Latest news with #ShankarSharma
Mint
3 days ago
- Business
- Mint
Why Shankar Sharma is wary of Indian banks and NBFCs in a late-stage bull market
Shankar Sharma, veteran market investor and GQuant founder, expressed caution over the rising enthusiasm for Indian banks and non-banking financial companies (NBFCs), warning investors to consider the macro cycle before chasing these financial stocks. While the Indian bank stocks have remained the apple of investors' eyes — not just retail but also institutional — over a long period of time, Shankar Sharma hints that now may not be the time to invest in them. In a social media post on X, Shankar Sharma noted that while he has never owned a single bank or NBFC stock — with the lone exception of HDFC Bank — he explained what makes them attractive at certain points in the economic cycle. "Leveraged financials are generally GREAT at the beginning/early stage of the economic cycle/bull market," Sharma pointed out, taking the example of ICICI Bank in 2003-04. The rationale behind his statement is straightforward: During the early phases of economic expansion, credit demand is strong, repayment capacity is healthy, and the risk of defaults remains low. In this phase, banks and NBFCs benefit from rising loan growth and expanding profitability. It also supports margins for the finance companies. However, Sharma cautioned that the same category of stocks becomes risky in a mature or late-stage bull market. As he put it, "Leveraged financials are usually not the best places to be in, in an old, wrinkled bull market/late stage economic growth cycle. Because that's when the excesses of the previous lending boom start coming home to roost." The reason? The excesses of the previous lending boom tend to show up during the late stages of the cycle. Loans made during optimistic times may begin to sour, as asset quality deteriorates and non-performing assets (NPAs) starting to rise. This often puts pressure on banks and NBFCs' earnings and stock performance. Shankar Sharma's remarks come at a time when Indian banking stocks have seen strong gains. Many retail investors have been chasing these names, assuming continued outperformance. His view comes as a reminder to evaluate where we are in the economic cycle before making sectoral bets. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Hans India
02-08-2025
- Sport
- Hans India
District level yoga competitions' kick off
Kurnool: Dr Shankar Sharma was the chief guest at the inauguration of Kurnool District Yogasana Championship Competitions held at IS Outdoor Stadium. Speaking on the occasion, Dr Shankar Sharma said that yoga started in India and the greatness of yoga was also explained in the Puranas. He said that students should improve their memory power by doing yoga and excel in their studies. He also said Yoga increases discipline and creates a good lifestyle. The winners of these competitions will participate in the state level competitions in Vijayawada on August 21. Shivraj, Prabhakar, Anjani Bhushan, Harsh Vardhan, and Ramanjaney were present
Economic Times
31-07-2025
- Business
- Economic Times
Rising Trend: IPOs from Tier II and III cities in India gain momentum
Indian smaller cities are increasingly participating in the IPO market. Data shows a significant rise in the number of companies from these regions going public. They raised substantial funds through IPOs in recent years. This trend is expected to continue, with more companies planning to tap the capital markets. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads ET Intelligence Group: Initial public offerings (IPOs) are no longer the domain of companies in India's major cities with a rising trend of firms from Tier II and III cities venturing into the primary market in recent years, showed data compiled by 2021, 14 companies from the smaller cities raised ₹5,465 crore through public issues, comprising 4.2% of total IPO funds raised that year. In 2024, the IPO tally climbed to 37 and the amount raised shot up nearly eightfold to ₹43,316 crore or 27% of the value of total IPOs. This calendar year so far, 22 firms from smaller cities have raised ₹8,120 crore or nearly 15% of total funding through of these cities include Ratlam, Kanpur, Vapi, Sangli, and some of these companies are regional heavyweights in their sectors, others have expanded to overseas markets. For instance, Visakhapatnam-based Manoj Vaibhav Gems N Jewellers caters to Andhra Pradesh and Telangana, while Shreenath Paper from Aurangabad supplies to clients in Maharashtra, Gujarat, and Madhya Pradesh. On the other hand, Agra-based HMA Agro Industries exports food products to several countries, while Umbergaon, Gujarat-based Doms Industries supplies its stationary products in domestic market as well as overseas.A stock market listing not only brings in a new set of investors but also paves the way for greater transparency by exposing these firms to industry best Shah, managing director and investment banking head at Equirus Capital, said India is witnessing true democratisation of entrepreneurship and value creation. "We are seeing some fantastic companies from the non-metropolitan cities which have scaled up nicely with their differentiated business models," he said, adding that tapping into capital markets also helps such companies attract strong management talent, which otherwise is restricted to the trend of companies in small cities tapping the IPO route to raise growth capital is likely to continue. According to 19 companies are planning to raise nearly Rs 7,100 crore in the second half of 2025. This includes Rayzon Solar from Surat, Kumar Arch Tech from Udaipur, Paramesu Biotech from Devarapalli, Excelsoft Technologies from Mysuru, and Bharat Coking Coal from however, caution investors to tread carefully, as these IPOs could emerge as comparatively riskier bets. "The degree of scrutiny by analysts and the media is far lower for companies based in smaller cities compared to those in metros, where most analysts and media houses are concentrated," Shankar Sharma, veteran investor and founder of GQuant Investech, told ET."The valuation game can be highly seductive for promoters of these companies."
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Business Standard
22-07-2025
- Business
- Business Standard
The Revenge of Badla: How early 2000s market shifts fuel Jane Street case
The Badla system was a hybrid cash & futures trading product. It was offered on the BSE, and had been an age-old system for trading on margin Shankar Sharma Listen to This Article I woke up that morning in February of year 2000, with a particularly bad attack of the 'imposter syndrome'. This syndrome should strike most people who make some quick riches at the casino/races/ lottery/ stock market. But it rarely does. I was in my mid-30s. That's a particularly dangerous age to get dangerously rich and I was exactly in that hot zone. All my tech stocks had been flying long and hard (back then, at the height of the tech boom, long term was defined as six months). I made myself a quiet cup of coffee, lit a cigar, and
Mint
10-07-2025
- Business
- Mint
Total misuse of monopolistic gift...: Why Shankar Sharma makes a case for regulating profits of BSE and NSE
Shankar Sharma, a veteran investor, recently called out the exorbitant cost of options trading in the Indian stock market, using it to highlight the unchecked pricing power held by monopolistic institutions in India's capital markets — the National Stock Exchange (NSE) and the BSE. Despite not being government-owned, these exchanges operate as state-enabled monopolies, that control the infrastructure on which India's entire trading ecosystem depends. Shankar Sharma in a post on X on July 9, said, 'One thing I can categorically say: trading options in India is frightfully expensive compared to other markets (I do both). Trading charges in India eat away returns massively. And that goes to SE bottomlines, out of investors' pockets.' He called this a misuse of a monopolistic gift by the government of India. India is the world's largest derivatives market, accounting for nearly 60% of the 7.3 billion equity derivatives traded globally in April, according to the Futures Industry Association. This landscape is dominated by the NSE with nearly 95% of derivatives trading volume, with BSE trailing distantly. The rise in the options market comes despite massive losses that investors suffer. A study released by the Sebi on Monday showed retail investor losses on derivative trades widened by 41% to ₹ 1.06 trillion in 2024-25. The rapid growth in derivatives trading—driven largely by retail investors—has prompted Sebi to limit the number of contract expiries and increase lot sizes to make such trades more expensive. Sharma's tweet underscores a core problem: when monopolies are operated without regulatory caps on profit margins, the end user — the investor—pays the price. His argument is rooted in a long-standing economic principle — monopolies must be regulated not just in terms of conduct, but also in profit. With sectors like power, telecom, and even railways having pricing oversight, the question remains, as raised by Sharma — Why should exchanges be exempt? Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
