Latest news with #Equinomics
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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.
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Business Standard
15-05-2025
- Business
- Business Standard
Markets zoom after Trump remarks; Nifty settles above 25K after 7 months
Benchmark indices on Thursday gained amid hopes that the reciprocal tariffs imposed by the United States (US) will be minimal after American President Donald Trump said India had offered a zero-tariff trade deal. The BSE Sensex ended the session at 82,531, gaining 1,200 points or 1.5 per cent. The Nifty 50 closed above 25,000 after seven months, ending the session at 25,062, with a gain of 395 points or 1.6 per cent. On the BSE, listed firms' market capitalisation rose ₹5.3 trillion to ₹440 trillion. Trump said on Thursday India had offered to drop tariffs on US goods. India was among the first countries to begin negotiations with the US after Prime Minister Narendra Modi's visit to the country in February. 'The markets were looking for some good news from somewhere. Earlier during the week, the markets celebrated the cessation of hostilities between India and Pakistan, followed by a slump after the US-China trade tariff truce. The markets are looking at Trump's claim as a solution to tariff issues with the US and better trade terms. Tariff talks take months, and it will take time before we know the nuances. For now this seems more like a short covering rally,' said U R Bhat, cofounder of Alphaniti Fintech. Some experts said zero tariffs from India would lead to zero or near-zero tariffs on the part of the US on Indian products. 'It will be a win-win situation because the US does not have a cost advantage in most products we specialise in. American imports are mostly luxury products. Zero tariffs will not substantially impact the Indian economy,' said Chokkalingam G, founder of Equinomics. Indian equities had a roller coaster week, which began with cheer on ceasefire with Pakistan after the worst conflict in more than 50 years. However, the cheer was short-lived after the US and China agreed to slash reciprocal trade tariffs for 90 days. Investors fear the easing of trade tensions could divert foreign flows away from India. In April, India had emerged as a haven amid global trade uncertainties, attracting foreign investment. The rest of the corporate results and the sustainability of ceasefire between India and Pakistan will determine the market trajectory. 'The markets will be trading within a range with a negative bias,' said Bhat. All sectoral indices gained, while the India Vix (volatility) index cooled 2 per cent. Market breadth was strong with 2,615 stocks advancing and 1,350 declining. All Sensex stocks except one gained. Reliance Industries rose 2.1 per cent and was the biggest contributor to Sensex gains, followed by ICICI Bank, which rose 1.8 per cent. 'A decisive breakout above 25,200 could take the index towards the 25,400 zone. We continue to advocate a 'buy on dips' strategy, with strong emphasis on selective stock picking, especially in the light of overbought conditions in certain segments,' said Ajit Mishra, senior vice-president (research), Religare Broking.
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Business Standard
12-05-2025
- Business
- Business Standard
Markets lift off after India, Pak jets are grounded; Sensex up 2,975 pts
Indian equity benchmarks skyrocketed on Monday, posting their largest-single-day gains in over four years, following a ceasefire understanding between India and Pakistan after four days of intense fighting. The de-escalation of trade tensions between China and the US also contributed to the positive sentiment. Both the benchmark and broader indices recorded their best gains in years. The Sensex closed at 82,430, up 2,975 points or 3.7 per cent. The Nifty ended at 24,925, rising by 917 points or 3.8 per cent. For both indices, these were the highest since February 2021. In terms of points gained, Monday's performance was the best ever. The broader Nifty Midcap 100 rose by 4.1 per cent, its best single-day gain since June 5, 2024, while the Nifty Smallcap 100 jumped 4.2 per cent, its highest since February 25, 2022. The total market capitalisation of BSE-listed firms soared by over ₹16 trillion to ₹432.6 trillion. Investor optimism was also seen across the border, with Pakistan's equity benchmark KSE 100 surging 9.1 per cent. Also Read Investors were relieved as the ceasefire between India and Pakistan eased concerns about the economic impact of a potential war between the two nuclear-armed neighbours. The truce came after days of intense fighting involving missiles and drones. "Ceasefire is the primary reason for the rally. It is natural for markets to react strongly to such developments. Going forward, we are cautiously optimistic, but much depends on the ceasefire holding," said Chokkalingam G, founder of Equinomics. However, some experts believe Monday's rally was driven by a combination of geopolitical realignment, earnings acceleration, and easing trade tensions. "Today's rally reflects broader optimism rather than just the Indo-Pak ceasefire. Last week's correction was mild and orderly, more of a breather after the March rally. The sharp bounce-back is rooted in improving fundamentals, not just sentiment. We are seeing resilient fourth quarter (Q4) earnings, steady performance in key sectors, and improving visibility for the next few quarters," said Harish Krishnan, co-CIO and head of equity at Aditya Birla Sun Life AMC. Global markets also rose after the US and China temporarily lowered tariffs on each other's products. The easing of trade tensions led to the strengthening of US assets. The dollar index rose 1.3 per cent to hit a one-month high of 101.6. The 10-year US bond yield increased by 1.75 per cent, trading at 4.45 per cent. Meanwhile, gold declined by 3 per cent, trading at $3,227.3 per ounce. The market breadth was strong, with 3,541 stocks advancing and 582 declining. The India Vix index, a gauge of market volatility, fell 15 per cent to 18.4, snapping its four-session gain. All sectoral indices ended with gains, with the IT stocks emerging as the best performers, spurred by optimism over the US economy. The Nifty IT index gained 6.7 per cent. On the other hand, the Nifty Pharma index underperformed, rising just 0.15 per cent following the US' move to lower drug prices. Looking ahead, the remainder of the corporate results, sustainability of foreign portfolio investor (FPI) flows, stable monsoons, and potential trade deals with the US will provide further momentum to the market rally.
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Business Standard
12-05-2025
- Business
- Business Standard
Markets liftoff after jets are grounded; Sensex, Nifty rises over 3%
Indian equity benchmarks skyrocketed on Monday, posting their largest-single-day gains in over four years, following a ceasefire understanding between India and Pakistan after four days of intense fighting. The de-escalation of trade tensions between China and the US also contributed to the positive sentiment. Both the benchmark and broader indices recorded their best gains in years. The Sensex closed at 82,430, up 2,975 points or 3.7 per cent. The Nifty ended at 24,925, rising by 917 points or 3.8 per cent. For both indices, these were the highest since February 2021. In terms of points gained, Monday's performance was the best ever. The broader Nifty Midcap 100 rose by 4.1 per cent, its best single-day gain since June 5, 2024, while the Nifty Smallcap 100 jumped 4.2 per cent, its highest since February 25, 2022. The total market capitalisation of BSE-listed firms soared by over ₹16 trillion to ₹432.6 trillion. Investor optimism was also seen across the border, with Pakistan's equity benchmark KSE 100 surging 9.1 per cent. Investors were relieved as the ceasefire between India and Pakistan eased concerns about the economic impact of a potential war between the two nuclear-armed neighbours. The truce came after days of intense fighting involving missiles and drones. "Ceasefire is the primary reason for the rally. It is natural for markets to react strongly to such developments. Going forward, we are cautiously optimistic, but much depends on the ceasefire holding," said Chokkalingam G, founder of Equinomics. However, some experts believe Monday's rally was driven by a combination of geopolitical realignment, earnings acceleration, and easing trade tensions. "Today's rally reflects broader optimism rather than just the Indo-Pak ceasefire. Last week's correction was mild and orderly, more of a breather after the March rally. The sharp bounce-back is rooted in improving fundamentals, not just sentiment. We are seeing resilient fourth quarter (Q4) earnings, steady performance in key sectors, and improving visibility for the next few quarters," said Harish Krishnan, co-CIO and head of equity at Aditya Birla Sun Life AMC. Global markets also rose after the US and China temporarily lowered tariffs on each other's products. The easing of trade tensions led to the strengthening of US assets. The dollar index rose 1.3 per cent to hit a one-month high of 101.6. The 10-year US bond yield increased by 1.75 per cent, trading at 4.45 per cent. Meanwhile, gold declined by 3 per cent, trading at $3,227.3 per ounce. The market breadth was strong, with 3,541 stocks advancing and 582 declining. The India Vix index, a gauge of market volatility, fell 15 per cent to 18.4, snapping its four-session gain. All sectoral indices ended with gains, with the IT stocks emerging as the best performers, spurred by optimism over the US economy. The Nifty IT index gained 6.7 per cent. On the other hand, the Nifty Pharma index underperformed, rising just 0.15 per cent following the US' move to lower drug prices. Looking ahead, the remainder of the corporate results, sustainability of foreign portfolio investor (FPI) flows, stable monsoons, and potential trade deals with the US will provide further momentum to the market rally. "Markets may consolidate from here, but the overall trend remains positive. The rally's sustainability will depend on earnings momentum, policy continuity, and continued global interest in India as an investment destination," said Krishnan. FPIS were net buyers on Monday, worth Rs 1,246 crore, while domestic institutions were net buyers to Rs 1,448 crore.
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Business Standard
21-04-2025
- Business
- Business Standard
Sensex, Nifty score biggest 5-session gain in over 4 years on global cues
The Indian equity benchmarks powered ahead on Monday, notching up their strongest five-day rally in four years. A mix of heavyweight buying, a softer dollar, and easing crude oil prices helped bolster investor sentiment. Optimism from progress in trade talks with the US and expanded reciprocal tariff exemptions further fuelled the rally. The Sensex rose 855 points, or 1.1 per cent, to close at 79,409, while the Nifty 50 climbed 274 points, or 1.2 per cent, to 24,126 — surpassing the 24,000 mark for the first time since early January. In the past five sessions, the Sensex and the Nifty have jumped 7.5 per cent and 7.7 per cent respectively, clocking their best stretch since February 5, 2021. The total market capitalisation of firms listed on the BSE crossed the $5 trillion mark -- a level last seen on January 9. Over the past five sessions, the market value of domestic firms has risen by nearly half a trillion dollars. Banking stocks have been at the forefront of this rally, with the Nifty Financials index soaring nearly 10 per cent to hit fresh record highs. On the day, FPIs were net buyers of ₹1,970 crore, while domestic institutional investors picked up stocks worth ₹247 crore. 'HDFC Bank's post-merger stagnation has eased, with its March quarter growth resonating with the markets,' said Chokkalingam G, founder of Equinomics. 'Private banks are poised for double-digit growth this financial year, supported by moderating inflation, falling oil prices, and potential interest rate cuts. Lower deposit rates and the sector's domestic focus, insulated from tariff wars, further bolster sentiment.' A weaker US dollar added to the bullish sentiment, with the dollar index slipping to 98.2 -- its lowest since March 2022 -- prompting risk appetite for emerging markets like India. The MSCI Emerging Markets Index gained 2.2 per cent between April 11 and 18. The greenback's slide has been linked to unease around potential leadership changes at the US Federal Reserve, with President Donald Trump voicing criticism of the Fed's hesitancy to lower rates -- fuelling fears of politicised monetary policy and shaking confidence in the dollar. Meanwhile, gold hit a record $3,411 per ounce, and Brent crude nearly 3 per cent to $66.06 a barrel (8.15 pm IST). The market's trajectory, according to analysts, will now hinge on India Inc's Q4 earnings season and the outcome of trade negotiations with the US. 'Optimism surrounds US Vice President J D Vance's four-day visit to India, with hopes around a bilateral trade deal,' said Siddhartha Khemka, head of research, wealth management at Motilal Oswal Financial Services. 'We expect positive momentum to persist, driven by strong domestic cues and stock-specific movements tied to earnings.' The market breadth was firmly positive, with 2,903 stocks advancing while 1,199 declining. Still, the Nifty 50 trades about 8 per cent below the record high it touched on September 27.
