Latest news with #DivamSharma
Mint
4 days ago
- Business
- Mint
Expert view: Increased retail participation may drive a re-rating in valuations, says Green Portfolio PMS co-founder
Expert view: Divam Sharma, the co-founder and fund manager of Green Portfolio PMS, expects the Indian stock market to touch new record highs in the coming months, supported by strong domestic growth and resilient investor sentiment. In an interview with Mint, Sharma said the increased retail participation may drive a re-rating in valuations. This may make the Indian stock market more resilient. Here are edited excerpts of the interview: We expect Indian equity markets to touch new record highs in the coming months, supported by strong domestic growth and resilient investor sentiment. However, global uncertainties are rising, and investors should remain cautious about valuations. It is important not to overpay for stocks and to regularly monitor company fundamentals. With the world moving towards de-globalisation, sectors like energy, manufacturing, and commodities are likely to play a bigger role in driving market performance. Investors should stay selective and focus on quality businesses as the market landscape evolves. While the India-US trade deal may take time and go through several negotiation phases, Indian markets are largely driven by domestic factors and retail investor participation. Although global developments can cause short-term volatility, India's strong economic fundamentals and long-term growth prospects should help cushion any negative impact. We believe India is well-positioned to deliver stable growth and should not be excessively volatile due to external negotiations. While the India-US trade deal may take time and go through several negotiation phases, Indian markets are largely driven by domestic factors and retail investor participation. Although global developments can cause short-term volatility, India's strong economic fundamentals and long-term growth prospects should help cushion any negative impact. We believe India is well-positioned to deliver stable growth and should not be excessively volatile due to external negotiations. Given the current high uncertainty, it is advisable to prioritise value stocks with growth potential over chasing momentum for quick gains. Value investing offers more stability and lower volatility, especially during unpredictable market phases. While momentum strategies delivered strong returns in 2024, they are facing challenges and reversals in 2025 due to increased volatility and stretched valuations. Historically, value stocks tend to outperform after periods of market correction and provide a cushion during downturns. Focusing on fundamentally strong, reasonably valued companies is a safer approach for navigating the present market environment. Commodities, manufacturing, mining, energy should do well overcoming one to two years. We will be going towards de-globalisation, and these are important resources which will become more important. Manufacturing will help us in the direction towards de-risking from countries like China. India's investor base crossing the 22 crore mark is a remarkable milestone and is fundamentally changing the nature of the stock market. With such a strong influx of retail investors, domestic liquidity in the market has increased significantly, making Indian equities less reliant on foreign capital and more stable during global shocks. What's really interesting is that investor behaviour in India is almost like a religion; it's a cult in itself. People look for ideas and stories that emotionally connect with them, and once they find them, they follow them with conviction. This means many retail investors are naturally drawn to chasing short-term trends and momentum, even if the actual money to be made is limited. Still, this structural shift in the market is powerful. The sheer participation of retail investors is likely to drive a re-rating in valuations for many companies, making the Indian market more resilient, dynamic, and truly reflective of domestic sentiment. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
Time of India
07-07-2025
- Business
- Time of India
Analysts see sustained FPI inflows, await clarity on tariffs and global rate cuts
Live Events Agencies (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: The automobile sector witnessed the highest foreign inflows worth ₹5,020 crore in the second half of June, after witnessing outflows worth over ₹15,700 crore between January and May."The fall in interest rates and pick up in rural demand has made the auto sector attractive, especially since the valuation has become very comfortable," said Divam Sharma, fund manager, Green Portfolio investors are reallocating their portfolio in line with valuation comfort, said May, the sector saw marginal inflows worth ₹101 crore. Overseas investors bought shares worth ₹27,920 crore across 11 sectors in the last 15 days of June, according to data from & gas and financials saw foreign investment worth over ₹4,000 crore each in the second half of the month, after witnessing inflows worth ₹1,199 crore and ₹4,685 crore, respectively, in the first half of the crude oil prices and the infusion of liquidity by the RBI through interest rate cuts, respectively, stoked investor sentiment in these investors infused funds worth ₹3,620 crore in telecommunication and ₹2,879 crore in the Information Technology (IT) sectors in the last 15 days of June. The IT sector has witnessed aggressive foreign selling worth ₹31,766 crore between January and May."The impact of tariffs is likely to be limited on services, given the bilateral talks between India and US which supported the inflows into the IT sector," said U R Bhat, co-founder & director, said that the inflationary pressure in the US is not likely to be as pronounced as anticipated earlier which further alleviates stress on business prospects as the US Fed is expected to cut interest rates in the second half of the investors sold shares worth ₹7,929 crore across 12 sectors in the second half of the month. These investors divested shares worth ₹3,191 crore and ₹3,022 crore in the power and capital goods sector, respectively."Early and stronger than expected, monsoon rains lowered electricity consumption, particularly in agriculture and rural areas and foreign capital rotated from power to higher yielding sectors like auto, oil & and gas, and financials that were in strong demand," said Sudeep Shah, SBI Caps. Shah said that while the infra spending remains, concerns over project delays and execution risks have tempered enthusiasm in parts of the capital goods sectors."Since capital goods had seen significant gains, FIIs are taking away profits to reallocate to growth sectors."Analysts expect incremental foreign inflows to persist, with the quantum of flows likely to be moderate to aggressive."Further foreign inflows are likely to be determined by the tariff outcomes which seems to be favourable for India so far," said Bhat. "If the negotiations favour India, then robust foreign inflows are expected."Sharma said that the de-dollarisation trend is expected to continue and induce aggressive foreign inflows into India, given that the negatives are already factored into the prices."The outlook remains moderately positive, but inflows are likely to be sector and valuation driven rather than broad based," said Shah. "The quantum may be moderate, but incremental FII inflows are expected in the near term if global rate cuts materialise and domestic earnings deliver."
Economic Times
06-06-2025
- Business
- Economic Times
Bajaj Finance shares jump 5% after RBI cuts repo rate by 50 bps, CRR by 100 bps
Shares of Bajaj Finance jumped 5.5% to hit an intraday high of Rs 9,425.5 on the BSE in Friday's trade, as the Reserve Bank of India's 50 basis point repo rate cut and 100 basis point CRR cut sparked broad optimism in the lending sector, especially among non-banking financial companies (NBFCs). ADVERTISEMENT While the aggressive repo rate cut is expected to weigh on net interest margins (NIMs) for banks in the near term, the RBI's simultaneous move to reduce the Cash Reserve Ratio (CRR) by 100 bps, unlocking Rs 2.5 lakh crore of liquidity, has emerged as a game-changer for the credit ecosystem. For NBFCs like Bajaj Finance, which rely on borrowing from banks and capital markets to fund lending, this dual move of easing both rates and liquidity is expected to lower funding costs and support loan growth. Analysts noted that NBFCs stand to benefit disproportionately from the rate cut as falling interest rates reduce borrowing costs, enabling lenders to offer more competitive loan products and expand their credit books. Also read: RBI's bazooka sends Sensex, Nifty soaring. What does it mean for stock market investors 'This move is likely to enhance liquidity in the system, making borrowing cheaper and encouraging companies to pursue capital expenditure,' said Divam Sharma, Founder of Green Portfolio PMS. 'With FPI inflows slowing down, this infusion of liquidity is a timely and welcome move.' ADVERTISEMENT According to Arsh Mogre, Economist at PL Capital, 'By lowering both the price (repo) and quantity (CRR) of money, the RBI has flattened the transmission curve. The CRR cut in particular offsets short-term pressures on margins from falling lending rates.'For a lender like Bajaj Finance, improved liquidity and falling interest rates are likely to aid credit disbursal, support margins, and revive consumption-led demand, especially in retail and SME segments. ADVERTISEMENT 'Tailwinds for NIMs from improving systemic liquidity and deposit rate cuts are visible,' said Naveen Kulkarni, CIO at Axis Securities he said, even as H1FY26 will see a more pronounced impact of the rate cut on NIMs, some respite is expected over H2FY26. ADVERTISEMENT 'Asset quality concern appears to be steadily waning with unsecured segment stress showing gradual signs of stability, while the secured segment asset quality continues to hold up well. At present, we would prefer banks with promising growth prospects, healthy deposit franchises, stable asset quality metrics and strong and steady management teams.' Also read: RBI slashes rates by 50 bps: What it means for debt mutual fund investors ADVERTISEMENT With the RBI maintaining a neutral stance and indicating scope for further easing if inflation remains benign, NBFCs and banking companies could continue to benefit from the evolving rate cycle. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
06-06-2025
- Business
- Time of India
Bajaj Finance shares jump 5% after RBI cuts repo rate by 50 bps, CRR by 100 bps
Shares of Bajaj Finance jumped 5.5% to hit an intraday high of Rs 9,425.5 on the BSE in Friday's trade, as the Reserve Bank of India's 50 basis point repo rate cut and 100 basis point CRR cut sparked broad optimism in the lending sector, especially among non-banking financial companies (NBFCs). While the aggressive repo rate cut is expected to weigh on net interest margins (NIMs) for banks in the near term, the RBI's simultaneous move to reduce the Cash Reserve Ratio (CRR) by 100 bps, unlocking Rs 2.5 lakh crore of liquidity, has emerged as a game-changer for the credit ecosystem. For NBFCs like Bajaj Finance, which rely on borrowing from banks and capital markets to fund lending, this dual move of easing both rates and liquidity is expected to lower funding costs and support loan growth. Analysts noted that NBFCs stand to benefit disproportionately from the rate cut as falling interest rates reduce borrowing costs, enabling lenders to offer more competitive loan products and expand their credit books. Also read: RBI's bazooka sends Sensex, Nifty soaring. What does it mean for stock market investors 'This move is likely to enhance liquidity in the system, making borrowing cheaper and encouraging companies to pursue capital expenditure,' said Divam Sharma, Founder of Green Portfolio PMS. 'With FPI inflows slowing down, this infusion of liquidity is a timely and welcome move.' According to Arsh Mogre, Economist at PL Capital, 'By lowering both the price (repo) and quantity (CRR) of money, the RBI has flattened the transmission curve. The CRR cut in particular offsets short-term pressures on margins from falling lending rates.' For a lender like Bajaj Finance, improved liquidity and falling interest rates are likely to aid credit disbursal, support margins, and revive consumption-led demand, especially in retail and SME segments. 'Tailwinds for NIMs from improving systemic liquidity and deposit rate cuts are visible,' said Naveen Kulkarni, CIO at Axis Securities PMS. However, he said, even as H1FY26 will see a more pronounced impact of the rate cut on NIMs, some respite is expected over H2FY26. 'Asset quality concern appears to be steadily waning with unsecured segment stress showing gradual signs of stability, while the secured segment asset quality continues to hold up well. At present, we would prefer banks with promising growth prospects, healthy deposit franchises, stable asset quality metrics and strong and steady management teams.' Also read: RBI slashes rates by 50 bps: What it means for debt mutual fund investors With the RBI maintaining a neutral stance and indicating scope for further easing if inflation remains benign, NBFCs and banking companies could continue to benefit from the evolving rate cycle.
Time of India
06-06-2025
- Business
- Time of India
Bank, NBFC stocks cheer RBI's 50 bps bonanza, but are rate cuts delivering?
The Reserve Bank of India 's (RBI) significant 50 basis point repo rate cut on Friday sent a wave of enthusiasm through the markets, particularly benefiting the rate-sensitive banking and NBFC stocks. This positive sentiment was clearly reflected in the Nifty Bank index, which surged to a fresh lifetime high of 56,238.10 during the policy announcement, climbing almost 1% on Friday. The Nifty Financial Services index also saw a similar upward trajectory, reflecting the broad-based positive impact across the financial sector. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like O que há de novo no tratamento da impotência em 2025? Tratamento para disfunção erétil | Links Patrocinados Undo Today's revision takes the total rate cut to 100 bps, bringing the repo rate to 5.5% All 12 stocks in the Nifty Bank index were trading in the green, with IDFC First Bank as the top gainer at 2%. The Nifty PSU Bank was also 1% higher around 10:45 am, with Bank of Baroda (BoB) taking the lead of over 2%. Lower interest rates are expected to bring the cost of credit down, likely enabling higher credit demand. Other rate-sensitive sectors like auto and realty lapped the announcement with glee. The Nifty Auto index shot up by 0.9% around this time despite being down by 0.30% ahead of the policy announcements. Meanwhile, the Nifty Realty index gained more than 2%, extending its gains. Live Events Reacting to the development, Anil Rego, Founder & Fund Manager at Right Horizons PMS, said that the RBI Monetary Policy Committee (MPC) delivered a front-loaded 50 basis point repo rate cut while shifting its policy stance from accommodative to neutral. "This marks a key turning point in India's monetary approach, signalling a move from active easing to a more balanced, data-dependent stance amid rising global uncertainties and volatile capital flows," he added. Divam Sharma, Founder & Fund Manager at Green Portfolio PMS, called the magnitude of the cut "significant". "This move is likely to enhance liquidity in the system, making borrowing cheaper and encouraging companies to pursue capital expenditure," he said. Manju Yagnik, Vice Chairperson of Nahar Group and Senior VP at Maharashtra chapter of NAREDCO, said that the cut is strong and timely amid early signs of demand moderation in the residential sector." Lowering the repo rate to 5.5% will have a cascading effect across the lending ecosystem, bringing home loan interest rates well below 7.75%—a highly encouraging development for both existing and prospective homebuyers," Yagnik added. Banks/NBFCs stock performance amidst rate cuts since Feb 2025 policy Since February 7, 2025, the date of the year's inaugural monetary policy announcement by the Indian central bank, an ETMarkets analysis of 95 stocks reveals a significant market response: 63 of these stocks have yielded positive returns, climbing as high as 63%. This policy meeting was particularly noteworthy as it marked the first interest rate cut in five years under the leadership of the new Governor, Sanjay Malhotra. The top three stocks are NBFCs, followed by a PSU bank. Worth Investment & Trading Co, Aditya Birla Capital, SBFC Finance and Union Bank Of India lead the pack with returns of 63%, 33%, 33% and 28%, respectively. There are 35 other stocks which have given double-digit returns between 27% and 10% in the same period. Among the most widely tracked stocks are IDBI Bank, RBL Bank, Canara Bank, Bajaj Holdings & Investment, SBI Cards And Payment Services, JIO Financial Services, Shriram Finance, ICICI Bank, Bank of Baroda (BoB), Manappuram Finance, Axis Bank, HDFC Bank and Tata Investment Corporation. The other 24 stocks have yielded returns in single digits. The Jammu & Kashmir Bank, Tamilnad Mercantile Bank and Arman Financial Services are at the lower end of the ladder with 1-2% returns. Heavyweights like the State Bank of India (SBI), Kotak Mahindra Bank, Bajaj Finance, Yes Bank, Punjab National Bank (PNB) and IDFC First Bank have yielded between 5% and 9%. There are laggards too, as 32 stocks have slipped in the red since the first RBI policy announcement in February this year. In this, 17 stocks have seen a double-digit decline between 10% and 52%. The biggest decline was seen in Ashika Credit Capital Finance, followed by Punjab & Sind Bank (PSB) and Paisalo Digital. Both PSB and Ashika have fallen 31% and 29%, respectively. The stocks with a market capitalisation of Rs 500 crore or more have been taken into account. The article does not analyse the reasons for losses or gains in specific stocks, but a larger trend in the banks and NBFCs. There could be company-specific issues behind their gains or losses. Read more: Private lenders disappoint in Q4FY25, but small and PSU banks impress. HDFC Bank, SBI among 16 stocks to buy For instance, IndusInd Bank's corporate governance issues and losses in its derivative segment triggered a fall in the counter. Since February 7, its fall has been to the tune of 25%. The Q4FY25 is also a factor in the way stocks have performed. India's banking sector delivered a mixed performance in Q4FY25, with profit growth diverging sharply across private, public, and small finance banks. While sector heavyweights like HDFC Bank and ICICI Bank posted modest to healthy growth, State Bank of India (SBI), Kotak Mahindra Bank, and Axis Bank reported disappointing numbers. Moreover, a few mid-sized and small banks surprised the Street with explosive profit figures. Nifty Auto has remained flat in this period, weighed down by Trump tariff uncertainties and mixed earnings. Read more: Auto Q4FY25 Wrap: Two-wheelers lead PAT surge with TVS Motor, Eicher in front; top 13 counters to buy The realty sector has fared better with the Nifty Realty index delivering an over 8% uptick. (Data Inputs by Ritesh Presswala) ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
