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Mint
20 hours ago
- Business
- Mint
IT stocks drag Indias benchmarks lower
By Bharath Rajeswaran and Vivek Kumar M (Reuters) -Indian shares fell on Thursday, weighed down by losses in IT stocks after Tech Mahindra missed quarterly revenue estimates, while uncertainty over U.S. Federal Reserve Chair Jerome Powell's tenure led to caution among investors. The Nifty 50 fell 0.4% to 25,111.45, while the Sensex lost 0.45% to 82,259.24. The Nifty is down 0.15% so far this week. The broader, more domestically focussed smallcaps and midcaps fell 0.1% and 0.2% respectively. Citi downgraded Indian equities to "neutral" from "overweight", citing stretched valuations. Asian markets were muted as uncertainty over the future of Fed Chair Powell raised concerns about U.S. monetary policy and capital flows into emerging markets. India's IT companies lost 1.4% on the day, making them the top sectoral losers. Tech Mahindra fell 2.8% after reporting a marginally lower-than-expected revenue a day earlier. "IT earnings have been predictably underwhelming and have kept the markets on a tight leash," said Samrat Dasgupta, CEO of Esquire Capital Investment Advisors. "With the India–U.S. trade deal still hanging in the balance and Trump's comments on Powell's tenure stirring fresh unease, investor nerves aren't exactly settling," Dasgupta said. Heavyweight financials and banks dropped 0.4% and 0.6%, respectively. Axis Bank fell 0.6% ahead of its results. The metals index gained 0.7%, led by Hindalco and Tata Steel which rose 1.2% and 1.7%, respectively, capping losses in the benchmarks. Among other individual stocks, HDFC Asset Management gained 2.9% on posting a 24% rise in quarterly profit. Auto components maker Sona BLW Precision Forgings jumped 6.8% after CNBC-TV18 reported the company is in advanced talks with China's BYD to supply electric vehicle components. The market is likely to stay stuck in a consolidation mode until there are signals of a consumption recovery or credit growth, Esquire Capital's Dasgupta said. (Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Mrigank Dhaniwala, Nivedita Bhattacharjee and Sonia Cheema)
Mint
04-07-2025
- Business
- Mint
Indian shares flat as investors weigh Jane Street ban, trade developments
By Vivek Kumar M and Bharath Rajeswaran (Reuters) -Indian shares were largely flat on Friday as investors remained on the sidelines ahead of a potential India-U.S. trade deal and assessed the market regulator's ban on U.S. trading firm Jane Street over alleged manipulation in derivatives trading. The Nifty 50 rose 0.04% to 25,415.45 points and the BSE Sensex added 0.05% to 83,274.26, as of 10:17 a.m. IST. The broader, small-caps and mid-caps traded flat. On Thursday, the Securities and Exchange Board of India (SEBI) issued an interim order against Jane Street, one of the world's largest quant trading firms, alleging manipulation through derivative positions. In June, Reuters reported that the SEBI was investigating the company's derivatives trades stretching back three years to check if it intended to manipulate the benchmark stock indexes. Four entities affiliated with the firm made 365.02 billion rupees ($4.28 billion) in profits across National Stock Exchange segments between January 1, 2023, and March 31, 2025, as per the interim order. "While the order could stir some short-term unease, it's clearly case-specific and unlikely to trigger a broad foreign investor exit," said Kranthi Bathini, director - equity strategy at WealthMills Securities. Investors are also awaiting a possible India-U.S. trade deal as President Donald Trump's July 9 deadline for reciprocal tariffs approaches. "Domestic equity markets have continued to consolidate this week after a sharp 15% rise in the last four month as investors remain watchful of a potential trade agreement," said Vinod Nair, head of research at Geojit Investments. Among individual stocks, non-bank lender Bajaj Finance jumped 3.1% after it reported a 25% rise in assets under management in a pre-quarterly update. Marico gained 3.6% after the consumer company reported a low-twenties percentage revenue growth for the June quarter, helped by improving rural demand. In contrast, Trent slumped 7.2% after the fashion retailer posted a sequential deceleration in its June-quarter revenue in a pre-quarterly update. (Reporting by Vivek Kumar M and Bharath Rajeswaran; Editing by Sonia Cheema)
Yahoo
27-06-2025
- Business
- Yahoo
Fintech firm Pine Labs seeks up to $6 billion valuation in India IPO, source says
By Vivek Kumar M (Reuters) -Indian fintech firm Pine Labs' [ initial public offering could be worth about $1 billion and the company is seeking a valuation of up to $6 billion, a source familiar with the matter said on Thursday. Pine Labs is looking to issue fresh shares worth 26 billion rupees ($304 million) while existing investors including Peak XV, PayPal and Mastercard will sell up to 147.8 million shares, draft papers filed with the market regulator showed. The company, which competes with Paytm and Walmart's PhonePe, is seeking a valuation of between $5 billion and $6 billion, according to the source, who did not want to be identified. The company was last valued at $5 billion when it raised funds in 2022. Pine Labs offers full-stack payment solutions such as point-of-sale machines to merchants for card payments. It will use the IPO proceeds to invest in overseas units, develop technology and pare down debt. India's IPO market has had a slow start to the year, but foreign investors are now returning to local stocks after a major exodus, attracted by big-ticket block trades, often a precursor to a recovery in IPOs. IPO proceeds from Indian issues are down 4.2% so far this year compared to a year earlier, while the number of issues have fallen 29%, data from LSEG up to mid-June showed. Still, the stock market is gathering steam as concerns around global trade uncertainties ease. The benchmark Nifty 50 is up 8% this year, but remains 3% below its record highs hit last September. Six IPOs are open for bids this week, including HDB Financial's $1.5 billion offering, the biggest ever by an Indian non-bank lender. Pine Labs posted a revenue of 13.41 billion rupees in fiscal year 2024, up from 12.91 billion rupees in 2023, while its losses widened to 1.87 billion rupees from 562 million over the same period, according to its prospectus. Morgan Stanley, Citi and Jefferies are among the bookrunners for the offering. ($1 = 85.6150 Indian rupees) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
23-06-2025
- Business
- Mint
Indian benchmarks drop 1% as investors fret over heightened Mideast tensions
(Reuters) -India's equity benchmarks fell 1% on Monday after U.S. attacks on Iranian nuclear sites fuelled fears of a further escalation in Middle East tensions and pushed oil prices to a five-month high. The Nifty 50 and the BSE Sensex were down 0.9% each at 24,890.03 points and 81,659.09 points, respectively, as of 10:37 a.m. IST. All 13 major sectors traded lower. The broader mid-caps fell 0.2% and small-caps were flat. The U.S. bombed Iranian nuclear sites over the weekend, joining Israel in the biggest Western military action against the Islamic Republic since the 1979 revolution. Most Asian stocks fell on Monday, with the MSCI Asia ex Japan down more than 1%. Oil prices briefly hit a five-month high, while the focus remains on a potential military response from Iran. [MKTS/GLOB] "Worries over potential supply disruptions from Strait of Hormuz is driving the sentiment," said Vinit Bolinjkar, head of research at Ventura Securities. About a fifth of the world's total oil consumption passes through the strait, which lies between Oman and Iran. Higher crude oil prices are a negative for India, which depends heavily on imports for its energy requirements, as they could stoke inflation and widen the fiscal deficit. Still, UBS said it does not see a prolonged disruption to oil supplies. "We believe that near-term downside in stocks could represent an opportunity for investors who are underallocated to equities to build positions," the brokerage said. Meanwhile, IT stocks shed 1.8% after Accenture posted a third consecutive quarter of yearly decline in outsourcing orders as a cutback in U.S. government spending and tariff uncertainty pressured economic growth. Indian IT firms get a significant chunk of their revenue from the U.S. In contrast, small finance banks rose after the central bank reduced the mandated portion of lending to priority sectors to 60% from 75%. (Reporting by Vivek Kumar M; Editing by Sonia Cheema and Mrigank Dhaniwala)
Mint
20-06-2025
- Business
- Mint
Indias HDB Financial IPO pricing not influenced by 70% premium in grey market, bankers say
By Siddhi Nayak, Vivek Kumar M and Bharath Rajeswaran MUMBAI, June 20 (Reuters) - The initial public offering of India's HDB Financial has been priced based on the fundamentals of the business, unaffected by the roughly 70% premium the stock is trading at in the informal 'grey market' for unlisted securities, bankers said on Friday. Shares in the lender will be sold in a price band of 700 rupees to 740 rupees per share ($8.06-$8.52), valuing HDB Financial at $7.1 billion at the upper end of the band. The shares were traded around 1,200 rupees to 1,250 rupees in the 'grey market'. "This price has been determined basis extensive roadshows," said Jibi Jacob, head of equity capital markets at Jefferies India, one of the bankers to the issue. "We have no influence on what is happening on the unlisted side," Jacob said at a press conference in Mumbai. HDB Financial's IPO, the largest for an Indian non-banking financial company, opens for subscription on June 25, with large institutions bidding a day earlier. The firm, which lends across segments such as personal and business loans, operates 1,747 branches nationwide. India's largest private lender, HDFC Bank, holds a 94% stake in the firm. The IPO pricing has been determined on the fundamentals of the franchise and how key peers are trading, said Sonia DasGupta, head of the investment banking division at JM Financial, another banker to the issue. At 740 rupees per share, the price-to-book ratio, a key measure of valuation, works out to 3.72 for HDB, in line with peers such as Bajaj Finance and Shriram Finance . India's red-hot IPO streak has cooled in 2025, following a blockbuster year in 2024 that saw record capital raised through new listings. So far this year, nearly 100 firms have hit the market, raising about $4 billion, a decline from the 137 IPOs and $4.3 billion fundraise in the year-ago period, according to data compiled by LSEG. Analysts attribute tepid retail investor demand to aggressive IPO pricing, as the Nifty 50 trades nearly 6% below its record high from last September. The bull run in Indian markets post the COVID-19 crisis led to valuations of unlisted firms inflating beyond fundamentals, said Arun Kejriwal, founder of Kejriwal Research and Investment Services. "HDB's approach is a timely reminder that IPO pricing should be grounded in reality, not speculative hype," Kejriwal said. ($1 = 86.6040 Indian rupees) (Reporting by Siddhi Nayak and Vivek Kumar M in Mumbai and Bharath Rajeswaran in Bengaluru, additional reporting by Nishit Navin; Editing by Mrigank Dhaniwala)
