Latest news with #ChokkalingamG
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Business Standard
4 days ago
- Business
- Business Standard
Sensex, Nifty face worst fall in a month, marking 4th straight weekly loss
Domestic equities fell on Friday, with benchmark indices posting their biggest weekly loss in nine months. Earnings disappointment, sustained selling from foreign portfolio investors (FPIs), and uncertainty surrounding the trade deal with the US weighed on sentiment. The Sensex ended the session at 81,463, with a decline of 721 points, or 0.9 per cent. The Nifty 50 index ended the session at 24,837, down 225 points, or 0.9 per cent. This was the biggest single-day fall for both indices since June 19. For the week, the Sensex declined by 0.4 per cent, and the Nifty fell by 0.5 per cent, marking the fourth consecutive weekly loss for both indices. The last time both indices posted a four-week losing streak was in the week ended October 25, 2024. The total market capitalisation of BSE-listed firms declined by Rs 6.4 trillion, reaching Rs 452 trillion. Infosys, which declined by 2.4 per cent, and Bajaj Finance, which fell by 4.7 per cent, were the biggest contributors to the Sensex decline. Bajaj Finance, which posted its biggest single-day fall since April 30, was also the worst-performing Sensex stock, as concerns over its worsening asset quality and high credit costs overshadowed strong loan growth. Other Bajaj group stocks also posted sharp losses. The decline in Infosys was attributed to the broader sell-off in the IT sector, amidst disappointment over tepid revenue and profit growth, making current valuations unjustifiable. The sell-off did not spare the beneficiaries of the India-UK trade deal, with many stocks in the textile, aquaculture, and automotive sectors declining. "A favourable deal with the UK was expected and priced in, so the signing was not a surprise. Moreover, the India-UK deal is only part of the puzzle. One has to see how the India-US trade deal shapes up and what kind of concessions India's export competitors get from the US and EU," said Chokkalingam G, co-founder of Equinomics. FPIs continued to be net sellers of equities worth Rs 1,980 crore, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 2,139 crore. So far this month, FPIs have pulled out over Rs 20,000 crore from domestic markets, while DIIs have pumped in nearly Rs 40,000 crore. The market breadth was weak, with 2,969 stocks declining and 1,061 advancing. The broader Nifty Midcap 100 fell by 1.6 per cent, and the Nifty Smallcap 100 dropped by 2.1 per cent. "There is a bit of profit booking after the recovery from the April lows. However, the delay in the trade deal with the US is causing the biggest jitters in the markets. Investors are concerned about whether IT services will be impacted by tariffs," said Chokkalingam. In the future, corporate results and the trade deal with the US are expected to determine the market trajectory. "Elevated valuations in large-cap stocks, coupled with significant net short positions held by FPIs, added to the downward pressure. Moderation in DII inflows after the strong buying of the last 2-3 months, due to a muted earnings season and persistent FPI selling, continues to impact the current market," said Vinod Nair, head of research at Geojit Investments.
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Business Standard
18-07-2025
- Business
- Business Standard
Shoppers Stop shares drop 5% post Q1 results; Here's what analysts say
Shoppers Stop share price today: Shares of the retail chain Shoppers Stop plunged over 5 per cent on Friday, July 18, 2025, logging an intraday low of ₹540.10, after the company released its earnings for the first quarter of the financial year 2025-2026 (Q1FY26). At 9:40 AM, shares of Shoppers Stop were trading at ₹543.80, down by 4.92 per cent on the National Stock Exchange. In comparison, Nifty was trading at 25,066.75 level, down by 44 points or 0.18 per cent. The total market capitalisation of the company stood at ₹5,985.01 crore. Shoppers Stop Q1FY26 Results Shoppers Stop's sales figure for the quarter ending June 30, 2025, stood at ₹1,094 crore (GAAP basis), marking a slight increase of 6 per cent from ₹1,034 crore recorded in the corresponding quarter of the previous fiscal year. Gross margins improved by 30 basis points (bps) to 40.9 per cent in Q1FY26 as against 40.6 per cent recorded in Q1FY25. The company narrowed its losses from ₹23 crore in the first quarter of FY25 to ₹18 crore in Q1FY26. The company's earnings before interest, taxes, depreciation and amortisation (Ebitda) stood at ₹176 crore, up 21 per cent from ₹146 crore recorded in the same period of the previous financial year. 'We have delivered an impressive performance delivering sales of ₹1,336 crore registering 6 per cent growth and 5 per cent like-for-like (LFL) growth in department stores, driven by premiumisation," said Kavindra Mishra, managing director and CEO of Shoppers Stop Ltd. Interestingly, the premium segment's contribution to sales rose to 67 per cent, up 8 per cent year-on-year (Y-o-Y). Shoppers Stop stock: Should you buy the dip? Shoppers Stop's earnings for the quarter ending June 30, 2025, were largely in line with the analyst expectations. Healthy performance in the premium vertical helped the company report a 7 per cent Y-o-Y rise in gross profits to ₹450 crore, largely in line with Motilal Oswal estimates. However, store count remained flat as the addition of four Intune stores was offset by the closure of beauty stores. Motilal Oswal Financial Services has maintained its 'Neutral' rating on the stock. Meanwhile, Chokkalingam G, founder of Equinomics Research, has advised investors to avoid the stock. "The overall outlook for physical retail chains remains subdued due to the growing shift towards digitalisation and the rise of digitally native brands. We expect similar headwinds for other players in the sector, including DMart and Trent, with performance likely to remain under pressure," he said.
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Business Standard
17-07-2025
- Business
- Business Standard
Hexaware Tech announces GCC deals worth ₹1,029 crore; time to buy stock?
Hexaware Technologies share price today: Shares of IT firm Hexaware Technologies rose by nearly 3 per cent, logging an intraday high of ₹882.05 after the company announced two major acquisitions worth ₹1,029 crore. At 9:43 AM, Hexaware Technologies shares were trading at ₹870.50, up by 1.53 per cent on the National Stock Exchange. In comparison, NSE Nifty was trading largely flat, albeit with a negative bias, quoting 25,189.30. Hexaware tech deals Hexaware Technologies announced the acquisition of two firms, Tech SMC Square and Tech SMC Squared, for a cumulative consideration of ₹1,029 crore. As per the exchange filing, the move is aimed at expanding Hexaware's presence in the global capability center (GCC) space, which is seeing rapid growth in India. The country remains a key market for the space as the GCC segment is expected to cross $100 billion by 2030. With these acquisitions, Hexaware adds established GCC expertise, a wider client reach, and an enhanced value proposition. "By integrating SMC's GCC setup capabilities with Hexaware's strengths in AI, analytics, cloud transformation, modernization, and enterprise platforms, we can deliver end-to-end solutions for clients looking to optimize and scale their GCC operations," the company said in its exchange filing. "This collaboration combines SMC's deep GCC expertise with Hexaware's technology-led delivery model to offer world-class GCC operations and attract top-tier tech talent." Should you buy? Since its listing earlier this year, Hexaware shares have witnessed a double-digit surge of more than 14 per cent. However, analysts are not expecting the same momentum to continue. Chokkalingam G, founder of Equinomics Research, believes that current valuations are quite elevated. While mid-sized IT firms are expected to perform better than the larger industry players, Hexaware might not have a competitive edge, as it is trading at considerably higher valuations compared to its mid-sized peers in the market. "Valuations appear stretched, making it an ideal time to sell, especially given the muted outlook for the IT sector. Plus, many quality mid-sized IT stocks are trading at a PE of around 25, whereas Hexaware's current year 2024 (CY24) PE stood at 44.8," said Chokkalingam G said.
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Business Standard
05-06-2025
- Business
- Business Standard
Telecom rings in highest FPI flows in May, shows Prime Infobase data
Stocks in the services and capital goods space attracted investments of ₹6,210 crore and ₹3,094 crore Sundar Sethuraman Mumbai Listen to This Article The last fortnight of May saw foreign portfolio investors (FPIs) inject ₹6,989 crore into the domestic equities, driven by optimism around the India-Pakistan ceasefire, hopes of a potential United States (US) trade deal and a surge in block deals. According to the data from Prime Infobase, FPIs invested ₹7,052 crore in telecom, mostly due to the rising subscriber base, and potential tariff hikes. Stocks in the services and capital goods space attracted investments of ₹6,210 crore and ₹3,094 crore, respectively. 'The telecom sector is a growth story both in terms of subscriber base and potential for tariff hikes,' Chokkalingam G, founder,
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Business Standard
21-05-2025
- Business
- Business Standard
FPIs lap up finance capital goods stocks in the first half of May
Foreign Portfolio Investors (FPIs) bought the shares of financial services, capital goods, and oil and gas stocks the most in the first two weeks of May. Foreign investors bought finance stocks worth ₹4,728 crore, followed by capital goods stocks worth ₹2,233 crore. Oil and gas stocks (₹2,130 crore), services (₹1,762 crore) and automobiles (₹1,610 crore) were the other sectors where FPIs bought big. "The double-digit credit growth is aiding the buying interest in banking stocks. There is no other Nifty sector posting double-digit growth in key business parameters. Capital goods stocks were beaten down, and that explains the buying in the sector,' said Chokkalingam G, founder of Equinomics. Meanwhile, FMCG ( ₹1,057 crore) and realty (₹842 crore) bore the brunt of the FPIs selling in the first two weeks of this month. Power (₹720 crore), consumer durables ( ₹622 crore) and healthcare (₹606 crore) were the other sectors where FPIs sold shares. Despite buying the sectoral allocation for financial services, it is down to 31.46 per cent as of March 15 from 31.8 per cent on April 30. However, financial services have the highest sectoral allocation. Information Technology has the second highest sectoral allocation at 8.47 per cent from 8.17 per cent on April 30, followed by oil, gas & consumable fuels at 7.33 per cent from 7.31 per cent. FPIs were net buyers to ₹12,847 crore in the first half of May.
