Latest news with #ManishBhandari
Time of India
2 days ago
- Business
- Time of India
Why are more promoters pledging their shares in Nifty 500 companies?
In the March quarter, shares of several companies, which saw a rise in promoter pledges, had fallen 30-50%. During January-March, promoter stake pledges increased for 27 Nifty 500 companies, including Aadhar Housing Finance and Max Financial Services. While pledging isn't inherently alarming, it raises concerns when a company's fundamentals are weak, potentially amplifying negative impacts if business performance is already questionable. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Promoters' stake pledges went up for 27 companies out of the Nifty 500 companies during January-March, compared with 25 companies in the previous quarter, according to data from Primedatabase. Aadhar Housing Finance Max Financial Services and Raymond Lifestyles were among the companies that saw promoters pledging their holdings during the or shareholders, put up their shares as collateral for loans . While promoters placing their shares as collateral is not uncommon, sudden increases in such pledging catch the attention of the investor community."Pledging of shares in itself is not necessarily a concern and may be a means of leveraging the stake when markets are performing well," said Abhilash Pagaria, head of Alternative and Quantitative Research, Nuvama. "However, if a company's fundamentals are not sound, then it can be a sign of caution.""If a company's business fundamentals are already under the scanner and there is pledging of shares, then it can amplify the negative impact and result in the shares declining," he fall in stock prices could also lead to an increase in share pledges by promoters as lenders seek fresh shares to make up for the drop in value of the collateral. In the March quarter, shares of several companies, which saw a rise in promoter pledges, had fallen 30-50%."When promoter pledges increase, it can indicate the genuine need for capital and tend to move up due to a decline in markets as witnessed in the March quarter," said Manish Bhandari, CEO, Vallum are wary of companies with consistently high pledging of stakes by promoters, as in the past, there have been some instances of these founders defaulting on the loan, forcing the lenders to sell the pledged shares in the open market to make up for the non-payment. "A higher amount of shares can be pledged if the share price falls, as part of margin call; however, this is not a concern unless the increase is substantial of around 30-40%," said Bhandari.
Economic Times
2 days ago
- Business
- Economic Times
Why are more promoters pledging their shares in Nifty 500 companies?
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Promoters' stake pledges went up for 27 companies out of the Nifty 500 companies during January-March, compared with 25 companies in the previous quarter, according to data from Primedatabase. Aadhar Housing Finance Max Financial Services and Raymond Lifestyles were among the companies that saw promoters pledging their holdings during the or shareholders, put up their shares as collateral for loans . While promoters placing their shares as collateral is not uncommon, sudden increases in such pledging catch the attention of the investor community."Pledging of shares in itself is not necessarily a concern and may be a means of leveraging the stake when markets are performing well," said Abhilash Pagaria, head of Alternative and Quantitative Research, Nuvama. "However, if a company's fundamentals are not sound, then it can be a sign of caution.""If a company's business fundamentals are already under the scanner and there is pledging of shares, then it can amplify the negative impact and result in the shares declining," he fall in stock prices could also lead to an increase in share pledges by promoters as lenders seek fresh shares to make up for the drop in value of the collateral. In the March quarter, shares of several companies, which saw a rise in promoter pledges, had fallen 30-50%."When promoter pledges increase, it can indicate the genuine need for capital and tend to move up due to a decline in markets as witnessed in the March quarter," said Manish Bhandari, CEO, Vallum are wary of companies with consistently high pledging of stakes by promoters, as in the past, there have been some instances of these founders defaulting on the loan, forcing the lenders to sell the pledged shares in the open market to make up for the non-payment. "A higher amount of shares can be pledged if the share price falls, as part of margin call; however, this is not a concern unless the increase is substantial of around 30-40%," said Bhandari.
Economic Times
22-05-2025
- Business
- Economic Times
Why are foreign investors flocking to BFSI stocks in May?
Foreign Portfolio Investors (FPIs) significantly increased their investments in Indian markets during the first half of May, with banking and financial services (BFSI) stocks attracting the highest inflows at ₹4,728 crore. Capital goods and oil & gas sectors also saw substantial investments, while FMCG experienced the most significant selling pressure. Experts anticipate further FII inflows driven by global de-dollarization. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Foreign investors pumped ₹4,728 crore into banking and financial services shares in the first half of May - the highest flows across sectors. The investments account for almost 40% of their net flows of ₹12,800 crore across all sectors during the April, foreigners had bought BFSI shares worth ₹18,409 crore after being sellers in January-March and 2024."BFSI comprises almost 30% of all major indices and has also witnessed the highest earnings growth given the slowdown in the other sectors," said Manish Bhandari, CEO & portfolio manager, Vallum Capital. "Further inflows are likely in the segment."Capital goods, oil and gas, services and automobiles, along with the Information Technology (IT) and metals sector, were among the other sectors that attracted flows in the May 1-15 investors pumped in ₹2,233 crore and ₹2,130 crore in capital goods and oil & gas sectors, respectively, in the first 15 days of May."Capital goods and oil and gas sectors have both corrected significantly and the latter has seen the highest foreign outflows during the sell off," said Pankaj Pandey, head of retail research, ICICI Direct."This trend is reversing in both the sectors and Reliance has started to perform, which is positive for oil and gas sector as a whole."Foreign investors purchased shares worth over ₹1,000 crore in services, automobiles, consumer services and telecommunication investors offloaded shares worth ₹4,142 crore across nine sectors in the first 15 days of the month. The selling was the highest in the fast-moving consumer goods (FMCG) sector, where foreign investors sold divested ₹1,057 crore after buying ₹2,917 crore in said overseas investors continued to remain negative on the FMCG sector as it is expected to have low single-digit growth rate and trade at high valuations."FII inflows are expected to accelerate, led by the increased de-dollarisation across the world," said Bhandari. "Both India and China are likely to see incremental buying."
