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[hfe_template id='11223'] [ad_1] Options traders are getting less skeptical about Indian banks after months of underperformance. The cost of hedging against volatility in the NSE Nifty Bank Index is near its lowest level since January relative to the broader NSE Nifty 50 Index, indicating less demand for protection. Meanwhile, the number of bearish options outstanding on the banking gauge hit a three-week low on Friday versus bullish contracts, data compiled by Bloomberg show. ETMarkets.com Indian bank stocks have lagged the broader market, with sluggish deposit growth raising concerns that more regulation may be coming. While firms including Morgan Stanley remain bearish, Jefferies Financial Group Inc. says valuations already reflect the worries and a potential easing of liquidity could help smoothen the impact should interest rates fall. Demand for retail loans remains strong, and lenders including HDFC Bank Ltd., Kotak Mahindra Bank Ltd. and ICICI Bank Ltd. beat analy...

[hfe_template id='11223'] [ad_1] Foreign investors have adopted a cautious stance and infused Rs 7,320 crore in the Indian equities in August owing to high valuation of stocks and the unwinding of the Yen carry trade after Bank of Japan raised interest rates. This investment was way lower than Rs 32,365 crore in July and Rs 26,565 crore in June, according to data with the depositories. While September is likely to see continued interest from FPIs, the flows would be shaped by a combination of domestic political stability, economic indicators, global interest rate movements, market valuations, sectoral preferences, and the attractiveness of the debt market, Vipul Bhowar, Director Listed Investments, Waterfield Advisors, said. According to the data with the depositories, Foreign Portfolio Investors (FPIs) made a net investment of Rs 7,320 crore in Indian equities in August. The fundamental reason for the poor FPI interest compared to the preceding two months is the high v...

[hfe_template id='11223'] [ad_1] Synopsis In another two weeks, Ganesh Chaturthi will kick off the official festive season 2024. A season in which some companies look forward to for one simple reason, they tend to see the highest sales in this period as consumers loosen their purse strings. Now why look at these stocks ahead of the festive season. Look at what happened to stocks of white good markets like Voltas. The first indication of strong summer had just come in March, stock started gaining and in less than 6 months more than 50% gain from its low. Given the fact that there is too much liquidity which is prevailing in markets, a small hint that the performance of the company is going to be good, stock tends to gain very sharply. So, in bullish markets, before you see in headlines “ festive season sales”, it is time to look at them. If you want to see what difference the festive season makes, just have a look at how different two quarters, a festive quarter and non ...

[hfe_template id='11223'] [ad_1] Synopsis While bulls were a confident lot after the election results, with every trading session they are once again moving to take control of every corner of the street. How the market reacted to the increase in capital gain taxes was the first indication and probably Friday's session is another strong confirmation. There are good reasons to believe that until there is some development in the international markets, it is bulls who will remain in control of the street. So, stay bullish, But it would be better to focus on fundamentals and if there is any improvement in them which has made the overall score go up in the last one month then have a look at those stocks. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market ou...

[hfe_template id='11223'] [ad_1] India's equity benchmarks ended flat on Tuesday following a roller-coaster session as investors took concerns over the increase in taxes on stock market transactions in their stride. The Nifty ended 0.12%, or 30.20 points, lower at 24,479. The Sensex declined 0.09%, or 73.04 points, to 80,429. Money managers said the undertone will remain cautious owing to the high valuations. "Given the slight disappointment on capex and the increase in capital gains tax structure, the Nifty is expected to consolidate between 23,700 and 24,500 levels in the near term," said Nikhil Ranka, CIO, equity alternatives, Nuvama Asset Management. "The near-term valuations look rich, and the upsides seem capped." Mid-cap and small-cap stocks also ended weak. Out of the 4,015 stocks traded on the BSE, 1,680 advanced, while 2,223 declined."The valuations could potentially correct post the budget if the flows are impacted due to changes i...

[hfe_template id='11223'] [ad_1] The Indian stock market continues to be resilient. Nifty at 22200 is trading at a PE of around 19.5 based on estimated FY25 earnings. The market cap to GDP stands at 126 percent. These valuations are higher than long-term averages. However, the near consensus in the market is that India’s superior growth and earnings potential for many years to come justifies higher valuations. Apart from GDP growth and corporate earnings, another crucial macro fundamental that impacts stock markets is the interest rate. As Warren Buffet famously said, “interest rates are to asset prices like gravity is to apples.” Softening interest rates are fodder for the bulls. Peaking of interest rate, and expectations that it will trend down, have played a major role in the ongoing global bull market. But the complexity of the global economic scenario, and the uncertainty surrounding inflation trends in the mother market US, have clouded the interest rate trajectory...