Latest news with #MSCIIndiaIndex
Time of India
3 days ago
- Business
- Time of India
Funds flexing 60/40 playbook become investor favorites in India
Indian hybrid funds, blending stocks with assets like bonds and gold, have outpaced pure equity funds in attracting investments for the first time in a year, signaling a potential investment trend. In May, these hybrid plans garnered 208 billion rupees, exceeding the 190 billion rupees drawn by stock funds. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Indian funds that offer built-in diversification by combining stocks with assets such as bonds and gold lured in more money than pure equity ones last month for the first time in a year, pointing toward a potential long-term investment so-called hybrid plans attracted a net 208 billion rupees ($2.4 billion) of inflows in May, while stock funds garnered just 190 billion rupees, according to data from the Association of Mutual Funds in India. The switch comes as global geopolitical turmoil escalates and Indian equities trail their worldwide peers amid concern over weaker earnings growth.'Investors are taking a break and are hedging some of their assets into hybrid funds ,' said Sailesh Jain, who oversees more than $4 billion as a money manager at Tata Asset Management Pvt in Mumbai. 'These funds are a perfect mix during such uncertain times as they offer growth potential by staggering equity investments and generate income through debt investments.'Potential buyers are also shying away from Indian shares as they appear pricey based on valuation metrics, while interest in pure bond funds has been damped by the diminishing prospect of future central bank interest-rate cuts, Jain growing demand for hybrid funds may indicate the huge popularity of equity investments is starting to wane in the world's most populous economy. The flow of money from retail investors into the stock market has been one of the drivers helping the MSCI India Index deliver average gains of almost 15% a year over the past six years, outpacing most of its global two most popular categories of hybrid funds in May were multi-asset and arbitrage schemes . The former must have investments in at least three asset classes with a minimum allocation of at least 10% in each, according to the market regulator's guidelines. The latter must have a minimum of 65% in equities or equity-related products, and a maximum of 35% in of the advantages of hybrid funds is their tax efficiency. Arbitrage funds that invest both in stocks and bonds are taxed at the same rate as stocks, even though they offer exposure to debt. Pure bond funds, on the other hand, are taxed at a higher rate. Multi-asset funds that invest in precious metals such as gold have also lured in higher inflows due to the record-breaking rally in bullion. Such funds saw their assets under management climb to an all-time high of 1.2 trillion rupees at the end of May, based on data from the mutual fund performance of Indian stocks has started to improve in recent months, with the MSCI India gauge climbing about 16% from a one-year low set in February. At the same time, recent threats such as rising global trade frictions and geopolitical conflicts still argue for diversification.'Given persistent geopolitical headwinds, hybrid funds may offer better risk-reward notably in the context of India's expensive valuations and sluggish earnings growth,' said Nitin Chanduka, a strategist at Bloomberg Intelligence in Singapore.
Mint
18-06-2025
- Business
- Mint
Mazagon Dock investors should not get swayed by narrative and newsflow
Mazagon Dock Shipbuilders Ltd's shares rose 5% on Tuesday to ₹3,306. This is the first significant bounce after the stock dropped almost every day from its all-time high of ₹3,775 seen in May, just before the dismal March quarter (Q4FY25) results were declared. What might have rekindled some interest in the stock is JM Financial's note indicating a medium probability that the stock may be included in the MSCI India Index. The index rebalancing may be announced on 7 August. Investors must be cautious of the news flow and narrative surrounding the Mazagon stock, which is being viewed as a defence sector play. However, this does not necessarily mean superior profitability versus the global shipbuilding industry. Management has clarified that their sustainable profitability margin will be in line with the global shipbuilding industry at about 15% at the profit before tax (PBT) level. Also Read: Tata Motors' JLR navigates a tougher road in FY26 Management has guided for about 10% growth in revenue for FY26, which comes to about ₹12,500 crore and PBT of ₹2,000 crore based on the margin guidance. After accounting for corporate tax at 25%, net profit after tax should be about ₹1,500 crore. But it must be noted that Mazagon's PBT margins for FY25 and FY24 are in the range of 23-24%, far above the guidance of 15%. So, it is likely that the company may well report higher margins in FY26, too. Nirmal Bang Institutional Equities has estimated Mazagon's FY26 net profit at ₹2,904 crore. At the current market capitalization of ₹1.3 trillion, this translates into a price-to-earnings ratio of around 45x, which isn't cheap. Perhaps then, the Street is looking at a narrative of how the order book is going to expand multifold. No guarantees Mazagon expects the order book to grow from ₹32,000 crore at FY25 end to ₹1.3 trillion by FY26 on the back of contracts for additional submarines in the Project 75-AS and Project -75 (I) categories. The order book to annual revenue ratio translates into almost 10x FY25 sales, which means strong revenue visibility. Also Read: Juniper Hotels' ambitious growth targets fail to excite investors Mazagon has the technical capabilities to execute a large order book. But it does not guarantee healthy profitability, going by the recent history of provisioning for losses in certain contracts. The company anticipates losses in the contracts for the supply of fast patrol vessels (FPV) to the Indian Coast Guard and also to Denmark. As a result, its provisions have jumped up to ₹747 crore in FY25 from ₹169 crore in FY24. The extent of actual loss will be reviewed in the future, and the provisions will be adjusted accordingly. Amid this, Mazagon continues to focus on the profitable segment of submarines, wherein it has expanded capacity from the construction of 6 submarines to 11. Besides submarines, it will also be able to build 10 major warships as it has acquired land for ship projects. The additional facilities would require capital expenditure of ₹4,000 crore. Even though Mazagon has an agreement with the US Navy for repairing ships, it does not have the infrastructure to handle large ships. So, it will only look for contracts to repair ships that are compatible in size with its shipyard. Also Read: Office space demand gets a push from domestic firms More order announcements are likely in the future, but there could be a long gap before order wins translate into actual revenue. For e.g. the delay in the design and finalization of submarine models would mean Project 75-AS revenues would begin reflecting in revenue only in FY28. Investors would do well to ignore the noise and focus on the valuation that captures most of the near-term positives.
Mint
14-06-2025
- Business
- Mint
MSCI rejig: Swiggy, Mazagon Dock, two others among likely additions to India Standard Index in August rebalancing
Swiggy, Mazagon Dock Shipbuilders, and two other stocks are expected to be added to the MSCI India Standard Index as part of the upcoming rebalancing scheduled for August 2025. Global index provider MSCI is set to announce the changes on August 7, after market hours. The last MSCI rebalancing was conducted on May 14, wherein the Coromandel International and FSN E-commerce Ventures, the parent company of the fashion and beauty e-tailer Nykaa, were included in the MSCI India Index, which is part of the MSCI Global Standard Index. The MSCI India Standard Index captures the performance of the large- and mid-cap segments of the Indian equity market, covering approximately 85% of the investable universe. According to JM Financial, the August rebalancing could see as many as four inclusions, potentially drawing an estimated $850 million in passive inflows. The changes will come into effect on August 27, 2025. JM Financial's analysis indicates that Swiggy shares have a high probability of inclusion in the index, while Mazagon Dock Shipbuilders and Hitachi Energy India are assigned medium probability. Waaree Energies shares have a low likelihood of inclusion. If included in MSCI India Standard Index, Swiggy is expected to receive estimated inflows of $385 million, with 93.8 million shares being added to the index. Mazagon Dock Shipbuilders shares could see inflows of approximately $187 million, followed by Hitachi Energy India at $165 million. Waaree Energies may see estimated inflows of $132 million. Ahead of the expected index rejig, these stocks have seen notable gains over the past month. Swiggy share price has surged over 14%, while Mazagon Dock share price has advanced 6%. Hitachi Energy India shares have delivered 11% returns, and Waaree Energies shares have gained around 5% during the same period. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
News18
14-06-2025
- Business
- News18
MSCI India Index August Rejig: Swiggy, Mazagon Dock, Waaree Energies May Include
As per JM Financial, Swiggy, Mazagaon Dock Shipbuilders, Hitachi Energy India, Waaree Energies have a high probability to include in the MSCI India Standard Index. Of which, Swiggy has a high probability, followed by Mazagaon Dock Shipbuilders and Hitachi Energy India. JM Financial in its report says that Warree Energies has a low probability to include in August MSCI Rejig. The MSCI India Index is a stock market index designed by MSCI Inc. (Morgan Stanley Capital International). It represents the performance of the large and mid-cap segments of the Indian equity market, covering about 85% of the Indian stock market's total market capitalization. When a stock is added, global funds tracking the MSCI India Index often buy into it, causing price and volume spikes. Expected Inflows by Stock Swiggy Ltd (SWIGGY): With a high probability of inclusion, Swiggy is expected to see an inflow of approximately 385 million US dollars, with around 93.8 million shares impacted. The stock could see a 12.7% price change in the one month. Mazagaon Dock Shipbuilders Ltd (MAZDOCKS): This stock carries a medium probability of being included, and may attract an estimated 187 million US dollars in flows, affecting about 4.8 million shares. Its 1-month price change stands at 14.4%.
Time of India
14-05-2025
- Business
- Time of India
Nykaa, Coromandel International to join MSCI India Index in May review
NEW DELHI: Beauty and fashion retailer Nykaa and fertilizer maker Coromandel International are set to be included in the MSCI India Index , according to the latest review by global index provider MSCI. The changes to the MSCI Global Standard Indexes will take effect from May 30, 2025, as stated in MSCI's announcement. FSN E-Commerce Ventures ' shares registered a 3.44% increase on the BSE. Coromandel International's stock rose by 1.82% but later gave up all gains to end nearly 4% lower. MSCI, serves as a primary provider of essential decision support instruments and services for international investors. It has announced that in the MSCI Global Smallcap Indexes, 11 firms will be added, while 22 companies will move out effective May 30. The new additions comprise AWL Agri Business, ACME Solar Holdings, Authum Investment, Dr Agarwals Health Care, Godrej Agrovet, Hexaware Technologies, International Gemmological, Le Travenues Technology, Sagility India, Sai Life Sciences and Tata Technologies. The companies set for removal include Aarti Drugs, Allcargo Logistics, Coromandel International, E2E Networks, Electronics Mart India, Gateway Distriparks, Godrej Industries, Greenpanel Industries, Gujarat Alkalies, HeidelbergCement, Hemisphere Properties, Moschip Technologies, NOCIL, Orchid Pharma, Orissa Minerals Development Company, Paisalo Digital, Patel Engineering, Prince Pipes and Fittings, Rossari Biotech, Share India Securities, Shyam Metalics and TeamLease Services. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
