The World Opinion

Tag: Market News

  • FPIs Go Bullish Again On Buying Equities In Indian Market | Economy News

    New Delhi: Foreign portfolio investors (FPIs) bought equities in the Indian stock market worth Rs 16,800 crore this week, taking the total buying to Rs 27,856 crore this month (till September 13). 

    As per NSDL data, FPIs were buyers of equity in the cash market on all days of the week. Industry watchers said that it is significant to note that unlike in previous weeks when FIIs were buyers through the primary market, this week, they were buyers through the exchanges.

    There are two reasons why FPIs have changed their strategy from selling to buying. There is a consensus now that the Fed will start cutting rates from this month onwards pushing the US yields down, facilitating fund flows from the US to emerging markets.

    Also, the Indian market is extremely resilient with strong momentum and missing out on the Indian market would be a bad strategy for FPIs. In 2024, the total investments by FPIs now stand at Rs 70,737 crore to date.

    According to Manoj Purohit, Partner and leader, FS Tax, Tax and Regulatory Services, BDO India, the month of September came with a full swing from the FPI fraternity which made a substantial infusion in the Indian equity market, recording the second highest single-day purchase of 2024.

    “This shift in the investment wave is largely attributable to the Indian equity market reaching new all-time highs. The robust inflows are due to underlying factors such as global confidence in India’s economic outlook and the government’s commitment to drive a long term growth story,” Purohit mentioned.

    FPIs are encashing at the right time to tab the Indian market amidst positive market sentiments, political stability, contributing to the rally. This incursion not only mirrors the growing attractiveness of Indian equities but also emphasises the confidence foreign participants have shown in India’s financial markets historically as well during geopolitical crises and other macro factors.

    Also, due to the market regulator’s timely actions on easing business norms, rolling out consultation papers on industry issues, being agile to accept and inculcate global best practices to make India a competitive and one of the most preferred destination for imbedding funds to get better returns as compared to other developing economies, said experts.

  • Bloodbath in India Stocks As Trends Show Below Par Show By BJP-led NDA; Sensex Slumps Over 4,000 Points | Markets News

    New Delhi: Indian stock indices witnessed a bloodbath on the day the Lok Sabha results were announced, where incumbent BJP performed below par and seems it may fall short of exit poll predictions and the majority mark on its own.

    The BJP-led National Democratic Alliance is leading in nearly 300 seats while the INDIA alliance is leading in 229 seats, as per data from the Election Commission of India. The idea of a coalition government lead by BJP at the centre has led to widespread market anxiety and a sharp decline in stock indices. 

    The BJP, which has been the dominant force in Indian politics for the past decade, is seen as a pro-Industry party whose policies have generally favoured economic growth and market stability. The failure to secure a clear majority to BJP of its own raises concerns about the formation of a stable government and the continuation of economic reforms.

    At the closing bell, Sensex closed at 72,079.05 points, down 4,389.73 points or 5.74 per cent, while Nifty closed at 21,884.50 points, down 1,379.40 points or 5.93 per cent. All Nifty sectoral indices, barring Nifty FMCG, were deep in the red today. Nifty metal, Nifty bank, Nifty financial services, Nifty PSU bank, Nifty private bank, Nifty realty, Nifty oil and gas, slumped the most, NSE data showed.

    “The steep fall is due to the results so far falling short of the exit polls which the market had discounted yesterday. If BJP doesn’t get a majority on its own there will be disappointment and this is getting reflected in the market. Also it is possible that Modi 3.O may not be as reform-oriented as the market expected and may turn more welfare- oriented,” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

    At one point during the afternoon, Indian equity indices plummeted over 8 per cent on Tuesday, as poll trends indicated a closer than anticipated fight for the incumbent Narendra Modi-led NDA government.

    Sensex logged it worst session in over four years, it witnessed back during Covid days.

    “Markets rallied 3-3.5 per cent on expectation of a Modi led NDA win on Monday. PSU (especially banks) led the rally. Today polls were not in line with exit poll outcome. Markets move more than 4-5 per cent down today,” said Jaykrishna Gandhi, Head – Business Development, Institutional Equities, Emkay Global Financial Services.

    “We expect 7-10 per cent downside for broader markets from current levels. We recommend positioning to move from alpha stocks to defensives – add FMCG, IT, Pharma vs short on ABB, Siemens, Cummins, Coal India, NTPC, PFC, REC, PNB, Canara bank,” Gandhi suggested.

    The Rupee closed weaker against the US dollar on Tuesday, depreciating by 38 paise to close at 83.53. It closed at 83.15 on Monday. The Rupee had been largely steady for the past year, largely due to RBI’s intervention.

    “This uncertainty triggered a panic sell-off across various asset classes, impacting economic growth. The Dollar-Rupee exchange rate may continue to rise, potentially reaching 83.90, with 83.40 serving as the immediate support level,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.

    Manish Chowdhury, Head of Research, StoxBox, asserted that markets have reacted sharply to the initial trends of the NDA leading on around 290 seats, way less than as projected. “With the NDA still looking to form a government, though with the important support of coalition partners, markets look jittery about the prospects of strong decision making. 

    Markets believe that the reformistic approach, which was a hallmark of the previous two terms, might take a backseat in the third term. However, our sense is that it is still early to jump to conclusions and should ideally wait for a clearer picture,” said Chowdhury. Shrikant Chouhan, Head Equity Research, Kotak Securities, noted that the current market texture is extremely volatile and uncertain; hence, it is advisable that traders should remain cautious for the next few trading sessions.

    On Monday, Indian benchmark indices closed at record highs, driven by fresh buying from investors after exit polls indicated a comfortable majority for the NDA government. The Nifty 50 index gained 733.20 points, closing at 23,263.90, while the BSE Sensex surged 2507.47 points to close at 76,468.78. 

  • NSE To Launch One Paisa Ticket Size For Stocks Below Rs 250 From THIS Date | Markets News

    New Delhi: The National Stock Exchange is set to launch a new one paisa ticket for stocks below the trading price of Rs 250 per share, according to the NSE circular. As per the circular, the measure will be implemented from June 10. 

    At present the share has a ticket size of at least 5 paise. Investors will get the direct benefit of reduced ticket size. Ticket size is the difference between the price of a seller and the price of a buyer. In such a situation, reducing the ticket size will enable better price discovery and the buyers and sellers will get the right price.

    For example, if a person wants to sell shares at Rs 199.98, the deal will be done not at Rs 199.98 but at Rs 199.95 or Rs 200. Due to the reduction in ticket size, the deal will be done at Rs 199.98. According to the circular, the ticket size is being reduced from 5 paise to one paise. This will apply to the T+1 settlement as well as the T+0 settlement.

    NSE said in the circular that the ticket sizes will be reviewed and adjusted every month based on the closing price of the last trading day of the month. NSE further said in the circular that the stock futures will have the same ticket size from July 8. Reviews and revisions in the ticket price will apply to all expiries.