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Foreign liquidity drying up in small and mid cap stocks segment

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New Delhi, March 22 (IANS) Foreign liquidity is drying up in small and mid cap space which can slow down the price momentum, brokerage firm Elara Securities said.

“Need to closely monitor how the domestic liquidity shapes up from here,” the brokerage said.

In CY23, India saw strong liquidity from both foreign and domestic investors. This created a frenzy in Small and Midcap space.

“We are finally witnessing initial signs of slowdown in India flows. Total inflows into India dedicated funds of $144mn (Large + Mid+ Small) are slowest since May’23. This is largely on back of big outflow of $256mn from Luxemburg domiciled funds while inflows from US and Japan domiciled funds also dropped by 55 per cent-65 per cent from average levels,” it said.

India dedicated Long-only funds saw their first redemption of $184mn in 1-year. India midcap funds had started taking slower outflows since Jan’24 but pace has finally started expanding. Only place where India flows remain relatively strong was in ETFs, the report said.

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In the past, India dedicated Midcap funds had seen strong inflows in 2014-2015 and 2017-2018 period.

In the 2016 redemption cycle, Midcap stocks did not suffer as Domestic flows were very strong post demonetisation. In 2018-2020 redemption cycle, Midcap stocks took a big beating as domestic liquidity also dried-up.

–IANS

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Largest container ship ever to arrive in India docks at Adani's Mundra Port

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Ahmedabad, May 26 (IANS) Mundra Port, the flagship of Adani Ports and Special Economic Zone Ltd (APSEZ), has created yet another record by welcoming the largest container ship ever to call at an Indian port, the company announced on Sunday.

The docked vessel, MSC Anna, has a length of 399.98 metres — roughly the length of four football fields — and is among the largest container ships, with the capacity to carry 19,200 TEUs (twenty-foot equivalent units).

“The arrival of MSC Anna at Mundra not only highlights the port’s capacity to handle mega ships but also reflects its pivotal role in enhancing India’s maritime trade capabilities,” the company said in a statement.

Its arrival draft is 16.3 metres, which can be accommodated only at Adani Ports, Mundra, as no other port in India is capable of berthing a deep-draft vessel.

During its stay, the expected exchange is 12,500 TEUs, underscoring Mundra Port’s capability to manage large-scale cargo efficiently, the company said.

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In July 2023, Adani Ports, Mundra created a record by berthing MV MSC Hamburg, one of the longest container ships in the world, with an overall length of 399 metres and a capacity of 16,652TEUs.

Adani Ports, Mundra’s record-breaking feats continued into the latter half of 2023. In October, it became the first in India to handle 16 MMT cargo in a single month.

“As APSEZ continues to expand and upgrade its facilities, the port is set to play an increasingly significant role in the global shipping and logistics landscape,” the company said.

–IANS

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BharatPe, PhonePe settle trademark dispute on using 'Pe' suffix

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Bengaluru, May 26 (IANS) The BharatPe Group and PhonePe Group on Sunday announced that they have amicably settled all long-standing legal disputes pertaining to the use of the trademark with the suffix “Pe”.

This comes after a long-drawn legal dispute across multiple courts, since the last 5 years.

“The settlement will put an end to all open judicial proceedings,” the announcement said, adding that the companies have withdrawn all oppositions against each other in the trademark registry.

Rajnish Kumar, Chairman of the Board, BharatPe called the move “a positive development for the industry”, while appreciating “the maturity and professionalism shown by the Management of both sides”.

He added that this will help the companies to move “ahead to focus their energy and resources in building robust digital payment ecosystems”.

Both organisations will also undertake to carry out other necessary steps to comply with the obligations under the settlement agreement in respect of all cases before the Delhi and Bombay High Courts.

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Sameer Nigam, Founder and CEO, PhonePe, expressed happiness over the “amicable resolution”.

He noted that the outcome will help both companies “focus collective energy on growing the Indian fintech industry as a whole”.

–IANS

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With last phase of voting left, market volatility would increase

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New Delhi, May 26 (IANS) Markets were on a roll, and they had plenty of action and drama as well in the week gone by. The previously announced holiday on Thursday, on account of Buddha Purnima, was cancelled by the exchanges on Monday, considering the fact that two holidays in a week would break the momentum.

As events turned out, Thursday was the key pivot for the markets as they gained a massive 1,197 points on BSESENSEX and 370 points on NIFTY on Thursday. In the process, they made new lifetime highs as well. The RBI declaring a dividend of Rs 2.1 lakh crore for the financial year ended March 2024 was a great help as well, as it ensured that the fiscal deficit the government is targeting is well under control.

At the end of the four-day week, BSESENSEX gained two and lost two sessions, while NIFTY gained three and lost one. BSESENSEX gained 1,404.45 points or 1.90 per cent to close at 75,410.39 points, while NIFTY gained 455.10 points or 2.02 per cent to close at 22,957.10 points.

The broader markets saw BSE100, BSE200 and BSE500 gain 1.87 per cent, 1.87 per cent and 1.65 per cent respectively. BSEMIDCAP gained 1.10 per cent, while BSESMALLCAP was up 0.08 per cent. The new intraday highs made on Friday were 75,499.91 points and 23,026.40 points.

The Indian Rupee had a strong showing during the week and gained 24 paise or 0.29 per cent to close at Rs 83.10 to the US Dollar. Dow Jones saw selling pressure and lost in three of the five trading sessions. It was down 934 points or 2.33 per cent to close at 39,069.59 points.

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The week gone by saw one new mainboard listing-shares of Go Digit General Insurance Limited, which were issued at Rs 272 listed on Thursday, May 23. The opening price was Rs 281.10 on BSE. Shares closed day one at Rs 305.75, a gain of Rs 33.75 or 12.40 per cent. On Friday, the share lost some ground and closed at Rs 300.15, a reduced gain since the listing of Rs 28.15 or 10.35 per cent.

The issue from Awfis Space Solutions Limited is currently on. The issue consists of a fresh issue of Rs 128 crore and an offer for sale of 1,22,95,699 equity shares in a price band of Rs 364-383. The company, as the name suggests, is in the business of providing common workspaces on a daily or longer-term contracted basis.

Currently, the company is on a net loss, based on its restated accounts, which are showing a declining trend. Looking at the leverage opportunity that the company has and the fact that 75 per cent of the space is rented out, it could be expected that the company should report positive numbers for the year ended March 25.

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The issue opened on Wednesday, May 22, and would close on Monday, May 27. At the end of the second day of the issue opening, it received decent support, with the issue being subscribed an overall 11.4 times.

The QIB portion was subscribed 3.39 times, the HNI portion 20.98 times and the Retail portion 21.08 times. Investors looking for listing pop and having a medium-term holding period would be rewarded if their application for the share is successful.

The week ahead sees May futures expire on Thursday, May 30. The current value of NIFTY at 22,957.10 points is higher by 386.75 points or 1.71 per cent compared to the May series opening of 22,570.35 points. It would be interesting to note that all the gains have been made in the previous week, as prior to this, the series was negative. While currently the momentum is with the bulls, one needs to be cautious as to the way markets may move on election results eve.

The sixth phase of voting has concluded, and now just the seventh and final phase of voting on Saturday, June 1, remains. With the sharp rally over the last two weeks since markets made a bottom on Monday, May 13, they have rallied quite sharply. They have also made new lifetime highs. Very clearly, the markets are convinced that the ruling BJP-led NDA would form the next government. Exit poll assessment would begin Saturday evening and carry on till results are announced on Tuesday morning.

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With expiry happening during the coming week, volatility on expiry day could get substantially elevated as people decide to lighten positions and adopt a wait-and-watch attitude. FPIs have been big sellers in the month of May and, barring a couple of days, sold every day. This excess of liquidity, while it was absorbed by domestic institutions, could see a mismatch on expiry day.

Coming to the week ahead, expect sharp volatility as expiry day approaches. The election results getting closer could cause volatility to rise post-futures expiry as positions would, in all probability, get liquidated to a large extent. With limited positions open in the market from Monday to Wednesday in the week, June 3 to June 6 could see really sharp volatility. The strategy for the week ahead would be to reduce positions as the week progresses.

Refrain from any overweight positions in either direction, as sharp volatility is expected. Analyse exit polls for all they are worth, look at the results and then take a call.

Trade cautiously.

(Arun Kejriwal is the founder of Kejriwal Research and Investment Services. The views expressed are personal)

–IANS

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Musk's X has paid over $50 million in ad sharing to 150K creators: CEO

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New Delhi, May 26 (IANS) Elon Musk-run X has paid more than $50 million in ad sharing to creators on its “video-first” platform, its CEO Linda Yaccarino has announced.

When Twitter was acquired by Musk in October 2022, it was basically a 140-character messaging app.

“Now, less than 18 months later, it is a ‘video-first’ platform, and part of what’s driving that success is inviting creators onto our platform,” said Yaccarino.

At the time of its $44 billion acquisition, there were about 3,500 creators on the platform.

“Now, our video capabilities have become so sophisticated that we’ve probably got over 150,000 creators on the platform and paid out over $50 million in ad-sharing relationships with those creators,” she informed.

The X platform is inviting more and more creators to give its 600 million monthly active users (MAUs) “the ultimate experience”.

Last month, Yaccarino announced that X would soon launch a dedicated TV app for users to upload high-quality videos, similar to Google-owned YouTube.

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This will be your “go-to companion for a high-quality, immersive entertainment experience on a larger screen,” she posted.

X users would see trending video algorithms, artificial intelligence (AI)-powered topics and cross-device experience, among other features.

The tech billionaire is making X “an everything app”.

According to him, X has 600 million monthly active users and about half of which use the platform every day.

–IANS

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FII buying, Q4 results key factors for stock market next week

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Mumbai, May 26 (IANS) Indian equity markets closed at an all-time high last week. The Nifty and Sensex hit new peaks on Friday, with the Nifty surpassing the 23,000 mark for the first time. Similarly, the Sensex shot up by 1,400 points to a fresh record high of 75,636.50.

Last week, Nifty Bank surged 2 per cent following the announcement by the Reserve Bank of India (RBI) of giving a dividend of Rs 2.11 lakh crore to the government.

This improved market sentiment significantly. The substantial dividend is expected to help the government reduce its fiscal deficit and boost capital expenditure.

The outlook for the market next week will be guided by major domestic and global economic data, according to experts.

On the global front, rising US bond yields and commodity prices (crude oil, gold, and silver) are the other factors that will be closely monitored, as they have the potential to influence market sentiment.

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Furthermore, upcoming economic data releases from Japan and the US, along with movements in the global currency market, will also be important factors to consider.

On the domestic front, many companies, including some big names like Divislabs, Tata Steel and Apollo hospital will release their financial results next week.

Positive earnings reports from the final quarter could provide strength for the market to continue its bullish momentum.

According to market experts, we are very close to the Lok Sabha election results and the verdict will give a boost to FII flows.

Mehul Kothari, DVP – Technical Research, Anand Rathi Shares and Stock Brokers, said: “Nifty hit the milestone of 23,000 during Friday’s session and ended the week with gains of over 2 per cent. It seems that the market is discounting the BJP government winning the elections with a decent majority.”

As of now, the index is approaching the higher end of the rising channel placed near 23,100-23,200. Thus, from here on, “we will maintain a profit-booking stance in the market,” said Kothari.

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“On the downside, 22,800-22,600 seems to be extremely strong support for the coming week,” he added.

–IANS

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