articles/2024-11-04/record-foreign-exodus-casts-a-pall-over-india-s-stock-market) some of enthusiasm for India, long-term investors still see plenty of reasons to stay optimistic.**