Posts

Showing posts with the label volatility

Navigating market volatility and tax efficiency: Understanding income plus arbitrage funds of funds

Image
[hfe_template id='11223'] [ad_1] In a nation where fixed deposits have long been the cornerstone of conservative investing, India's debt market is evolving, offering sophisticated avenues for investors seeking stability without sacrificing tax efficiency. While the allure of guaranteed returns from traditional debt instruments remains strong, the impact of taxation can significantly erode these gains, especially for those in higher tax brackets. This is where innovative categories like "Income plus Arbitrage Fund of Funds" are gaining prominence, presenting an alternative that blends the relative safety of debt with a more favourable tax treatment, particularly for those with a medium-term investment horizon. Let's delve deeper into this category, its advantages, and how it can uniquely benefit investors. Understanding Income Plus Arbitrage FoFs: Structure and Taxation An Income plus arbitrage Fund of Funds (FoF) is a unique mutual fund category that st...

Geopolitical developments, earnings to drive markets in holiday-shortened week: Analysts

Image
[hfe_template id='11223'] [ad_1] Geopolitical developments between India and Pakistan, quarterly earnings and macro data will be the key drivers of stock markets in the holiday-shortened week, say analysts. Trading activity of foreign investors, who were sustained buyers in the Indian market last week, and global trends would also guide movement in the market, they said. Equity markets will remain closed on Thursday for 'Maharashtra Day'. Further updates related to tariffs will also be watched by investors, experts noted. Stock markets witnessed profit-taking in the last two sessions due to increased geopolitical tensions between India and Pakistan following the death of 26 people in a terror attack on tourists at Pahalgam in Jammu and Kashmir. "The upcoming holiday-shortened week also marks the beginning of a new month, making monthly auto sales data a key area of focus for market participants. On the macroeconomic front, investors will closely track the...

Nifty fear gauge India VIX jumps 6% amid renewed trade tensions

Image
[hfe_template id='11223'] [ad_1] India’s fear gauge, the Volatility Index (India VIX), surged over 6% to 21.68 on Wednesday, signalling rising investor anxiety amid a sharp selloff in global equities and renewed trade tensions. The spike in volatility comes as U.S. President Donald Trump vowed to impose “major tariffs” on pharmaceutical imports, sending Indian pharma stocks tumbling up to 6%. Meanwhile, metal stocks dropped as much as 4% after the U.S. raised import duties on Chinese goods by 50%, taking the total tariff burden to 104%. The move has raised concerns of China diverting its steel exports to other markets like India, intensifying competition for domestic producers. The growing fears of stagflation and a possible recession in the U.S. also weighed on sentiment, dragging down IT stocks and adding to market jitters. In early trade, the BSE Sensex declined 403 points, or 0.54%, to 73,823, while the Nifty50 dropped 146 points, or 0.65%, to 22,389 around 9:30 am. ...

Ahead of Market: 10 things that will decide stock market action on Tuesday

Image
[hfe_template id='11223'] [ad_1] The Indian market was closed on Monday for a national holiday in observance of Eid al-Fitr 2025. On Friday, the Indian benchmark indices, Sensex and Nifty, ended in the red, pressured by declines in auto and IT stocks as investor sentiment turned cautious ahead of this week's announcement of US reciprocal tariffs. However, intraday volatility persisted, driven by foreign inflows and optimism about a domestic growth recovery. The benchmark BSE Sensex declined 191.51 points, or 0.25%, to close at 77,414.92, while the broader Nifty 50 index closed at 23,519.35, down 72.60 points, or 0.31%. Here's how analysts read the market pulse: Asian markets are experiencing a new phase of consolidation as the latest U.S. tariff measures are expected to have a significant impact on major manufacturing economies, said Vinod Nair, Head of Research at Geojit Investments, adding that a rise in Japan's CPI has contributed to the prevailing weaknes...

Volatility today, rewards tomorrow: Why Mohit Khanna says investors will be happy

Image
[hfe_template id='11223'] [ad_1] Despite prevailing market volatility, many analysts believe that investors putting money into equities today are likely to be satisfied in the long run. In an interaction with ET Now, Mohit Khanna of Purnartha Investment Advisers expressed his confidence in the market’s recovery trajectory, emphasizing that while near-term fluctuations may persist, the long-term outlook remains optimistic. Khanna acknowledged that predicting the exact market bottom is difficult, but he remains convinced that the worst of the correction may already be behind us. “We expect some volatility in the near term, but I can tell you one thing—clients investing money today will be very happy two years from now,” he stated. The key reason for this confidence is the India growth story, which Khanna believes will continue to play out strongly over the next couple of years. The recent correction, he explained, has helped remove excess froth from the market, making valu...

Japan's Nikkei slumps to weekly loss despite softer yen

Image
[hfe_template id='11223'] [ad_1] Japan's Nikkei share average fell on Friday and logged its worst week in more than a month despite the tailwind from a weaker yen, as the decline on Wall Street and caution after major central bank policy decisions weighed. The Nikkei closed 0.29% lower at 38,701.90, bringing it to a weekly decline of 1.66%, its steepest decline since early-November. The broader Topix lost 0.44%, and fell 1.19% for the week, the index's sharpest weekly drop since mid-October. Stocks drew little support from the Bank of Japan's (BOJ) decision to not hike interest rates on Thursday or from Governor Kazuo Ueda's news conference where he said considerable time was required to judge the outlook for domestic wages and overseas economies, chiefly the U.S. This came after the U.S. Federal Reserve signalled a more cautious pace of rate cuts in 2025, after trimming rates by a quarter point on Wednesday. That sent the U.S. S&P 500 diving almost...

Tech View: Nifty forms long bull candle with minor shadow. What should traders do on Monday?

Image
[hfe_template id='11223'] [ad_1] Reserve Bank of India's (RBI) CRR cut temporarily lifted markets mood but they eventually finished with declines, ending their five sessions gaining streak. Bank and IT stocks dragged headline indices, the most. While the S&P BSE Sensex settled at 81,709.12, down by 56.74 or 0.07%, the broader Nifty50 closed at 24,677.80, lower by 30.60 or 0.12%. Nifty ended Friday's session with a marginal loss with cash market volumes on the NSE falling to Rs 1.08 lakh crore, said Deepak Jasani, Head of Retail Research at HDFC Securities. The near-term trend of Nifty remains positive, he said. "Nifty on weekly charts gained the most since early June and formed a long bull candle with minor upper shadow. Having moved above the crucial hurdle of 24,500 there is a possibility of more upside in the coming week/s. The next upside targets to be watched are around 24,857-24,882 band and later 25,084 in the near term. Immediate support is at 24...

Nifty begins December series at higher open interest base, suggests F&O rollover data. What does this indicate?

Image
[hfe_template id='11223'] [ad_1] Nifty futures will start the December series at higher open interest (OI) base with futures rollovers standing at 79% as against 76% averaged over the last three series, Nuvama said in a note. It expects Nifty to trade in a broad range of 23,450 to 25,000 with heightened volatility at play. At Rs 30,800 crore (1.29 crore shares), OI base in December is higher versus Rs 28,100 crore (1.16 crore shares) seen at the start of November series, an analysis by this brokerage revealed. On the expiry day, the roll cost for Nifty was at around 60 bps which was close to the previous day’s 57 bps. Market-wide futures open interest at the start of December series stands at Rs 4.4 lakh crore as compared to Rs 4.1 lakh crore at the start of November series. Meanwhile, market-wide rollovers are at 89%, higher than the three-month average of 88%. For Bank Nifty, rollover reached 76.8% on Wednesday, up from 69.4% in the previous expiry, Axis Securities sai...

Over 100 smallcap stocks see double-digit fall in a week amid market correction

Image
[hfe_template id='11223'] [ad_1] Domestic markets are in a correction phase with benchmark indices, Nifty and Sensex, falling around 10% from the peak. The weakness in second quarter results and sustained outflow of foreign funds weighed on the sentiments. During the week, as many as 103 smallcap stocks have delivered double-digit negative weekly returns with four of them falling over 25%. Kopran Ltd was the top loser in the smallcap pack with 26% decline, followed by Globus Spirits (-23%), Antony Waste (-21.7%), and BASF India (-21.1%). About 98 stocks including CE Info Systems, Tanfac Industries, RK Swamy, Greaves Cotton, Hitachi Energy, Motisons Jewellers, IIFL Capital Services, Valiant Organics, Raju Engineers, Suraj Estate Developers among others have dropped between 10-20% during the week. Only 8 smallcap stocks gained in double-digits in the reporting period with Pix Transmissions and JSW Holdings being the top gainers. In the midcap segment, no stocks delivered d...

Dalal Street Week Ahead: Nifty not out of the woods yet; any technical rebounds should be chased cautiously

Image
[hfe_template id='11223'] [ad_1] Over the past five sessions, the Nifty largely consolidated but did so with a bearish undertone. The Nifty traded in a defined range and closed the week with a modest gain. Importantly, the index also stayed below its crucial resistance points. The volatility also expanded; the India VIX surged higher by 8.68% to 15.90 on a weekly basis. Given the ranged move by the markets, the trading range got narrower. The Nifty oscillated in a 363-point range; this was much less than the previous week. Following a largely consolidating but bearish setup, the headline index closed with a modest weekly gain of 123.55 points (+0.51%). ETMarkets.com It was a four-day trading week as Friday just had a short one-hour symbolic ceremonial Muhurat Trading session. In the week before this one, the Nifty had breached and closed well below the 100-DMA which currently stands at 24669. The Index has also violated the 20-week MA placed at 24744. This makes the zone...

Sector rotation in focus: Where to find opportunities in a sideways market

Image
[hfe_template id='11223'] [ad_1] The markets closed on a negative note for the third week in a row. Over the past five sessions, the Nifty remained largely on a declining trajectory, except for the last trading day where it saw some relief rally from the lower levels. Following a strong weekly decline of 1167 points two weeks ago, the Nifty has thereafter traded relatively in a lesser range but has by and large exhibited a weak bias. The trading range this time remained similar to that of the previous week; the Nifty oscillated in 644 points over the past five days. The volatility remained stagnant; the India VIX came off by 1.38% to 13.04 on a weekly basis. While continuing to find short-term pattern support, the headline index closed with a net weekly loss of 110.20 points (-0.44%). Many important levels have been tested over the past week; a few important levels need to be watched as well. The Nifty tested the 20-week MA, which currently stands at 24657. The 100-Day M...

Hot market prompts InCred to shut multi-cap AIF, return money

Image
[hfe_template id='11223'] [ad_1] InCred Asset Management has decided to shut one of its equity products, India Value Growth Fund I, and return money to investors, two months before the fund's maturity, amid growing worries about the overheating equity market. The asset manager, owned by fiinancial services firm InCred, led by former senior Deutsche Bank executive Bhupinder Singh, said n a note to clients, it was booking profits in the fund and is handing back ₹80 crore it managed citing elevated risks of significant fluctuations in the market. "This decision is driven by the current market conditions, which are at an all-time high, presenting a level of volatility and uncertainty that warrants caution," said the InCred note to its clients. The practice of returning client money by asset managers on account of challenging market conditions is uncommon in India. Mutual funds usually restrict flows into equity schemes at such times. India Value Growth Fund I, ...

Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 43%

Image
[hfe_template id='11223'] [ad_1] Synopsis While the indices might be witnessing correction on intra intra-basis, the broader markets are still very much under the control of the bulls. There is greater likelihood of bullish sentiment continuing, so be bullish but more than anything else in the long term what matters for a stock is earnings and valuation. So be selective, avoid impulsive investing, and keep reviewing one’s portfolio and stay away from penny stocks especially. It is very likely that some of the penny stocks will fly and be distributed amongst retail investors. We look at stocks which have witnessed a continuous rise in their score in the last one month. 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 outlook in the given time frame. If o...

Will Nifty hit fresh record high before elections? That depends on these 5 factors

Image
[hfe_template id='11223'] [ad_1] Nifty ended the extended 6-day trading week around 2% higher as moderation in India's CPI and lower-than-expected inflation figures from the US Fed boosted investor confidence. Global market cues remained largely supportive as major indices of the US market such as Nasdaq, S&P 500 and Dow touched lifetime highs. This week will be a curtailed one with Monday being a market holiday on account of voting in Mumbai for Lok Sabha elections. "The week is going to remain lackluster on the data front as no major economic data releases are scheduled in both the US as well as Indian market. Hence, the focus of Indian investors will largely remain on the ongoing earnings season as well as stock specific developments. We expect election led volatility to continue in the Indian market and hence, advise investors to exercise caution and accumulate good quality stocks during this volatile phase," SBI Securities said. Also read | How wil...

Fed announces reduction in balance sheet runoff pace

Image
[hfe_template id='11223'] [ad_1] The Federal Reserve announced plans on Wednesday to slow the speed of its balance sheet drawdown, after having spent much of the earlier part of the year warning of this shift. The Fed said that starting on June 1 it was reducing the cap on Treasury securities it allows to mature and not be replaced to $25 billion from its current cap of up to $60 billion per month. The Fed left the cap on how many mortgage-backed securities it will allow to roll off its books at $35 billion per month, and it will reinvest any excess MBS principal payments into Treasuries. The move was announced at the end of its two-day Federal Open Market Committee meeting, at which the U.S. central bank left interest rates unchanged. The downshift in the pace of the runoff had been widely expected, although market participants weren't sure whether the tapering of the runoff process would happen at this week's FOMC gathering or the one scheduled for June. Fed ...

Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 44%

Image
[hfe_template id='11223'] [ad_1] Synopsis After a short rest in the month of March, bulls are back on the street. The good part is that market breadth in every segment of the market has been positive. If one looks at the quarterly results which have come till now, they are largely in line with estimates and expectations of the broad trend of the sector. But given the fact that the valuation wise are toward the higher end of the range, it would still be time to keep some check and balance and continue to apply some filters. For investors who are looking to increase their exposure to stocks 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...