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Business Standard
6 days ago
- Business
- Business Standard
Markets fall amid IT, FMCG earnings disappointment; Sensex down 543 points
Domestic equity benchmarks closed lower on Thursday, weighed down by selling in heavyweight stocks like Reliance Industries, HDFC Bank, and IT majors. Investor caution prevailed amid ongoing India-US trade negotiations and mixed corporate earnings. The Sensex settled at 82,184, down 543 points, or 0.6 per cent, while the Nifty closed at 25,062, dropping 158 points, 0.6 per cent. The selloff erased ₹2.2 trillion from the total market capitalisation, which is now at ₹458 trillion. Reliance Industries, HDFC Bank, and Infosys contributed most to the Sensex decline. IT stocks faced significant pressure after mid-tier firms, Coforge and Persistent Systems, reported weaker-than-expected quarterly results. The Nifty IT index plunged 2.2 per cent – its sharpest single-day fall since May 13 – despite Infosys beating earnings estimates. "IT firms show anaemic revenue growth and profit degrowth, making current valuations unsustainable. Minimal recruitment signals limited near-term upside. Without a dramatic turnaround, these valuations won't hold," said UR Bhat, Co-founder of Alphaniti Fintech. The market's cautious tone persisted even as India and the UK signed a free trade agreement, granting 99 per cent of Indian exports (textiles to engineering goods) tariff concessions. However, analysts noted limited immediate market reaction due to focus on earnings. "Initial optimism about the UK FTA briefly lifted pharma and textile stocks, but attention quickly shifted back to earnings," Bhat added. Vinod Nair, Head of Research at Geojit Financial Services, said, "Subdued Q1 performances dragged IT and FMCG stocks. While earnings are broadly in line, they don't justify India's premium 21 times price-to-earnings multiple. Foreign portfolio investors (FPIs) were net sellers of ₹2,134 crore, while domestic institutional investors (DIIs) provided support with net buying of ₹2,617 crore. Market breadth remained weak, with 2,517 declining stocks versus 1,542 gainers on the BSE. Looking ahead, Siddhartha Khemka, Head of Research at Motilal Oswal Wealth Management, said: "We expect range-bound markets with stock-specific moves driven by Q1 earnings. Global cues, including UK FTA formalisation and India-US trade talks, will be closely monitored." The Indian markets have underperformed emerging market peers, with the Nifty declining 1.8 per cent even as the MSCI EM ex-Japan gained 4 per cent.
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Business Standard
23-06-2025
- Business
- Business Standard
West Asia conflict keeps mkts on edge; Indices rebound as oil fears ease
Indian equities fell over 1 per cent on Monday amid fears that escalating tensions between the US and Iran could disrupt global oil supplies. But markets pared half their losses later in the day as Brent crude retreated from a five-month high, easing concerns about a potential supply shock. The Sensex dropped nearly 931 points (1.1 per cent) intraday before closing at 81,897, down 511 points (0.6 per cent). The Nifty settled at 24,972, declining 140 points (0.6 per cent). Foreign portfolio investors (FPIs) were net sellers to the tune of ₹1,874 crore, while domestic institutions provided buying support worth ₹5,592 crore. Brent crude surged to $77 per barrel — its highest level in five months — after the US launched strikes on Iran's nuclear facilities over the weekend, stoking fears of a prolonged conflict. Prices later eased to $76 as Iran showed no immediate signs of disrupting shipments through the Strait of Hormuz, a critical chokepoint for a fifth of the world's oil supply. Any supply disruption in the region could send oil prices soaring, raising stagflation risks — a toxic mix of sluggish growth and high inflation. For India, which imports most of its crude, this could widen the fiscal deficit and complicate the Reserve Bank of India's efforts to balance inflation control with growth support. 'We do not expect the escalation in the conflict to lead to a prolonged disruption of oil supplies in a way that could imperil global growth or cause significant challenges for central banks. As such, we believe that near-term downside in stocks could represent an opportunity for investors who are underallocated to equities to build a position,' said UBS in a note. UR Bhat, cofounder of Alphaniti Fintech, said the closure of the Strait of Hormuz is unlikely, as Iran's exports and imports would be affected. 'Iran is already crippled. The economic situation may worsen if they take such a step. Iran may continue to threaten to close the Strait of Hormuz, but it may not take such a drastic step. However, the bigger threat is Iran attacking US military assets, which would escalate tensions,' said Bhat. More than two-thirds of Sensex stocks declined. HDFC Bank, which fell 0.9 per cent, was the biggest contributor to the Sensex decline, followed by Infosys, which dropped 2.3 per cent. The market breadth was weak, with 2,273 stocks declining and 1,788 advancing. Analysts said a rise in gas prices would impact gas-based power generation as well as fertiliser and gas-importing firms such as Petronet LNG. 'While these external risks are building, India's robust foreign exchange reserves should cushion any significant impact on the external accounts,' Garima Kapoor, economist at Elara Capital, wrote in a note on Monday. A recent directive from the Ministry of Petroleum and Natural Gas suggests that state-run oil-marketing companies (OMCs) have enough inventories to last several weeks. India sources about 35 per cent of its crude oil and 42 per cent of its liquefied natural gas (LNG) through the Strait of Hormuz, making any prolonged disruption a major concern, according to Yes Securities. 'The immediate risk lies in shipment delays and increased freight charges.' However, India's diversified sourcing strategy is providing a cushion, analysts at the firm said. A prolonged supply squeeze could push India to rely more on costly spot LNG purchases, pressuring margins at importers like Petronet LNG, which depends heavily on long-term contracts from Qatar, Yes Securities' analyst Harshraj Aggarwal said. Still, India has built significant buffers. 'Strategic crude reserves cover around 9–10 days of imports, while refiners are increasingly flexible with feedstock,' Aggarwal said. He, however, added that static retail fuel prices and rising input costs were squeezing margins for OMCs like BPCL, IOCL, and HPCL. One of the impacts of any disruption in the Hormuz Strait could be on Di-ammonia phosphate supplies from Saudi Arabia, which recently became one of India's major DAP import sources, experts said. Experts warned that ammonia imports from Iraq, Kuwait, Bahrain, and Saudi Arabia could also be affected if transport through the strait is disrupted. Ammonia is a crucial raw material for producing DAP. India consumes about 10–11 million tonnes of DAP annually, with nearly half of that imported. Around 20 per cent of India's DAP imports now come from Saudi Arabia, which previously were sourced from China.
Time of India
09-06-2025
- Business
- Time of India
Telecom, services draw big FPI flows; IT faces selloff in late May
Mumbai: Telecom, services, capital goods and consumer goods were the top recipients of the foreign fund flows in the second-half of May, according to data from NSDL. Traditional heavyweights like banks and information technology sectors saw outflows in this period, when overseas fund managers resumed purchases of Indian equities after a pause. Telecommunications stocks received the highest inflow at ₹7,052 crore in the second-half of the month after Singapore's Singtel sold Bharti Airtel shares worth ₹12,880 crore in a bulk deal on May 16."Most of the foreign inflows in the telecom sector can be attributed to the deal," said UR Bhat, co-founder & director, Alphaniti. "The reduced competition with Vodafone Idea languishing, is also expected to benefit the other two players." In the second-half of the month, the fast moving consumer goods (FMCG) sector witnessed foreign inflows worth ₹1,872 crore after outflows worth ₹1,057 crore in the first-half of May. "Investors have possibly realised that the earlier sell-off in services and FMCG sectors was probably not warranted, as there has since been a pickup in rural demand," said Bhat. "This led foreign investors to realign their portfolios. The information technology sector witnessed the highest outflows worth ₹2,725 crore, after inflows worth ₹289 crore in the first-half. Divam Sharma, fund manager at Green Portfolio PMS, said that the business outlook for IT sector is impacted by geo-political realignment and the concerns in the US economy. 'There is a portfolio churn, and overseas investors are exiting sectors where valuations are expensive,' said Sharma. 'However, they are shying away from making aggressive bets as the uncertainty surrounding the US-China trade war continues to linger.' Foreign investors offloaded shares worth Rs 2,008 crore in the healthcare sector in the last 15 days of the month and divested shares worth over Rs 1,500 crore in the power, consumer services and automobile sectors
Time of India
09-06-2025
- Business
- Time of India
Telecom, services draw big FPI flows; IT faces selloff in late May
Mumbai: Telecom, services, capital goods and consumer goods were the top recipients of the foreign fund flows in the second-half of May, according to data from NSDL. Traditional heavyweights like banks and information technology sectors saw outflows in this period, when overseas fund managers resumed purchases of Indian equities after a pause. Telecommunications stocks received the highest inflow at ₹7,052 crore in the second-half of the month after Singapore's Singtel sold Bharti Airtel shares worth ₹12,880 crore in a bulk deal on May 16. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 'Swing is King': Mr. Hemant's Strategy Finally Explained in Free Session TradeWise Learn More Undo "Most of the foreign inflows in the telecom sector can be attributed to the deal," said UR Bhat, co-founder & director, Alphaniti. "The reduced competition with Vodafone Idea languishing, is also expected to benefit the other two players." Agencies In the second-half of the month, the fast moving consumer goods (FMCG) sector witnessed foreign inflows worth ₹1,872 crore after outflows worth ₹1,057 crore in the first-half of May. "Investors have possibly realised that the earlier sell-off in services and FMCG sectors was probably not warranted, as there has since been a pickup in rural demand," said Bhat. "This led foreign investors to realign their portfolios. Live Events The information technology sector witnessed the highest outflows worth ₹2,725 crore, after inflows worth ₹289 crore in the first-half. Divam Sharma, fund manager at Green Portfolio PMS, said that the business outlook for IT sector is impacted by geo-political realignment and the concerns in the US economy. 'There is a portfolio churn, and overseas investors are exiting sectors where valuations are expensive,' said Sharma. 'However, they are shying away from making aggressive bets as the uncertainty surrounding the US-China trade war continues to linger.' Foreign investors offloaded shares worth Rs 2,008 crore in the healthcare sector in the last 15 days of the month and divested shares worth over Rs 1,500 crore in the power, consumer services and automobile sectors
Economic Times
09-06-2025
- Business
- Economic Times
Telecom, services draw big FPI flows; IT faces selloff in late May
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Telecom, services, capital goods and consumer goods were the top recipients of the foreign fund flows in the second-half of May, according to data from NSDL. Traditional heavyweights like banks and information technology sectors saw outflows in this period, when overseas fund managers resumed purchases of Indian equities after a stocks received the highest inflow at ₹7,052 crore in the second-half of the month after Singapore's Singtel sold Bharti Airtel shares worth ₹12,880 crore in a bulk deal on May 16."Most of the foreign inflows in the telecom sector can be attributed to the deal," said UR Bhat, co-founder & director, Alphaniti. "The reduced competition with Vodafone Idea languishing, is also expected to benefit the other two players."In the second-half of the month, the fast moving consumer goods (FMCG) sector witnessed foreign inflows worth ₹1,872 crore after outflows worth ₹1,057 crore in the first-half of May."Investors have possibly realised that the earlier sell-off in services and FMCG sectors was probably not warranted, as there has since been a pickup in rural demand," said Bhat. "This led foreign investors to realign their information technology sector witnessed the highest outflows worth ₹2,725 crore, after inflows worth ₹289 crore in the Sharma, fund manager at Green Portfolio PMS, said that the business outlook for IT sector is impacted by geo-political realignment and the concerns in the US economy.'There is a portfolio churn, and overseas investors are exiting sectors where valuations are expensive,' said Sharma. 'However, they are shying away from making aggressive bets as the uncertainty surrounding the US-China trade war continues to linger.'Foreign investors offloaded shares worth Rs 2,008 crore in the healthcare sector in the last 15 days of the month and divested shares worth over Rs 1,500 crore in the power, consumer services and automobile sectors
