Latest news with #NarendraSolanki
Economic Times
27-05-2025
- Business
- Economic Times
Narendra Solanki on where he is overweight and where underweight in current market
Narendra Solanki, Head Fundamental Research-Investment Services, Anand Rathi Shares, says the market remains stock-specific, with a positive outlook on banks, particularly public sector banks, and financials. FMCG, durables, consumer discretionary, and defence sectors also show promise, driven by strong order expectations. Domestic manufacturing, especially electronics, and the hospital segment within pharma are attractive, while in auto, two-wheelers like M&M, TVS Motor, and Hero MotoCorp are favoured. ADVERTISEMENT Guess all things are pointing towards a buoyant market move. It has been a decent earnings season and now there is the early onset of monsoon as well. Narendra Solanki: Yes, definitely. The earning season is almost over and few macro data points have also panned out to be right, especially the monsoons, the inflation environment, and the rate cut environment. These three along with the announcements in the Budget would definitely cheer up the festival season and the demand is likely to pick up in these segments for the next two to three months. Banking, financials set to lead next leg of market rally: Ajit Mishra The market has definitely given a thumbs up to all that and the overall mood is also optimistic for the market, especially on the revival of both rural and urban demand. All the sectors catering into these segments have been trading in a very optimistic manner. What is the analysis of the earning season so far? What has managed to stand out? Where are you overweight and where are you underweight? Narendra Solanki: The earning season was largely on expected lines and the market currently is still a stock specific market and on a sector basis, we are positive on banks and financials. Among banks, we favour public sector banks in comparison to private sector banks as a basket. Apart from financials, we are positive on FMCGs, durables, as well as consumer discretionary segments. On defence also, we are very positive. However, some stocks may appear to be highly richly valued but looking at the kind of orders which are expected to come in, the valuations were also somewhat good for those kinds of stocks. So, defence is also looking very good for a medium to long-term perspective. Overall, the domestic manufacturing space, especially electronic manufacturing space (EMS), which has corrected somewhat, is also looking attractive. Overall, the domestic economic environment and domestic involved manufacturing companies are looking very good. In pharma, we are more positive in the hospital segment rather than the pharmaceutical companies or drug companies. In auto, we are more positive on two-wheelers' entry space, the likes of M&M, TVS Motor and Hero MotoCorp rather than the passenger vehicle segment. These are our sectoral bets. ADVERTISEMENT (You can now subscribe to our ETMarkets WhatsApp channel)
Business Recorder
14-05-2025
- Business
- Business Recorder
India's benchmarks inch higher as tech, metal stocks gain
India's benchmark indexes ended higher on Wednesday, helped by a rise in information technology stocks on easing U.S. recession fears and in metals companies as the U.S. dollar weakened. The Nifty 50 rose 0.36% to 24,666.90 and the BSE Sensex gained 0.22% to 81,330.56. They had risen about 0.7% earlier, before trimming gains. 'There will be instances of profit taking in the very near term as hot FPI (foreign portfolio investors) money is likely to move to China due to the U.S.-China trade truce,' said Narendra Solanki, head of research at Anand Rathi. Financials, which have relatively higher FPI ownership than other sectors, dropped 0.23% on the day. Still, ten of the 13 major sectors advanced on the day. The overall outlook for domestic markets remains positive, as cooling domestic inflation will allow the central bank to ease interest rates further, and that, in turn, will boost both economic growth and corporate profits, Solanki said. India's retail inflation slowed to a near six-year low on Tuesday. Indian stocks log best day in 4 years on border truce; Pakistan shares surge IT companies, which get a significant chunk of their revenue from the United States, gained 1.34%. The low probability of a U.S. recession due to easing trade worries makes IT a good play as valuations are reasonable, said Jaykrishna Gandhi, head of business development of institutional equities at Emkay Global Financial Services. A drop in the dollar due to benign U.S. inflation data and easing trade tensions also boosted metal stocks by 2.46%. Tata Steel surged 3.93% with multiple brokerages highlighting strong volume growth and cost optimisation as key positives for the company. The broader small-cap and mid-cap indexes rose 1.44% and 1.11% each. Anand Rathi's Solanki said that was mostly as certain key constituents gained after posting upbeat results.
Zawya
14-02-2025
- Business
- Zawya
Institutional buyers haul Hexaware's India IPO over the line as stock market bleeds
Indian IT exporter Hexaware Technologies' $1 billion initial public offering was fully subscribed in the final hours of the share sale on Friday, driven largely by institutional buyers as others held back amid a broader market slide. The company is targeting a valuation of 430 billion rupees ($4.96 billion) at the upper end of its price band of 674-708 rupees in India's biggest IPO so far this year. Top shareholder Carlyle is selling about 21% of its stake in the company, which is issuing no new shares in the IPO. The IPO comes at a time when India's blue-chip Nifty 50 index has fallen 3% so far this year and slid about 12.5% from its all-time closing high in September, amid concerns over a corporate earnings slowdown, fewer U.S. rate cuts, sustained foreign selling, and worries about U.S. tariffs. "The overall market sentiment does not appear to favour richly-priced IPOs at this time," said Narendra Solanki, head of research at Anand Rathi. Hexaware's IPO was subscribed some 2.7 times, led by demand from qualified institutional buyers such as foreign investors and mutual funds, who bid for 9 times the shares on offer. However, retail investors, for whom Hexaware had reserved nearly 45 million shares, bid for just 11% of the shares on offer. Non institutional investors bid for only a fifth of their portion. "Investors looking for short-term gains through the IPO are staying away from Hexaware," said Arun Kejriwal, founder of Kejriwal Research. The absence of a "listing pop" in the so-called indicative grey market premium, which is in single digits, is keeping investors away, he added. After a record year for IPOs in 2024, public floats have offered investors scant returns this year, with 60% of the companies that have listed on the BSE bourse trading at a discount to their IPO price, stock exchange data showed. Hexaware's stock is expected to be listed on February 19. The company was a publicly listed firm until late 2020, when its former controlling shareholder Baring Private Equity Asia (BPEA) took it private. Carlyle acquired a majority stake in the company in 2021. ($1 = 86.7170 Indian rupees) (Reporting by Nandan Mandayam in Bengaluru; Editing by Shinjini Ganguli)
Reuters
14-02-2025
- Business
- Reuters
Institutional buyers haul Hexaware's India IPO over the line as stock market bleeds
Summary Companies Institutional buyers bid for 9x reserved shares Retail, non-institutional buyers show tepid demand Broader market in steep fall amid earnings, tariff worries Hexaware stock expected to list on February 19 Hexaware seeking valuation of about $5 bln at upper end of price band Feb 14 (Reuters) - Indian IT exporter Hexaware Technologies' $1 billion initial public offering was fully subscribed in the final hours of the share sale on Friday, driven largely by institutional buyers as others held back amid a broader market slide. The company is targeting a valuation of 430 billion rupees ($4.96 billion) at the upper end of its price band of 674-708 rupees in India's biggest IPO so far this year. Top shareholder Carlyle (CG.O), opens new tab is selling about 21% of its stake in the company, which is issuing no new shares in the IPO. The IPO comes at a time when India's blue-chip Nifty 50 index (.NSEI), opens new tab has fallen 3% so far this year and slid about 12.5% from its all-time closing high in September, amid concerns over a corporate earnings slowdown, fewer U.S. rate cuts, sustained foreign selling, and worries about U.S. tariffs. "The overall market sentiment does not appear to favour richly-priced IPOs at this time," said Narendra Solanki, head of research at Anand Rathi. Hexaware's IPO was subscribed some 2.7 times, led by demand from qualified institutional buyers such as foreign investors and mutual funds, who bid for 9 times the shares on offer. However, retail investors, for whom Hexaware had reserved nearly 45 million shares, bid for just 11% of the shares on offer. Non institutional investors bid for only a fifth of their portion. "Investors looking for short-term gains through the IPO are staying away from Hexaware," said Arun Kejriwal, founder of Kejriwal Research. The absence of a "listing pop" in the so-called indicative grey market premium, which is in single digits, is keeping investors away, he added. After a record year for IPOs in 2024, public floats have offered investors scant returns this year, with 60% of the companies that have listed on the BSE bourse trading at a discount to their IPO price, stock exchange data showed. Hexaware's stock is expected to be listed on February 19. The company was a publicly listed firm until late 2020, when its former controlling shareholder Baring Private Equity Asia (BPEA) took it private. Carlyle acquired a majority stake in the company in 2021. ($1 = 86.7170 Indian rupees)
