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Time of India
7 hours ago
- Business
- Time of India
India's stock market slips to fourth in APAC investor rankings; fund managers pivot to semiconductor wave: Report
India's stock market has slipped to the fourth position among Asia Pacific's preferred investment destinations, according to the latest Bank of America (BofA) survey cited by The Economic Times. Tired of too many ads? go ad free now This marks a notable shift from its earlier leadership status, as the benchmark Nifty index remains stuck in a two-month consolidation phase with no clear breakout in sight. Japan now dominates investor interest "by a distance," followed by Taiwan and South Korea, while India ranks fourth as capital increasingly flows into semiconductor-driven markets. The BofA analysis revealed that only 10 per cent of fund managers are currently betting heavily on India- significantly lower than the 32 per cent favouring Japan, 19 per cent backing Taiwan, and 16 per cent supporting South Korea. The findings underline India's present vulnerability, especially as peers benefit from a revival in the semiconductor sector. 'Both Taiwan and Korea are benefiting from the resurgent semiconductor cycle, while Korea gains additional upside from hopes surrounding its new leadership's policy reforms,' BofA noted, highlighting the drivers behind India's slipping position. India's IT services sector is facing particular headwinds, with BofA's India IT services indicator falling to a 20-month low. This downturn adds to the broader uncertainty plaguing the domestic market. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed to the lack of catalysts keeping markets rangebound. He wa squoted by ET saying, 'There are no triggers for the market to break out of the consolidation range in which it has been stuck for two months now. Even an India-US interim trade deal has been discounted by the market, leaving no scope for a sharp rally decisively breaking the range. Tired of too many ads? go ad free now ' However, he noted one potential upside, 'One positive and surprise factor that can trigger a rally is a tariff rate much below 20 per cent, say 15 per cent, which the market has not discounted. So, watch out for developments on the trade and tariff front.' Despite the overall decline in rankings, analysts at Prabhudas Lilladher underlined the Indian market's resilience. 'Indian markets have shown a lot of resilience in past few months despite big events and disruptions around global tariff wars, Israel Iran war and ," he said, as quoted by ET. The brokerage firm further noted that foreign institutional investors (FIIs) remain net sellers year-to-date, though they have turned net buyers in recent weeks—an indication of lingering foreign investor caution. Within Indian equities, the survey found growing investor interest in consumption and infrastructure-related plays, even as IT services remain under pressure—mirroring global concerns around the tech sector.
Time of India
a day ago
- Business
- Time of India
FII selloff: Rs 10,169 crore pulled out in 5 days from Indian markets; valuation fears rise
Foreign Institutional Investors (FIIs) have renewed heavy selling in Indian equities, withdrawing a massive Rs 10,169 crore over five straight sessions through July 17, according to data cited by an ET report. The latest wave of outflows has pushed the July tally past the $1 billion mark, marking a sharp reversal after three months of net buying. The heaviest daily selling came on July 11, when FIIs dumped Rs 4,495 crore. July 17 saw another significant exit, with Rs 3,671 crore in net outflows — the second-largest daily figure during the stretch. FII activity in Indian equities Date FII net flow (Rs crore) Jul-17* -3,671 Jul-16 -1,041 Jul-15 -174 Jul-14 -789 Jul-11 -4,495 *Note: Jul 17 data is based on NSE provisional figures. Source: NSDL, ACE Equity Despite the foreign exodus, Domestic Institutional Investors (DIIs) helped cushion the market, pumping in nearly Rs 11,000 crore over the same period. This DII support prevented sharper corrections amid rising volatility. The July reversal comes after three strong months of FII buying between April and June, with Rs 14,600 crore invested in June alone. Year-to-date, however, the broader trend remains negative, with total FII outflows nearing Rs 90,000 crore in 2025 — reflecting persistent global caution. 'In July so far, India has been underperforming most markets, with a dip of 1.6% in the Nifty,' said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Amazing Japanese all-in-one gel for blemish removal YUKINOUE雪之上 Learn More Undo 'A significant contributor to the decline is the selling by FIIs. There is a clear pattern in FII activity this year: they were sellers in the first three months, turned buyers for the next three, and in the seventh month, the trends so far indicate further selling — unless some positive news reverses the downtrend in the market. ' He added, 'Along with selling in the cash market, FIIs have been increasing short positions in the derivatives market too, which reflects a bearish outlook. Elevated valuations in India and cheaper valuations in other markets will continue to influence FII activity.' Adding to the cautious tone, global brokerage Citi downgraded India's equity rating to 'neutral' from 'overweight'. The firm cited stretched valuations and a moderating earnings growth outlook, while reaffirming its 'overweight' stance on markets like China, Korea, and the Philippines. 'India remains the most expensive market (23 times earnings) compared to both its peers and its own average valuation,' Citi noted. 'While India's macro story looks better and a US trade deal may be on the cards, the market's earnings growth outlook no longer looks exceptional in the context of high valuations. stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India) Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
a day ago
- Business
- Business Standard
Sensex falls 650 pts, Nifty below 25k: Why are stock markets falling today?
Stock market today: Equity benchmark indices continued to trade lower for the second straight day as D-street analysts raised banners of 'caution' amidst heightened uncertainty on the macro front. At 11:30 AM, the Sensex was down by 486 points or 0.59 per cent, quoting at 81,769.09. The index hit an intra-day low of 81,608 down by 651 points. Whereas, NSE Nifty was trading below the key psychological 25,000 level, down by 140 points or 0.56 per cent. The 50-scrip index hit an intra-day low of 24,918.65. Nearly all stocks from the Sensex pack were trading in red, with Axis Bank, Bharti Airtel, Kotak Bank, Adani Ports and Bharat Electronics (BEL) among the top laggards. Axis Bank failed to impress D-street investors in first quarter earnings for the financial year 2025-2026 (Q1FY26) as net profits declined 3.8 per cent year-on-year (Y-o-Y) to ₹5,806 crore. Axis Bank shares were trading at ₹1,111.10, down by over 6 per cent on Friday. On the other hand, Tata Steel, Bajaj Finance, Infosys, Tata Motors and PowerGrid managed to trade in green. Even broader markets failed to showcase positive momentum. The Nifty Midcap 100 was trading at 59,255, down by 0.44 per cent. The Nifty Smallcap index followed suit, and was down by 0.43 per cent, quoting 19,034.75. Almost all sectors were in red with the Nifty private bank among the worst-performing indices, declining 1.32 per cent, trading at 27,575. However, Nifty Media was up by 0.17 per cent, quoting at 1,757. Nifty Metal also remained in green, up by 0.21 per cent, trading at 9,443. Here's why stock markets are down today: FII selling Indian markets have so far (in July) underperformed global markets. Analysts believe that the selling spree of foreign institutional investors (FIIs) has been a key contributor to this downward trend. While FIIs were net buyers earlier this year, the elevated valuation of the Indian market as compared to peer markets prompted them to switch gears. In the previous trading session (Thursday), FIIs remained net sellers in the market, offloading equities worth ₹3,694 crore. While domestic institutional investors (DIIs) were net buyers in the market, purchasing equities worth ₹2,820 crore. "Along with selling in the cash market FIIs have been increasing short positions in the derivatives market too, which reflect a bearish outlook. Elevated valuations in India and cheaper valuations in other markets will continue to influence FII activity," said VK Vijayakumar, chief investment strategist at Geojit Investments. Trump tariffs While speculations around a prospective trade deal between the US and India continue to linger, keeping investor sentiment on edge, there has been no solidified development on trade tariffs as of now. However, hopes remained high ahead of the August 1 tariff deadline. President Trump even said that the US is "very close" to striking a deal with India. "We are very close to a deal with India where they open it [the market] up," Trump told reporters at the White House earlier this week. Weak Q1 earnings by Axis Bank, IT stocks So far, the Q1FY26 earnings season has failed to surprise D-street investors. IT giants, including Tata Consultancy Services (TCS) and HCL Tech, reported subdued results for the quarter. This has kept market movement largely muted. However, for the coming weeks, D-street analysts believe that markets will trade range-bound. "Going forward, markets are likely to remain in consolidation mode, with focus on ongoing earnings and progress in US-India trade negotiations," said Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services.
Economic Times
a day ago
- Business
- Economic Times
Why stock market is down today: Sensex falls over 600 pts, Nifty slips below 25,000; 5 reasons behind the drop
Why Stock Market is Falling Today: All major sectors, except metals, were in the red. Financials led the decline, with Axis Bank, HDFC Bank, and Kotak Mahindra Bank dragging the Nifty Private Bank index down. Stock Market Crash Today: Indian markets experienced a sharp decline on Friday, with the Sensex and Nifty50 falling due to FII selling, Axis Bank's disappointing earnings, and Citi's downgrade of Indian equities. Global uncertainties surrounding US Fed policy and rising oil prices further contributed to the negative sentiment. Financial stocks were particularly hard hit, leading the broad-based market weakness. Tired of too many ads? Remove Ads Here are five key reasons behind the fall: 1. FIIs Turn Negative in July Tired of too many ads? Remove Ads 2. Axis Bank's Earnings Miss Spooks Financial Sector 3. Citi Downgrades India to 'Neutral' Tired of too many ads? Remove Ads 4. Uncertainty Over US Fed's Next Move 5. Rising Oil Prices Indian benchmark indices declined sharply on Friday, dragged by selling in financial stocks, weak earnings, and cautious global sentiment. The Sensex fell over 600 points intraday, while the Nifty50 breached the 25,000 mark amid broad-based 11:54 am, the BSE Sensex was down 553 points, or 0.67%, at 81,706, and the Nifty50 slipped 153 points, or 0.60%, to 24,959. The total market capitalisation of BSE-listed companies declined by Rs 2.13 lakh crore to Rs 458.74 lakh major sectors, except metals, were in the red. Financials led the decline, with Axis Bank HDFC Bank , and Kotak Mahindra Bank dragging the Nifty Private Bank index down 1.36%. Auto, FMCG, Financial Services, and Pharma indices also saw broader market was weak too, with the Nifty Midcap100 and Smallcap100 shedding over 0.5% institutional investors (FIIs), who had supported the Indian market with strong inflows in May and June, have turned net sellers so far in July. This reversal in trend reflects growing caution amid global uncertainties, elevated valuations, and a shift in risk May, FPIs were net buyers to the tune of Rs 19,860 crore, followed by inflows of Rs 14,590 crore in June. However, in the first half of July, they have pulled out Rs 2,660 crore from Indian equities, raising concerns about sustained market strength at current levels."In July, so far, India has been underperforming most markets, with a dip of 1.6% in Nifty. A significant contributor to the decline is the selling by FIIs. There is a clear pattern in FII activity this year so far. They were sellers in the first three months. For the next three months, they turned buyers. And in the seventh month the trends so far indicate further selling unless some positive news reverses the downtrend in the market," said Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited."Along with selling in the cash market, FIIs have been increasing short positions in the derivatives market too, which reflects a bearish outlook. Elevated valuations in India and cheaper valuations in other markets will continue to influence FII activity," Vijayakumar added.A surprise drop in Axis Bank's quarterly profit due to higher provisions triggered sharp selling in financial stocks. Axis Bank shares fell 6%, making it the biggest laggard on the disappointment spread across the sector, with HDFC Bank, Kotak Mahindra Bank, SBI , and ICICI Bank also falling. Together, these five lenders contributed around 310 points to the Sensex's overall downgrade of Indian equities from 'overweight' to 'neutral' also dampened investor sentiment.'India remains the most expensive market, trading at 23x forward earnings, above peers and its historical average,' Citi said. It cited stretched valuations and a moderation in earnings growth expectations as key reasons for the Citi remains positive on India's macro outlook, it prefers selective sectors like banks, NBFCs, healthcare, and telecoms, while staying cautious on IT, metals, and consumer sentiment also turned cautious after conflicting signals from US Federal Reserve officials. While Governor Christopher Waller said he expects a rate cut later this year, most officials have pushed back on the idea of an imminent now see almost no chance of a rate cut in the July 30 meeting, and only a 62% probability in September — adding to the risk-off oil prices rose sharply following drone attacks in northern Iraq that shut down half of Kurdistan's oil crude traded at $69.48 per barrel, and WTI at $67.51. This spike in oil prices has renewed concerns over input cost pressures, especially for oil-importing countries like India.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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Business Standard
a day ago
- Business
- Business Standard
Sensex falls 500 pts, Nifty below 25k: Here's why markets are trading lower
Stock market today: Equity benchmark indices continued to trade lower for the secont straight day as D-street analysts raised banners of 'caution' amidst heightened uncertainty on the macro front. At 11:30 AM, the Sensex was down by 486 points or 0.59 per cent, quoting at 81,769.09. The index hit an intra-day low of 81,628.26, down by over 500 points. Whereas, NSE Nifty was trading below the key psychological 25,000 level, down by 140 points or 0.56 per cent. The 50-scrip index hit an intra-day low of 24,925.25. Nearly all stocks from the Sensex pack were trading in red, with Axis Bank, Bharti Airtel, Kotak Bank, Adani Ports and Bharat Electronics (BEL) among the top laggards. Axis Bank failed to impress D-street investors in first quarter earnings for the financial year 2025-2026 (Q1FY26) as net profits declined 3.8 per cent year-on-year (Y-o-Y) to ₹5,806 crore. Axis Bank shares were trading at ₹1,111.10, down by over 6 per cent on Friday. On the other hand, Tata Steel, Bajaj Finance, Infosys, Tata Motors and PowerGrid managed to trade in green. Even broader markets failed to showcase positive momentum. The Nifty Midcap 100 was trading at 59,255, down by 0.44 per cent. The Nifty Smallcap index followed suit, and was down by 0.43 per cent, quoting 19,034.75. Almost all sectors were in red with the Nifty private bank among the worst-performing indices, declining 1.32 per cent, trading at 27,575. However, Nifty Media was up by 0.17 per cent, quoting at 1,757. Nifty Metal also remained in green, up by 0.21 per cent, trading at 9,443. Here's why stock markets are down today: FII activity Indian markets have so far (in July) underperformed global markets. Analysts believe that the selling spree of foreign institutional investors (FIIs) has been a key contributor to this downward trend. While FIIs were net buyers earlier this year, the elevated valuation of the Indian market as compared to peer markets prompted them to switch gears. In the previous trading session (Thursday), FIIs remained net sellers in the market, offloading equities worth ₹3,694 crore. While domestic institutional investors (DIIs) were net buyers in the market, purchasing equities worth ₹2,820 crore. "Along with selling in the cash market FIIs have been increasing short positions in the derivatives market too, which reflect a bearish outlook. Elevated valuations in India and cheaper valuations in other markets will continue to influence FII activity," said VK Vijayakumar, chief investment strategist at Geojit Investments. Trade tariffs While speculations around a prospective trade deal between the US and India continue to linger, keeping investor sentiment on edge, there has been no solidified development on trade tariffs as of now. However, hopes remained high ahead of the August 1 tariff deadline. President Trump even said that the US is "very close" to striking a deal with India. "We are very close to a deal with India where they open it [the market] up," Trump told reporters at the White House earlier this week. Weak Q1 earnings So far, the Q1FY26 earnings season has failed to surprise D-street investors. IT giants, including Tata Consultancy Services (TCS) and HCL Tech, reported subdued results for the quarter. This has kept market movement largely muted. However, for the coming weeks, D-street analysts believe that markets will trade range-bound. "Going forward, markets are likely to remain in consolidation mode, with focus on ongoing earnings and progress in US-India trade negotiations," said Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services.
