Rising costs, muted demand to weigh on FMCG margins in Q1
FMCG companies anticipate a slight sales volume increase for the June quarter, with revenue growth varying due to pricing strategies and demand. While some firms may face margin pressure from rising material costs and advertising, Marico and Tata Consumer Products are favored by analysts. The Nifty FMCG index has recently outperformed broader market indices.
Insurtech funding set to top $1 billion in 12 months
Insurtech funding in India is poised to surpass $1 billion in the next year, following a period of moderated investment. A recent report highlights a decline in insurance penetration below 4%, driven by reduced life insurance uptake, signaling a significant protection gap. Regulatory initiatives like NHCX and Bima Sugam are expected to foster digital innovation […]
Asian stocks edge up after US gains, dollar dips
Asian stocks saw a slight increase following positive US economic data, boosting global market confidence. Tech stocks were particularly strong, fueled by a positive outlook from Taiwan Semiconductor and strong earnings from Netflix. The yen stabilized amid cooling inflation data, while the dollar weakened after comments suggesting potential interest rate cuts.
Sebi to look into ways to improve F&O market: Official
Securities and Exchange Board of India is concerned about high volumes in short-term derivatives. A Sebi official spoke about this in Kolkata. The regulator may introduce new steps for the F&O market. Short-term derivatives might hinder capital formation. Expiry day option trading can increase market volatility. Sebi research reveals that most individual traders lost money […]
Citi downgrades India to ‘neutral’ as valuations remain elevated
Citi has downgraded India’s market rating to ‘neutral’ due to high valuations and moderating earnings growth forecasts. While acknowledging India’s strong macro story and potential US trade deal, the brokerage finds its earnings outlook less compelling compared to its expensive valuation. Citi favors banks, NBFCs, healthcare, and telecoms, while remaining underweight on IT, metals, and […]
Rich valuations could be a drag on Tech Mahindra stock: Analysts
Tech Mahindra shares saw a decline of 2.7% after first-quarter results missed expectations. This made it the biggest loser on the Nifty. Other IT stocks also experienced a downturn. LTI Mindtree, Persistent Systems, and Infosys were among the major decliners. Analysts have mixed opinions on Tech Mahindra’s future. Some cite high valuations as a concern.
Is ELSS losing its appeal in the new tax regime?
Equity-linked savings schemes (ELSS) are losing traction as investors shift to the new tax regime, diminishing the demand for this tax-saving option. Fresh investments are drying up, and investors are withdrawing funds after the mandatory three-year lock-in period. ELSS has experienced net outflows, contrasting sharply with the growth in other equity scheme categories.
Trump wants lower rates, but firing the Fed chair may push them higher
President Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, even considering his dismissal due to disagreements over interest rate policy. Economists warn that firing Powell could backfire, potentially raising long-term borrowing costs despite Trump’s aim to lower them.
Flat income, heavy loan buffers bring down Axis Bank net profit in Q1
Axis Bank’s June quarter net profit declined by 4% to ₹5,806 crore, falling short of estimates due to increased provisions and sluggish business income. Net interest income remained flat, and net interest margin contracted. Asset quality deteriorated, with a rise in gross non-performing assets and slippages, partly attributed to changes in technical recognition criteria.
India VIX falls to 15-month low on no sharp market swings
India VIX, the market’s fear gauge, has hit a 15-month low due to decreased market swings, mirroring a decline in US volatility and reduced options trading volumes. Despite the Nifty 50’s narrow trading range and subdued volatility, experts caution that this calm may precede sharp market movements.