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Mint
28-05-2025
- Business
- Mint
Indian shares dip as ITC weighs on benchmarks
By Vivek Kumar M and Bharath Rajeswaran (Reuters) -India's benchmark indexes fell on Wednesday, dragged by a drop in heavyweight ITC, even as positive global cues buoyed broader sentiment. The Nifty 50 was down 0.25% at 24,765.35, while the BSE Sensex traded 0.27% lower at 81,332.03 as of 10:35 a.m. IST. ITC, the sixth heaviest stock in Nifty 50 index, shed about 3% after a large block deal where its largest shareholder British American Tobacco likely pared some stake in the company. The stock was also trading ex-date for a dividend of 7.85 rupees. Consumer goods stocks dropped 1.4%, weighed down by losses in ITC. However, seven of 13 major sectoral indices advanced. Mid-cap and small-cap indices gained 0.2% and 0.3%, respectively The Nifty's retreat near the 25,000 level signals caution, and with the monthly derivatives expiry looming on Thursday, markets are likely to remain choppy in the short term, said Siddhartha Khemka, Head of Research – Wealth Management at Motilal Oswal Financial Services "The U.S. Federal Reserve's policy minutes, due later today, will be crucial for market direction, offering cues on the central bank's outlook amid persistent inflation and fiscal concerns," Khemka said. Life Insurance Corporation of India jumped 7% after it posted higher profit for the fourth quarter, helped by lower employee-related costs. Belrise Industries listed at 100 rupees on the National Stock Exchange, a premium of 11.11% to its issue price of 90 rupees. Bosch fell 3.2% on posting a drop in March quarter profit. It was the top percentage loser in auto index, which fell 0.6%. Other Asian shares rose marginally on the day, with the MSCI Asia ex-Japan adding 0.1%, buoyed by signs of easing trade tensions. [MKTS/GLOB] ($1 = 85.3020 Indian rupees)
Mint
27-05-2025
- Business
- Mint
Financials, IT stocks pull Indian equities lower
By Vivek Kumar M and Bharath Rajeswaran (Reuters) -India's equity benchmarks fell in early trade on Tuesday, pressured by losses in financials and IT stocks amid regional market weakness and broad-based profit booking. The Nifty 50 fell 0.88% to 24,780.95, while the BSE Sensex traded 0.95% lower at 81,409.67 as of 10:40 a.m. IST. Investors are likely pulling back after the Nifty closed above the 25,000 mark on Monday, a trend seen in the last couple of weeks, analysts noted. "We are again seeing profit booking at 25,000 levels as there are not enough positive triggers to pull the Nifty above these levels as of now," said Dharmesh Kant, head of equity research at Cholamandalam Securities. All the 13 major sectors logged losses on the day. Heavyweight financials and information technology stocks lost about 1% each. The broader, small-caps and mid-caps traded 0.1% and 0.3% lower, respectively. "We see limited upsides for markets from here as the Nifty 50 valuations are no longer inexpensive at 20x 1-year forward price-to-earnings ratio," said Surendra Goyal and Vijit Jain of Citi Research. "Consumption and growth recovery is key to generating positive market returns hereon," they said. Meanwhile, MSCI Asia ex-Japan fell 0.5%, after being largely steady on Monday, as U.S. President Donald Trump delayed imposing tariffs on goods from the European Union. [MKTS/GLOB] Markets in the U.S. were closed on Monday for a holiday. Investors are awaiting the minutes of the U.S. Federal Reserve's May policy meeting and domestic GDP data for the fourth quarter this week, and the Reserve Bank of India's rate decision next week for fresh market triggers, analysts said. Among individual stocks, InterGlobe Aviation shed about 3% as co-founder Rakesh Gangwal sold shares worth $1.36 billion. FirsCry parent Brainbees Solutions slipped more than 4% after posting higher losses for the fourth quarter versus last year. (Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Sumana Nandy and Varun H K)
Mint
22-05-2025
- Business
- Mint
Indian shares fall 1% on US fiscal jitters, rising Treasury yields
(Updates for morning trade) By Vivek Kumar M and Bharath Rajeswaran May 22 (Reuters) - India's benchmark indexes dropped about 1% in early trade on Thursday, as concerns over U.S. fiscal policy and elevated Treasury yields sapped global investor sentiment. The Nifty 50 was down 0.92% at 24,585.65, as of 10:07 a.m. IST, while the BSE Sensex also dropped 0.9% to 80,864.99. The broader, more domestically focused, small-caps and mid-caps fell 0.1% and 0.4%, respectively. All 13 major sectors were in the red, with information technology stocks, which are heavily reliant on U.S. revenue, down 1%. "Any meaningful slowdown in the U.S. economy will impact IT spends by U.S.-based companies, which will be negative for Indian IT sector," said Shrikant S Chouhan, head - equity research at Kotak Securities. U.S. President Donald Trump's massive tax and spending bill, which could add about $3.8 trillion to the U.S. debt pile, was approved by the House of Representatives on Wednesday, setting up a floor vote for passage to occur within hours. The worries of a worsening fiscal outlook in the world's biggest economy pushed longer-dated U.S. Treasury yields to their highest point in 18 months. Treasury yields have been on the rise since Moody's downgraded the U.S. credit rating last Friday. Rising Treasury yields tend to make bonds more attractive to foreign investors, driving out capital from stocks in emerging markets such as India. The market is likely to reset lower on concerns over U.S. economy, heightened tariff-related uncertainties, said Sandeep Bagla, chief executive officer of TRUST Mutual Fund. IndusInd Bank traded volatile after reporting a record quarterly loss, stemming from suspected employee fraud that caused accounting lapses — issues the country's fifth-largest private lender had disclosed earlier. The stock opened lower and dropped nearly 4% before reversing course to gain more than 3%. Colgate-Palmolive (India) dropped 5.6% as it posted lower fourth-quarter profit on soft urban demand and intensified competition. (Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Sonia Cheema and Sherry Jacob-Phillips)
Yahoo
06-05-2025
- Business
- Yahoo
India's IPO market loses steam on global market jitters
By Vivek Kumar M and Shivani Tanna (Reuters) -At least two initial public offerings worth $759 million are expected to be delayed, adding to a growing list of Indian companies deciding to postpone plans for initial public listings due to weak investment sentiment, investment bankers say. Education loan provider Avanse Financial Services and contract drug maker Anthem Biosciences are among companies that will join notable names such as South Korean conglomerate LG Electronics' India unit, to put IPO plans on hold for now, the bankers said. "There are only select institutional investors coming in at this point given the global uncertainty," Suraj Krishnaswamy, the managing director of investment banking at Axis Capital, said. "And India-Pakistan tensions have not helped." The trend is an indication that global trade frictions and geopolitical tensions have clouded the economic outlook and caused companies to delay their capital raising and investment plans. On Tuesday, the market debut of Indian electric scooter maker Ather Energy will be a gauge of investor appetite. In pre-market activity, its shares have fluctuated around its issue price of 321 rupees ($3.81), indicating a muted start. Avanse Financial and Anthem Biosciences did not respond to Reuters queries seeking comment. "There are only select institutional investors coming in at this point given the global uncertainty," Suraj Krishnaswamy, the managing director of investment banking at Axis Capital, said. "And, India-Pakistan tensions have not helped." As many as 58 companies with Indian regulatory clearance have not launched their IPOs due to global market disruptions caused by U.S. President Donald Trump's tariffs, which have negatively affected business sentiment and fuelled recession fears. The regulatory clearances of some of these firms will expire over the next few months, PRIME Database Group MD Pranav Haldea said, forcing them to either restart the entire IPO process or seek an extension from India's market regulator. India, which was the world's second-largest IPO market last year, has seen a 58% slump in IPOs listed on the main stock exchanges so far this year, according to PRIME Database. The total fundraising on all the listing platforms has seen an 18% drop, LSEG data showed. "Things are moving slowly, but it is not a complete standstill. In the current scenario, most of the IPOs are in a similar situation," said an investment banker, who requested anonymity as he was not authorised to speak to the media. Company executives agreed. "You don't want to file when you do not know how long the volatility will last," online automobile marketplace Droom's CEO Sandeep Aggarwal said, adding that his firm had decided against filing draft IPO papers by June as it had originally planned. WORRIED INVESTORS Retail investors, having suffered significant losses due to market volatility, are being more cautious with new investments, resulting in a lukewarm reception for this year's IPOs. Ather Energy, which decided to proceed with its $352 million IPO despite the uncertainty, had to cut its target valuation by 44% and lower its offer size though its IPO was fully subscribed. "Ather can be a risky bet given the current geopolitical issues and high valuation," Hem Securities senior research analyst Astha Jain said. The unpredictable environment is prompting bankers to urge their prospective IPO clients to adjust their strategies. "If the issue is important, then you may have to reconsider valuations. If valuation is important, then you have to wait for some more time," said Bhavesh Shah, the managing director and head of investment banking at Equirus. ($1 = 84.3430 Indian rupees)
