INR tests one-month high as greenback stays weak
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Mint
31 minutes ago
- Mint
Indian stock market: Experts unveil this strategy as 90-day pause in Trump's tariff deadline approaches
The Indian stock market has been in consolidation mode as investors continue to track progress in the India-US trade deal ahead of the approaching tariff deadline. However, despite this, Nifty breached the key resistance level of 25,350, confirming a breakout last week. Market experts believe that as the 90-day suspension of Trump-era tariffs comes to an end, Indian markets may encounter indirect challenges due to the uncertain global trade environment. On Friday, the Sensex and Nifty 50, rebounded breaking a two-day losing streak. The Sensex gained 193 points, or 0.23%, to settle at 83,432.89, while the Nifty 50 advanced 56 points, or 0.22%, closing at 25,461. "The Indian market is experiencing a pause as investors adopt a wait-and-watch strategy ahead of the impending US tariff deadline, with mixed global cues. Ongoing FII outflows reflect a risk-off approach, while DII inflows are offering partial support," Vinod Nair, Head of Research, Geojit Investments, observed. Nitin Jain, Sr. Research Analyst at Bonanza says that a wise approach is to adopt a defensive position, concentrating on domestic-focused industries such as banking and FMCG which are less affected by global fluctuations. 'Sectors that rely on exports—especially IT and specialty chemicals—might experience short-term pressure if global demand declines amid tariff uncertainties. Investors should exercise caution regarding industries associated with global supply chains, such as metals and capital goods,' Jain said. On the technical side, the index remains on solid footing and appears well-poised to approach new all-time highs in the coming months, according to Kunal Kamble, Sr. Technical Research Analyst at Bonanza. 'That said, the rally is unlikely to be one-way; phases of consolidation and profit booking are expected as part of a healthy trend. We maintain our target of 26,500–26,600 for Nifty in 2025, with any meaningful dip presenting a buying opportunity, in line with the broader positive structure,' Kamble said. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Time of India
32 minutes ago
- Time of India
Rising inventory glut creates uncertainty in India's automobile retail sector
The Indian automobile industry is staring at a worrying build-up of unsold inventory at dealerships , casting a shadow over what has otherwise been a robust post-pandemic production run. According to the Economic Times, an estimated ₹52,000 crore worth of vehicles remain unsold — a figure that points to a growing disconnect between wholesale dispatches and actual retail sales . According to the Federation of Automobile Dealers Associations (FADA) , inventory level is currently hovering at 52–53 days across several segments, significantly higher than the industry's healthy benchmark of 30–35 days. Mounting costs and margin pressures For dealers, the consequences of ballooning stock levels are becoming increasingly difficult to ignore. Higher inventory translates to a direct rise in carrying costs — including financing charges, insurance, and storage — all of which erode already thin margins. With capital locked in unsold vehicles, cash flow becomes tighter, limiting the ability of dealerships to invest in staffing, service expansion, and technology upgrades. Many dealers are also being forced to offer steep discounts to clear ageing inventory, further eating into their bottom lines. OEMs not immune to the fallout Original Equipment Manufacturers (OEMs) too face several downstream risks as excessive discounting risks diluting brand equity and resetting customer expectations for lower price points. An overburdened and financially stressed dealer network may struggle to maintain service quality and responsiveness, ultimately impacting customer experience and loyalty. In the longer term, OEMs could face market share instability if retail networks falter. Persistent misalignment between OEM sales targets and ground-level demand can lead to mistrust and churn within the dealer network. Sustainability and structural risks The current scenario poses a serious challenge for small and mid-sized dealerships. Prolonged pressure on margins and rising operational inefficiencies — including pre-delivery inspections and vehicle lot management — could push weaker players to exit or consolidate. Such trends may reduce competitiveness and diversity within the dealership ecosystem. Call for strategic rethink To stem the tide, industry experts are urging OEMs to adopt a more demand-driven approach to production and dispatch. Real-time data analytics could help better align wholesale planning with actual retail traction. Moreover, stronger dealer support mechanisms — such as inventory funding, interest subvention schemes, and buy-back programmes — are being recommended to ease the working capital burden. Bolstering digital retail platforms and diversifying dealer revenue streams through expanded offerings in used cars, after-sales services, and insurance products can help in enhancing long-term viability. Looking Ahead As the Indian auto sector continues to navigate a complex demand environment amid economic uncertainty , geopolitical tensions and shifting spending patterns, a more collaborative and transparent OEM-dealer relationship will be key. Balanced production planning and financial support will be essential to ensure that dealerships remain profitable, agile, and resilient — especially in the face of rapidly evolving consumer preferences. A robust, financially sound retail network is not just a sales channel, but a critical pillar of sustainable industry growth.
Hans India
34 minutes ago
- Hans India
Benchmarks rebound driven by buying in bank stocks
Benchmark indices Sensex and Nifty ended higher on Friday in a highly volatile trade amid a buying rush in banking and other bellwether stocks on the back of a rally in the US markets. After oscillating between highs and lows in intra-day trade, the 30-share BSE Sensex ended 193.42 points or 0.23 per cent higher at 83,432.89. During the day, it hit a high of 83,477.86 and a low of 83,015.83, gyrating 462.03 points. The 50-share NSE Nifty inched up by 55.70 points or 0.22 per cent to 25,461. From the Sensex firms, Bajaj Finance, Infosys, Hindustan Unilever, ICICI Bank, HCL Tech, UltraTech Cement, Bajaj Finserv, State Bank of India, Tata Consultancy Services, Reliance Industries, Axis Bank and Larsen & Toubro were among the major gainers. However, Trent, Tata Steel, Tech Mahindra and Maruti were among the laggards. 'The tone was negative in the first half; however, a decent recovery in heavyweight stocks pared all the losses as the day progressed, helping the index close near the day's high at the 25,461 level. 'With all eyes on the impending US-India trade deal as the tariff deadline approaches, participants are hopeful for a favourable outcome, which could provide the much-needed trigger for the next leg of the market up move,' Ajit Mishra - SVP, Research, Religare Broking Ltd, said. The BSE midcap gauge went up by 0.23 per cent and smallcap index climbed marginally by 0.17 per cent. Among BSE sectoral indices, oil & gas jumped 1.26 per cent, energy (0.90 per cent), realty (0.87 per cent), IT (0.67 per cent), healthcare (0.64 per cent), BSE Focused IT (0.65 per cent) and teck (0.52 per cent). Metal, telecommunication, auto, consumer discretionary and commodities were the laggards. As many as 2,261 stocks advanced while 1,788 declined and 140 remained unchanged on the BSE. 'The Indian market is experiencing a pause as investors adopt a wait-and-watch strategy ahead of the impending US tariff deadline with mixed global cues. Ongoing FII outflows reflect a risk-off approach, while DII inflows are offering partial support.
