Tag: Stock market

FPIs dump Indian equities worth Rs 6,300 crore in April, here’s why

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

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Foreign investors pulled out domestic equities worth ₹6,300 crore in April on concerns over tweaks in India’s tax treaty with Mauritius and sustained rise in US bond yields.

This came following a whopping net investment of ₹35,098 crore in March and Rs 1,539 crore in February, data with the depositories showed.

Foreign Portfolio Investors (FPIs) made a net outflow of ₹6,304 crore in Indian equities this month (till April 26), the data showed.

“The trigger for this renewed FPI selling, in both equity and debt, is sustained rise in US bond yields. The 10-year bond yield now stands at around 4.7%, which is hugely attractive for foreign investors,” VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said.

While the tweak in India’s tax treaty with Mauritius on investments made in India via the island nation continues to bother foreign investors, weak cues from the global markets with uncertain macro and interest rate outlook did not augur well for emerging market equities, Himanshu Srivastava, Associate Director – Manager Research, Morningstar Investment Research India, said.

Additionally, a surge in commodity prices, especially oil and higher US retail inflation dashed hopes of an early rate cut by the US Fed thereby triggering a surge in the US 10-year yield. This would have possibly prompted foreign investors to adopt a wait and watch approach, he added.

The positive factor is that all FPI selling in the equity markets is getting absorbed by domestic institutional investors (DIIs), HNIs (High Networth Individuals) and retail investors. This is the only factor that may reign in FPI selling.

Apart from equities, FPIs withdrew ₹10,640 crore from the debt market during the period under review.

Before this, foreign investors invested ₹13,602 crore in March, ₹22,419 crore in February, ₹19,836 crore in January. This inflow was driven by the upcoming inclusion of Indian government bonds in the JP Morgan Index.

JP Morgan Chase & Co. in September 2023 announced that it will add Indian government bonds to its benchmark emerging market index from June 2024.

This landmark inclusion is anticipated to benefit India by attracting around USD 20-40 billion in the subsequent 18 to 24 months.

Overall, the total inflow for this year so far stood at ₹4,590 crore in equities and ₹45,218 crore in the debt market.

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

Market valuation of six most valued firms rises ₹1.30 lakh crore

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

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The combined market valuation of six of the top-10 most valued firms increased ₹1,30,734.57 crore last week, with State Bank of India and ICICI Bank emerging as the biggest gainers in line with an overall positive trend in equities.

Last week, the BSE benchmark advanced 641.83 points or 0.87%.

The valuation of the State Bank of India rallied ₹45,158.54 crore to ₹7,15,218.40 crore.

ICICI Bank’s market valuation rose ₹28,726.33 crore to ₹7,77,750.22 crore.

Bharti Airtel added ₹20,747.99 crore to ₹7,51,406.35 crore, and that of ITC jumped ₹18,914.35 crore to ₹5,49,265.32 crore.

The market capitalisation (mcap) of Life Insurance Corporation of India (LIC) advanced by ₹9,487.5 crore to ₹6,24,941.40 crore, and that of Infosys went up by ₹7,699.86 crore to ₹5,93,636.31 crore.

However, the mcap of Reliance Industries declined by ₹26,115.56 crore to ₹19,64,079.96 crore.

The valuation of HDFC Bank dipped by ₹16,371.34 crore to ₹11,46,943.59 crore.

The mcap of Tata Consultancy Services went lower by ₹5,282.41 crore to ₹13,79,522.50 crore, and that of Hindustan Unilever Limited diminished by ₹2,525.81 crore to ₹5,21,961.70 crore.

Reliance Industries remained the most valued firm from the top-10 pack, followed by Tata Consultancy Services, HDFC Bank, ICICI Bank, Bharti Airtel, State Bank of India, LIC, Infosys, ITC and Hindustan Unilever.

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

Secret to succeed in stock market — Ambit Group CEO Ashok Wadhwa reveals key factors

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

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Ambit Group CEO Ashok Wadhwa believes that best in class management and good governance in the long run will bring huge success for companies in the future.

In an interview with CNBC-TV18, Wadhwa spoke about the current trend in the Indian markets and how the companies should address the demand from investors for participation in a particular stock.

“Access to capital has been overemphasised. I believe, best in class governance and best in class management will have unlimited access to capital. We should put more emphasis on governance and management. If you follow these two philosophies, long term good governance and good management, I think it’s recipe for a huge success,” Wadhwa said.

He cited the success of icons such as Deepak Parekh and Uday Kotak in building world class financial institutions and how the path shown by them could lead to success.

Ashok Wadhwa on world-class board members, governance and management going miles in the business industry! Check out the full episode of #MarketCafe with @SurabhiUpadhyay, on CNBCTV-18’s YouTube handle, and unlock secrets to succeed in the stock-market! pic.twitter.com/6WdBo70niX

— CNBC-TV18 (@CNBCTV18News) April 26, 2024

“I saw Uday Kotak who started with an NBFC and built a world class banking institution. What we have learnt from Uday Kotak is that it does not matter whether it’s a professionally run company or promoter led company; what is important is governance by inducting best in class board members, truly independent board members, and best in class management.”

Sharing his views on current market trends in an exclusive interview with CNBC-TV18, Wadhwa said that the Indian markets are getting into a new level of maturity. “A mature market creates an environment for private equity to be able to recycle their capital, because their ability to exit is really the basis for them to make larger investments,” he said.

“I think the Indian market today offering these private equity funds an opportunity to exit augers extremely well for access to larger pools of capital for Indian entrepreneurs going forward,” he added.

Wadhwa said that if the market is currently providing such a liquidity opportunity, it signifies positive prospects for the Indian market, private equity investors and the future of private equity investments in the country.

“There are many more retail investors wanting to participate in a particular stock. I think it is incumbent upon the promoter to provide that liquidity so that there is greater activity in the stock of the company. So, I think it’s a very healthy situation. I wouldn’t worry about it or read anything beyond the fact that this is the Indian market getting to a new level of maturity,” he added.

“As far as promoters are concerned, many or some of them do it because they need to create more liquidity in the market. Everybody wants to see if there is a larger pool of capital available,” the Ambit Group CEO explained.

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

Chinese stocks draw record $3 billion influx by global funds

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

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Sentiment has clearly turned for the better toward Chinese equities with overseas investors purchasing a record amount of onshore shares Friday.

Traders added 22.4 billion yuan ($3.1 billion) of mainland stocks on a net basis using the links with Hong Kong, topping the previous high of 21.7 billion yuan in mid-2021. C

hinese shares are set to see a third straight month of inflows in April, suggesting the exodus from the market has likely passed.

The flows helped drive gains in the benchmark CSI 300 Index, which joined a rally in Hong Kong peers to advance 1.5% for the day. Turnover also topped the 1 trillion yuan mark. This bullish signs ratify a growing view that some global funds are unwinding crowded trades in US tech and elsewhere to dip back into China’s battered stocks.

Also Read: Why copper is now more attractive than diamond

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

Tech reverses US stock losses, Bank of Japan in focus

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

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Stellar earnings reports from Microsoft Corp. and Alphabet Inc triggered an after-hours tech rally that sent US futures higher. Japan’s stocks were rangebound before a monetary policy decision.

Futures contracts for the S&P 500 rallied 0.8% in early Asian trading, while those for the Nasdaq 100 rose more than 1%. The moves unwound Thursday’s losses of around 0.5% for each benchmark and came after Microsoft and Alphabet both beat Wall Street profit estimates. Snap Inc. also rallied in late trading on a bullish revenue projection.

Japanese stocks were mixed in opening trade on Friday, while South Korean shares rose. Australian shares retreated, weighed down by BHP Group Ltd., which declined following news of its takeover bid for Anglo American Plc. Futures contracts in Hong Kong also fell.

The yen was little changed before a Bank of Japan interest-rate decision and a Jiji report said authorities will consider measures to shrink government bond purchases at the Friday meeting. Policymakers are forecast to leave rates unchanged after the yen slid to the lowest level against the dollar since 1990 this week.

Treasuries opened little changed following further losses on Thursday when the latest US data pushed back expectations for Federal Reserve interest-rate cuts. Australian 10-year yields rose more than 10 basis points, while New Zealand’s equivalent benchmark yield climbed around seven basis points.’

The US core PCE price index advanced at a faster-than-expected 3.7% clip. The print combined with a US gross domestic product data that trailed all forecasts to rekindle the specter of stagflation.

“This report was the worst of both worlds: economic growth is slowing and inflationary pressures are persisting,” said Chris Zaccarelli at Independent Advisor Alliance. “The Fed wants to see inflation start coming down in a persistent manner, but the market wants to see economic growth and corporate profits increasing.”

Tech Optimism

A $250 billion exchange-traded fund tracking the Nasdaq 100 (ticker: QQQ) climbed 1.2% after the close of regular trading on Thursday. In a sigh of relief to investors worried about lofty valuations of the sector that has powered the bull market, Alphabet crushed sales estimates and announced a dividend. Fellow megacap Microsoft also beat forecasts, lifted by corporate demand for the software maker’s cloud and artificial-intelligence offerings.

Investors have shown they are excited about the prospects of AI — but want tech companies to continue to focus on revenue and profit in the meantime.

Like other big techs, Alphabet has been plowing money into developing AI, a strategy that has helped drive demand for its cloud services. Google is a distant third in the cloud-computing market, trailing Amazon.com Inc. and Microsoft, but the company’s prowess in AI could help it close the gap.

Also Read: Trade Setup for April 26: Nifty aims for weekly gains, new peaks despite choppy global cues

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

Stock Market Highlights | Sensex, Nifty 50 fail to hold opening gains, Midcaps ends at record high

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

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Stock Market Highlights | Indian benchmark indices Nifty 50 and Sensex struggled today and failed to maintain the opening gains and ended the day at the lowest point. Despite this, midcap stocks continued to outperform, with the midcap index reaching a record high.

The Sensex fell by 609 points to 73,730, while the Nifty slipped by 150 points to 22,420. The Nifty Bank saw a significant drop of 294 points to 48,201, whereas the midcap index rose by 396 points to 50,624.

Sensex and Nifty managed to regain half of the losses incurred last week, both up by 1%. Midcap stocks continued their outperformance, gaining 4% throughout the week. The Nifty Bank performed in line with the benchmarks, seeing a rise of over 1%.

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 set to fall as Meta drags on big tech

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

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Asian equity markets dropped after Meta Platforms Inc.’s disappointing outlook raised concern on whether the industry that has powered the bull market in equities has run too far.

Equity benchmarks dropped in Japan and South Korea, while futures for Hong Kong also declined. Australian financial markets are shut for a holiday. The yen traded in a narrow range after weakening beyond 155 per dollar for the first time in more than three decades on Wednesday, heightening the chances of intervention.

A $250 billion exchange-traded fund tracking the Nasdaq 100 got hit after the close of regular US trading as the Facebook parent tumbled more than 15%. Meta projected second-quarter sales that were below analyst expectations and increased its spending estimates for the year.

“Meta’s resources are vast, but not infinite,” said Sophie Lund-Yates, an analyst at Hargreaves Lansdown Plc. “The language around spending plans has become bolder once more, and this could be what’s spooking markets.”

In the run-up to the results, the S&P 500 struggled to gain traction, hovering near 5,070 as traders positioned for economic data that will help shape the views on the Federal Reserve’s next steps. Treasuries opened little changed in Asia after yields rose on Wednesday.

In Japan, the yen depreciated to as low as 155.37 per dollar on Wednesday, marking the first time since June 1990 the currency had crossed the 155 level. Traders will be alert to any comments from officials in Tokyo on Thursday that suggest a higher state of readiness for intervention.

Japan’s weak currency is a “big problem,” Japan Airlines Co. Chief Executive Officer Mitsuko Tottori said in a group interview, adding that a stronger rate than the current level of around ¥155 to the dollar would be better.

South Korea’s SK Hynix Inc. said it expects a full recovery in the memory market after AI demand spurred the chipmaker to log its fastest pace of revenue expansion since at least 2010.

Elsewhere, oil held a modest decline, with a risk-off tone in broader markets countering a drawdown in US stockpiles. Gold was little changed.

Earnings Unfolding

The Facebook parent reported revenue of $36.5 billion in the first quarter, an increase of more than 27% over the same period a year ago. It was a small beat, as analysts were looking for revenue of $36.1 billion on average, according to estimates compiled by Bloomberg. Profit more than doubled to $12.4 billion.

“We encourage investors to focus on the positives,” said Tejas Dessai at Global X ETFs. “The company’s fundamentals continue to show strength, and that’s the key story.”

To Mark Hackett at Nationwide, while the cohort of seven tech megacaps has done well in the last two years because of their superior earnings growth relative to the broader market, this advantage could decrease in 2024 and even more significantly in 2025.

“The ‘Magnificent Seven’ are not nearly as powerful as they once were,” Hackett said. “We see this as a positive development for investors looking to diversify away from the recent market leaders.”

For weeks, traders have been scaling back how many rate cuts they expect from the Fed amid a string of resilient economic data. Economists surveyed by Bloomberg predict gross domestic product likely cooled to around 2.5% in the first quarter, with the figures still potentially suggesting persistent inflationary pressures.

“Tomorrow’s pivotal GDP report comes as market participants hope for a soft number that would lead to rate cuts sooner rather than later,” said Jose Torres at Interactive Brokers. “We expect a stronger-than-projected figure. It would be great for revenue growth prospects, but bad for the timing and extent of rate cuts.”

Also Read: Trade Setup for April 25: Nifty looks to end April expiry on a high, but HUL, Kotak Bank may weigh

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

Stock Market Highlights | Sensex, Nifty 50 gain for fifth day in a row, longest gaining streak in two months

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

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Stock Market Highlights | Sensex, Nifty 50 showed resilience and rebounded from early losses to close near the day’s high, continuing the winning streak for the fifth consecutive session. This marks the longest winning streak in two months.

The benchmark Sensex rose 487 points to reach 74,339, while the broader Nifty climbed 168 points to 22,570. The banking sector led the rally with the Nifty Bank gaining 306 points to 48,495. Most major banks ended the day in the green. Axis Bank gained 6% on the back of robust Q4 results. However, Kotak Bank stood as the only major bank to end in the red.

Multi Commodity Exchange (MCX) rose 8% amid reports of the company’s plans to introduce new products. Bharat Forage ended 7% higher following a positive brokerage note. Vodafone Idea gained 6% after the listing of its Follow-on Public Offering (FPO). Nestle closed with a gain of nearly 3% as the company’s earnings surpassed estimates.

Dalmia Bharat, Indian Hotels, and Oracle Financial Services Software (OFSS) slipped by 3% on lower-than-expected Q4 results. Laurus Labs reported a beat on its topline but missed margin estimates, leading to a 2% fall.

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

360 One Wam surges over 16% on strong growth in Q4 net profit, revenue

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

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Shares of 360 One Wam Ltd, earlier known as IIFL Wealth Management, gained more than 16% on Wednesday, April 24, after the company reported a strong growth in net profit and revenue for the quarter ended March 2024.

In its earnings report for the quarter and financial year ended March 31, 2024, released on April 23, the wealth management and alternate assets focused company reported a 45.8% rise in revenue from operations in Q4FY24 to ₹573 crore compared to ₹393 crore in Q4FY23.

Sequentially revenue from operations increased 30.4% compared to ₹439 crore in the September quarter.

The financial services provider’s profit after tax (PAT) increased 55.55% YoY to ₹241 crore in March quarter against ₹155 crore in the year ago quarter. On a QoQ basis the company’s net profit increased 24.3% against ₹194 crore reported in the September quarter.

For the full financial year FY24, the company’s net profit stood at ₹802 crore, up 20% compared to ₹668 crore in the preceding financial year.

Its revenue from operations increased 17.9% YoY for financial year 2023-24 to ₹1,846 crore against ₹1,565 crore in the year-ago period.

Following the strong quarterly results shares of 360 One Wam opened higher and further rallied as much as 16.37% to an intraday high of ₹887.1 apiece on the BSE. However, the stock pared some early gains and traded 5.29% higher at ₹802.55 apiece on the BSE at 1:17 pm.

Commenting on the quarterly results, Karan Bhagat, MD and CEO of the company, said, “We are happy to report that the company recorded its highest ever annual profit in FY24. Looking forward, we are optimistic about the substantial wealth opportunity beyond Tier-1 cities and have an expansion plan for our domestic coverage.”

The company expects to leverage the strength of the core platform and innovative competences to fuel high growth in the HNI segment as well as to become a favoured wealth manager in India.

360 One Wam, formerly known as IIFL Wealth Management Limited, has more than $54.6 billion assets under management and it helps over 7,000 HNI and ultra-HNI families to manage, grow and preserve their wealth.

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

Asian stocks rise as Tesla buoys US tech giants

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

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Stocks in Asia advanced after a US rally in tech heavyweights, whose high-stakes earnings are considered by Wall Street investors a major test of the equities bull run.

Equity benchmarks rose in Japan and South Korea, while futures for Hong Kong pointed up. US futures gained in early Asian trading. In late US hours, Tesla Inc. soared as the electric-vehicle giant struck an upbeat tone despite a sales miss, the first of the “Magnificent Seven” megacaps to report. The stock halted a seven-day plunge, climbing alongside other members of the group.

Meanwhile, weakness in measures of business activity helped keep alive forecasts for US rate cuts this year, which was positive for equities but weighed on the dollar and Treasury yields.

After hitting several record highs this year, equities have lost traction in the past few weeks on signals the Federal Reserve will hold rates higher for longer. The slide made stocks more attractive as it removed market froth, with investors now focused on earnings, according to Citigroup Inc. strategists.

“We would view the recent pullback as a buying opportunity,” Citi’s Mihir Tirodkar and Beata Manthey said. “Bullish positioning has unwound and now looks more neutral, particularly in the US. The current earnings season could refocus investor attention on solid underlying fundamentals.”

The S&P 500 notched its best back-to-back rally in two months. Nvidia Corp., the poster child of the artificial-intelligence boom, led a surge in chipmakers. Texas Instruments Inc. gave a bullish revenue forecast — a good sign for the chip industry that may help lift Asian producers on Wednesday.

Treasuries were largely steady after briefly extending gains on a solid $69 billion sale of two-year notes — but quickly returned to levels seen ahead of the auction — with 10-year yields little changed.

Oil held a gain as an industry report showed shrinking US crude stockpiles and traders tracked progress toward fresh sanctions against Iran. Gold is little changed.

In Japan, the yen was steady within sight of reaching the psychological 155 level to the dollar, keeping traders on guard for potential intervention by authorities to prop up the currency.

Earnings on Watch

Morgan Stanley’s Mike Wilson said the bar is high for US firms to deliver on earnings, particularly for megacap technology names, which face tough comparisons from the growth they showed last year.

Besides Tesla, Microsoft Corp., Meta Platforms Inc. and Alphabet Inc. are also due to report earnings this week. Profits for the “Magnificent Seven” group — which also includes Apple Inc., Amazon.com Inc. and Nvidia Corp. — are forecast to rise about 40% in the first quarter from a year ago, according to Bloomberg Intelligence data.

The group of tech megacaps is crucial to the S&P 500 since the companies carry the heaviest weightings in the benchmark. After this year’s advance, valuations have gotten lofty. After the latest selloff, the Magnificent Seven still traded at a combined 31 times forward earnings, according to data compiled by Bloomberg.

Also Read: Trade Setup for April 24: Is the recent Nifty recovery set for a temporary pause?

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