Tag: Stock market

Phoenix Mills shares plunge 15% after CLSA downgrade

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

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Shares of Phoenix Mills Ltd fell almost 15 percent on Monday after the global rating agency CLSA downgraded the stock to ‘Underperform’ from ‘Buy’ with a target price of Rs 850 per share.

The stock plunged 14.93 percent to touch intraday low of Rs 639.25 per share as against the previous of Rs 751.50 on the BSE.

According to CLSA, the mall shutdown after the government order to limit the coronavirus spread could impact the company’s near-term earnings.

“Overhang on mall consumption due to shutdowns and footfall declined but we remained positive on the company’s long-term growth trajectory.”

At 1:05 pm, the stock was trading 7.47 percent lower at Rs 695.35 on the BSE.

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

Afternoon Session: Sensex, Nifty slump over 5%; investors look forward to RBI’s announcement

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

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Indian benchmark indices plunged over 5 percent in line with the global market sell-off on Monday after the emergency rate cut by the US Fed failed to soothe investors as coronavirus scare intensified. At 1:30 pm, the Sensex tanked 1,760.40 points or 5.16 percent to 32,343.08 while the Nifty declined 489.00 points or 4.91 percent to 9,466.20.

All the sectoral indices witnessed a sharp fall with Nifty Bank, Nifty Metal and Nifty Realty declining more than 6 percent each followed by Nifty Financial Services and Nifty IT falling over 4 percent each.

IndusInd Bank, Adani Ports & SEZ, JSW Steel, Vedanta and Tata Steel led the decline among Nifty constituents while Yes Bank and Bajaj Auto were the only to trade in the green among Nifty index.

Meanwhile, investors will keep an eye on any announcement from the Reserve Bank of India (RBI) Governor Shaktikanta Das later today after the market hours.

“See a strong possibility of an off-cycle rate cut as RBI might announce a 50 bps rate cut. RBI can announce further measures to improve the liquidity, while it may announce ease in interest rates on overnight & long-term rates,” said Ananth Narayan, Professor, SPJIMR.

Shares of cash-strapped lender YES Bank surged 58 percent on Monday after the government notified the plan for eight banks to carry out a Rs 10,000 crore bailout for the lender. Yes Bank has allotted 1,000 crore equity shares to seven private banks and the state-run State Bank of India for a total consideration of Rs 10,000 crore.

Shares of SBI Cards and Payment Services got listed at Rs 658 per share, at 12.85 percent discount as against the issue price of Rs 755 per share on the BSE. The stock, however, recovered most ground soon after listing. At 10:15 am, the shares recovered to trade at Rs 752.25, marginally lower than the issue price.

The shares of Phoenix Mills Ltd fell almost 15 percent after the global rating agency CLSA downgraded the stock to ‘Underperform’ from ‘Buy’ with a target price of Rs 850 per share. The stock plunged 14.93 percent to touch intraday low of Rs 639.95 per share as against the previous of Rs 751.15 on the BSE.

Globally, stock markets were routed and the dollar tumbled on Monday after the Federal Reserve slashed interest rates in an emergency move and its major peers offered cheap US dollars to ease a ruinous logjam in global lending markets.

Catch all the latest updates from the stock market here.

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

D-Street eyes relief as Wall St rebounds; US corporate debt market getting ugly

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

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Investors in Indian stock markets are hoping for a continuation of the relief rally on Saturday, following the spectacular rally on Wall Street on Friday. European stocks too rose on Friday, but gave up some of their gains towards the close, reflecting the cautious mood among investors.

Back home, market gurus are advising investors to start accumulating stocks, but nobody is sticking his or her neck out on whether the market is anywhere close to bottoming out.

Given the ferocity of the fall over the last couple of weeks and the general mood of panic globally, markets could swing wildly in the near future with occasional relief rallies.

A key thing to watch out for would be the developments in the $9-trillion US corporate debt market. CNBC.com’s finance editor Jeff Cox writes that interest rates on the lowest-rated companies have spiked and default rates could climb.

Marketwatch.com’s Sunny Oh writes quoting market experts many firms in industries like airlines and energy could go underwater due to travel restrictions and cities and states shut down sporting, cultural and entertainment events. The oil price war started by Saudi Arabia and Russia is further hurting many energy companies.

Some experts are predicting a 2008-like situation in the credit market if investors try to pull out money from bond funds invested in corporate debt.

If that happens, it could have a cascading effect on other segments of the financial markets as well as fund managers incurring losses in bond funds would sell other holdings to raise cash.

Simon Powell of Jefferies is bearish on global equity markets and feels there is still some downside left. He told CNBC-TV18 that the Coronavirus pandemic has hit at a time when global markets were both overvalued and over-leveraged. He expects consumption to take a big hit given weak sentiment world, and that the global economy could be headed for recession.

Morgan Stanley’s Ridham Desai opines that sentiment has gone below the lows of 2008 and valuations are their lows of 2008. He is advising investors with a 12-month view to start buying stocks though it is hard to say if the sell-off in the market is almost done with. He says that price to book is a more reliable valuation parameter in these times as the earnings outlook is highly uncertain.

Mark Mobius of Mobius Capital Partner too feels it is a good time to be accumulating stocks as valuations have become attractive. He told CNBC-TV18 that in times of panic like these, the recovery too is usually very fast.

Despite attractive valuations, investors may not be in a hurry to buy. For one, most of them would have suffered significant losses over the last few weeks, and may lack the confidence to invest meaningful sums.

Positions of many HNIs are said to have been squared up on Friday as they were unable to put up the additional margins resulting from the steep erosion in stock prices.

Already, participation from high net worth individuals and retail investors in equities has been quite tepid of late, brokers say. Much of the retail money coming into the stock market is through the mutual fund route. This is unlike during the times of previous such crashes in 2001 and 2008 when many retail investors were directly investing in the stock market.

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

As Sensex swings nearly 5,000 points in a day, 10 dividend stocks that could offer sense of stability

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

Listen to the Article (6 Minutes)

Domestic stock markets staged their biggest recovery on Friday after a 10 percent crash in the main indices. The recent market crash has been triggered by fears of the economic impact of the coronavirus pandemic, which has caused mayhem in global risky assets. Analysts have maintained that it would be difficult to predict where the market will find its bottom.

Given the market rout, investors can look for the shares of the companies whose dividends are due or have announced buyback.

Shares of Sun Pharmaceutical Industries rose 10 percent intraday on Friday after the company said it would consider buyback of shares. The board of the pharma major is to meet on March 17 to consider a proposal for buyback of fully paid-up shares of the company.

Here’s the list of stocks which turns ex-date in the coming days:

AIA Engineering Ltd

Dividend amount: Rs 27

Ex-date: March 17

Godfrey Phillips India

Interim dividend amount: Rs 24

Ex-date: March 17

Sasken Technologies Ltd

Interim dividend amount: Rs 35

Ex-date: March 17

Sundaram Clayton

Special dividend amount: Rs 31

Ex-date: March 17

TVS Srichakra

Interim dividend amount: Rs 20.10

Ex-date: March 17

Banco Products (India)

Interim dividend amount: Rs 20

Ex-date: March 18

Savita Oil Technologies

Interim dividend amount: Rs 20

Ex-date: March 18

Torrent Pharmaceuticals

Special dividend amount: Rs 15

Ex-date: March 18

Granules India

Buyback of shares on March 19

ACC

Dividend amount: Rs 14

Ex-date: March 27

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

Nifty futures trading at discount: How large investors make riskless profits from such situations

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

Listen to the Article (6 Minutes)

The Nifty March futures on Friday were quoting at nearly a 200-point discount, before the discount reduced to 80 points as the market rebounded a bit. Typically, futures always quote at a premium to spot, to reflect the cost of carrying forward the position.

CNBC-TV18 analysts Nigel D’Souza and Mangalam Maloo explain this situation as well as the broad foreign institutional investor activity in the futures and options market.

Q: Why are Nifty futures quoting at a discount to spot?

There are two reasons for this.

a) Heavy selling by foreign investors

FIIs have been heavily short selling the index futures. In terms of their portfolio mix, it has been an 80:20 ratio in favour of short positions. Unless the sale position is a hedge against shares sold in the cash market, selling of index futures reflects a bearish outlook on the market.

When the selling is ferocious, like has been the case over the last few days, the number of buyers reduce. This sometimes causes the futures price to quote at a discount to spot.

b) Dividend

It’s the end of the year, and usually many Nifty companies pay out dividends to shareholders on a half yearly or on a yearly basis. Just like stocks go ex-dividend after the dividend date, future prices reflect the ex-dividend price even before the dividend date. Till the time the stock goes ex-dividend, it may seem as though the futures are quoting at a discount.

Q: Is there anyway I can do an arbitrage trade on this?

Technically yes, but only the big institutional investors can do this because you will need sophisticated software for that. The regular cash-futures arbitrage is to sell the futures and buy the spot, since futures mostly trade at a premium to spot. On expiry day when the prices converge, the trader reverses both legs of the trade. When the futures are at a discount, you can do reverse arbitrage, as in you can buy the spot and sell the futures.

This is not so complicated if you are dealing in single stock futures. But when you are doing a reverse arbitrage in Nifty, you will need to sell a basket of Nifty stocks and buy the futures that are quoting at a discount. Also, the difference between the spot and futures prices should be wide enough to be able to make a decent profit net of transaction costs.

If you have a basket of Nifty stocks, you could do the trade easily. Most large institutions do have an inventory of index stocks. An individual trader will have to create a basket by buying the stocks if he does not already have them. There is a cost to buying and then selling the stocks. Alternately, he can borrow the stocks through the Stock Lending and Borrowing Mechanism. But the borrowing cost should be reasonable enough to make a profit.

Q: What is the overall FII trend in the F&O market?

They have been selling index futures quite aggressively. Also, they are buying more of put options (which give them a right to sell) than call options (which gives them the right to buy). This indicates a bearish outlook on the market.

Q: Do the huge FII short positions point to a further slide in the market?

Not necessarily. That is because at some point, the FIIs will have to cover up their positions. And they will not need hard cash to do that, unlike in the cash market, where you need to put up money to buy shares. When FIIs move in to cover their short positions, market could rally. By how much and for how long is anybody’s guess.

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

IndusInd Bank plunges over 29% amid heavy sell-off; CEO denies reports of Yes Bank investment

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

Listen to the Article (6 Minutes)

Shares of IndusInd Bank plunged more than 29 percent on Friday amid heavy selling in the markets and rumors over its investments in the beleaguered Yes Bank and its financial health.

The stock hit 52-week low of Rs 552.05 after slumping 29.68 percent on the BSE.

At 11:05 am, shares of IndusInd Bank traded 7 percent lower at Rs 727.50 on the BSE after the markets saw a sharp recovery post reopening after a lower circuit was hit in early trade.

IndusInd Bank shares have fallen about 70 percent from a 52-week high of Rs 1,834 per share.

A massive sell-off in equities all over have also pressurized the stock. On Friday, the Nifty50 index hit the lower circuit, down 10 percent within 8 minutes of trading. Trading was then halted for 45 minutes.

On Thursday, Romesh Sobti, CEO IndusInd Bank wrote to customers saying that the rumors about the health of the bank were unfounded and that IndusInd “remains focussed on building scale with profitability, on a platform of strong capitalization/liquidity and high credit ratings.”

In his letter to customers, Sobti remarked that IndusInd remains healthy. He also denied rumors that IndusInd was considering investing in Yes Bank.

Sobti said that the bank ranked in the top 3 in terms of the metrics for revenue growth, deposit growth, net interest margin, pre-provision profitability while its has stable loan book quality with second-lowest Gross NPA percentage.

Earlier, the private lender had canceled its plans to raise debt through a sale of bonds, citing current market conditions.

Catch all the latest updates from the stock market here.

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

Top stock recommendations by Ashwani Gujral, Rajat Bose, Mitessh Thakkar for Friday

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

Listen to the Article (6 Minutes)

Hammered by the brutal sell-off in the equity markets globally, Indian benchmark indices plunged more than 8 percent on Thursday, posting their biggest single-day fall in absolute terms for the second time in three sessions. The S&P BSE Sensex ended 2,919.26 points 8.18 percent lower at 32,778.14 while the Nifty tanked 868.25 points or 8.30 percent to close at 9,590.15.

For Friday, market guru Ashwani Gujral is bullish on Asian Paints, Colgate Palmolive, JSW Steel, TCS, and Jubilant FoodWorks. Mitessh Thakkar is positive on DLF and negative on Bharat Forge, Britannia, and Lupin. Rajat Bose has ‘buy’ calls on ConCor, Havells, ITC, and ‘sell’ call on Glenmark Pharma.

Here are the top buy-sell calls by market experts for Friday:

Ashwani Gujral – ashwanigujral.com

– Buy Asian Paints with a stop loss of Rs 1,800, target at Rs 1,920

– Buy Colgate Palmolive with a stop loss of Rs 1,200, target at Rs 1,255

– Buy JSW Steel with a stop loss of Rs 190, target at Rs 215

– Buy TCS with a stop loss of Rs 1,700, target at Rs 1,850

– Buy Jubilant FoodWorks with a stop loss of Rs 1,450, target at Rs 1,540

Mitessh Thakkar – mitesshthakkar.com

– Sell Bharat Forge with a stop loss of Rs 376, target at Rs 350

– Sell Britannia with a stop loss of Rs 2,840, target at Rs 2,720

– Sell Lupin with a stop loss of Rs 603, target at Rs 570

– Buy DLF with a stop loss of Rs 146.5, target at Rs 157

Rajat Bose – rajatkbose.com

– Buy ConCor with a stop loss below Rs 335, targets at Rs 405 and Rs 436

– Sell Glenmark Pharma with a stop loss above Rs 207, target at Rs 185

– Buy Havells with a stop loss below Rs 550, targets at Rs 607 and Rs 618

– Buy ITC with a stop loss below Rs 140, targets at Rs 169 and Rs 175

Also, track all live market action on CNBC-TV18 Market Blog

Disclaimer: 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