victorybull

Tag: Financial Market

  • Rupee sinks to record low with stocks as Ukraine crisis boosts oil

    The Indian rupee tumbled to a record low along with stocks and bonds as a spike in oil prices spurred by the war in Ukraine threatened to inflate the nation’s oil-import bill and fan inflationary pressures.

    The rupee declined as much as 1% to 76.9625 per dollar, past its previous low of 76.9088. Benchmark government bond yields rose six basis poaints to 6.87%, while the S&P BSE SENSEX Index fell as much as 3.3% to 52,542.64, the lowest since July.

    Today’s move has turned the rupee into Asia’s worst performer this year as surging crude prices fueled worries about the country’s balance of payments. India imports nearly three-fourth of its oil, making it one of the most vulnerable in Asia to higher prices.

    India’s benchmark equity index dropped to its lowest level in more than seven months with most of the 30 stocks of the S&P BSE Sensex trading in the red.

    “Geopolitical risks will likely stay elevated, especially on the terms of trade shock and current-account deficit implications,” Barclays Plc. analysts including Ashish Agrawal wrote in a note. “The INR is more sensitive to supply side oil shocks,” he said, adding that the Reserve Bank of India “is likely to continue selling USD passively, but is unlikely to defend any particular level.”

    Foreign funds have taken out about $16 billion from India’s equity markets since September. The initial share sale of Life Insurance Corp., widely referred to as India’s Aramco moment, is also increasingly likely to be deferred given the volatile geopolitical conditions.

  • Rupee crashes 40 paise to 75.73 against US dollar in early trade

    The rupee tumbled 40 paise to 75.33 in early trade on Monday, tracking surge in crude prices amid escalating tensions between Russia and Ukraine.

    At the interbank forex market, the local currency opened sharply lower against the dollar. It was moving in a tight range of 75.78 and 75.70. In early deals, it was trading at 75.73, registering a fall of 40 paise over its previous close.

    In the previous session, the rupee had gained 27 paise to settle at 75.33 against the US dollar.

    The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.78 percent higher at 97.37.

    Global oil benchmark Brent crude futures surged 4.24 percent to USD 102.08 per barrel.

    Meanwhile, in a dramatic escalation of tensions in eastern Europe, Russian President Vladimir Putin ordered his nuclear forces to be on high alert in response to what he called “aggressive statements” by leading NATO powers over the Ukraine conflict.

    On the domestic equity market front, the 30-share Sensex was trading 709.15 points or 1.27 percent lower at 55,149.37, while the broader NSE Nifty fell 198.15 points or 1.19 percent to 16,460.25.

    Foreign institutional investors were net sellers in the capital market on Friday, as they offloaded shares worth Rs 4,470.70 crore, as per stock exchange data.

  • Airtel falls 3% as investors okay investment from Google, telco signs deal to up stake in Indus Towers

    Bharti Airtel’s share price shed 3 percent in early trade on February 28 after shareholders approved the issue of preferential shares to Google for its Rs 7,500 crore investment and the telecom company entered into an agreement with Vodafone Plc to buy equity interest in Indus Towers.

    Bharti Airtel will buy a 4.7 percent stake in Indus Towers from Vodafone Plc, the former said in an exchange filing on Friday.

    The transaction will be done on the condition that the amount paid shall be inducted as fresh equity in Vodafone Idea and simultaneously remitted to Indus Towers to clear Vodafone Idea’s outstanding dues.

    On Thursday, Vodafone Plc sold 2.4 percent stake in Indus Towers to Bharti Airtel as part of the 4.7 percent deal. Prior to the transaction, Vodafone Plc held 28 percent stake in the tower company while Bharti Airtel had 42 percent stake.

    “We believe this transaction allows Airtel to secure continued strong provision of services from Indus Towers, protects and enhances Airtel’s value in Indus Towers, enables it to receive rich dividends and paves the way for subsequent financial consolidation of Indus Towers in Airtel,” Bharti Airtel said.

    Also, on Saturday Bharti Airtel shareholders approved the issue of preferential shares to Google for its about Rs 7,500 crore investment in the company to buy 1.28 per cent stake.

    Internet giant Google had last month announced the proposed investment which includes equity investment as well as a corpus for potential commercial agreements, to be identified and agreed on mutually agreeable terms over the next five years.

  • Policybazaar falls 8%, hits new low; stock tanks 52% in three months

    Shares of PB Fintech, which operates online insurance broker Policybazaar and loan marketplace Paisabazaar, hit a new low at Rs 620.90, falling 8 per cent on the BSE in Thursday’s intra-day.

    In the past two weeks, the stock has slipped 28 per cent after Yashish Dahiya, executive director and CEO, and Alok Bansal, whole time director and CFO, of PB Fintech sold 6.09 million shares of the company via secondary market sale.

    On February 11, 2022, co-founder Alok Bansal divested 2.85 million shares of the company for Rs 236 crore through an open market transaction. According to the NSE bulk deal data, Bansal sold shares at an average price of Rs 825 apiece. However, buyer(s) of the shares could not be ascertained immediately.

    PB Fintech came out with its Rs 5,710-crore initial public offering (IPO) in November 2021. The company’s co-founders and other shareholders had reduced their stake in the public issue.

    In the past three months, the stock has underperformed the market by falling 52 per cent as compared to 5 per cent decline in the S&P BSE Sensex. It has corrected 58 per cent from its all-time high of Rs 1,470 hit on November 17, 2021. PB Fintech had made its stock market debut on November 15, 2021. The company issued shares at Rs 980 per share.

  • IT to Hire 50 Lakh in 5 Years, New Investment Opportunity for Middle Class: Rakesh Jhunjhunwala

    Ace investor Rakesh Jhunjhunwala said that the stock market has no king. Stock market is the only king. The ones who thought they were, landed up in Aurthur jail, Jhunjhunwala said while speaking at an event of the Confederation of Indian Industry (CII) on February 17.

    Nobody can predict weather, death, market and women, the ace investor further mentioned. “Market is like a woman, always commanding, mysterious, uncertain and volatile. You can never really dominate a woman and likewise you cannot dominate the market,” he said.

    Sharing the outlook for Indian economy, Big Bull said that India will grow at 10 per cent by 2025-26. The ace investor added that he made a presentation to Prime Minister Narendra Modi where he had said, “India ka time aayega nahi, aa gaya hain.”

    Optimistic Jhunjhunwala said that growing information technology (IT) industry will employ 50 lakh new employees in the next five years and the demand for the residential houses will only grow.

    The seasoned investor is very optimistic about real estate industry in the country. With the development of infrastructure comes urbanisation. Urbanisation plays an important role in housing and commercial real estate property, he mentioned.

    “You go to London, wherever the metro goes, housing has developed. So, Mumbai is making 40 kilometer of metro and it has been made — as the transport systems come, the potential for housing is going to go through the roof. Your cities are going to get decongested and urbanisation in India is today half of China-45 percent, as urbanisation comes, housing has to come,” Jhunjhunwala said.

    Consolidation in the real estate sector, all-time low interest rates on home loans, rising employment in the Indian information technology (IT) industry are some of the key triggers to boost real estate sector going forward, Rakesh Jhunjhunwala mentioned.

    India should focus on affordable housing. The regulatory framework has to evolve further to keep up with the pace of growing real estate market in India. “Digitisation of land records and certification of titles being done digitally and this will boost real estate market in India,” he said.

    Jhunjhunwala is also very bullish on commercial real estate. Logistics sector is at a nascent stage and very attractive, he said. “If India has to develop, real estate has to develop,” he said.

    The real estate investment trusts (REITs) has great scope, he mentioned adding that the units of three REITs that are listed on local stock exchanges being well received by the investing community. He would prefer REIT listing rather than listing real estate companies. Jhunjhunwala further said he is not a big fan of new developers getting listed. “If I was a developer, I would not list. It’s not a business suitable to listing. Blue Chip companies have high return on capital of 18-25 per cent, but unitl now realtors have only burnt capital,” Jhunjhunwala said.

  • ₹34 to ₹142: Small-cap multibagger stock gives 300% return in 2022

    Amid stock market investors are busy finding out possible multibagger stocks for 2022, a good number of small-cap stocks have entered the list of multibagger stocks and multibagger penny stocks in 2022. Shares of Variman Global Enterprises are one of them. This BSE listed IT solution company stock has surged from ₹34.35 (close price on 31st December 2021 on BSE) to ₹141.90 apiece levels today, logging around 300 per cent rise in 2022.

    In last one week, multibagger stock has risen from around ₹124 apiece levels to ₹141.90 levels, logging around 14.50 per cent raise in this period. The small-cap stock has hit upper circuit on 3 out of 5 sessions in this period. In last one month, the small-cap IT stock has risen from around ₹52 to ₹141.90 levels, appreciating around 175 per cent in this period. Similarly, in year-to-date time, the multibagger IT stock has delivered more than 300 per cent return to its shareholders.

    Impact on investment

    Taking cue from Variman Global Enterprises share price history, if an investor had invested ₹1 lakh in this multibagger IT stock one week ago, its ₹1 lakh would have turned to ₹1.14 lakh today. Likewise, if an investor had invested ₹1 lakh in this stock one month ago and had remained invested in this stock till date, its ₹1 lakh would have turned to ₹2.75 lakh today.

    Similarly, if an investor had invested ₹1 lakh in this stock at the end of 2021 buying one stock at around ₹34.50 apiece levels, its ₹1 lakh would have turned to ₹4 lakh today, provided the investor had remained invested in the scrip throughout this period.

    On Tuesday trade session, the multibagger stock climbed to its life-time high of ₹143.55 levels whereas its 52-week low is ₹11.65 apiece. Current market capital of the small-cap stock is ₹237 crore and its book value per share is 9.60. Its current trade volume is 88,457, which is much higher than its 20 days average volume of 62,432.

  • Multibagger stock turns ₹1 lakh to ₹1.35 crore in 10 years

    Stock market investors looking for multibagger stocks for 2022 are busy finding quality stocks that are available at discounted price after the recent bloodbath. For such investors of the secondary markets, Deepak Nitrite can be a good bet in long term, say experts. Stock market experts said that the stock has shed a lot and there can be sharp rebound in the counter from lower levels, once there is trend reversal in the markets. This chemical stock is one of the multibagger stocks in 2021 that have delivered stellar return to its shareholders in long term.

    For last six months, this multibagger stock has been under selloff heat. In last one month, Deepak Nitrite share price has come down from around ₹2660 to ₹2058 levels, sliding near 22 per cent in this time whereas in last 6 months, it has lost around 4 per cent. In year-to-date time, this chemical stock has plummeted from ₹2530 to ₹2058, losing near 19 per cent in 2022. Despite such huge selloff by shareholders, the stock has delivered 75 per cent return to its shareholders in last one year. In last 5 years, the multibagger stock has risen from ₹103.65 to ₹2058 apiece levels, logging near 1900 per cent in this period.

    Similarly, in last 10 years, this multibagger chemical stock has surged from ₹15.21 levels (close price on 17th February 2012 on NSE) to ₹2058 levels (close price on 14th February 2022 on NSE), appreciating around 135 times in this time span.

    Taking cue from Deepak Nitrite share price history, if an investor had invested ₹1 lakh in this chemical stock one month ago, its ₹1 lakh would have turned to ₹78,000 today whereas it would have turned to ₹96,000 in last 6 months. If an investor had invested ₹1 lakh in this stock one year ago, its ₹1 lakh would have turned to ₹1.75 lakh today. Likewise, if an investor had invested ₹1 lakh in this multibagger chemical stock 5 years ago and had remained invested in the counter till date, its ₹1 lakh would have turned to ₹20 lakh today.

  • Markets in a bear trap, investors lose Rs 10 lakh crore of wealth in 2 days

    Relentless selling pressure roiled the equity markets for the second consecutive session on February 14, leaving investors poorer by Rs 10 lakh crore.

    Fears of a possible invasion of Ukraine by Russia, inflating crude oil prices, and a correction in global markets spooked investors for the second day in a row.

    Equity benchmark indices fell 2 percent on Monday, in addition to the 1.3 percent drop in the previous session. The BSE Sensex plunged 1,255 points to 56,898, and the Nifty50 fell 382 points to 16,992 at 1:48pm.

    With this drop, the benchmark indices plunged into the negative territory in 2022, losing more than 2 percent against a 22 percent rally in the previous year.

    “The element of uncertainty is very high. If the Ukraine crisis aggravates into a conflict, it can inflict damage to the market in the short run. The consequences of severe sanctions on Russia in the event of a invasion can be debilitating for the Russian economy. This may restrain (Russian President Vladimir) Putin from a misadventure in Ukraine,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

    The broader markets also corrected in line with the frontline indices as the Nifty Midcap 100 index lost 2.3 percent and Smallcap 100 index declined 2.6 percent.

    Heavy selling was seen across sectors, barring information technology (IT) and pharma that fell only 0.25 percent and 0.73 percent. The Nifty Bank, Auto, Financial Services and Metal indices tanked 3 percent each. Fast Moving Consumer Goods and Realty were down more than 2 percent each.

    Investors have lost Rs 9.57 lakh crore of wealth in just two straight sessions. BSE market’s capitalisation dropped to Rs 258.24 lakh crore on Monday, against Rs 267.81 lakh crore at the close on February 10.

    The advance-decline ratio was largely in favour of the bears as four shares gained for every share falling on the BSE. More than 570 shares hit the lower circuit on Monday, against 258 shares hitting the upper circuit.

    Experts said sentiment may remain negative until the uncertainty over tensions between Russia and Ukraine eases.  “There is a short-term negative sentiment in the markets due to the Ukraine-Russia tensions, rising crude oil prices and expectations of aggressive rate hikes by the US Fed due to decades-high inflation,” said Mohit Nigam, Head of  PMS at Hem Securities.

    The current fall in the market is due to the Ukraine crisis and the market may stage a strong rebound after the crisis eases, he said.

    Market volatility is expected to stay high, so investors should not jump in for short-term gains, rather they should adopt a long-term horizon and add quality stocks during significant dips, he said.

    Markets across Asia were under pressure with Japan’s Nikkei falling more than 2 percent. China’s Shanghai Composite, Hong Kong’s Hang Seng and South Korea’s Kospi fell 1-1.6 percent each.

  • Sensex tanks 1200 pts, Nifty at about 17000, support at 16900-17000, TCS, Sun Pharma gain

    Benchmark indices BSE Sensex and NSE Nifty 50 opened lower on Monday amid weak global cues. The Sensex was down 1,197.86 points or 2.06% at 56955.06, and the Nifty was down 348.00 points or 2.00% at 17026.80. M&M, SBI, ITC, L&T and ICICI Bank were among major losers on the Nifty, while gainers were ONGC and TCS. All the sectoral indices are trading in the red with auto, bank ,FMCG, metal, power, realty and capital goods indices down 2-3 per cent. In the broader markets, the BSE MidCap and SmallCap indices were deep in red, down 2.7 per cent and 3.15 per cent, respectively.

  • MFs garner Rs 99,704 crore via NFOs in 2021 on sharp rally in stock market

    Mutual fund houses launched 140 new fund offerings (NFOs), which collected about Rs 1 lakh crore in 2021 on a sharp rally in the markets and an exceptional increase in the retail investors’ interest.

    However, the current volatility in the stock market might prompt asset management companies (AMCs) to limit the launch of NFOs this year, said MyWealthGrowth.com co-founder Harshad Chetanwala.

    Ankit Yadav, wealth manager (USA) and director of Market Maestro, also believes that NFOs are going to decrease in 2022 and little will come in 2023 when rates start changing.

    According to data compiled by Morningstar India, there were 140 new fund offers (including closed-end funds and ETFs) in 2021. These managed to garner a respectable Rs 99,704 crores during their inception stage.

    This was way higher than 81 NFOs floated in 2020 and cumulatively, these funds were able to garner Rs 53,703 crore.

    “Given the sharp rally in the markets along with the need to fill product gap created post-recategorisation and giving investors new themes to invest in, asset-management companies launched a plethora of new schemes across the year (2021),” Morningstar noted.

    Usually, NFOs come during a surging market when investor sentiments are high and optimistic. The stock market along with the positive investor sentiments kept surging post-March 2020. It is from this point in time the launch of NFOs started, Chetanwala said.

    The NFOs were floated to capitalise on the mood of investors and attract their investment as they were willing to invest at that time, he added.

    “The main fact as a wealth manager I see in low rate scenario is that the borrowing becomes easy with easy money fluctuating around businesses tend to bring their IPOs and AMC (assets management company) businesses are inclined NFOs,” Market Maestro’s Ankit Yadav said.

    In 2020, the central banks throughout the globes cut the rates and made rates hit all-time lows in the 100-year history. Rates remain unchanged in 2021. That’s why to utilise low rates, AMC businesses bring NFOs, he added.

    The maximum number of funds (25) were launched in the index fund segment, which amassed Rs 4,082 crore, followed by other ETFs (24), which collected Rs 7,482 crore and fixed-term plans (23), which mobilised Rs 5,057 crore.

    In addition, investors were attracted to international funds and sectoral or thematic funds. The AMCs launched 12 sectoral or thematic funds, which raised Rs 13,237 crore and floated 12 overseas funds of funds, which mopped up Rs 6,351 crore.

    Experts believe that the dominance of index funds and ETFs (exchange-traded funds) within NFOs is not surprising, owing to a couple of factors.

    Existing AMCs have no restrictions in the number of passive products they can manufacture, whereas there are limits on other types of funds, Vasanth Kamath, founder and CEO at Smallcase, said.

    “Also, as investors (across retail, HNIs, institutional) are broadening and diversifying their portfolios, they’re preferring to take an index approach to new exposures and asset types, making it both efficient and simple versus having to build their own frameworks and strategies on these universes,” he said.

    In addition, the staggering growth of new demat accounts requires fund houses to offer a larger, diverse line-up of ETFs that were missing in the exchange-traded form factor, he added.

    Another factor for higher NFOs in the index category could be strong performance as the index delivered over 20 per cent last year.

    Further, the penetration of Indian investors towards index or ETF is low. So, AMCs try to capture their market share, Market Maestro’s Yadav said.