Latest news with #Sensex30
Mint
22-06-2025
- Business
- Mint
Markets poised for a near-term dip, crude can worsen the sentiment
US President Donald Trump announced that Washington has carried out strikes on three nuclear facilities in Iran, marking a direct involvement in the campaign initiated by Israel last week to dismantle Iran's nuclear infrastructure. Since the war started two weeks ago, the Nifty 50 and the Sensex 30 index have gained 1.59%. At the same time, crude oil prices have gained 2.19% to $76.57 per barrel. The US has long been watchful about Iran's expanding nuclear programme, with tensions rising especially a couple of years ago when Iran's uranium enrichment neared 83.7% (very close to weapons-grade, 90% enrichment), said Alok Agarwal, head-Quant and Fund Manager at Alchemy Capital Management. 'This concern has now escalated to the point of direct US military action, making the situation more volatile, in our view," he added. Read more: US strike on Iran raises oil shock, capital flow risks for India's economy From an Indian investment perspective, the primary concern isn't just the geopolitical tension itself—which mostly affects market sentiment—but the potential surge in crude oil prices, which would have a direct economic impact, Agarwal added. Moreover, a sharp spike—especially beyond the $100/barrel mark—would be a major concern for Indian markets, as India imports over 80% of its crude requirements. Crude price impact Aniruddha Sarkar, CIO at Quest Investment Advisors, said that the key concern for the market is the impact of rising crude prices, which could widen the current account deficit, fuel inflation, and weaken the rupee due to higher forex outflows owing to a higher fuel bill and foreign institutional investors (FII) selling in risk-off mode from emerging markets. The second stage impact, which could happen if the war persists for long, would be on sectors like oil marketing companies (OMCs), paints, and aviation, which could face cost pressures and perform negatively as crude prices climb, Sarkar added. However, he said that these impacts could remain short-lived as the war may not continue for a long time. While other experts believe that no further retaliation by Iran might actually lead to an upside in the Indian markets. "If Iran doesn't retaliate in a way that is surprising or nasty, markets could actually rally as investors reckon the tensions would abate, but if there are attacks on the Strait of Hormuz or on US bases, tensions could actually escalate and all bets would be off the table," said Nirmal Bhanwarlal Jain, founder of IIFL Group and managing director at IIFL Finance. Anthony Heredia, MD & CEO, Mahindra Manulife Investment Managers, said, 'If there is no escalatory move from Iran now or over the next few days, you may actually see positivity extending as in a risk-on market environment, people anecdotally find reasons to be optimistic rather than the other way around." Taking advantage Markets have shown remarkable resilience so far in the face of international skirmishes and tariff threats, and if there could be further escalation of tensions in the coming weeks if Iran were to retaliate, investors would do well to keep the powder dry to take advantage of any market correction, said Sandeep Bagla, CEO, TRUST Mutual Fund. Read more: Mint Explainer | Strait of Hormuz: Will Iran shut the vital oil artery of the world? George Thomas, fund manager at Quantum Mutual Fund, said that in the coming few days, markets are expected to be very volatile. Hence, investors should invest in a staggered manner, as it helps average out the cost and reduces risk. The India VIX index has fallen 9.13% since 13 June, when the war started. From a technical standpoint, the prolonged phase of consolidation has notably impacted key indicators, said Sudeep Shah, deputy vice president, head - Technical & Derivatives Research at SBI Securities. 'The upward slope of the short and medium-term moving averages has slowed down, reflecting a loss of momentum. Simultaneously, the daily RSI (Relative Strength Index) continues to move sideways, in line with the RSI range shift concept that suggests a lack of directional bias. Further, the trend strength indicator – ADX (Average Directional Index), is currently quoting near the 13 level, which was the lowest level since July 2024, which shows a lack of strength in either direction," Shah added. Shah added that the zone of 24,880-24,850 will act as immediate support for the Nifty 50 index. While on the upside, the zone of 25,200-25,250 will act as a crucial hurdle for the index, he said. However, India is in a better place than other times when there has been tension, experts say. 'While we find ourselves in a more inflationary than disinflationary environment, India has never been in a better place than it is now to handle the repercussions of the latest round of tensions," said Kenneth Andrade, founder and CIO of Old Bridge Capital Management. Even the Asian indices closed higher on Friday. The Hang Seng index closed 1.29% higher, the Kospi index closed 1.48% higher, and the CSI 300 index ended 0.09% higher. Where's oil headed? Under the severe outcome, oil prices could surge to $120-130 per barrel if the Strait of Hormuz is closed or there is a general Middle East conflagration, which could ignite retaliatory responses from major oil-producing countries, said JP Morgan in a report on 12 June. Concerns are that if Iran closes the Strait of Hormuz, the global oil supply will be disrupted, which in turn will cause a rally in oil prices. Read more: Donald Trump's war dilemma: Should America put boots on the ground in Iran or not? However, historically, Iran has never fully closed the Strait of Hormuz, even during major conflicts like the Iran-Iraq War (1980-1988), the rise in US-Iran tensions after 2011, or the fallout from the Iran nuclear deal (2018-2020). Experts say that this is because doing so would hurt Iran more than help it. About 20% of the world's oil passes through the Strait of Hormuz, which is also a key path for liquefied natural gas exports, especially from Qatar, one of the biggest suppliers. 'US naval forces in the Persian Gulf act as a strong military deterrent, and any closure attempt by Iran would risk severe retaliation," said Yes Institutional Equities in a report dated 18 June. It further added that Iran depends heavily on the Strait for its own oil exports and critical imports, making a blockade counterproductive. 'Moreover, shutting the Strait would harm regional allies like Qatar and Iraq, who also rely on the waterway, potentially straining Iran's strategic relationships. It would also violate international maritime law, further isolating Iran diplomatically," Yes Institutional Equities said. Hence, experts say that Iran has often used the threat of closing the Strait as a political tool to gain leverage in talks—without actually going through with it.
The Hindu
02-06-2025
- Business
- The Hindu
Ask Us: On investments
Q I am a retiree and started a Post Office PPF account in November 2020. I have ₹3 lakh in the account and am badly in need of money for medical emergency. Can I close my account and get back the money now? Raja Thilagar A We are sorry to hear about your situation. Public Provident Fund (PPF) account comes with a lock-in period of 15 years, i.e. account can be closed only after the completion of 15 years under normal circumstances. It's not advisable to open a PPF account at the fag end of your career. In the Post Office PPF account, a subscriber can withdraw only after the completion of five financial years excluding the account opening. In your case, you have opened in November 2020 (FY20-21), withdrawal can be made only during FY2026-27, i.e. after completion of March 31, 2026. Further, only 50% of the balance credit at the end of the fourth preceding year could be withdrawn. Premature closure is allowed only after the completion of the fifth calendar year from the end of the year in which the account was opened. The closure is subject to conditions such as life-threatening disease of account holder, spouse or dependent children; higher education of account holder or dependent children. It is also allowed when there is a change in the resident status of an account holder (i.e., he/she became NRI). However, 1% interest shall be deducted for the same. Though you have a medical emergency, it is likely impossible to close your PPF account prematurely or withdraw your corpus. However, a post office official said, 'If you have valid medical certificates and that the medical condition (of self or any of the family member) is life-threatening, you can place a request to the Divisional Head of your branch through your branch head and try explaining your crisis. However, it's not a guarantee that your account could be closed prematurely.' Q I passed out from college recently and am working in a Central government PSU. My father is into a small business and I have no liabilities. How should I start investing for long-term? Also advise me on health insurance for my family. Ansh Gupta A You are considerably young and have enough time for growth prospects, be it in direct equity investing or through mutual funds. First, you can start investing in mutual funds (MFs). Choose any Index fund (passive) that tracks Nifty 50 or Sensex 30, which are comparatively (not completely) safer. However, choose only direct schemes but not regular schemes that are offered by distributors or brokers. When compared with regular schemes, the expense ratio for direct schemes is lower. Either you can start a Systematic Investment Plan (SIP) or you can invest in a lumpsum plan. SIP is a monthly commitment whereas a lumpsum is a one-time investment plan. You can start investing a minimum of ₹500 per month (some MF schemes offer lower amount plans also) in any passive fund or as a one-time lumpsum, if you get any incentive or bonus. Since you have no liability, you can start a SIP of ₹6,000 per month. Keep track of the performance of SIP investment for two to three years. Once you have understood how market movements impact your mutual fund performance, you can consider investing in other active mutual funds and also start investing in equity markets, that is stocks. For a decent health insurance coverage for you and your family, take a family floater policy with a sum insured (SI) of up to ₹10 lakh at an affordable premium. Important criteria to consider in the policy are list of network hospitals for cashless treatment, higher claim settlement ratio of insurance companies, cap on room rents, sub-limits on treatments, waiting periods for pre-existing diseases, pre- and post-hospitalisation coverage period, no-claim bonus benefits, inclusion of annual health check-up facility, co-payment clauses, coverage for daycare procedures and life-long renewability. (The writer is an NISM & CRISIL-certified wealth manager)
Time of India
27-05-2025
- Business
- Time of India
Nestlé India's outgoing CEO Narayanan weathered the Maggi storm; Tiwary must tackle slowing growth
Nestlé India's outgoing CEO Narayanan weathered the Maggi storm; Tiwary must tackle slowing growth Manish Tiwary (left) will be the MD of Nestle India on 1st of August 2025, Suresh Narayanan (right) current Chairman and MD of Nestle India; Collage by Mohommad Arshad Synopsis Come June 23, Nestlé India will be moved out of the Sensex 30 to Sensex Next 30. The company has remained flat for the last one year. It has even underperformed the Nifty FMCG Index in the past 5 years. The shift captures the woes faced by the company and the sector. An overall revival seems like a long-term story. PRAVIN PALANDE By VARSHA SANTOSH 8 Mins Read, May 28, 2025, 04:55 AM IST SHARE THIS NEWS Close Font Size Abc Small Small Abc Normal Normal Abc Large Close When the world's biggest food and beverages maker brings in a new chief executive to its Indian operations, some challenges come along. Nestlé, which successfully battled the Maggi image problem with Suresh Narayanan a decade ago, is now bringing in Manish Tiwary and he not only needs to fix the multi-year growth slowdown, but also convince index managers that the makers of KitKat chocolates deserve to be a part of the elite index. Nestlé India
Economic Times
27-05-2025
- Business
- Economic Times
What Nestlé India's Sensex exit means
Nestlé India is moving out of Sensex. Can it stay in investors' mind? Nestlé India has remained flat for the last one year. It has even underperformed the Nifty FMCG Index in the last five years. The shifting of the stock from Sensex 30 to Sensex Next 30 does capture some of the woes faced by the company and the sector. And an overall revival seems like a long-term story. ONGC squandered its future once. Can it be different this time? When India FONT SIZE SAVE PRINT COMMENT Refer & Earn
Mint
20-05-2025
- Business
- Mint
After a spirited rebound, markets fall for third straight day
The benchmark indices fell for the third straight day on profit booking, following a rebound after India and Pakistan agreed to a ceasefire to end the four-day military conflict that stemmed from Operation Sindoor. On Tuesday, the Nifty 50 index fell 1.05% or 261.55 points to 24,683.9, while the Sensex 30 slipped 1.06%, its sharpest decline in five days, to end at 81,186.44. The market had rallied almost 5% from 24,008 on Friday (9 May), a day before the ceasefire, to a high of 25,116.25 on 15 May. From there, Nifty has fallen 0.08% and Sensex has declined 0.15% on profit booking. All the Nifty sectoral indices ended lower on Tuesday. The Nifty Auto index fell the most, closing 2.17% down, the India Consumption index dropped 1.77%, and the Nifty Financial Services index closed 1.73% lower. The Nifty Midcap 100 index settled 1.62% lower. The market sentiment remained negative on Tuesday, with 42 of 50 Nifty constituents ending in the red. The BSE market capitalisation fell by ₹ 5.4 trillion to reach ₹ 43.82 trillion. Of the 2,969 stocks traded on the NSE, 1974 declined and 915 advanced. Fund managers said that much of the negatives, including geopolitical tensions and global tariff uncertainties and earnings disappointments, were priced in. But with Moody's downgrading the US, a selloff in emerging market assets by foreign portfolio investors (FPIs) amid rising US bond yields could crimp the short-term sentiment. 'When US bond yields go up, it's always negative for India and for emerging markets because the cost of debt is moving up,' said Christy Mathai, fund manager-equity at Quantum Asset Management Co. In such cases, investors could be better off investing in local currency and local bonds as opposed to investing in emerging markets, he said. Sachin Relekar, senior equity fund manager at Axis Mutual Fund, said, 'We believe that macro headwinds are receding.' The recent geopolitical issue with 'our neighbouring country seems to be behind us', he said. There were concerns around trade and tariffs, which were steep when proposed, but the tone of negotiations—especially with China and potentially with India too—now seems more positive, he said. 'We still need to see the final details, but it doesn't look as bad as it did around before and, hence, we believe that the two issues are less of a concern going forward,' Relekar said. Most of the earnings downgrades that had to happen have happened and there is not much room for the earnings to go down further, according to Mathai. The earnings season for Q4FY25 has not been that weak and was on the expected lines, he said. 'From hereon, we might see an 11% earnings growth for FY25-26.' FIIs have been net buyers in Indian equity markets for the last five days with inflows of ₹ 15,262 crore. Asian indices closed higher with Hong Kong's Hang Seng ending 1.49% up and Japan's Nikkei 225 settling 0.8% above the previous close.
