Latest news with #ETIG
Time of India
18 hours ago
- Business
- Time of India
Rising Trend: IPOs from Tier II and III cities in India gain momentum
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 ETIG. In 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 IPOs. Explore courses from Top Institutes in Please select course: Select a Course Category Digital Marketing Design Thinking Public Policy Data Science Finance Technology Data Analytics Healthcare Artificial Intelligence Data Science Leadership Others CXO Cybersecurity Project Management PGDM Operations Management MBA healthcare Product Management others Management Degree MCA Skills you'll gain: Digital Marketing Strategy Search Engine Optimization (SEO) & Content Marketing Social Media Marketing & Advertising Data Analytics & Measurement Duration: 24 Weeks Indian School of Business Professional Certificate Programme in Digital Marketing Starts on Jun 26, 2024 Get Details Skills you'll gain: Digital Marketing Strategies Customer Journey Mapping Paid Advertising Campaign Management Emerging Technologies in Digital Marketing Duration: 12 Weeks Indian School of Business Digital Marketing and Analytics Starts on May 14, 2024 Get Details Some of these cities include Ratlam, Kanpur, Vapi, Sangli, and Tirunelveli. While 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 practices. Agencies Riskier Bets Bhavesh 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 metros. 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 Dhanbad. Experts, 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."
Time of India
3 days ago
- Business
- Time of India
Market breadth narrows: 60% of NSE 500 stocks still 20% below 2024 highs; analysts flag overvaluation, weak earnings outlook
While benchmark indices like the Nifty 50 and Nifty 500 have rebounded and now sit 5–6% below their September 2024 record highs, a majority of the broader market continues to lag, with over 60% of NSE 500 stocks still trading more than 20% below their 2024 peaks, according to an ETIG study. The surge earlier in 2024 had lifted many stocks to lifetime highs, but since the September reversal of a four-year bull run, the rebound has been uneven. As per the analysis, 118 stocks in the Nifty 500 are 20–30% off their 2024 highs, 83 stocks are 30–40% below their peaks, and another 113 are trading more than 40% lower. In contrast, the Nifty 500 and Nifty 50 indices are 6.1% and 5.3% away from their respective highs. 'This points to a narrow market rally, often driven by specific sectors or large-cap names,' Sudeep Shah, vice president and head of technical and derivative research at SBI Securities, told ET. He noted that the broader mid- and small-cap segments remain sluggish despite the overall index recovery. Some of the worst-hit stocks include Jaiprakash Power Ventures, Network18 Media & Investments, Zee Entertainment Enterprises, Sammaan Capital, and Suzlon Energy, which are all down between 84% and 97% from their all-time highs. Others like Adani Total Gas, MMTC, Yes Bank, HFCL, and Vodafone Idea are also significantly off their peaks. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like No annual fees for life UnionBank Credit Card Apply Now Undo Only four stocks—Laurus Labs, Fortis Healthcare, Shyam Metalics & Energy, and Torrent Pharmaceuticals—are trading above their 2024 highs. Despite these declines, elevated valuations persist in many segments. 'Even a reasonably high growth company cannot be expected to deliver 35–40% growth to justify the valuations,' said Ashwini Shami, EVP and senior portfolio manager at OmniScience Capital. 'The overvaluation is not over in the small and midcap stocks and these stocks are not expected to go back to the previous highs as that momentum was driven primarily by euphoria,' he told ET. Between September 2024 and February 2025, the Nifty 500 declined 18.8%, while the Nifty Mid-cap 150 and Small-cap 250 indices dropped 20.6% and 25%, respectively. Over the past three months, mid-cap and small-cap indices have recovered 9.2% and 12%, respectively, with the Nifty 500 gaining 5.3%. Investors have turned selective amid concerns over corporate profitability and tariff-related uncertainty. 'Money is expected to flow to repriced pockets like the largecaps which are fairly priced, and within sectors, banks, housing finance companies, and financial services companies even in the mid and small-cap basket could offer investors a better bet,' said Shami. He added that infrastructure and power stocks also present opportunities, but investors must be cautious of elevated valuations. Shah pointed out that many midcaps and PSUs have surged more on sentiment, liquidity, and policy optimism than earnings. 'The valuations in some pockets have turned reasonable but are still trading at a premium to their historical averages in others, especially in sectors such as consumer durables, FMCG, and select midcap IT names,' he said. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
4 days ago
- Business
- Time of India
Why 60% of NSE 500 stocks remain below their 2024 highs
Mumbai: The Nifty 50 and Nifty 500 are 5-6% off their record levels in September 2024, but a large part of the market is yet to catch up despite the recent rebound in these indices. While most remain below their 2024 highs, at least 60% of the stocks on the NSE 500 index are still over 20% below those levels last year, according to an ETIG study. Analysts said these stocks may not cross their highs of 2024 in a hurry as concerns over elevated valuations remain, while the likelihood of an outsized earnings growth remains thin. The record-breaking rally in 2024 had pushed many stocks to lifetime highs at various points leading up to September-when the four-year bull run reversed. In the Nifty 500 index, 24.2% or 118 stocks are trading 20-30% away from their peaks hit in 2024, while 83 stocks remain 30-40% away from their highs and 113 are at least 40% below their highs. The Nifty 500 Index and benchmark Nifty Index are 6.1% and 5.3%, respectively, away from the peaks in September 2024. Explore courses from Top Institutes in Please select course: Select a Course Category healthcare Degree MBA MCA Technology Healthcare Data Science Digital Marketing Management Data Science CXO Product Management Finance Design Thinking Artificial Intelligence others Leadership Operations Management PGDM Public Policy Data Analytics Others Cybersecurity Project Management Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML Healthcare Management India Starts on undefined Get Details "This points to a narrow market rally, often driven by specific sectors or large-cap names," said Sudeep Shah, vice president and head of technical and derivative research, SBI Securities. While headline indices like Nifty 50 or Sensex have rallied, a significant portion of the market-particularly in the mid- and small-cap segments is still lagging, said Shah. Jaiprakash Power Ventures, Network 18 Media & Investments, Zee Entertainment Enterprises, Sammaan Capital and Suzlon Energy along with Adani Total Gas, MMTC, Yes Bank, HFCL and Vodafone Idea are among the stocks that are 84-97% below their all-time highs. Four stocks including Laurus Labs, Fortis Healthcare, Shyam Metalics & Energy and Torrent Pharmaceuticals are trading above their highs. Agencies Elevated valuations Ashwini Shami, EVP & senior portfolio manager, OmniScience Capital said that despite being 20-30% off the peaks, the broader market remains overvalued as the stocks that traded at 50 price to earnings (PE) ratio-a valuation measure-during the bull market before September, remain at around 30 times, even after a 30-40% drop in stock prices. "Even a reasonably high growth company cannot be expected to deliver 35-40% growth to justify the valuations," said Shami. "The overvaluation is not over in the small and midcap stocks and these stocks are not expected to go back to the previous highs as that momentum was driven primarily by euphoria." Between September and February, the Nifty 500 index slumped 18.8% while the Nifty Mid-cap 150 and Small-cap 250 indices tumbled 20.6% and 25%, respectively. In the last three months, the mid-cap and small-cap indices rallied 9.2% and 12% each while the Nifty 500 index gained 5.3% in the same period.
Time of India
19-06-2025
- Business
- Time of India
Why are savvy HNIs turning to ETFs during market dips?
Agencies Live Events Mumbai: Savvy mutual fund investors have been buying the dips using equity Exchange-traded Funds (ETFs). Data from ETIG shows that over the past year, trading activity in ETFs on the National Stock Exchange (NSE) has seen spurts on days the Nifty has fallen more than 1%."We've consistently observed that ETF volumes spike on days when the market or the underlying index falls," says Swarup Mohanty, vice-chairman & CEO, Mirae Asset Investment Managers (India).For instance, on April 7, when Nifty fell 3.24% amid tariff hikes and backlash from China, ETFs worth ₹5,810 crore were traded on NSE. This was more than double the previous five-day average of ₹2,766 crore. Similarly, on February 28, when the Nifty 50 declined 1.86%, ETFs worth ₹2,813 crore changed hands compared with the five-day average of ₹1,585 crore. ETFs are traded like stocks and returns mirror the moves of the underlying index like Nifty or Bank largely the more informed investors, such as family offices and the affluent that are implementing this investment strategy . "Several HNIs (high networth individuals), family offices and institutions use any volatility and intraday dips to buy ETFs," says Saket Kumar, co-founder, "ETFs carry lower risk than individual stocks, making them an attractive option."Mohanty adds that these investments during market dips are being made either for the long term or for short-term tactical purposes.'Buy the dips' is a strategy where investors take advantage of short-term market declines to buy stocks or ETFs at lower prices on the belief that the decline is find ETFs cheaper compared with index funds, which are bought and sold directly by the mutual funds . The Nifty ETF carries an expense ratio as low as 5 basis points with no recurring costs. In contrast, a Nifty 50 index fund (direct plan) could charge between 5 and 20 basis ability to buy and sell immediately is a key advantage that ETFs have over index funds, where investors must wait for the day-end net asset value (NAV)."There are no exit loads in ETFs, the expense ratio is low, and investors can buy or sell during market hours, which is attracting more investors to the product," says Arun Sundaresan, head - ETF, Nippon Life India Asset Management
Economic Times
18-06-2025
- Business
- Economic Times
Nifty faces resistance at 25,000 mark amid geopolitical tensions
Earlier this year, Nifty crossed 25,000 for the first time in seven months on May 15, after Donald Trump claimed that India had offered to drop all tariffs on US imports. The Nifty benchmark faces a significant hurdle at the 25,000 mark in 2025, struggling to maintain levels above it amid geopolitical tensions and a lack of positive catalysts. Analysts observe profit booking and heavy call writing around this level, indicating resistance to further upward movement. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: The 25,000 mark is turning out to be a key hurdle for the benchmark Nifty . In 2025, the index has failed to stay above this psychologically important level for more than four straight trading sessions, while it has closed above it seven times in this year, according to ETIG with geopolitical uncertainty heightening of late, and a lack of positive triggers, analysts see the 25,000-mark remaining a resistance against big market moves in the near highest closing for the Nifty in 2025 so far has been at 25,141 on June 11. The index closed at 24,853 on Tuesday, down 93.1 points, or 0.4%, over the previous trading session with no end in sight to the conflict between Iran and Israel."Market sentiment remains uncertain amid the ongoing Iran-Israel conflict, limiting Nifty's ability to sustain levels above 25,000," said Shrikant Chouhan, head of equity research at Kotak Securities. "Valuations in India are now stretched, with most positive factors such as RBI rate cuts, a good monsoon and strong macro indicators already priced in."Chouhan said investors are booking profits at higher levels, capping the upside for the are build derivative positions around 25,000, betting that the index will not surge past the 25,000 Palviya, head of technical and derivatives research at Axis Securities, said the 25,000 level has emerged as a strong resistance zone due to heavy call writing . When a trader writes (or sells) a call option at a particular strike (25,000 in this case), it's an indication she does not expect the index to cross that level."For the fifth consecutive week, the index has failed to sustain above this level, with fresh call writing now emerging even at 24,900," he said. "A potential ceasefire in the Iran-Israel conflict remains the key near-term trigger for any meaningful upside."Earlier this year, Nifty crossed 25,000 for the first time in seven months on May 15, after Donald Trump claimed that India had offered to drop all tariffs on US Jain, vice-president at Motilal Oswal Financial Services , said the Nifty has traded within a broad range in the last couple of days, with 24,500-24,450 being crucial support, where dips are getting bought into."On the higher side, 25,000-25,200 has been acting as a resistance as it is the previous swing high resistance zone also seen during mid-October 2024," he said. "This consolidation in a broad range seems to be a time-wise corrective phase post the recent run-up in the last couple of months."
