Latest news with #BharathRajeswaran
Yahoo
30-05-2025
- Business
- Yahoo
Foreign investors raise bets that India stock market rally may stall
By Vivek Kumar M and Bharath Rajeswaran (Reuters) -Foreign investors are becoming more cautious about the Indian stock market, indicating a three-month rally may run out of legs despite retail traders growing optimistic, according to monthly derivatives data analysed by two brokerages. The Nifty 50 has risen about 12% from March through May, largely due to better-than-expected corporate earnings and easing global trade risks. That is nearly double the 6.6% gain in the MSCI Emerging Markets index in that time. Foreign portfolio investors (FPIs) pumped $2.66 billion into Indian equities over that period and cut their short positions on the Nifty. A short seller borrows stock at a higher price betting its value will decline, at which point they buy the stock and pocket the profit. However, FPIs have started the June derivatives series -- which runs from May 30 to June 25 -- with about $2 billion in Nifty index futures shorts, the highest since February, according to Nuvama Alternative and Quantitative Research. In contrast, retail investors and high-net-worth individuals (HNIs), called the client category, turned bullish with long positions worth $1.54 billion on Nifty futures, compared with $546 million in shorts from early May. "This divergence sets up a potential tug-of-war between institutional caution and retail optimism, and could lead to a brief pause in the market rally in June," said Abhilash Pagaria, head of Nuvama. Indeed, the Nifty's gains have weakened in each month -- from 6.3% in March to 3.5% in April and to about 2% in May. "Markets appear to be waiting for some concrete cues before turning bullish," said Sriram Velayudhan, VP at IIFL Securities. Velayudhan expects the Nifty 50 to trade between 24,300 and 25,300 points over the June series, compared with its current level of about 24,800 points. Analysts expect the Nifty to hit new highs by end-2025, but say a correction is likely in the next three months, according to a Reuters poll. Sign in to access your portfolio
Mint
28-05-2025
- Business
- Mint
Indian shares dip as ITC weighs on benchmarks
By Vivek Kumar M and Bharath Rajeswaran (Reuters) -India's benchmark indexes fell on Wednesday, dragged by a drop in heavyweight ITC, even as positive global cues buoyed broader sentiment. The Nifty 50 was down 0.25% at 24,765.35, while the BSE Sensex traded 0.27% lower at 81,332.03 as of 10:35 a.m. IST. ITC, the sixth heaviest stock in Nifty 50 index, shed about 3% after a large block deal where its largest shareholder British American Tobacco likely pared some stake in the company. The stock was also trading ex-date for a dividend of 7.85 rupees. Consumer goods stocks dropped 1.4%, weighed down by losses in ITC. However, seven of 13 major sectoral indices advanced. Mid-cap and small-cap indices gained 0.2% and 0.3%, respectively The Nifty's retreat near the 25,000 level signals caution, and with the monthly derivatives expiry looming on Thursday, markets are likely to remain choppy in the short term, said Siddhartha Khemka, Head of Research – Wealth Management at Motilal Oswal Financial Services "The U.S. Federal Reserve's policy minutes, due later today, will be crucial for market direction, offering cues on the central bank's outlook amid persistent inflation and fiscal concerns," Khemka said. Life Insurance Corporation of India jumped 7% after it posted higher profit for the fourth quarter, helped by lower employee-related costs. Belrise Industries listed at 100 rupees on the National Stock Exchange, a premium of 11.11% to its issue price of 90 rupees. Bosch fell 3.2% on posting a drop in March quarter profit. It was the top percentage loser in auto index, which fell 0.6%. Other Asian shares rose marginally on the day, with the MSCI Asia ex-Japan adding 0.1%, buoyed by signs of easing trade tensions. [MKTS/GLOB] ($1 = 85.3020 Indian rupees)
Mint
27-05-2025
- Business
- Mint
Financials, IT stocks pull Indian equities lower
By Vivek Kumar M and Bharath Rajeswaran (Reuters) -India's equity benchmarks fell in early trade on Tuesday, pressured by losses in financials and IT stocks amid regional market weakness and broad-based profit booking. The Nifty 50 fell 0.88% to 24,780.95, while the BSE Sensex traded 0.95% lower at 81,409.67 as of 10:40 a.m. IST. Investors are likely pulling back after the Nifty closed above the 25,000 mark on Monday, a trend seen in the last couple of weeks, analysts noted. "We are again seeing profit booking at 25,000 levels as there are not enough positive triggers to pull the Nifty above these levels as of now," said Dharmesh Kant, head of equity research at Cholamandalam Securities. All the 13 major sectors logged losses on the day. Heavyweight financials and information technology stocks lost about 1% each. The broader, small-caps and mid-caps traded 0.1% and 0.3% lower, respectively. "We see limited upsides for markets from here as the Nifty 50 valuations are no longer inexpensive at 20x 1-year forward price-to-earnings ratio," said Surendra Goyal and Vijit Jain of Citi Research. "Consumption and growth recovery is key to generating positive market returns hereon," they said. Meanwhile, MSCI Asia ex-Japan fell 0.5%, after being largely steady on Monday, as U.S. President Donald Trump delayed imposing tariffs on goods from the European Union. [MKTS/GLOB] Markets in the U.S. were closed on Monday for a holiday. Investors are awaiting the minutes of the U.S. Federal Reserve's May policy meeting and domestic GDP data for the fourth quarter this week, and the Reserve Bank of India's rate decision next week for fresh market triggers, analysts said. Among individual stocks, InterGlobe Aviation shed about 3% as co-founder Rakesh Gangwal sold shares worth $1.36 billion. FirsCry parent Brainbees Solutions slipped more than 4% after posting higher losses for the fourth quarter versus last year. (Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Sumana Nandy and Varun H K)
Mint
22-05-2025
- Business
- Mint
Indian shares fall 1% on US fiscal jitters, rising Treasury yields
(Updates for morning trade) By Vivek Kumar M and Bharath Rajeswaran May 22 (Reuters) - India's benchmark indexes dropped about 1% in early trade on Thursday, as concerns over U.S. fiscal policy and elevated Treasury yields sapped global investor sentiment. The Nifty 50 was down 0.92% at 24,585.65, as of 10:07 a.m. IST, while the BSE Sensex also dropped 0.9% to 80,864.99. The broader, more domestically focused, small-caps and mid-caps fell 0.1% and 0.4%, respectively. All 13 major sectors were in the red, with information technology stocks, which are heavily reliant on U.S. revenue, down 1%. "Any meaningful slowdown in the U.S. economy will impact IT spends by U.S.-based companies, which will be negative for Indian IT sector," said Shrikant S Chouhan, head - equity research at Kotak Securities. U.S. President Donald Trump's massive tax and spending bill, which could add about $3.8 trillion to the U.S. debt pile, was approved by the House of Representatives on Wednesday, setting up a floor vote for passage to occur within hours. The worries of a worsening fiscal outlook in the world's biggest economy pushed longer-dated U.S. Treasury yields to their highest point in 18 months. Treasury yields have been on the rise since Moody's downgraded the U.S. credit rating last Friday. Rising Treasury yields tend to make bonds more attractive to foreign investors, driving out capital from stocks in emerging markets such as India. The market is likely to reset lower on concerns over U.S. economy, heightened tariff-related uncertainties, said Sandeep Bagla, chief executive officer of TRUST Mutual Fund. IndusInd Bank traded volatile after reporting a record quarterly loss, stemming from suspected employee fraud that caused accounting lapses — issues the country's fifth-largest private lender had disclosed earlier. The stock opened lower and dropped nearly 4% before reversing course to gain more than 3%. Colgate-Palmolive (India) dropped 5.6% as it posted lower fourth-quarter profit on soft urban demand and intensified competition. (Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Sonia Cheema and Sherry Jacob-Phillips)
Yahoo
29-04-2025
- Business
- Yahoo
Longest foreign buying spree in nearly two years powers Indian markets
By Bharath Rajeswaran and Indranil Sarkar (Reuters) -Foreign investors extended their longest buying spree since July 2023 on Monday, fuelled by U.S. trade deal hopes, cheap corporate valuations, and India's relative resilience to global tensions, helping markets shrug off concerns over India-Pakistan frictions. Foreign portfolio investors (FPIs) pumped about $4.11 billion into Indian equities over the last nine sessions, lifting the benchmark Nifty 50 index by 6.6% for the period. The main reason for FPIs coming back into Indian markets is that the U.S. and China are more vulnerable to a global trade war than India, which is projected to still remain the fastest growing large economy in fiscal year 2026, said G Chokkalingam, founder and head of research at Equinomics Research. Markets have also shrugged off fears of an escalation in tensions between India and Pakistan after a deadly militant attack in Kashmir last week, which initially sapped risk sentiment. Analysts also said that expectations of a U.S.-India bilateral trade deal could attract further portfolio inflows the near term. U.S. Treasury Secretary Scott Bessent said on Monday that many top trading partners made "very good" tariff proposals, but one of the first deals to be signed would likely be with India, adding that a deal could be sealed as early as this week. Foreign interest in Indian shares is also being driven by attractive large-cap valuations and strong earnings from heavyweights like Reliance Industries, alongside a tactical shift in flows between China, India, and the U.S., said Kranthi Bathini, director of equity strategy at Wealthmills Securities. The recent foreign buying in Indian shares follows sustained outflows worth $25.3 billion between October 2024 and March 2025 due to high valuations, moderating earnings, growth and global trade uncertainty. As of Monday's close, the Nifty traded 7.4% below all-time high levels hit on September 27, 2024. ($1 = 85.0940 Indian rupees) Sign in to access your portfolio
