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[hfe_template id='11223'] [ad_1] Foreign Institutional Investors (FIIs) have been aggressively selling Indian equities over the past quarter, raising concerns about the market’s stability and future growth prospects. India has been one of the most attractive investment destinations for Foreign Institutional Investors (FIIs) over the past few years. However, the last quarter has witnessed a sharp reversal in sentiment, with FIIs aggressively offloading Indian equities. Despite India’s strong macroeconomic position and improving valuations, global investors appear to be reallocating funds elsewhere. In an exclusive interview with ETNow, Rajiv Batra, Head of India, ASEAN, APAC (Ex-Japan/China) Equity Strategy at JPMorgan, sheds light on the reasons behind this sell-off. He highlights that the primary driver of FII investment in India has always been growth, not just valuations or market positioning. Growth Concerns Driving FIIs Away Historically, FIIs have invested in India...

[hfe_template id='11223'] [ad_1] Global financial-market turbulence this week sparked by a series of US tariff announcements looks like just the beginning of a volatile year, according to a JPMorgan Chase & Co. electronic trading survey. Inflation and tariffs will have the biggest impact on markets in 2025, followed by geopolitical tension, according to the annual trading poll. Some 41% surveyed highlighted volatility as their biggest anticipated daily trading challenge, up from 28% last year. “What sets this year apart is the somewhat unexpected timing of volatility,” said Eddie Wen, JPMorgan’s global head of digital markets, in an interview. “Markets are reacting to news headlines in surprising ways, and I expect this trend to continue in the current climate.” Traders are on tenterhooks given the lack of clarity over what impact tariffs will have on different asset classes. The annual survey of over 4,200 institutional traders was conducted last month before Presid...

[hfe_template id='11223'] [ad_1] Shares of Federal Bank fell over 6% to Rs 178.1 in Tuesday's intraday trade on the BSE after the private sector lender reported a 5% year-on-year decline in its net profit for the third quarter ending December 30, 2024. The bank posted a net profit of Rs 955 crore, down from Rs 1,007 crore in the same period last year, despite recording its highest-ever pre-provision operating profit. The bank has made accelerated provisions of Rs 292 crore during the quarter. Total provisions also stood at Rs 292 crore after adjustment of regular provisions and provisions write-back as against Rs 91 crore made in the year ago period. Its provision coverage ratio rose to 74.21% from 71.08%. "In alignment with our commitment to building a robust foundation, we have undertaken accelerated provisioning for certain riskier asset classes this quarter," managing director KVS Manian said. Also Read: Biggest stock market crash coming in February: Ri...

[hfe_template id='11223'] [ad_1] Shares of Sagility India soared by 5% to hit the upper circuit of Rs 48.91 on the BSE after the global brokerage firm JPMorgan initiated coverage on the stock with an "Overweight" rating and a target price of Rs 54. The target price indicates a potential for 16% upside in the stock from its closing price on Monday. The brokerage highlighted Sagility's strong positioning in the niche healthcare services segment, catering largely to non-discretionary spending, which provides a stable growth outlook even in uncertain market conditions. JPMorgan emphasized that Sagility is well-placed to benefit from secular tailwinds, particularly due to the increasing trend of outsourcing in the US healthcare sector. As healthcare providers look to reduce costs and enhance efficiency, Sagility’s offerings have become critical, cementing its role as a dependable outsourcing partner. “The company’s deep domain expertise and longstanding client r...

[hfe_template id='11223'] [ad_1] Leading brokerages have shared their latest recommendations on select stocks, highlighting strong growth potential and strategic initiatives driving future performance. JPMorgan has reaffirmed its Overweight stance on KPIT Technologies, citing transient challenges and robust long-term prospects in the EV and hybrid space. Bank of America (BoFA) remains optimistic about JSW Steel, underscoring its expansion plans and efforts to strengthen financial metrics. Meanwhile, Motilal Oswal sees a bright outlook for Adani Ports & SEZ (APSEZ), driven by its integrated logistics model, diversified cargo mix, and significant growth in cargo volumes. We have compiled a list of recommendations from top brokerage firms, sourced from ETNow and other outlets: JPMorgan on KPIT Technologies: Maintain Overweight with target price of Rs 1,900 | LTP Rs 1,341 | Upside 41% JPMorgan maintains an Overweight rating on KPIT Technologies with a target price of Rs ...

[hfe_template id='11223'] [ad_1] Global brokerage firm JPMorgan has expressed a positive outlook on India’s defense sector as it initiated coverage on Bharat Electronics (BEL), Hindustan Aeronautics (HAL), and Mazagon Dock Shipbuilders, signaling a growth potential of up to 17%. JPMorgan highlighted the strong growth prospects in production and exports within the sector. Here is what the foreign brokerage said: BEL: Overweight | Target price: Rs 340 | Upside: 16.25% BEL has been assigned an "Overweight" rating, with a target price set at Rs 340. The company has been identified as the preferred pick for exposure to the sector’s structural growth owing to its strong fundamentals and growth trajectory. HAL: Overweight | Target price: Rs 5,135 | Upside: 17.2% HAL has also received an "Overweight" rating, with a target price of Rs 5,135. The company’s significant role in defense production positions it as a key player poised to benefit from the sector’s ex...

[hfe_template id='11223'] [ad_1] Wall Street banks are ramping up expectations for an aggressive Federal Reserve easing cycle based on the latest evidence that the labour market is cooling. Economists at Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase revamped their forecasts for US monetary policy Friday after data showed the US unemployment rate rose again in July, calling for earlier, bigger or more interest-rate cuts. Economists at Citigroup - already among the most aggressive in calling for the Fed to cut interest rates this year - said they expect half-point rate cuts in September and November and a quarter-point cut in December, having previously predicted quarter-point cuts at all three meetings. The Fed will then reduce rates by a quarter point at each meeting until mid-2025, bringing the policy band to 3%-3.25%, Veronica Clark and Andrew Hollenhorst predicted. JPMorgan economist Michael Feroli went a step further. While he also predicted half-point...

[hfe_template id='11223'] [ad_1] Economists at Citigroup Inc. and JPMorgan Chase & Co., some of the last holdouts predicting a Federal Reserve interest-rate cut in July, have relented. After Friday’s release of stronger-than-anticipated May employment data, Citigroup now sees US policymakers making their first move in September, while JPMorgan looks for no change until November. “We are shifting our base case for the first rate cut from July to September,” Andrew Hollenhorst, Citigroup’s chief US economist, said in a report Friday. While the labor market and US economy both appear to be slowing, “surprisingly strong job growth” last month will probably stay the Fed’s hand while “waiting for more data on slower activity and inflation.” JPMorgan’s chief US economist Michael Feroli, also in a Friday report, said “the recent momentum in job growth” suggests that the “broader” labor-market weakening the Fed has said could warrant a rate cut may take more than three months...

[hfe_template id='11223'] [ad_1] Asian share markets rose on Monday as investors looked forward to a rate cut in Europe, and quite possibly Canada, as the next step in global policy easing, though sticky inflation threatens to make the process a drawn out affair. The European Central Bank (ECB) is considered almost certain to trim rates by a quarter point to 3.75% on Thursday, the first time in history it would have eased ahead of the U.S. Federal Reserve. However, a surprisingly high reading for Euro zone inflationout last week blunted hopes for a rapid round of reductions and markets have 55 basis points of easing priced in for this year. "The probability of back-to-back cuts now appears very low, putting the focus for a second move on September," said Bruce Kasman, head of economic research at JPMorgan. "We suspect President Christine Lagarde will signal that the direction of rates is downward next week, but the policy statement will emphasize that fu...

[hfe_template id='11223'] [ad_1] The Nasdaq closed at a record high on Monday while the S&P 500 gained slightly as technology stocks advanced ahead of Nvidia's highly anticipated earnings and investors gauged the timing of an interest rate cut by the Federal Reserve. The S&P 500 technology index led gains among the 11 major S&P sectors, rising 1.32%, helped by chipmakers such as Nvidia, which advanced 2.49% ahead of its quarterly results on Wednesday. Investors will look for evidence in Nvidia's earnings that the AI chip leader can maintain its explosive growth and stay ahead of rivals. At least three brokerages lifted their Nvidia price targets, while peer Micron Technology climbed 2.96% after Morgan Stanley upgraded the memory chipmaker to "equal-weight" from "underweight." The PHLX semiconductor index rose 2.15%. "If they surprise to the upside Nvidia could spark a mini fury, although everything's kind of expensive, s...

[hfe_template id='11223'] [ad_1] Foreign investors pulled out a massive Rs 17,000 crore from Indian equities in the first 10 days of the month owing to general election and the uncertainty surrounding its outcome coupled with expensive valuations and profit booking. This was way higher than a net withdrawal of Rs 8,700 crore in the entire April on concerns over a tweak in India's tax treaty with Mauritius and a sustained rise in US bond yields. Before that, FPIs made a net investment of Rs 35,098 crore in March and Rs 1,539 crore in February. Looking ahead, post-general elections, corporate India's strong financial performance in Q4 FY24 is anticipated to be rewarded. While FPIs may adopt a cautious stance until the election results are clear, favourable outcomes and established political stability could see their return in significant numbers, Trivesh D, COO at Tradejini, said. According to the data with the depositories, Foreign Portfolio Investors (FPIs) expe...

[hfe_template id='11223'] [ad_1] Brokerage JPMorgan maintained an overweight rating on SBI and Macquarie upgraded Escorts to outperform. CLSA downgraded Sula to underperform while maintaining a sell on Asian Paints post Q4 results. We have collated a list of recommendations from top brokerage firms from ETNow and other sources: JPMorgan on SBI: Overweight| Target Rs 1000 JPMorgan maintained an overweight rating on SBI but raised the target price to Rs 1000 from Rs 725 earlier. The FY24 print shows that the growth and the return on equity (ROE) gap to private banks has closed out. The global investment bank expects a similar dynamic to sustain this year as well.Positioning is enviable with a growth pick-up in corporate loans, low pressure on opex, and a favourable asset quality environment.Despite potentially lower recovery income in FY25, we think the bank can continue to print 1%+ ROA. CLSA on Sula: Underperform| Target Rs 515 CLSA downgraded Sula to underperform from a...