Strong growth, MF inflows help India avoid big falls
Indian stock markets have shown resilience amid global selloffs, thanks to robust domestic investment and strong economic indicators. Recent declines in global indices saw the Nifty drop less sharply, reflecting the impact of significant domestic inflows. Analysts credit strong corporate earnings and economic growth for this stability, contrasting with heavier losses in other Asian markets.
RBI acts to make the rupee lose its mojo, but gain export competitiveness
The rupee’s recent decline against the US dollar might be due to strategic moves by the Reserve Bank of India to boost export competitiveness. The RBI is believed to have intervened to address the rupee’s overvaluation, reflected in a high REER. The interventions appear to have reduced the REER, making Indian exports more competitive.
Auto sector weightage in FPIs’ portfolio at a new high in July
Foreign investors have ramped up their investments in the Indian auto sector, buoyed by strong earnings and improved cost management. In July, the sector’s weightage in FPI portfolios reached a peak of 8.10%. Projections estimate an earnings growth of 15-18% this fiscal year, enhancing the sector’s appeal amidst higher overall market valuations.
Political turmoil unlikely to impact Indian FMCG companies
Indian consumer goods companies have operated in Bangladesh, Sri Lanka, and Nepal for years, generally facing little impact from local instability. Marico’s stock dipped nearly 6% due to its substantial earnings from Bangladesh, where its subsidiary accounts for a significant portion of its overseas revenue. Other FMCG companies saw lesser impacts.
Q1 results today: Godrej Consumer among 158 companies to announce earnings on Wednesday
As the first quarter earnings season progressed, 158 companies, such as Pidilite, Godrej Consumer, NHPC, BSE, and ABFRL, announced their results. Godrej Consumer was projected to show a 46% increase in net profit but a slight dip in revenue. Kotak Securities highlighted growth in domestic volume and various categories.
Stocks in news: Pidilite, Godrej Consumer, PB Fintech, Gland Pharma, Tata Power
Tuesday saw Indian markets close marginally lower amid volatility and mixed signals. Companies like Pidilite, Godrej Consumer, and NHPC announced their first-quarter results. Noteworthy financial updates were reported by PB Fintech, Tata Power, and others. In a significant move, Challa Sreenivasulu Setty was appointed as the chairman of SBI.
Asian stocks resume drop in rollercoaster trade: Markets wrap
Asian markets saw continued declines despite a temporary recovery driven by dip-buying. US futures dropped, while Japan’s Nikkei and Topix fell sharply, entering bear market territory. The yen weakened, impacting Japanese stocks. Treasury yields remained stable, and oil prices fell on reports of increased US inventories.