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Time of India
3 days ago
- Business
- Time of India
Indian equity indices decline as company valuations trip on disappointing earnings
Kumar said that 24,000-24,400 is a key support level with some value buying likely to emerge at 24,000 levels, but markets are likely to be in a short-term downtrend. Indian equity indices experienced a third consecutive session of decline due to disappointing first-quarter earnings, raising concerns about market valuations. The broader market witnessed a sharper downturn, particularly in mid-cap and small-cap stocks, as investors reduced risky positions amid growing uncertainty. Foreign portfolio investors were net sellers, contributing to the overall bearish sentiment. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Indian equity indices declined on Monday for the third straight session as disappointing first-quarter earnings cast doubt on the market's elevated valuations. The slide in the broader market was sharper, with investors trimming their risky bets amid heightening NSE Nifty fell 0.6% or 156 points to finish at 24,680. The BSE Sensex moved 0.7% or 572.07 points lower at 80,891. The Nifty Mid-cap 150 and Small-cap 250 indices dropped 0.9% and 1.3% the past week, the benchmark index shed 1.6% while the mid-cap and small-cap indices shed 3.1% and 4.1% each."The market has been factoring in higher growth expectations into mid-cap and small-cap stocks ," said Siddarth Bhamre, Head of Research, Asit C Mehta Intermediates. "So if these companies report lower growth numbers in the earnings, the selloff is that much more pronounced because the higher growth led these stocks to command a higher valuation multiple."Bhamre said that expectations of 25-30% growth from these companies imply a valuation of 40-50 times, which is significantly higher than the rest of the Nifty Realty Index tumbled 4.1% while the metal index closed 1.2% lower. Bank Nifty fell 0.8% while the private bank and PSU Bank indices dropped 1.7% and 1.2% Volatility Index or VIX-the market's fear gauge-gained 7% to 12.1 on Monday, indicating traders expect higher risks in the near of the 4299 stocks traded on the BSE, 2951 declined, while 1,200 advanced, underscoring the weakness in the broader market"Despite opening higher, the mid and smallcap segment saw a fall today driven by bearish sentiment as the benchmark Nifty remained below key level of 24,800," said Vipin Kumar, AVP Equity Research & PMS (Derivatives & Technical Analyst), Globe Capital MarketForeign portfolio investors (FPIs) sold shares worth a net of Rs 6,082.5 crore on Monday. Their domestic counterparts bought shares worth Rs 6,764.6 crore. In July, overseas investors divested Rs 27,822.9 crore."The probability of disappointment is higher in the market rather than making money in the current set-up," said Bhamre. "We are not gung-ho on the market at least until December this year as the potential for decent upside is unlikely."Kumar said that 24,000-24,400 is a key support level with some value buying likely to emerge at 24,000 levels, but markets are likely to be in a short-term downtrend."A bounce back is likely towards 24,900-25,000 levels in the near term as the markets are oversold in the short term. However, it is expected to be a selling opportunity as we are in a 'sell on rise' market," said Kumar.
Economic Times
3 days ago
- Business
- Economic Times
Indian equity indices decline as company valuations trip on disappointing earnings
Kumar said that 24,000-24,400 is a key support level with some value buying likely to emerge at 24,000 levels, but markets are likely to be in a short-term downtrend. Synopsis Indian equity indices experienced a third consecutive session of decline due to disappointing first-quarter earnings, raising concerns about market valuations. The broader market witnessed a sharper downturn, particularly in mid-cap and small-cap stocks, as investors reduced risky positions amid growing uncertainty. Foreign portfolio investors were net sellers, contributing to the overall bearish sentiment. Mumbai: Indian equity indices declined on Monday for the third straight session as disappointing first-quarter earnings cast doubt on the market's elevated valuations. The slide in the broader market was sharper, with investors trimming their risky bets amid heightening uncertainty. ADVERTISEMENT The NSE Nifty fell 0.6% or 156 points to finish at 24,680. The BSE Sensex moved 0.7% or 572.07 points lower at 80,891. The Nifty Mid-cap 150 and Small-cap 250 indices dropped 0.9% and 1.3% respectively. In the past week, the benchmark index shed 1.6% while the mid-cap and small-cap indices shed 3.1% and 4.1% each. "The market has been factoring in higher growth expectations into mid-cap and small-cap stocks," said Siddarth Bhamre, Head of Research, Asit C Mehta Intermediates. "So if these companies report lower growth numbers in the earnings, the selloff is that much more pronounced because the higher growth led these stocks to command a higher valuation multiple." 'Sell on Rise' Market Bhamre said that expectations of 25-30% growth from these companies imply a valuation of 40-50 times, which is significantly higher than the rest of the market. ADVERTISEMENT The Nifty Realty Index tumbled 4.1% while the metal index closed 1.2% lower. Bank Nifty fell 0.8% while the private bank and PSU Bank indices dropped 1.7% and 1.2% Volatility Index or VIX-the market's fear gauge-gained 7% to 12.1 on Monday, indicating traders expect higher risks in the near term. ADVERTISEMENT Out of the 4299 stocks traded on the BSE, 2951 declined, while 1,200 advanced, underscoring the weakness in the broader market"Despite opening higher, the mid and smallcap segment saw a fall today driven by bearish sentiment as the benchmark Nifty remained below key level of 24,800," said Vipin Kumar, AVP Equity Research & PMS (Derivatives & Technical Analyst), Globe Capital Market ADVERTISEMENT Foreign portfolio investors (FPIs) sold shares worth a net of Rs 6,082.5 crore on Monday. Their domestic counterparts bought shares worth Rs 6,764.6 crore. In July, overseas investors divested Rs 27,822.9 crore."The probability of disappointment is higher in the market rather than making money in the current set-up," said Bhamre. "We are not gung-ho on the market at least until December this year as the potential for decent upside is unlikely."Kumar said that 24,000-24,400 is a key support level with some value buying likely to emerge at 24,000 levels, but markets are likely to be in a short-term downtrend. ADVERTISEMENT "A bounce back is likely towards 24,900-25,000 levels in the near term as the markets are oversold in the short term. However, it is expected to be a selling opportunity as we are in a 'sell on rise' market," said Kumar. 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Time of India
3 days ago
- Business
- Time of India
D St Remains Red as Co Valuations Trip on Earnings
Live Events Indian equity indices declined on Monday for the third straight session as disappointing first-quarter earnings cast doubt on the market's elevated valuations. The slide in the broader market was sharper, with investors trimming their risky bets amid heightening NSE Nifty fell 0.6% or 156 points to finish at 24,680. The BSE Sensex moved 0.7% or 572.07 points lower at 80,891. The Nifty Mid-cap 150 and Small-cap 250 indices dropped 0.9% and 1.3% the past week, the benchmark index shed 1.6% while the mid-cap and small-cap indices shed 3.1% and 4.1% each.'The market has been factoring in higher growth expectations into mid-cap and small-cap stocks,' said Siddarth Bhamre, Head of Research, Asit C Mehta Intermediates. 'So if these companies report lower growth numbers in the earnings, the selloff is that much more pronounced because the higher growth led these stocks to command a higher valuation multiple.'Bhamre said that expectations of 25-30% growth from these companies imply a valuation of 40-50 times, which is significantly higher than the rest of the Nifty Realty Index tumbled 4.1% while the metal index closed 1.2% lower. Bank Nifty fell 0.8% while the private bank and PSU Bank indices dropped 1.7% and 1.2% Volatility Index or VIX—the market's fear gauge—gained 7% to 12.1 on Monday, indicating traders expect higher risks in the near of the 4299 stocks traded on the BSE, 2951 declined, while 1,200 advanced, underscoring the weakness in the broader market'Despite opening higher, the mid and smallcap segment saw a fall today driven by bearish sentiment as the benchmark Nifty remained below key level of 24,800,' said Vipin Kumar, AVP Equity Research & PMS (Derivatives & Technical Analyst), Globe Capital MarketForeign portfolio investors (FPIs) sold shares worth a net of Rs 6,082.5 crore on Monday. Their domestic counterparts bought shares worth Rs 6,764.6 crore. In July, overseas investors divested Rs 27,822.9 crore.'The probability of disappointment is higher in the market rather than making money in the current set-up,' said Bhamre. 'We are not gung-ho on the market at least until December this year as the potential for decent upside is unlikely.'Kumar said that 24,000-24,400 is a key support level with some value buying likely to emerge at 24,000 levels, but markets are likely to be in a short-term downtrend.'A bounce back is likely towards 24,900-25,000 levels in the near term as the markets are oversold in the short term. However, it is expected to be a selling opportunity as we are in a 'sell on rise' market,' said Kumar.
Time of India
27-06-2025
- Business
- Time of India
D St Heats Up to 9-Month High as West Asia Cools
India's equity benchmarks surged to a nine-month high on Thursday, led by bank stocks, as easing tensions in the West Asia revived investor sentiment, triggering liquidation of bearish bets amid expiry of June derivative contracts. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's equity benchmarks surged to a nine-month high on Thursday, led by bank stocks , as easing tensions in the West Asia revived investor sentiment, triggering liquidation of bearish bets amid expiry of June derivative NSE Nifty rose 304.25 points or 1.2% to close at 25,549 while the BSE Sensex rose 1,000.36 points or 1.2% to end the day at 83,755.87. It marked the highest closing levels of both indices since last October when the equity markets had made a sharp rally later started to reverse on worries about pressure on corporate profits and frothy share valuations.'The Nifty's breakout from a 30-day consolidation signals strong momentum driven by easing geopolitical tensions, falling crude prices, and sustained domestic institutional buying,' said Chandan Taparia, head of technical and derivatives research at Motilal Oswal Financial Services. 'We saw short covering from traders, which triggered the sharp up move today.'Bank shares led the run-up, with the Bank Nifty index ending at record and Iran announced a ceasefire after a 12-day conflict, but oil prices remained sticky due to concerns that the end of hostilities might be temporary. Brent crude futures rose 0.7% to $68.16 a dollar index fell to a three-year low on Thursday, adding to the optimism. A weaker US currency typically benefits overseas markets by driving fund flows into regions with appreciating in Asia, markets were mixed with Japan rallying 1.65%, and Taiwan advancing 0.3%. China declined 0.2%, Hong Kong fell 0.6%, and South Korea dropped 0.9%. The pan-Europe index Stoxx 600 was trading flat at the time of going to home, Nifty's Volatility Index or VIX — popularly known as the fear gauge of the market — fell 2.9% to 12.6 levels, signalling traders see lesser risks in the near term. The index has declined over 30% in the past current bullish momentum can drive the Nifty to 25,750, and even above the current all-time high of 26,277, said Taparia. The Nifty made a closing high of 26,216.05 on September Bhamre, head of institutional research at Asit C Mehta said uninterrupted flow of liquidity is driving the markets higher.'Markets have been rising despite ongoing uncertainty, as negative news is quickly priced in, and steady liquidity and flows continue to drive gains,' said Bhamre. Foreign portfolio investors net bought shares worth Rs 12,594 crore on Thursday. Domestic institutions were sellers to the tune of Rs 195 crore. DIIs have net bought shares worth Rs 69,765.4 crore and FPIs have been buyers of shares worth Rs 6,923.5 crore in June so broader market underperformed the large-caps, with the Nifty Midcap 150 gaining 0.5% and Nifty Small-cap 250 rising 0.3%. Out of the total 4,153 stocks traded on the BSE, 2,043 advanced and 1,961 declined at recommended caution and sticking to large-cap stocks.'Investors must stay invested in reasonably valued large-cap stocks, with a focus on banking, life insurance, and select cement companies, which offer a combination of growth and reasonable valuation,' he said.
Economic Times
23-06-2025
- Business
- Economic Times
Why are FPIs selling off FMCG and power stocks in June?
Mumbai : Fast-moving consumer goods, power, consumer durables, and information technology were the sectors that saw the highest selloff by overseas funds in the first-half of June, according to data from NSDL. The fast-moving consumer goods (FMCG) sector witnessed the highest outflows at ₹3,626 crore, after receiving inflows worth ₹815 crore in May. Between January and May, the sector saw selling worth over ₹14,000 crore. ADVERTISEMENT "Continuing with the trend seen in the first quarter of this calendar year, FMCG companies saw foreign selling and preference for rate-sensitives and beta plays were the few reasons driving this trend," said Sriram Velayudhan, senior vice president, IIFL Capital. "Foreign investors are looking for better opportunities across sectors." Foreign investors extended their selling in the power sector, offloading shares worth ₹3,120 crore in the first 15 days of June, after selling ₹2,494 crore last month. The sector has seen outflows worth over ₹9,000 crore between January and May. "Power companies had run up in the recent past, but the valuations are rich and not sustainable," said Siddarth Bhamre, head of institutional research at Asit C Mehta Intermediates. Foreign BuyingThese investors allocated ₹9,674 crore across 10 sectors in the first-half of June, with financial services receiving the highest inflows-₹4,685 crore during the period-after witnessing a similar amount of inflows in May. ADVERTISEMENT Between January and May, the sector, with the highest foreign investor holding, saw ₹4,771 crore worth of foreign said that the interest rate and Cash Reserve Ratio (CRR) cut by the RBI has prompted inflows into the financial services sector. ADVERTISEMENT Beyond banking and financial services, their purchases in most of the other sectors were relatively modest."While it is tough to predict further flows, foreign investors are likely to be nimble-footed, so no major flows are likely amid the geopolitical tensions in the Middle East and the trade situation between US and China," said Bhamre. ADVERTISEMENT Chemicals, oil & gas, and capital goods were among the other sectors that received flows in the first- half of June. Bhamre said that the premium attached to the Trump tariffs is expected to come off given the back and forth on tariffs by Trump. (You can now subscribe to our ETMarkets WhatsApp channel)
