Latest news with #NirmalJain
Bloomberg
29-05-2025
- Business
- Bloomberg
Billionaire Nirmal Jain Hiring 60 Bankers for India Wealth Boom
Tycoon Nirmal Jain is aggressively hiring bankers and pivoting his brokerage to wealth management, underscoring how Indian firms are racing to tap the nation's swelling ranks of rich clients. Jain founded his flagship Mumbai-based IIFL Group and grew it into a financial services behemoth, comprising a shadow bank, a retail and institutional broking firm and a discount brokerage arm, along with a stake in a wealth manager. The three-decade-old group has propelled Jain and his wife Madhu's net worth to $1.2 billion, according to the Bloomberg Billionaires Index.
Time of India
25-05-2025
- Business
- Time of India
IIFL Finance gets RBI approval to open branches in Jammu & Kashmir
IIFL Finance has secured regulatory approvals to open branches and extend credit services in Jammu & Kashmir, aiming to provide crucial financial access to underserved communities. This initiative supports the revival of small businesses and households, complementing IIFL's existing CSR activities in the region focused on education, healthcare, and community empowerment. Tired of too many ads? Remove Ads NBFC firm IIFL Finance has said it has received the necessary regulatory approvals for opening branches and expanding its credit services to the Union Territory of Jammu & Kashmir . This approval is a timely step towards delivering essential financial services in unbanked and underbanked areas, where access to formal credit has historically been limited, IIFL Finance said in a on the development, IIFL Finance founder and MD Nirmal Jain said, "The management decision to commence operations in Jammu & Kashmir reflects our long-standing commitment to bringing financial access to unserved and underserved communities. The approval to open branches comes at a critical time when people in the region have been facing disruptions in their livelihoods."By offering credit solutions tailored to local needs, he said, IIFL Finance aims to support the revival of small businesses and support households in the presence in Jammu & Kashmir complements its Corporate Social Responsibility activities in the state, including ongoing programs in Kupwara, Baramulla, Srinagar, and other areas that focus on education, skill development, healthcare and community empowerment. IIFL Foundation has been present in Kashmir for over a decade. It initially supported with incubator machines at the LD Hospital during the Kashmir floods, it added.
Mint
01-05-2025
- Business
- Mint
Cash in equity funds are at a 6-year high. What are fund managers waiting for?
Cash levels in actively managed equity mutual fund schemes have climbed to their highest in over six years, signalling a cautious stance even as fund managers await the right entry points. The three-month average cash level in active equity mutual fund schemes stood at 6.2% in March, the highest in over six years, and up from 5.7% in January and 6.0% in February, show data compiled by Elara Capital. The last time cash positions were this elevated was in November 2018, at 6.3%, and in November and December 2011, at 6.4%, the data showed. Cash holding levels typically average 3-4%. Mahesh Patil, chief investment officer at Aditya Birla Sun Life AMC, said a rough calculation suggested that active equity schemes managed over ₹ 28 trillion, and typically have an average cash holding of around 3%, which would be about ₹ 84,000 crore. With cash levels now at about 6%, there would be another ₹ 84,000 crore waiting to be deployed, he said. That would add up to an estimated total cash holding of about ₹ 1.64 trillion. "If that capital starts flowing, it could offer strong support to the markets, particularly in the event of any sudden reactions to global or domestic uncertainties," Patil said. This 'dry powder" could fuel a sharp rally when fund managers pump it into the market, but considering they are holding on to the cash now that could make it harder for retail investors to enter at reasonable levels. The benchmark Nifty 50 index witnessed a strong rally in both 2011 and 2018 after cash levels hit similar highs, said Sunil Jain, vice president at Elara Capital. 'However, market breadth remained weak (in 2018 and 2011), with gains largely concentrated in large-cap stocks." Both the Nifty 50 and the Sensex have slumped significantly from their peaks in September. But the benchmark indices gained significant ground last month despite the US tariffs, the attacks in Kashmir, and less-than-stellar corporate earnings. One reason for fund managers holding on to cash could be the large pipeline of initial public offerings (IPOs), according to industry experts. Ashish Gupta, CIO at Axis Mutual Fund, said nearly 30 companies have secured regulatory approval for an IPO and were awaiting favourable market conditions. In total, over ₹ 2 trillion worth of IPOs are poised to hit the market. This suggests that a lot of capital may soon enter the market, and mutual funds could be keeping cash ready to invest in these new offerings, Gupta said, adding that the current 6% level was 'far from worrisome". 'If cash levels are elevated," he said, 'that alone sets the stage for a runway market." Also read | India not immune to global shocks, but relatively more resilient: IIFL Group's Nirmal Jain Cash mandates of equity mutual funds vary across schemes, driven by internal policies and portfolio strategies, and allow fund managers some discretion over how much cash they can hold at any given time. According to Jay Kothari, global head of international business at DSP Mutual Fund, cash holdings are guided by multiple factors—valuation, stock price targets, IPO pipeline opportunities, and liquidity needs. 'Cash call is more of an informed decision than a norm," he said. Kothari also said deployment of the cash holdings may not necessarily move the markets in a big way. 'Markets typically react to factors like earnings growth," he said, adding that there have been instances where flows were steady but indices corrected due to earnings downgrades. Corporate India has seen fresh earnings downgrades following March-quarter results, particularly in the information technology services, oil and gas, and consumables sectors, according to a Kotak Institutional Equities note dated 26 April. Also read | Global uncertainty will likely delay a complete return to normalcy: Mirae Asset CIO Still, the medium-term outlook for the market remains constructive. Patil of Aditya Birla Sun Life AMC, said that after a recent correction phase and with no major overhangs, India is relatively better positioned than many emerging peers, particularly amid global tariff uncertainty. Patil expects fund managers to start deploying cash as clarity emerges on the tariff front. 'If that capital starts flowing, it could offer strong support to the markets, particularly in the event of any sudden reactions to global or domestic uncertainties," he said. Sorbh Gupta, senior fund manager–equity, Bajaj Finserv AMC, said internal policies limit how much cash a fund can hold, reinforcing the likelihood of deployment sooner than later. He added that domestic institutional investors (DIIs) now have enough heft to counterbalance foreign flows. If DIIs step up buying and foreign portfolio investors (FPIs) stay engaged, that could provide a strong floor to the market. After nine straight sessions of selling, foreign institutional investors (FIIs) recently turned buyers, picking up stocks for 10 consecutive sessions through 29 April. Domestic institutional investors were net buyers for three sessions leading up to 29 April after being sellers in the three sessions prior. Also read | FPIs bet on limited Nifty movement amid simmering India-Pakistan tensions
Mint
28-04-2025
- Business
- Mint
India not immune to global shocks, but relatively more resilient: IIFL Group's Nirmal Jain
With a myriad headwinds such as global trade war, upcoming state elections and interest rate resets, market volatility could persist in the current year. But, as global funds reallocate from China to markets like India, where growth is likely to be upwards of 6.5%, chances of a deep correction are unlikely, believes Nirmal Jain, founder, IIFL Group. Jain describes the recent bounce from a multi-month low of 21,743 as a technical recovery backed by fundamentals such as improved earnings growth and stabilising treasury yields in the US. Edited excerpts: The escalation of global tariffs has created turbulence across markets, with US import duties at century-high levels. India's urgency to finalize a trade pact with the US is a strategic move in this setting. Read more: Market shift: Retail investors and HNIs turn bearish on index futures following Pahalgam attack A timely deal can insulate Indian exporters from punitive tariffs—a 26% duty looms on some sectors if talks fail—and position India as a credible alternative in global supply chains. This potential decoupling from global trade tensions is already improving investor sentiment. So, while the trade war is a global headwind, India may emerge as a relative outperformer if the agreement materializes. Opening up to US trade will inevitably expose Indian industries—especially those historically protected by high tariffs—to sharper competition. Sectors like dairy, agriculture, and some consumer goods may face short-term disruption. However, this competitive pressure can lead to consolidation, efficiency gains, and better quality standards in the medium term. The key is for Indian businesses to prepare proactively—invest in tech, scale up, and integrate with global value chains. With proper support, this shift can be a net positive. Global slowdown invariably affects sentiment, but India remains a bright spot. Our 2025 GDP is still projected to grow around 6.8-7.0%, supported by domestic demand, capital expenditure, and a strong services sector. The government's supply-side reforms and PLI schemes are also bearing fruit. So, while FPI flows may remain cautious in the short run, long-only investors and global funds reallocating away from China continue to back the India story. Bottom line: India is decoupling, not immune—but relatively resilient. The bounce from the 21,743 low reflects a technical recovery backed by fundamentals—robust earnings, policy continuity hopes, and relief that crude prices and US yields have stabilized. However, 2025 is still a macro-heavy year: elections (Bihar assembly), trade policy shifts, and interest rate inflection points. So, volatility is far from over. But this could be the year of rotational leadership—not a deep correction. Selective sector rotation and smart stock-picking will matter more than index timing. • For those with gains: Rebalance, not exit. Use this strength to trim exposure in overheated small-caps or speculative themes. Allocate more to quality large caps and dividend-yield plays. Don't try to time the top—just reset risk. Read more: What analysts miss in concalls while chasing guidance • For fresh investors: Start staggered. Deploy through Systematic Investment Plans (SIPs) or tactical buying during market dips. Focus on sectors where India has structural momentum —industrials, banking, manufacturing, and tech exports. Patience and asset allocation will outperform timing. The attractive sectors include Manufacturing & Capital Goods, which are benefiting from the PLI push and capex cycle; Private Banks & Financials , thanks to cleaner balance sheets, credit growth revival, and tech adoption; Defence & Railways due to long -term policy tailwinds and budgetary support; and IT with a selective bias for mid-sized firms tapping AI and cloud growth. We are cautious on smaller NBFCs that face tighter funding and compliance oversight; small-cap momentum trades as valuations in many names are divorced from fundamentals; and Real Estate micro-caps which are Illiquid, opaque, and vulnerable to regulatory tightening. Two themes stand out: • The Securities and Exchange Board of India's push for transparency and T+0 settlement: While operationally disruptive in the short term, it will enhance market depth and credibility in the long term. • The Reserve Bank of India's evolving stance on Non-Banking Financial Company governance and digital lending: This is reshaping risk appetite and business models. Well-governed, compliant firms will stand out. At a broader level, India's regulatory posture remains reformist yet cautious, which bodes well for stability—especially important when global markets are jittery. Read more: Backed by giants, bleeding cash—is Ather Energy ready for IPO?
Mint
28-04-2025
- Business
- Mint
Tensions are rising on the border but FPIs aren't worried
Foreign portfolio investors (FPIs) do not expect the border fury to rock the stock markets, their positions in the derivatives market indicate, besides expecting good tidings from a US trade deal. The Pahalgam terror attack has raised concerns of a potential retaliatory strike on Pakistan, a development which could rattle market sentiments. However, FPIs appear to believe that stocks will remain unscathed. Data from Friday showed that FPIs have closed out a huge quantity of bearish option contracts, which protect them during sharp market corrections. They also continued to buy in the cash segment last week, which experts attribute to their hopes of a bilateral trade agreement materialising with the US. On Friday, when public ire against the Pahalgam massacre hit a crescendo, FPIs actually slashed their cumulative net index put (Nifty and Bank Nifty) option positions to just 6,359 contracts from 177,784 the previous day, NSE data showed. Also read | Will lower tariffs lure back FPIs from other emerging markets? The gross figures show that FPIs sold many more index puts on Friday than they purchased, which helped bring down the net long figure. Total puts sold stood at 517,043 contracts on Friday, up from 250,793 a day earlier. FPIs purchase put options to hedge their portfolios against market falls. If the market corrects, the value of the puts increases, offsetting a fall in portfolios. Similarly, if the market rises, the increase in the portfolio value offsets the loss in the put options. "This shows FPIs don't expect the tensions with Pakistan to snowball into something worse, as of now at least," said Rajesh Palviya, senior vice-president, head of derivatives & technical research at Axis Securities. The two nuclear-armed countries have massed troops on their borders after Pakistan-backed terrorists killed 26 Indians and a foreign national in Pahalgam on 22 April. This should have raised the risk for market participants. However, latest FPI activity on put options suggests otherwise. Offering an alternative rationale, Nirmal Jain, founder of IIFL Group, said anecdotal evidence suggested that markets tend to remain "resilient" during periods of conflict or geopolitical tensions. Read this | FPIs continue to snub consumption, even after budget incentives "While markets are currently volatile due to the geopolitical tensions, historical patterns indicate that Indian equity markets tend to be resilient during conflicts," he said, citing the Kargil war, which witnessed the Nifty rising 37% during its duration from May to July 1999. Even during Balakot air strikes on 26 February 2019, the market remained flat at 10888.75, only to rise almost 7% to 11,624 by March end of that year. However, a veteran fund manager said he doesn't envisage a surgical or air strike akin to Uri retaliation in 2016 or Balakot in 2019, which might explain the FPI behaviour. This sits in with Axis Securities' Palviya's logic for FPI unwinding. "It is likely to be a slow burn over a long period of time across the entire border," he said, calling it "a long grind". The unwinding of FPIs' long put positions has also been accompanied by cash market buying. In the second half of the month through Thursday, FPIs had net purchased secondary shares worth ₹ 27,648 crore, NSDL data showed. This has brought down the selling intensity from ₹ 34305 crore in the first half of April to just ₹ 6657 crore in the month through 24 April. Apart from the unwinding of puts, provisional data from BSE indicates that FPIs net purchased shares worth ₹ 2952 crore on Friday. Also read | These foreign funds have been selling more Indian stocks than the others. They aren't the ones you thought they were. Axis Securities' Palviya attributed the recent FPI cash buying to hopes of a trade deal between India and the US, rather than being concerned about a deadlier fallout from the Pahalgam massacre. Option traders expect the Nifty to get support at 23840 followed by 23446 next week, per NSE data. Resistances are pegged at 24500 and 25000.
