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The Hindu
3 days ago
- Business
- The Hindu
FPI inflows into equities at 8-month high in May 2025
Foreign Portfolio Investors (FPI) invested ₹19,860 crore, the highest in eight months, in May, according to data from NSDL. Foreign investors invested five times more than they invested in the previous month into Indian equities. The FPI investments came in positive for the second consecutive month in May after recording a net outflow for three consecutive months. This assumes significance as at the beginning of the calendar year 2025 and the better part of FY25, foreign investors were net sellers of Indian equity. The increase in foreign investor inflows came on the top of increasing returns in the domestic markets. Nifty increased 6% in March 2025, the highest in monthly return since July 2024. A combination of correction from the post-COVID rally, and the uncertainty around U.S. President Donald Trump's trade policies contributed to the net selling as foreign funds invested in U.S. bonds and exited the Asian stock markets due to tariff uncertainty. Liberation Day tariffs further increased the uncertainty as major economies were expected to be hit. The 90-day pause, however, cooled the uncertainty and with a trade deal between the U.S. and India imminent, market confidence returned to India. At the domestic level, a less-volatile rupee, softening inflation and improving GDP growth has led to the return of foreign money into the Indian equity market. This moderation in global risks to India's growth and improving state of domestic economic indicators may have instilled confidence in foreign investors, according to analysts
Business Standard
21-05-2025
- Business
- Business Standard
Shoonya Upgrades to Trading-cum-Clearing Member (TM-CM) on MCX
PRNewswire Mohali (Punjab) [India], May 21: Shoonya by Finvasia has officially announced its upgrade from a Trading Member (TM) to a Trading-cum-Clearing Member (TM-CM) on the Multi Commodity Exchange (MCX). The transition took place after market hours on Friday, May 16, 2025, and has been fully operational from Monday, May 19, 2025. This milestone marks a significant enhancement in Shoonya's operational capabilities. By becoming a TM-CM, Shoonya will now clear all MCX trades internally without the involvement of any external clearing member. The clearing cost has now been reduced from Rs. 50 per crore to Rs. 0. The move reflects the company's long-term strategy to build stronger back-end efficiencies while extending the benefits directly to its users. Speaking on the development, Sarvjeet Singh Virk, Co-founder and Managing Director of Finvasia, said, "At Shoonya, our mission has always been to make investing affordable and efficient for every Indian. Upgrading to a TM-CM on MCX is a key milestone in that journey, one that eliminates clearing costs and enables faster, and secure settlements. It is yet another example of how we're investing in technology and tech-related solutions to deliver a simplified, intuitive and frictionless user experience." There will be no impact on users during this transition. All open positions, holdings, deposits, and trading access will remain unchanged. This upgrade underscores Shoonya's vision of delivering a modern investment experience where efficiency, transparency, and long-term value come standard. About Shoonya by Finvasia Shoonya by Finvasia is a multi-asset trading platform, boasting low commission across 16 investing touch-points like clearing, technology, monthly maintenance etc. Placing customer experience at the core, the distinctive platform offers data-powered signal-based analysis to help investors and traders identify the best investment opportunities and make informed decisions. This focus has driven customer preference as the platform's active user base more than doubled in FY2023, which now stands at over 4 lakhs. The platform is one of the few non-bank clearing members in India, clearing and settling trades executed by Trading Members (TMs) and Foreign Portfolio Investors (FPIs) in Equity, Futures Options and Currency Derivatives segments on NSE, BSE, MCX and NCDEX. Shoonya was founded by Sarvjeet Virk (MD) and Tajinder Virk (CEO), Ex-Wall Street Professionals, with deep financial expertise. They envisioned to empower Indian traders and investors by enabling them to make smart financial decisions and achieve investment goals through an innovative and user-friendly trading platform. The company received FDI funding from some of the industry's notable Venture Capitalists against a valuation of INR 1.5 Billion in 2016, which enabled it to achieve its guiding mission to cut the cost that makes trading expensive and offer technology-driven financial services to its clients. Website:
Economic Times
13-05-2025
- Business
- Economic Times
Kotak Equities reshuffles model portfolio; adds IndiGo, Pidilite; reduces Dabur. Here's what changed
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Making adjustments to its model portfolio , domestic brokerage firm Kotak Institutional Equities has increased the weight of InterGlobe Aviation (INDIGO) by 100 basis points to 250 basis points and Pidilite Industries (PIDI) by 40 basis points to 190 basis points. Meanwhile, Dabur witnessed a decrease in the to the domestic brokerage firm, both companies are positioned as dominant players in their respective sectors, benefiting from several near-term include reasonable demand compared to other consumer categories, low raw material prices – specifically, aviation turbine fuel (ATF) for INDIGO and crude oil derivatives for PIDI – and strong pricing power amid weak competition in their respective a potentially stronger Indian Rupee (INR) could provide additional support to these the other hand, Kotak has reduced its weight in Dabur by 140 basis points, citing the company's inability to turn around performance despite favorable rural demand and a strong product portfolio targeting rural markets. Dabur has struggled to execute well in recent quarters and has been removed from the model portfolio as a its latest model portfolio, Kotak Institutional Equities has allocated the highest weightage to the banking sector , with a significant 36.5% exposure. Axis Bank IndusInd Bank , and State Bank of India remain key holdings within the banking segment. The firm maintains exposure to diversified financials with Bajaj Finance and Shriram Finance , representing a combined 3.6% services and insurance sectors have also been assigned substantial weights, including Apollo Hospitals HDFC Life Insurance , and ICICI Prudential Technology (IT) services, comprising Infosys TCS , and Tech Mahindra , account for 9.8% of the portfolio. Meanwhile, the oil, gas, and consumable fuels sector, led by Reliance Industries, holds a 9% including Cipla, Lupin, Mankind Pharma, and Sun Pharmaceuticals, collectively contribute 8.5% to the model its market outlook, Kotak Institutional Equities notes that despite the escalation of geopolitical tensions between India and Pakistan, the market has remained resilient over the past month. The brokerage attributes the market's steady performance to the resolution of trade and tariff disputes with the US and the easing of geopolitical also highlights a recent surge in Foreign Portfolio Investor (FPI) inflows, driven by India's relatively stronger macroeconomic outlook amid global the brokerage firm remains cautious about the earnings season, describing it as 'broadly muted,' with Nifty-50 earnings growing by 4.8% year-on-year in Q4FY25. The brokerage firm points out that banks and downstream oil marketing companies have been the primary contributors to earnings growth, while consumer companies have reported weak volume growth and persistent margin the mixed earnings performance, Kotak warns that valuations in the Nifty-50 index remain elevated, posing potential downside risks if earnings disappoint in the upcoming quarters. Sectors such as banking and telecommunications are trading at near full valuations, and the brokerage advises caution, particularly for mid- and small-cap stocks, which continue to face pressure amid broader market challenges.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
13-05-2025
- Business
- Time of India
Kotak Equities reshuffles model portfolio; adds IndiGo, Pidilite; reduces Dabur. Here's what changed
Making adjustments to its model portfolio , domestic brokerage firm Kotak Institutional Equities has increased the weight of InterGlobe Aviation (INDIGO) by 100 basis points to 250 basis points and Pidilite Industries (PIDI) by 40 basis points to 190 basis points. Meanwhile, Dabur witnessed a decrease in the weightage. According to the domestic brokerage firm, both companies are positioned as dominant players in their respective sectors, benefiting from several near-term tailwinds. These include reasonable demand compared to other consumer categories, low raw material prices – specifically, aviation turbine fuel (ATF) for INDIGO and crude oil derivatives for PIDI – and strong pricing power amid weak competition in their respective markets. Furthermore, a potentially stronger Indian Rupee (INR) could provide additional support to these companies. On the other hand, Kotak has reduced its weight in Dabur by 140 basis points, citing the company's inability to turn around performance despite favorable rural demand and a strong product portfolio targeting rural markets. Dabur has struggled to execute well in recent quarters and has been removed from the model portfolio as a result. In its latest model portfolio, Kotak Institutional Equities has allocated the highest weightage to the banking sector , with a significant 36.5% exposure. Axis Bank , HDFC Bank , ICICI Bank , IndusInd Bank , and State Bank of India remain key holdings within the banking segment. The firm maintains exposure to diversified financials with Bajaj Finance and Shriram Finance , representing a combined 3.6% weightage. Healthcare services and insurance sectors have also been assigned substantial weights, including Apollo Hospitals , Dr Lal Pathlabs , HDFC Life Insurance , and ICICI Prudential Life. Also read: Swiggy plunges 6% to 52-week low after lock-in expiry unlocks 83% shareholding Information Technology (IT) services, comprising Infosys , TCS , and Tech Mahindra , account for 9.8% of the portfolio. Meanwhile, the oil, gas, and consumable fuels sector, led by Reliance Industries, holds a 9% allocation. Pharmaceuticals, including Cipla, Lupin, Mankind Pharma, and Sun Pharmaceuticals, collectively contribute 8.5% to the model portfolio. In its market outlook, Kotak Institutional Equities notes that despite the escalation of geopolitical tensions between India and Pakistan, the market has remained resilient over the past month. The brokerage attributes the market's steady performance to the resolution of trade and tariff disputes with the US and the easing of geopolitical risks. Kotak also highlights a recent surge in Foreign Portfolio Investor (FPI) inflows, driven by India's relatively stronger macroeconomic outlook amid global uncertainties. However, the brokerage firm remains cautious about the earnings season, describing it as 'broadly muted,' with Nifty-50 earnings growing by 4.8% year-on-year in Q4FY25. The brokerage firm points out that banks and downstream oil marketing companies have been the primary contributors to earnings growth, while consumer companies have reported weak volume growth and persistent margin pressures. Despite the mixed earnings performance, Kotak warns that valuations in the Nifty-50 index remain elevated, posing potential downside risks if earnings disappoint in the upcoming quarters. Sectors such as banking and telecommunications are trading at near full valuations, and the brokerage advises caution, particularly for mid- and small-cap stocks, which continue to face pressure amid broader market challenges. Also read: Defence stocks: There are many sides to a story. 10 defence stocks with upside potential of up to 48% ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
05-05-2025
- Business
- Economic Times
FPI selling has abated but sustained buying won't start till good earnings recovery starts: Jitendra Gohil
Tired of too many ads? Remove Ads Also Read: DIIs surpass FPIs in ownership of companies listed on NSE after 22 years Also Read: Why bank stocks are an oasis for investors in a desert of chaos Tired of too many ads? Remove Ads Popular in Markets , Chief Investment Strategist,, says Nifty growth expectations have been revised. Macro stability is aiding Foreign Portfolio Investor (FPI) sentiment. US tariff policy shifts are impacting market sentiment. FPI selling has slowed, but sustained buying awaits earnings recovery . Large cap stocks, especially in IT, are attractive. Opportunities exist in correcting NBFCs and private of all, the macro improvement in India is pretty stark and looking at the GST numbers, the way rupee has behaved, and also the falling interest rates in India, RBI is infusing liquidity. So, from a macro stability perspective, we are in a much better position compared to our peers and that gives some kind of respite to FPI who was looking at an earnings downgrade and more or less the earnings downgrades have now started to price were earlier expecting Nifty growth of 12-15%, now the consensus is expecting somewhere around 9% to 11%. Net-net, a large part of earning correction is now factored in the numbers and also the macro stability is helping some sentiment improvement for FPIs. On the other hand, if you look at the global factors, if you see the de-escalation of the tariff tension, how China and US negotiates is going to be very crucial. But over the past few weeks, we have seen that the US has taken a U-turn in terms of putting tariffs on all the countries and that has led to some kind of sentiment we cannot say the FPIs will turn extremely positive on India, but at least the selling has abated and month to date, the FPI flows are flat to little bit positive. I would say it is a great sign, but to see a sustained FPI buying, we need to wait a bit till good recovery in earnings at the IT sector, you are right, we have seen corrections happening there and already the market was pricing in and after the results, we have seen a mixed reaction. From a valuation perspective also, the sector has seen good downgrades and a large part of the fear is that we are going to see a US recession or a major slowdown in the developed economy. I think that is why you have seen the correction in a large part of the IT largely, the largecaps are now looking attractive. We have started recommending a few IT names now from a 12-18 months' perspective, remember they are not completely out of the woods. So there we see some kind of buying support happening as a large part of the negative earnings have started to priced in. Looking at the banking sector, there is still good headroom. RBI has already infused more than Rs 5 lakh crore of liquidity year to there also the results were a little bit mixed. You have seen some corrections happening in the NBFC sectors and some of the private banks as well and there you get a good buying opportunity if it corrects another 2% to 3%. In the banking sector, as a whole, we remain positive and we think that earnings recovery is on cards in the banking stocks given liquidity support and the kind of macro these are the two outlier sectors where we think there could be outsized opportunities to buy. Otherwise, consumption is a little weak. We have seen some of the retail names reporting not that exciting numbers and till the time broad-based consumption recovery happens, I do not see earnings will pick up in this sector. So, avoid consumption driven names. IT, to some extent it is a value might emerge over the next few months or so and banking and financials is looking pretty some other sectors such as defence, we see a lot of traction happening because whatever is happening globally as well and the government is also now going to focus more on building their defence capabilities, order inflows have started. We are seeing very divergent performance across the sectors and we need to be cognisant about all these developments on the macro So, we do not recommend going for globally exposed auto components companies or to some extent one or two OEMs that are willing to global auto cycle as well. We are staying away from it. Domestic auto names there also the valuation is not cheap. In our model portfolio, in our recommendations, we hardly have any auto stocks at this point of time. If you look at even the guidance for FY26, there also we see muted commentary from the companies. However, some of the auto financers probably could do prefer NBFCs because we think that is the sector where your lending rates are capped and your borrowing may fall once the interest rate starts to fall further. So, net-net, we are a little bit more positive on auto financers and auto focused banks compared to OEMs as of are looking at companies in the demat space and we definitely like those kinds of platform companies. But on insurance, we are a little bit cautious. We think that there is still some headroom for valuations to correct. So, from an overall banking and financial perspective, our top preference remains for private banks followed by PSU banks and NBFCs. To some extent, intermediaries in the financial space. But not looking very aggressively in the insurance space. We think competition is going to be increasing going ahead. So, heightened competition will lead to margin compression there. So, we are not very bullish on insurance. It is just a neutral-ish kind of a view there.
