Tag: stock markets

Asian shares fall on global rate scare, yen plumbs 34-year low

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

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Asian shares tracked Wall Street lower on Thursday (April 11) as sticky US inflation forced markets to slash bets on how much Federal Reserve easing might come this year, a result that sent the dollar flying to a 34-year high against the beleaguered yen.

US stock futures lost another 0.2% after Wall Street slid around 1% overnight, while regional bonds took a kicking following a 20-basis-point jump in Treasury yields overnight to their highest since November.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7%. Japan’s Nikkei dropped 0.8%.

China’s blue chips eased 0.4%, and Hong Kong’s Hang Seng index fell 1.1%, after data showed consumer prices in the world’s second-largest economy rose by a muted 0.1% in March, missing expectations.

Data overnight showed US inflation in March once again came in hotter than expected, decimating the chance of a rate cut in June. Core CPI advanced 0.4%, above forecasts of a 0.3% rise.

”This marks the third consecutive strong reading and means that the stalled disinflationary narrative can no longer be called a blip,” said Seema Shah, chief global strategist at Principal Asset Management.

”In fact, even if inflation were to cool next month to a more comfortable reading, there is likely sufficient caution within the Fed now to mean that a July cut may also be a stretch, by which point the US election will begin to intrude with Fed decision making.”

Fed minutes out overnight also showed that officials had begun worrying that inflation progress might have stalled before the March inflation data, with some raising the possibility that the current policy rate was not restrictive enough.

Investors, who had been hanging onto the expectation of a June cut, now see September as the most likely timing for the easing cycle to start.

The total easing expected this year fell to just 42 basis points, lower than the Fed’s own projection of 75 basis points. The chance of Fed not cutting at all this year rose to 13%, from 2.1% a day earlier, according to CME FedWatch.

Investors now await the US producer price data and the European Central Bank policy meeting later in the day. The ECB is all but certain to keep borrowing costs at a record high but the focus is on whether officials would back a rate cut in June.

Bank of Canada kept its interest rate unchanged overnight, and the bank governor said a cut in June was possible if a recent cooling trend in inflation is sustained.

In currencies, the dollar was buoyant at a five-month high against its major peers at 105.17, having surged 1.1% overnight, the biggest daily jump in more than a year.

The greenback also hit a 34-year high of 153.24 yen overnight, before easing 0.2% on Thursday to 152.86 yen as the risk of government intervention looms large now that the Japanese currency has weakened past the 152 level.

Japan’s top currency diplomat, Masato Kanda, warned on Thursday that authorities would not rule out any steps to respond to disorderly exchange-rate moves.

Asian bonds extended their heavy sell-off in Treasuries. The 10-year Australian government bond yield jumped 13 basis points to 4.243%, highest since mid-February, while the 10-year Japanese bond yield rose 4 bps to 0.83%, highest since early November.

US Treasuries, meanwhile, steadied on Thursday. The benchmark ten-year yield was flat at 4.5395%, having surged 18 bps overnight, and the two-year yield held at 4.9604%, after a rise of 22 bps the previous session.

In commodities, oil managed to hold gains after advancing more than 1% following an Israeli strike that killed three sons of a Hamas leader, fuelling worries that ceasefire talks might stall. [O/R]

Brent rose 0.1% to $90.62 a barrel, and U.S. crude was 0.1% higher at $86.35 per barrel.

Gold prices gained 0.3% to $2,338.79 per ounce, having lost 0.8% overnight in the face of a strong US dollar.

ALSO READ | Stock markets to remain closed today for Ramadan Eid

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

Asia shares pause ahead of inflation feast

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

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Asian shares were taking a breather near seven-month highs on Monday as investors awaited inflation data from the United States, Japan and Europe that will help refine expectations for future rate moves.

The Federal Reserve’s favoured measure of inflation – the core personal consumption expenditures (PCE) price index – is due on Thursday and forecasts are for a rise of 0.4%.

It was not long ago investors were hoping for just a 0.2% increase but high readings on consumer and producer prices suggest the risk is for a result as high as 0.5%.

Markets have already pushed out the likely timing of a first Fed easing from May to June, which is currently priced at around a 70% probability. Futures imply a little more than three quarter-point cuts this year, compared to five at the start of the month.

There are at least 10 Fed speakers on the docket this week, and are likely to repeat their mantra of staying cautious on rates. The ISM manufacturing survey is due on Friday, as are PMIs for China.

Despite the hawkish shift, Wall Street still managed to make new highs helped by huge gains for AI diva Nvidia, which added $277 billion in market value last week.

”This may be a catalyst not only for the Street to get materially more bullish on U.S. Equities but also to see a further decoupling of stocks and yields since the Mag7 are proving to deliver on earnings expectations irrespective of the interest rate environment,” wrote analysts at JPMorgan in a note.

Early Monday, S&P 500 futures and Nasdaq futures were both trading 0.1% lower.

MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed, having climbed 1.7% last week to seven-month highs.

The gains were thanks in large part to a rally in Chinese stocks, which have jumped almost 10% in as many sessions on hopes for more aggressive stimulus.

Japan’s Nikkei rose 0.5%, having climbed 1.6% last week to clear its previous record high as bulls look to test the 40,000 barrier.

INFLATION, ALL THE TIME

Figures on Japanese consumer prices are due out on Tuesday and are forecast to show core inflation slowed to 1.8% in January, the lowest since March 2022.

A soft result would add to the case against a tightening from the Bank of Japan, though policy makers seem to be counting on rising wages to justify putting an end to negative rates in either March or April.

Figures on inflation in the European Union are due on Friday, with the core again seen slowing to the lowest since early 2022 at 2.9% and bringing nearer the day when the European Central Bank might ease policy.

Markets are almost fully priced for a first cut in June, with April seen as a 36% chance.

The head of the ECB Christine Lagarde speaks later on Monday, as does the chief economist of the Bank of England.

Incidentally, the Reserve Bank of New Zealand (RBNZ) holds its first policy meeting of the year on Wednesday and there is some chance it might actually hike rates given stubborn inflation, even though the country likely slipped into recession in the fourth quarter.

The shift in Fed pricing saw Treasury yields hit a three month high last week, though bonds did managed to rally on Friday. The market faces a tough test later in the session when Treasury sells $127 billion of two- and five-year notes, with another $42 billion in seven-year paper due on Tuesday. [US/]

There is also a risk some U.S. government agencies could be shut down if Congress cannot agree on a borrowing extension by Friday.

In currency markets, higher bond yields globally have been a burden for the yen which hit multi-month lows on the euro, and a nine-year trough on the Australian and New Zealand dollars.

Early Monday, the euro sat at 162.80 yen, just off its peak of 163.45, while the dollar held at 150.50 yen and just short of its top of 150.88. [USD/]

The single currency was steady at $1.0820, having briefly been as high as $1.0889 last week.

In commodity markets, gold was a fraction softer at $2,034 an ounce, having rallied 1.4% last week.

Oil prices have drifted lower as concerns about demand, particularly from China, have outweighed risks to supply from the Middle East. [O/R]

Brent dipped 11 cents to $81.51 a barrel, while U.S. crude fell 3 cents to $76.46 per barrel.

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

Budget 2024: India’s economic review highlights UPI growth, Aadhaar integration and demat surge

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

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As India anticipates the upcoming interim budget on February 1, a review of the country’s economic landscape over the last decade revealed key achievements and milestones. According to the Finance Ministry’s assessment, Unified Payments Interface (UPI) transactions have surged from ₹0.07 lakh crore in FY17 to ₹143.4 lakh crore in FY24 (April-December 2023).

The government further lauded Aadhaar initiatives in its 10-year report card on the Indian economy.

‘The Indian Economy: A Review’ report further stated that the Aadhaar has been recognised for providing a digital identity to every Indian, addressing the historical gaps in formal identification and banking access.

On PM Jan Dhan Yojana, the report said India has increased the proportion of women having a bank account that they themselves use, from 53% in 2015-16 to 78.6% in 2019-21.

Pradhan Mantri Jan Dhan Yojana (PMJDY) is a national mission for financial inclusion to ensure access to financial services, namely, banking/savings and deposit accounts, remittance, credit, insurance, pension in an affordable manner.

On demat accounts, the Finance Ministry said they have increased to 13.9 crore at the end of December 2023 marking an explosive 536% growth from the total number of accounts as at the end of March 2014.

The report stressed on Digital Public Infrastructure (DPI) as a transformative force reshaping the authentication landscape.

The DPI’s impact is exemplified by reduction in the cost of e-KYC from ₹1,000 to ₹5.

This, in turn, has facilitated seamless online, paperless, and cashless digital access to a wide array of public and private services, the economic review said.

Turning to the stock markets, the Finance Ministry asserted that India has now ascended to the position of the world’s fourth-largest stock market by market capitalisation, surpassing even Hong Kong.

This accomplishment is attributed to heightened interest from both domestic and global investors, supported by sustained initial public offering (IPO) activity.

The review also underscored the influence of internet connectivity, smartphone adoption and urbanisation.

A particular highlight from the report is the Open Network for Digital Commerce (ONDC). The review lauded ONDC for its role in opening global markets for even the smallest businesses.

In the realm of fintech, the report added that India has solidified its standing as the world’s third-largest economy, following the USA and the UK.

Notably, companies undergoing the Insolvency and Bankruptcy Code (IBC) resolution process exhibit post-resolution improvements in their performance, according to the review.

The report concluded by highlighting the surge in retail investors participating in the cash market segment of the equity markets on the NSE, with a 3.8-fold increase between FY18 and FY22.

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

Marketbuzz Podcast with Vivek Iyer: GIFT Nifty indicates a slightly muted start for Indian markets today

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

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The New Year started off on a slightly softer note after heavy gains witnessed throughout 2023.

Yesterday, the US markets entered the negative territory, NASDAQ down over 1%, and in the red for four straight sessions.

Oil prices last evening rose on increasing worries. As far as the Red Sea is concerned, a lot of tankers continue to remain off the Red Sea route given the fact that there continues to be increased militant attacks.

Brent futures were higher by 3%, WTI futures too were high by 3.5% in the trading session.

The Indian markets yesterday ended in cuts for the second straight day. Nifty 50 however managed to hold on to the 21,500 level in trade. The broader market indices showed relative out performance in the trading session.

IT stocks and metal stocks continued to witness selling pressure through the day.

GIFT Nifty is indicating a slightly muted start. However, it is not showing the kind of weakness that would have been anticipated, given the weak equity handover that we got from global 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

Asia stocks track US losses as global rally stalls

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

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Shares in Asia fell Thursday after a global stock market rally stalled, even as the bond market edged higher on forecasts of lower interest rates.

Equities in Australia, Japan and South Korea declined and futures for Hong Kong benchmarks also showed losses, echoing selling pressure in New York that dragged the S&P 500 index 1.5% lower. The tech-heavy Nasdaq 100 fell by the same margin, erasing gains earlier in the session that initially pushed the gauge to an intra-day record. US futures were moderately higher in early Asian trading.

Traders pointed to relative strength readings for US stocks that had reached levels typically seen before a decline. Wall Street’s fear gauge — the VIX — had also traded near multi-year lows before snapping higher on Wednesday. A large zero-day options trade on the S&P 500 may have amplified the selling.

The declines produced the first drop in ten sessions for the MSCI All Country World Index of global equities after a streak that was fueled by Federal Reserve indications it will cut rates next year.

“It certainly looks like it has become very one-sided, and it is a scary world when everybody gets on one side of the boat,” Cameron Dawson, chief investment officer of Newedge Wealth, told Bloomberg Television. “The market is very extended, we do see it being very overbought. But we’re in this melt-up period and so oftentimes things can get even sillier before they really do have a pullback.”

Treasuries, meanwhile, powered ahead Wednesday after British 10-year notes led a global bond rally following data showing a slowdown in UK inflation. Australia and New Zealand notes tracked the moves in early trading, while Treasuries traded little changed Thursday at the Asian open.

Wednesday data showed US consumer confidence in December rose by the most since early 2021. Existing home sales edged higher in November, bouncing off of a 13-year low, while separate data showed mortgage rates fell to their lowest since June.

Toyota Slumps

Shares of Toyota Motor Corp shares slumped the most in more than 18 months Thursday as subsidiary Daihatsu Motor Co.’s offices were raided over a safety scandal and the automaker recalled 1 million cars in the US. The raid came after revelations that the carmaker and supplier manipulated the results of collision safety tests dating as far back as 1989, forcing it to halt all shipments.

In the US, Citigroup Inc. decided to exit the distressed-debt trading business, according to people briefed on the matter. Morgan Stanley, meanwhile, considered allocating a portion of its balance sheet to a new private credit fund, according to people with knowledge of the plans. FedEx Corp., a bellwether for the US economy, reported diminished profits, heightening concerns about a slump. The delivery company’s shares dropped 12% on Wednesday.

In commodities, oil fell almost 1% in early Asian trading to below $74 per barrel, erasing a small gain from the prior session. Gold steadied after falling Wednesday to trade close to $2,030 per ounce.

Meanwhile, Bitcoin is trading at the highest price in more than a week with the Securities and Exchange Commission facing a Jan. 10 deadline to reject or approve ETFs. The token rose as much as 4.2% to $44,294 on Wednesday and last traded at $45,000 in April 2021.

Investors will also be bracing for US gross domestic product data due later Thursday, and a busy Friday of releases that includes UK GDP, US consumer sentiment and so-called core personal-consumption expenditures price index — the Fed’s preferred inflation gauge.

Also Read: Is the Nifty poised for an extended correction?

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

Tata Asset Management’s Rahul Singh recommends sectors to invest now

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

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Rahul Singh, the Chief Investment Officer (CIO) at Tata Asset Management, recently shared valuable insights in an exclusive interview with CNBC-TV18.com, underscoring the critical role of strategic asset allocation for investors. Singh stressed the significance of maintaining a well-rounded portfolio and disclosed his positive outlook on specific sectors.

In the interview, Singh said that prioritising market timing is not advisable, emphasising the importance of a robust balance sheet in the current market context. He pointed out the favourable trajectory of valuations and advocated for a long-term perspective on India’s promising prospects in the coming three years.

Singh also advised investors to focus on establishing a solid asset allocation strategy rather than attempting to time market fluctuations. According to him, once investors have a well-defined asset allocation in place, there is no need to engage in market timing.

Market timing, as Singh explained, involves making investment decisions based on predictions about future market movements. Instead of trying to predict short-term market shifts, Singh’s counsel encourages investors to adopt a strategic approach. This involves crafting a balanced portfolio aligned with long-term financial goals and avoiding being swayed by short-term market volatility, which can be both unpredictable and risky.

Central to this approach is the crucial aspect of asset allocation, where the investment portfolio is distributed among various asset classes such as stocks, bonds, cash, real estate, and alternative investments. This diversification helps mitigate overall risk, as different asset classes perform differently under varying market conditions, contributing to a more balanced and resilient portfolio performance.

An ideal asset allocation

Portfolio asset allocation evolves with age and financial circumstances and may vary from person to person. However, it is said that in the 20s, a higher risk tolerance allows for a focus on equity stocks while balancing with stable investments. In the 30s, it’s best to consider equity and fixed-income assets, managing increased earning potential and debt.

By the 40s, gradually one can reduce high-risk investments, increase stable options, and focus on debt instruments. With approaching retirement in the 50s, investors can shift to capital preservation with reduced equity exposure and more fixed-income investments. Post-retirement in the 60s, investors should aim for capital protection through low-risk options like gold, real estate, deposits, and debt instruments to safeguard accumulated savings from market fluctuations.

Sectors to bet on

In the quest for suitable funds, Singh emphasised the criticality of evaluating the track record. Additionally, he expressed optimism towards cyclical sectors, specifically recommending banking, infrastructure, manufacturing, and capital goods due to their potential for positive surprises amid ongoing recovery.

Cyclical sectors are closely tied to economic cycles, often performing well during periods of economic expansion or recovery. Singh’s recommendation suggests that these sectors might see increased profitability or market performance due to ongoing economic recovery, making them potentially favourable areas for investment at that time.

The bottom line

Singh provided guidance on portfolio construction, suggesting investors consider a diversified approach with a mix of categories. “Decide on how many categories investors should have in the portfolio—maybe one hybrid, two flexi-cap, or even up to five categories,” he advised.

In closing, Singh cautioned against scattering mutual fund investments across multiple Asset Management Companies (AMCs), encouraging investors to consolidate their portfolios within a limited number of AMCs for better management and oversight.

A look at returns of some of the mutual funds

(Source: Moneycontrol)

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

Aditya Birla Sun Life AMC’s Mahesh Patil highlights influence of liquidity on stock prices

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

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Mahesh Patil, Chief Investment Officer at Aditya Birla Sun Life Asset Management Company (AMC) on Friday highlighted the influence of liquidity on stock prices. He pointed out that both domestic and foreign liquidity have played pivotal roles in propelling stock prices to new heights.

“This surge in capital has become a driving force behind the ongoing market momentum, catching the attention of investors worldwide,” Patil told CNBC-TV18.

Intriguingly, the midcap and small cap segments are making a significant comeback, fueled by growing investor confidence. Substantial inflows into these sectors signify a renewed interest in smaller companies, which could potentially lead to opportunities for investors.

Notably, equity mutual funds witnessed a net inflow of Rs 20,161 crore in August 2023. Among the various categories of mutual funds, the small-cap funds, once again, witnessed inflows at Rs 4,265 crore versus Rs 4,171 crore inflows in July 2023. The mid-cap funds saw an inflow of Rs 2,512 crore versus Rs 1,623 crore inflows month-on-month.

One of the standout trends is the growing participation of investors across various sectors. This diversified approach to investing reflects the evolving nature of the market rally, indicating that it’s no longer limited to a select few sectors.

Talking about other sectors, Patil expressed optimism regarding the real estate and pharmaceutical industry. These sectors are showing promising signs of growth, offering potential avenues for investors seeking stable and long-term returns.

Despite experiencing a slowdown, the IT sector seems to have weathered the storm and, in Mahesh Patil’s view, has bottomed out. This could signal a potential rebound in the near future. Patil further emphasised that investors are increasingly drawn to businesses with a long runway for growth, underlining the importance of sustainable growth prospects. Assessing the global scenario, he mentioned that the United States is experiencing fairly stable economic growth, with no imminent major shocks on the horizon, providing a sense of assurance to investors.

On the topic of interest rates, Patil expects them to remain at higher levels for an extended period, a factor that will have implications for various sectors.

From a long-term perspective, the consumer durables and retail sectors are emerging as promising areas for investment, offering stability and growth potential. Within the retail sector, companies specialising in apparel, footwear, and jewelry are particularly appealing for long-term investments, according to Patil’s analysis.

The power equipment sector, characterized as niche and relatively smaller in scale compared to other industries, occupies a unique position in the market landscape.

Mahesh Patil wrapped up by noting that banks had a robust performance in the previous year, partly due to strong Net Interest Margins (NIMs). He believes that banks still offer a favorable risk-reward profile, with the credit cycle behaving prudently.

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

SEBI may implement one-hour settlement of trades by March 2024, instantaneous settlement by Oct 2024

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

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The Securities and Exchange Board of India’s (SEBI’s) sources on Tuesday revealed plans to overhaul the settlement process in the Indian stock market, aimed at significantly reducing the time taken for trade settlements. As per the sources, SEBI is gearing up to implement an one-hour settlement of trades. This move, scheduled to come into effect by March 2024, is expected to expedite the settlement process, allowing investors to access their funds and securities within a mere one-hour timeframe after the trade execution.

SEBI is not stopping at one-hour settlements. The regulatory authority is also working towards achieving instantaneous settlement of trades, aiming for implementation by October 2024, sources informed CNBC-TV18.

If successful, this would mark a significant leap in efficiency and transparency within the Indian stock market, offering traders and investors real-time access to their assets.

In addition to expediting primary market transactions, SEBI is also looking to streamline secondary market operations. Sources suggest that SEBI is planning to implement an ASBA (Application Supported by Blocked Amount) model for the secondary market, similar to the process used in IPOs. This change is expected to be rolled out as early as January 2024, making secondary market investments more secure and efficient.

These proposed changes signify a major shift in the Indian stock market landscape, with an emphasis on reducing settlement times and enhancing investor convenience.

Investors must, however, note that these plans are based on information from SEBI sources and are subject to regulatory approvals and market readiness. Investors and market participants should stay tuned for official announcements and guidelines from SEBI as these changes progress towards implementation.

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

Trading in stock market: Key strategies you should follow

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

Listen to the Article (6 Minutes)

Trading in the stock market involves the buying and selling of shares or ownership stakes in publicly listed companies. These transactions occur on stock exchanges like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Traders aim to profit from the fluctuations in stock prices, capitalising on price movements to buy low and sell high, or even profit from falling prices by short selling.

Here are key strategies one should note before taking the trading journey (as compiled by Divyam Parashar, Founder and CEO of Upmarket Academy, a financial education academy):

Trade in Nifty100 stocks only

Only trade in Nifty 100 stocks as they are comparatively larger scrips with more volumes, less volatility and more stability as compared to the smaller scrips with lesser volumes.

Don’t carry overnight positions

This is especially true for are a new trader and or for those who don’t have any strong analysis behind the decision.

Trade where the institutions and mutual funds are

This means traders should basically go for the stocks in which Institutions and Big funds are invested. They are less likely to give huge momentum in small timeframe.

Don’t just follow the news

Don’t trade the stocks which are in news if you are a newbie as they have high sentiments attached to them and as the price moves these emotions of fear and greed keep on increasing, which in turn increases the volatility of the stock.

Analyse risk

A trader should make sure that they are only risking 2 percent of their capital on a single trade if they are intraday trader and/or 10 percent per trade if they are swing/positional trader. This may vary based on their trading style number of trades, risk per trade etc. They must make sure that they are following all risk management rules and are under the guidance of a successful trader or a mentor who guides them through their thick and thin.

Should you go for positional or intraday trading?

This depends on several factors, said Divyam Parashar, Founder and CEO of Upmarket Academy.

Capital

“If a person has a small capital (< Rs Llakh) then it is not possible for them to trade comfortably in futures (The instrument in which positional trades are mostly taken), where as if one has a large capital (>Rs 10 lakh) they can trade in whichever segment they want to, be it intraday or positional,” he said.

Risk appetite

A rich person with a large capital of Rs 10 lakh may not have the “Guts” or the appetite to digest a loss of Rs 20,000 comfortably without letting it affect their emotions and their trading patters or a retail trader with small capital might have the appetite to digest a risk of Rs 2,000 comfortably without affecting their trading and emotions, or vice verca, as per Parashar of Upmarket Academy.

Personality

It is important that the trader has some important personality traits like decision making, practical approach and control over emotions in order to become a good positional or intraday trader.

Schedule

If a person does not have time during the day to take intraday trades or has a job to go to or college to attend, Divyam Parashar, Founder and CEO of Upmarket Academy 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

US Fed interest rate decision, quarter earnings to drive markets this week: Analysts

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

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The US Fed interest rate decision and ongoing quarterly earnings from corporates are the major factors to drive the equity markets this week, where the benchmark indices may face volatile trends amid the scheduled monthly derivatives expiry, according to analysts. Besides, trends in global markets and the trading activity of foreign investors would also influence domestic equities.

”On July 26, the US Federal Reserve will announce its policy decision, and there is an expectation of a 25 basis point rate hike. Market participants will closely analyse the comments made during the announcement. Additionally, on July 28, the Bank of Japan will also reveal its policy decision,” Santosh Meena, Head of Research at Swastika Investmart Ltd, said. Companies like Tata Steel, Asian Paints, Axis Bank, Bajaj Finance, BPCL and Tech Mahindra will release their earnings throughout the week, Meena added.

Shares of Reliance Industries Ltd, India’s most valuable company, will be in focus on Monday after the company on Friday reported an 11 percent drop in its June quarter net profit on account of weakness in mainstay oil-to-chemical (O2C) business as well as higher finance and depreciation cost. ”The July F&O expiry on Thursday is likely to introduce some volatility into the market. Furthermore, market participants will keep a close eye on the ongoing monsoon session of Parliament. Institutional flows will be closely watched, as Foreign Institutional Investors (FIIs) have been significantly investing in Indian equity markets for the past three months,” Meena said.

The rupee movement against the US dollar and global oil benchmark Brent crude will also remain in focus this week. ”Investors will closely focus on the FOMC (Federal Open Market Committee) meeting. While a 25-basis point rate hike is widely expected, investors will be more interested in the committee’s commentary on future rate actions, seeking clues for the anticipated future rate pause,” Vinod Nair, Head of Research at Geojit Financial Services, said.

”Markets will take further cues from ongoing Q1 FY24 results, global market trends, crude oil prices and FII/DII (Domestic Institutional Investors) activities. ”Ongoing quarterly earnings season will be in focus, as many major companies will be announcing their quarterly numbers this week, such as Canara Bank, Tata Steel, Asian Paints, Bajaj Auto, L&T, Tata Motors, Axis Bank, BPCL, Tech Mahindra and Nestle,” Arvinder Singh Nanda, Senior Vice President of Master Capital Services Ltd, said.

Last week, the 30-share BSE Sensex jumped 623.36 points or 0.94 per cent. The benchmark hit its all-time high of 67,619.17 on July 20 (Thursday). ”We expect higher volatility this week due to the scheduled monthly expiry of July month derivatives contracts. However, the prevailing buoyancy on the global front, especially the US markets, would help in keeping the tone positive,” Ajit Mishra, SVP – Technical Research at Religare Broking Ltd, said.

A steady up move in the US markets combined with continued buying across sectors kept the tone positive for most of the last week, Mishra said, adding that a sharp cut in the IT majors trimmed the gains in the final session.

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

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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