Latest news with #IndiaMarketsBuzz
Mint
7 days ago
- Business
- Mint
Investor Optimism Wanes as Few Nifty Companies Surpass Earnings Estimates
(Bloomberg) -- Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at: Good morning, this is Ashutosh Joshi, an equities reporter in Mumbai. Indian equities look set for a firm open this morning, with Nifty futures and most Asian markets in the green. But the real action will be in the quarterly earnings, with big names like Infosys, Tata Consumer, and Dr Reddy's reporting their numbers. So far,the earnings season has been a bit underwhelming, which is keeping equity bulls cautious. Earnings season echo weak market momentum Investor hopes for an earnings revival — one that could justify lofty stock equity valuations — are starting to look shaky. So far, only half of the 12 Nifty companies with first-quarter profit estimates have managed to beat analyst forecasts, according to data compiled by Bloomberg. That's much lower from the prior quarter, when more 58% had surpassed expectations at the same point in results season. Jane Street factor fires up capital market stocks Yet, amid the weak earnings, not all corners of the market are struggling. Capital market stocks remain buoyant, as traders track the the return of global trading giant Jane Street to Indian bourses. Angel One, for instance, witnessed its highest bullish options activity in over a month, while shares of BSE and Nuvama Wealth rose Tuesday on hopes of increased trading volumes. The upcoming weekly derivatives expiry on Thursday will offer a clearer read on whether Jane Street's re-entry is really adding depth to the market. Top jeweler's overseas pivot may add luster Meanwhile, in the consumer space, Titan is looking overseas to counter a softer outlook at home. The Tata Group company is set to buy a majority stake in Middle Eastern jeweler Damas, giving it access to 146 premium locations in the UAE. Analysts at JM Financial expect the move to enhance Titan's standing in Gulf countries at a time when discretionary spending and consumer confidence in India is flagging. Even so, investors appear to be staying the course: Titan has outpaced the Nifty consumption index by three percentage points this year. Three great reads from Bloomberg today: Foreign appetite for local shares is showing signs of fatigue. After pumping in over $5 billion between March and June, global funds have turned cautious, pulling out $650 million so far this month through July 18. If the trend holds, July could mark the first month of net outflows since February. With earnings lacking excitement and stock valuations still looking rich, prospects for speedy rebound in the Nifty are fading, with the index more than 5% below its peak. To read India Markets Buzz every day, follow Bloomberg India on WhatsApp. Sign up here. --With assistance from Savio Shetty and Chiranjivi Chakraborty. More stories like this are available on
Mint
16-07-2025
- Business
- Mint
Indias Volatility Index Dips on Easing Tariff Concerns, Rate Cut Hopes
(Bloomberg) -- Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at: Good morning, this is Chiranjivi Chakraborty, an equities reporter in Mumbai. Local traders are set to start the day on the backfoot following the selloff on Wall Street and a choppy trend in regional markets. Till India's trade deal with the US is sealed, big moves could likely be limited to companies announcing quarterly numbers. Tech Mahindra's results later in the day will be closely watched after underwhelming numbers from TCS and HCL Technologies have further soured the outlook for the IT sector. Volatility cools on tariff relief, rate cut hopes India's 30-day ahead volatility — often called the fear index — has declined to its lowest level since April 2024, reflecting growing investor belief that President Donald Trump's tariff threats are largely rhetorical and aimed at negotiating. Meanwhile, local sentiment is getting a lift after the RBI Governor signaled Tuesday that the central bank will continue to cut interest rates if inflation eases or growth slows. Expanding valuations, shrinking returns Valuations in the BSE 500 index have stretched since June 20, according to analysts at Ambit. They point out that around 43% of the index's stocks trade at more than five times their price-to-sales ratio, compared with about 31% seen during the peak of the 2007 bull market. As a result, median returns have started to shrink. Ambit also warns that inflows into mutual funds may come under pressure, especially as returns from some of the largest small- and mid-cap funds begin to moderate. Ola's long journey to recovery After losing over $5 billion in market value from its peak, Ola Electric's latest quarterly results brought some relief. But the e-scooter maker needs to deliver on the bullish tone struck during its recent earnings call. HSBC analysts see a pragmatic approach in the company's outlook and execution strategy, but warn that most of the potential gains are already priced in. Analyst opinions are split: three recommend buying, three suggest selling, and two advise holding. The consensus points to a modest 6% return over the next year. Three great reads from Bloomberg today: HCL Technologies may have delivered a weaker-than-expected first-quarter performance, but there's still reason for optimism. According to Jefferies, the company's newfound status as the top revenue earner in the IT sector could help it maintain a valuation premium over larger rivals such as Infosys and Tata Consultancy Services. What's more, HCL has raised its growth outlook for fiscal 2026 to 3%-5% — the highest among India's top five IT services firms, Jefferies adds. To read India Markets Buzz every day, follow Bloomberg India on WhatsApp. Sign up here. --With assistance from Ashutosh Joshi, Alex Gabriel Simon and Kartik Goyal. More stories like this are available on
Mint
18-06-2025
- Business
- Mint
India's Small-Cap Stocks Set to Beat Larger Peers on Improved Earnings
(Bloomberg) -- Before the trading day starts we bring you a digest of the key news and events that are likely to move markets. Today we look at: Good morning, this is Chiranjivi Chakraborty, an equities reporter in Mumbai. Another volatile day awaits Indian stocks, with Israel-Iran tensions showing no signs of a let up. Nothing suggests either a breakdown or a breakout with the main gauges in a tighter coil than the broader market. The spotlight will be on BSE's shares after the exchange switched its derivatives expiry to Thursdays, which could impact its newfound heft in the futures and options market. BSE bulls on the backfoot as expiry day battle ends The short-lived expiry-day war between India's main bourses may be over, but not in BSE's favor. NSE has chosen Tuesdays for the expiry of its derivative contracts, prompting the BSE to reschedule its settlement day to Thursdays. This means BSE's expiry day will now follow that of NSE, reversing its previous lead. Goldman Sachs on Monday warned that BSE may face a 3 percentage point loss of market share and an 8% cut in EPS estimate if the bourse chooses Thursday to settle its contracts. Mutual funds emerge as eager buyers in large deals Local mutual funds are increasingly active participants in block trades of key consumer stocks, underscoring growing optimism about a revival in consumer sentiment in the coming months. SBI Mutual Fund, ICICI Prudential Fund, and HDFC Mutual Fund were among the biggest buyers in a $900 million block trade in Asian Paints and a $1.15 billion deal in Vishal Mega Mart. With the block deal market expected to heat up further, cash-flush mutual funds are set to absorb the increased supply with ease. Profit margin recovery may sustain in June quarter Corporate profit margins are expected to remain stable in the 18.2%-18.5% band during the June quarter, thanks to robust demand and easing input costs, including crude oil, coal, and steel, according to ratings firm ICRA. Declining interest rates may provide an additional boost to businesses. It expects some sectors such as electronics, semi-conductors, and niche segments within the automotive space, particularly electric vehicles, to witness an increase in investments. Three great reads from Bloomberg today: India's small-sized stocks are on track to beat their larger peers for a second straight month, with improved earnings prospects pointing to more gains this year. The NSE Nifty Smallcap 250 Index has advanced about 2% so far in June, outpacing a 0.4% gain in the benchmark Nifty 50 index. A 100-basis-point cut in borrowing costs this year, along with the RBI's cash-boosting measures, is fueling optimism that companies catering to domestic demand will benefit more as the economy grows. To read India Markets Buzz every day, follow Bloomberg India on WhatsApp. Sign up here. --With assistance from Kartik Goyal. More stories like this are available on
