Reserve Bank of India Digital Payments Index continues to edge higher
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Business Standard
an hour ago
- Business Standard
Earnings in downturn; FPI inflows unlikely in short-term: TRUST MF CEO
With the Reserve Bank of India (RBI) lowering its inflation projections and Indian households increasingly shifting their savings from bank deposits to equities, the country's investment landscape is undergoing a transformation. In an email interview, Sandeep Bagla, CEO, TRUST Mutual Fund, tells Sirali Gupta about the implications of these changes, the resilience of domestic flows, the outlook for corporate earnings, and how artificial intelligence (AI) is reshaping the mutual fund industry. What does the RBI's move to lower inflation projection mean for the market? Headline CPI numbers will be quite low for the next few months as food inflation has been low, and there is a favourable base effect. RBI pointing towards stubborn and rising core inflation is concerning and tells a different picture from that portrayed by the falling headline numbers. It is clear that the RBI will not ease the policy rates unless growth tapers off significantly in the near future. The RBI Governor in the MPC said that household savings are gradually shifting from bank deposits to equities. What is driving this behavioural change? Indian investors have understood that equities/mutual funds are the best way to beat inflation and participate in the structural growth story in a tax-efficient manner. Government is also happy, as mutual funds are an efficient way to convert savings into productive investments. The trend of savings converting to equities is a megatrend and is likely to gather pace with time. The growth of the SIP book is encouraging, as it implies widespread risk dispersion and sharing. How do you view Indian equities compared to global peers? Indian equities have always been optically more expensive compared to other markets due to a superior and diversified structure in terms of conventional valuation ratios like price to earnings. Over a long period of time, the demographic dividend and governance framework should result in a long runaway of growth for the Indian economy. Short-term corrections may offer attractive long-term investment opportunities. FIIs are pulling out of Indian equities. Is this a short-term trend or a strategic shift, and how long can domestic investors hold fort? Globally, central banks have been resorting to mild quantitative tightening, reducing the supply of money. As a result, money has dried up and is being allocated selectively across riskier asset classes. The threat of higher inflation has led to spiking bond yields and higher gold and crypto prices. I am not counting on a structural inflow from FPIs in the short run. The domestic flows are likely to continue. More than the flows, a pick-up in earnings outlook would help boost market prices and sentiment. What is your outlook on corporate earnings? Which sectors do you expect to lead the rebound? We are experiencing a cyclical downturn in earnings. Interest rates have been reduced, and government capex has been frontended to a great extent. Low food inflation could bolster earnings as well. A few niche sectors like hospitality, could do well in the near future. How do you view the primary markets? Are they experiencing a rebound? Primary markets remain strong, though many new listings have underperformed. Still, companies will continue to tap the market, offering investors opportunities to invest in promising franchises over time. SIP flows have remained resilient despite market volatility. What's your advice to investors using systematic investment plans in the current environment? A weak market lets long-term investors buy equities at lower prices. Staying disciplined with SIPs and seeking advice from a qualified distributor can help select the right funds and benefit from compounding in Indian equities. AI is beginning to reshape many aspects of the mutual fund industry. How is your firm embracing this shift? AI is a powerful productivity tool, and I'm amazed by the constant stream of new use cases. We have adopted emerging technologies while prioritising compliance, cybersecurity, and integrity. Beyond internal benefits, I'm optimistic about the productivity gains and investment opportunities AI offers our investors.
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Business Standard
an hour ago
- Business Standard
Paytm stock hits 43-mth high on RBI nod to PPSL; brokerages decode strategy
Paytm share price gained 6 per cent today after Paytm Payments Services Limited received in-principle approval from the RBI to operate as an online payment aggregator Mumbai Listen to This Article Paytm share price today Shares of One97 Communications, the company that operates Paytm, hit a 43-month high of ₹1,171.70 on the BSE today, surging 5 per cent in Wednesday's intraday trade. The rise in Paytm share price came after the Reserve Bank of India (RBI) gave an in-principle approval to Paytm Payments Services Limited (PPSL) to operate as an online payment aggregator. In the past three trading days, Paytm stock has gained 12 per cent, while in the past five weeks, it has soared 31 per cent. Further, Paytm shares were quoting at their highest level
Mint
an hour ago
- Mint
Stock Picks: Sagar Doshi suggests Paytm, M&M, MCX shares to buy today
Stock market today: The Indian stock markets began on a high note on Wednesday as investor confidence rose from a further decline in domestic inflation and favorable global signals. Nevertheless, attention is still on the forthcoming meeting between US President Donald Trump and Russian President Vladimir Putin scheduled for later this week. As of 10:43 IST, the Nifty 50 increased by 0.35%, reaching 24,572 . 85, while the BSE Sensex climbed 0.22% to 80,415.06. India's retail inflation fell to an eight-year low of 1.55% in July, dropping beneath the Reserve Bank of India's acceptable range of 2%-6%, attributed to decreasing food prices. Market sentiment is optimistic, as the positive indications from a lower CPI figure in India and stable U.S. inflation have bolstered investor confidence, according to analysts. Nifty 50 has been facing resistance in 24,700-24,750 zone which also coincide with a downward trendline resistance. Any major trend reversal expected to happen above 24,800 on closing basis, whereas on downside 24,200 seems to be open. The 200 DMA stands at around 24,000 level, any dip towards this level should be closely watched for major trend support. Bank Nifty also in line with Nifty 50 is following sell on rise template as all intraday rallies are getting sold into the strength. Any major upside trend expected to begin above 55,800 on closing basis. On downside, next strong support in 54,000-54,300 zone. On stocks to buy on Wednesday, Sagar Doshi of Nuvama recommended three stocks - One 97 Communications Ltd (Paytm), Mahindra & Mahindra Ltd (M&M), and Multi Commodity Exchange of India Ltd (MCX). Stock is inching up against broader market weakness and currently trading around near 3-year high. The stock has picked up strong momentum after posting strong set of quarterly results. for the current momentum play we are seeing a 10-15% upside in the current leg itself. Auto stocks has been showing significant resilience against the broader market weakness. The stock has recouped all its losses of last one year, and now is currently trading at around its all time high levels with constructive chart pattern. A close above ₹ 3,280 can lead to rise in momentum for quick 8-10% gain. Stock seems to have completed its consolidation after prior strong up-move. The upward trend looks to continue again as stock breaks out of its consolidation with strong volumes. A quick 8-10% move can be seen on the stock to reclaim its all time high. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
