Latest news with #IndianStocks
Bloomberg
13 hours ago
- Business
- Bloomberg
Bargain Hunters Scouring For Distressed Sectors May Eye India's Road Developers
Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at: Good morning, this is Ashutosh Joshi, an equities reporter in Mumbai. Indian stocks are positioned for a second day of gains, helped by a risk on tone in Asian markets and a sharp decline in volatility index back home. The prospects of ample rainfall could further boost sentiment, benefiting a host of sectors while helping ease inflationary pressures.
Khaleej Times
2 days ago
- Automotive
- Khaleej Times
How can foreign citizens invest in Indian stocks markets?
Question: Some of my friends who are citizens of the UK and Europe would like to invest directly in stocks and shares of Indian companies. Is it possible for them to do so? If not, what avenues are open for investing in the capital market? ANSWER: Foreign citizens can invest in Indian stocks and shares only through the foreign portfolio investors (FPIs) route. They can acquire Indian securities through Category II FPIs which include regulated entities like mutual funds, investment trusts, asset managers, banks and insurance companies which are registered with the Securities and Exchange Board of India (SEBI). Restricting investments through such regulated investment vehicles ensures that SEBI's regulations are strictly complied with. Foreign individuals can invest in Indian listed equities through indirect routes, such as offshore derivative instruments (ODIs) or participatory notes. P-notes are backed by the securities they hold in India and are issued overseas by registered foreign brokers. Accountability is placed on FPIs to ensure compliance while issuing ODIs and P-notes. However, this option of investment is discouraged due to concerns related to lack of transparency. The regulator, Sebi, is considering allowing foreign individuals to invest directly in the stock market but the proposal is still in its nascent stage and will need approval from the Finance Ministry and the Reserve Bank of India. Indian authorities are cautious on this issue on account of the potential risks of money laundering. Further, if implemented, it will require stringent KYC checks as well as monitoring the source of the funds coming into India. Initially, foreign investors who are citizens of Financial Action Task Force (FATF) member countries may be permitted to invest directly on the stock market. Question: I am returning to India shortly and would like to buy a car for my personal use. I want to know whether purchasing an electric car is a good option. I am worried as I would have to travel between Pune and Mumbai frequently. ANSWER: As you will be using your car in Maharashtra, it would be advantageous to buy an electric vehicle as this state wants to set up the best EV ecosystem in India. Currently, all EVs in the State are exempt from the motor vehicle tax and registration fees. Under the revised policy announced last month, the government will grant toll exemption for cars used on all highways and expressways, including the Mumbai-Pune and Mumbai-Nagpur expressways, for five years. Fast charging stations will be put up, every 25 kilometres, on expressways and highways and at most of the gas stations in the cities. Development control rules are also being amended to make it mandatory for all housing societies and complexes to provide the necessary infrastructure for charging of electric vehicles. EV charging infrastructure is to be made mandatory in all commercial complexes. The state is also establishing battery recycling zones in all major cities. Special courses are being designed by industrial technical institutes, polytechnics and engineering colleges to ensure that sufficient technical manpower for repair and servicing of electric vehicles will be available by 2030. Many other states in India are giving attractive incentives for purchase of EVs. Therefore, purchasing an electric car is a good option. Question: The company for which I work in Dubai is headquartered in Paris owning several luxury brands in ladies wear. The company is planning to set up outlets in major cities of India. However, the problem faced is in finding adequate retail space in prime locations. Is this a temporary problem which is likely to be resolved in the near future? ANSWER: India's luxury retail sector is currently witnessing an unprecedented level of growth. The leasing of retail space has surged 90 per cent year-on-year in the first quarter of 2025. This growth is driven by an aggressive expansion across major cities by overseas luxury and bridge-to-luxury brands. During this quarter, 180,000 square feet has been leased out in shopping malls both by global and domestic players as per data released by a well-known consultancy firm. As consumer demographics evolve, luxury brands are recalibrating their strategies and expanding the physical footprint to capture a broader audience. While legacy players are focused on metro markets, newer brands view India as a high potential destination and are establishing their outlets even in Tier 1 and Tier 2 cities. As a result, lease rentals have gone up substantially in the last few months. Despite this high cost of rentals, brands in the bridge-to-luxury segment, particularly in beauty products and accessories, are aggressively expanding in malls where they previously lacked presence. Many overseas players are setting up standalone boutiques in commercial areas where there is a heavy footfall of consumers. One of the major reasons behind the expansion plans of luxury brands is the growing number of high income individuals, with an equivalent income of $40,000 or more which is expected to double from 15 million in 2022 to 30 million by 2030. Therefore, India's luxury market is expected to grow significantly to reach $90 billion by 2030. The writer is a practising lawyer, specialising in corporate and fiscal laws of India.
Zawya
3 days ago
- Business
- Zawya
India lures foreign investors back with big ticket block trades
SYDNEY/SINGAPORE - Foreign investors are starting to head back into Indian stocks after a major exodus, attracted by $5.5 billion worth of big ticket block trades in May and lifting hopes of a revival in the nation's equities market. The block trades were well bought by overseas investors, according to bankers. They marked the highest monthly total in almost a year and a huge jump from only $220 million in April. "We actually saw interest coming in from a fairly diverse set of investors who were missing in action in the last six months," said Abhinav Bharti, head of JPMorgan's India equity capital market business. "They had gone out of India, said India is just too expensive, we don't want to buy anything right now. I think we could start seeing them coming back." Block trades often precede a recovery in IPOs and May's robust offerings come amid a strong performance for Indian stocks. The Nifty 50 index has climbed risen 6% since early April when U.S. President Donald Trump announced his sweeping tariffs which were then paused for 90 days, with India emerging as an investor safe haven due to better-than-feared duties. Foreigners have since bought about $3 billion worth of Indian stocks in April and May combined, data shows. That comes after they pulled nearly $29 billion out of Indian stocks between October and March which followed record highs for the country's benchmark indices in September. Gary Tan, a portfolio manager at Allspring Global Investments in Singapore, said the recent inflows into India reflect a resurgence of interest in emerging market equities. "We've selectively added to India on pullbacks but remain underweight," said Tan, citing high valuation in some sectors. Banking, telecommunications and diversified conglomerates were his most favoured sectors, he added. The $5.5 billion in block trades in May, according to LSEG data, included the sale of a British American Tobacco $1.51 billion stake in ITC, according to a term sheet seen by Reuters showed. IndiGo co-founder Rakesh Gangwal also offloaded a 5.7% stake in the low-cost carrier through a block deal worth about $1.36 billion, while Singtel sold $1.5 billion of Bharti Airtel shares. Both the ITC and IndiGo trades were increased in size after strong demand from investors, bankers said. It was the busiest May on record for block trades in the country, the data showed. "We're seeing high-quality global long-only accounts coming in with conviction," said Sunil Khaitan, a managing director at Goldman Sachs in India. "Some are still waiting for levels to normalize, but 90% to 95% of the foreign liquidity coming back into the market is from deeply embedded India investors, those who understand the market and have been waiting for the right window to reengage." Citigroup's head of India ECM Arvind Vashistha said the country's better economic performance, tax cuts and interest rate reductions had helped sentiment towards India's equity markets improve. "The economy is in good shape, valuations have become more reasonable, which is encouraging healthy market activity. Investors are telling us that these are the companies we find interesting and if there's a supplier, we'd love to buy it," he said. (Reporting by Scott Murdoch and Ankur Banerjee; Editing by Edwina Gibbs)
Reuters
3 days ago
- Business
- Reuters
India lures foreign investors back with big ticket block trades
SYDNEY/SINGAPORE, June 2 (Reuters) - Foreign investors are starting to head back into Indian stocks after a major exodus, attracted by $5.5 billion worth of big ticket block trades in May and lifting hopes of a revival in the nation's equities market. The block trades were well bought by overseas investors, according to bankers. They marked the highest monthly total in almost a year and a huge jump from only $220 million in April. "We actually saw interest coming in from a fairly diverse set of investors who were missing in action in the last six months," said Abhinav Bharti, head of JPMorgan's (JPM.N), opens new tab India equity capital market business. "They had gone out of India, said India is just too expensive, we don't want to buy anything right now. I think we could start seeing them coming back." Block trades often precede a recovery in IPOs and May's robust offerings come amid a strong performance for Indian stocks. The Nifty 50 index (.NSEI), opens new tab has climbed risen 6% since early April when U.S. President Donald Trump announced his sweeping tariffs which were then paused for 90 days, with India emerging as an investor safe haven due to better-than-feared duties. Foreigners have since bought about $3 billion worth of Indian stocks in April and May combined, data shows, opens new tab. That comes after they pulled nearly $29 billion out of Indian stocks between October and March which followed record highs for the country's benchmark indices in September. Gary Tan, a portfolio manager at Allspring Global Investments in Singapore, said the recent inflows into India reflect a resurgence of interest in emerging market equities. "We've selectively added to India on pullbacks but remain underweight," said Tan, citing high valuation in some sectors. Banking, telecommunications and diversified conglomerates were his most favoured sectors, he added. The $5.5 billion in block trades in May, according to LSEG data, included the sale of a British American Tobacco (BATS.L), opens new tab $1.51 billion stake in ITC ( opens new tab, according to a term sheet seen by Reuters showed. IndiGo ( opens new tab co-founder Rakesh Gangwal also offloaded a 5.7% stake in the low-cost carrier through a block deal worth about $1.36 billion, while Singtel ( opens new tab sold $1.5 billion of Bharti Airtel ( opens new tab shares. Both the ITC and IndiGo trades were increased in size after strong demand from investors, bankers said. It was the busiest May on record for block trades in the country, the data showed. "We're seeing high-quality global long-only accounts coming in with conviction," said Sunil Khaitan, a managing director at Goldman Sachs in India. "Some are still waiting for levels to normalize, but 90% to 95% of the foreign liquidity coming back into the market is from deeply embedded India investors, those who understand the market and have been waiting for the right window to reengage." Citigroup's head of India ECM Arvind Vashistha said the country's better economic performance, tax cuts and interest rate reductions had helped sentiment towards India's equity markets improve. "The economy is in good shape, valuations have become more reasonable, which is encouraging healthy market activity. Investors are telling us that these are the companies we find interesting and if there's a supplier, we'd love to buy it," he said.
Yahoo
3 days ago
- Business
- Yahoo
India lures foreign investors back with big ticket block trades
By Scott Murdoch and Ankur Banerjee SYDNEY/SINGAPORE (Reuters) -Foreign investors are starting to head back into Indian stocks after a major exodus, attracted by $5.5 billion worth of big ticket block trades in May and lifting hopes of a revival in the nation's equities market. The block trades were well bought by overseas investors, according to bankers. They marked the highest monthly total in almost a year and a huge jump from only $220 million in April. "We actually saw interest coming in from a fairly diverse set of investors who were missing in action in the last six months," said Abhinav Bharti, head of JPMorgan's India equity capital market business. "They had gone out of India, said India is just too expensive, we don't want to buy anything right now. I think we could start seeing them coming back." Block trades often precede a recovery in IPOs and May's robust offerings come amid a strong performance for Indian stocks. The Nifty 50 index has climbed risen 6% since early April when U.S. President Donald Trump announced his sweeping tariffs which were then paused for 90 days, with India emerging as an investor safe haven due to better-than-feared duties. Foreigners have since bought about $3 billion worth of Indian stocks in April and May combined, data shows. That comes after they pulled nearly $29 billion out of Indian stocks between October and March which followed record highs for the country's benchmark indices in September. Gary Tan, a portfolio manager at Allspring Global Investments in Singapore, said the recent inflows into India reflect a resurgence of interest in emerging market equities. "We've selectively added to India on pullbacks but remain underweight," said Tan, citing high valuation in some sectors. Banking, telecommunications and diversified conglomerates were his most favoured sectors, he added. The $5.5 billion in block trades in May, according to LSEG data, included the sale of a British American Tobacco $1.51 billion stake in ITC, according to a term sheet seen by Reuters showed. IndiGo co-founder Rakesh Gangwal also offloaded a 5.7% stake in the low-cost carrier through a block deal worth about $1.36 billion, while Singtel sold $1.5 billion of Bharti Airtel shares. Both the ITC and IndiGo trades were increased in size after strong demand from investors, bankers said. It was the busiest May on record for block trades in the country, the data showed. "We're seeing high-quality global long-only accounts coming in with conviction," said Sunil Khaitan, a managing director at Goldman Sachs in India. "Some are still waiting for levels to normalize, but 90% to 95% of the foreign liquidity coming back into the market is from deeply embedded India investors, those who understand the market and have been waiting for the right window to reengage." Citigroup's head of India ECM Arvind Vashistha said the country's better economic performance, tax cuts and interest rate reductions had helped sentiment towards India's equity markets improve. "The economy is in good shape, valuations have become more reasonable, which is encouraging healthy market activity. Investors are telling us that these are the companies we find interesting and if there's a supplier, we'd love to buy it," he said.
