Tag: Indian stocks

India benefits from China plus one strategy, but stock selection remains a challenge: Samir Arora

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s emergence as a significant beneficiary of the China+1 strategy has caught the attention of global investors. As businesses seek to diversify their supply chains and reduce dependence on China, India presents an attractive alternative with its vast consumer market, skilled labour force, and improving infrastructure.

In an interview with CNBC-TV18, Samir Arora, Founder and Fund Manager of Helios Capital said that India is a big beneficiary of China+1 strategy and it is simple to believe, but it is not simple to bet on it in terms of specific stocks.

He said, “India is a big beneficiary of China+1 and it is simple to believe, but it is not simple to bet on it in terms of specific stocks, but big picture in terms of FII flows, FDI, it is just easy to understand, and I am going with that one line for the next few months.”

Also Read | Solving India-China border issues will require political will and trust on both sides, says expert

From a macroeconomic perspective, India appears well-positioned to benefit from the China+1 trend. Foreign Institutional Investment (FII) flows and Foreign Direct Investment (FDI) are key indicators of global investor sentiment and confidence in a country’s growth potential.

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India has witnessed a steady inflow of FII funds in recent years, indicating international investors’ growing interest in the Indian market. Additionally, the Indian government has implemented several reforms to attract FDI, making it more conducive for foreign companies to establish a presence in the country. These factors contribute to the positive sentiment surrounding India’s potential as a China+1 beneficiary.

Also Read | Editors’ Roundtable | FIIs return to Indian equity markets

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

JPMorgan says India’s balance sheet much better amid global growth slowdown; check out its top bets for 2023

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Nifty has been one of the best performing indexes globally in 2022 and the Indian economy, probably one of the faster growing economies. Sajjid Chinoy, Chief India Economist at JPMorgan believes the good news is that balance sheets are in a much better shape, which is a prerequisite to the next capex cycle.

“Bank balance sheets are in much better shape than feared at the start of the pandemic; NPAs have been lower for the most part, banks have recapitalised and seem to be less risk averse and there is pickup in credit growth,” he told CNBC-TV18.

Sanjay Mookim, Strategist, Head of India-Equity Research at JPMorgan India, meanwhile said, the brokerage is underweight on the IT space in its model portfolio as margin expansion in the sector will be more difficult than expected.

Also Read: JPMorgan downgrades Persistent Systems just two months after an upgrade

“People have built in margin expansion in FY24, which might be a bit more challenging to deliver than expected,” Mookim explained, adding that this might lead to minor earnings revisions and lower tone from management in the coming quarters as the topline slows. “We are not in a rush to buy Indian IT stocks,” he said.

Mookim added that JPMorgan is overweight on real estate as there is no evidence of demand slowdown in the sector and within the auto space, it prefers the two-wheeler companies.

Also Read: Here’s why 2023 may not be a very exciting year for investors in India’s bluechip stocks

For the entire discussion, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indian shares log worst week in over two months as IT stocks slump

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian shares slid on Friday to log their worst week in over two months as IT stocks tumbled as HCL Technologies’ warning of a potential slowdown in client spending in the industry’s key US market.

The Nifty 50 index closed down 0.61 pecrent at 18,496.60, while the S&P BSE Sensex ended 0.62 percent lower at 62,181.67, with both indexes posting their sharpest drops in a week.

The Nifty lost 1.07 percent for the week, while the Sensex fell 1.09 percent, logging their biggest one-week slides since the week-ended September 30.

IT stocks, the second most influential sectoral group on the Nifty, tumbled 3.14 percent on the day and more than 6 percent for the week. The weekly drop was the steepest since mid-September when IT stocks fell in tandem with U.S tech stocks.

Also Read: Marico unit to acquire Vietnam-based personal care company for Rs 172 crore

The decline on the day was sparked by HCL Chief Executive C. Vijayakumar’s warning that revenue growth for the current financial year would be at the lower end of its guidance due to furloughs and a drop in spending in some sectors.

“The commentary raised doubts over the pace of recovery in I.T. space”, said Narendra Solanki, head of equity research (fundamental) at Anand Rathi Shares & Stock Brokers.

The top losers in the Nifty 50 were IT stocks. Analysts said investors would also remain cautious ahead of key announcements on the closely-watched U.S. consumer price inflation data and the Federal Reserve’s monetary policy decision next week.

Earlier, the markets had opened higher as crude prices hovered near one-year lows and on hopes of a global demand revival due to China’s easing of strict COVID-19 restrictions.

But the mood quickly soured after HCL’s warning, which weighed on almost all sectors. The PSU bank index snapped a six-day rally, losing over 2.5 percent.

Paytm was the rare bright spot, jumping 7.16 percent after saying it would consider a share buyback proposal.

Also Read: HCL Tech collaborates with Intel, Mavenir to provide 5G enterprise tech solutions

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Coronavirus impact: IRCTC share price falls by half in one month after rising 500% in four

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The IRCTC stock, which was headed towards the Rs 2000-mark, has taken a U-turn and lost more than half its value amid the ongoing coronavirus-induced market selloff and the simultaneous lockdowns across the nation in a bid to contain the contagion.

IRCTC’s stock price has over lost half its value and is down nearly 55 percent from its 52-week high of Rs 1,995 that it hit on February 25, 2020.

The stock is currently trading at about Rs 900 on the BSE. The share price had rallied over 520 percent from its issue price of Rs 320 in just four months of listing.

IRCTC’s market cap has declined to Rs 14,458 crore, over half of Rs 31,200 crore, the firm’s peak in February. The stock has lost 48 percent of its value in March alone.

Indian Railways has cancelled all passenger trains until March 31 in order to prevent further spread of coronavirus. Passenger trains, mail/express trains, premium trains, suburban trains, Kolkata metro, Konkan railways etc. stand cancelled until the end of March.

“No train except goods train will be run up to 2400 hrs of 31.03.2020. However, bare minimum suburban services and Kolkata metro Rail service will continue to run till 2400 hrs on 22.03.2020. Thereafter, these services will also be stopped till 2400 hrs of 31.03.2020,” a Railways spokesperson said Sunday.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indian stocks have the lowest dividend yield in Asia

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian stocks are the least attractive in terms of dividend returns in Asia, Refinitiv data shows, which could prompt some investors to shy away from the country’s equity markets.

India’s large and mid-cap stocks‘ forward dividend yield ratio stood at 1.7% on Tuesday, the lowest in Asia, according to the data.

Australian stocks led the dividend yields in the region with a ratio of 4.68%, followed by Singapore’s 4.25%. Asia‘s average ratio was 2.7%.

India’s NSE index was up nearly 5% this year as of Monday’s close, behind the MSCI Asia-ex-Japan index’s rise of 6.7%.

Foreign investors have shunned Indian stocks over the past few months as the economy has shown signs of weakening due to falling demand for consumer goods, such as automobiles, and lower government spending.

Over the past three months, foreigners have sold $3.2 billion worth of Indian stocks, data from the stock exchange showed.

Indian firms are offering lower dividends at a time when global investors are scouring markets for higher yielding assets, with most of the developed world bond markets offering lower or negative returns.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Good time for bargain hunting in India, says Geoffrey Dennis

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Geoffrey Dennis, an emerging markets commentator, spoke to CNBC-TV18 about the impact of European Central Bank’s (ECB) quantitative easing (QE) and the likely interim deal between China and the US on markets.

“The decisions are positive for emerging markets … ECB’s action to ease monetary policy is positive for global equities,” Dennis said on Friday.

On India stocks, Dennis said, “India is underperforming its peers due to concerns around growth outlook. Investors are sceptic about India’s growth numbers.”

According to Dennis, there will be a recession in the US economy around 2020 leading to the downside in equities.

Dennis believes that it is a good time for bargain hunting in India.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Auto and metal sectors stand out from a valuation perspective, says V Srivatsa of UTI MF

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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V Srivatsa, EVP & fund manager at UTI Mutual Fund, shared his views on the fundamentals of the market and shared outlook on specific stocks and sectors.

Speaking about the market sentiment, Srivatsa said, “At the current level, whatever negative news that we have seen or sentiments we have seen in the last six months, either in terms of the macro or even in terms of the corporate earnings, my guess is a lot of it is already priced into the stocks. If you look at the last one year, both the Nifty and the midcap indexes have given negative returns. I think a large part of the pain is behind us. So, we may still have 2-3 months or maybe maximum one or two quarter of pain or negative news flow on the macro and the micro side, but a large part of the pain is already reflected in the stock prices.”

On the valuations, he said, “On an FY20 basis, there has been a kind of a decent cut in the earnings, largely because the pain has been felt in the consumption space. However, going forward if I roll forward to FY21 and expect the demand to rebound, we can have a very healthy earnings growth in FY21 and the markets are probably not pricing in that. So from that perspective, I am quite positive on the market right now.”

“From a valuation perspective, two sectors really standout which I would be looking at. One is the automobile where we have seen a huge amount of price correction over the last 18 months. While the headline valuations even on FY20 or maybe on FY21 may look expensive, but clearly the analysts or the market has not factored in the kind of growth that can happen if there is a revival in the overall demand,” he added.

Srivatsa is also bullish on the metal sector. “While metals have seen a huge amount of slowdown in the last 3-6 months because of prices, but historically if I look at the last 10-15 years, they have clearly bottomed out at a price-to-book of 0.5-0.7 and also when the underlying metal prices are at a 12 month or a 15 month low. So, if you look at FY13, FY16, or even FY09, whenever the metal prices have reached such levels, I think very good returns have been made by investors,” he said.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Chris Wood says will wait for ‘evidence’ of a pickup in activity in the Indian economy

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Christopher Wood, global head of Equity Strategy at Jefferies, in his weekly note ‘GREED & fear’ said that although the recent measures announced by the Modi government to revive the economy and the stock market are a positive, he will wait to witness a pickup in the activity.

“While these measures are a positive, GREED & fear will continue to wait for evidence of a pickup in activity,” said Wood in his note. He noted that foreign net selling has continued since the announcement of the package.

In August alone, foreign institutional investors (FIIs) sold Indian shares worth $2.19 billion, their biggest sell-off in 10 months since October 2018, as per provisional data. Despite the announcement of measures, FIIs remained net sellers, selling Indian shares worth $421.82 million in three days — from August 26 to August 29.

On  August 23, Friday, finance minister Nirmala Sitharaman announced a number of measures to spur growth. Among the key highlights of her announcements was the withdrawal of the enhanced surcharge on gains by FPIs and domestic investors.

In July, since the enhanced surcharge was announced in her budget, the Indian equity markets bled as FPIs turned net sellers, withdrawing Rs 12,419 crore from the market.

Among other important announcements that Sitharaman made on Friday were the release of Rs 70,000 crore to recapitalise the public-sector banks, no angel tax on start-ups registered with DPIIT (Department of Industrial Policy and Promotion), and others.

Additionally, the Reserve Bank of India (RBI) on Monday approved a transfer of Rs 1.76 lakh crores surplus to the government as dividend, the highest ever dividend doled out by the central bank in its history.

Most analysts believe the funds will mainly be used to offset weak tax collections, but risks of a fiscal slippage remain.

In his note last week, Wood had said that the surprise move by the government to change the constitutional status of Jammu and Kashmir has added an additional negative for the markets as it is assuming the security situation will now remain significantly worse.

It will reduce the Indian ‘overweight’ by a further one percentage point and add to Indonesia ‘overweight’ where the investment case looks much more straightforward, most particularly on a relative basis, he had said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow