Tag: stock market

Nifty scales Summit 20,000: 10 best bets for double-digit returns as bulls keep up the rally

The next targets for the Nifty50 to watch out for would be 20,500-21,000 in the short term, considering the strong momentum sustained through the last seven sessions with participation from bank and IT stocks

The Nifty50 finally scaled the much-awaited psychological level of 20,000 points on September 11 with most of the sectors joining the rally after the G20 Summit boosted the confidence of market participants.

The next target for the index to watch out for would be 20,500-21,000 level in the short term, considering the strong momentum sustained through the last seven sessions with participation by banks and IT stocks, while support is expected to be at the 19,900-19,800 levels, experts said.

The Nifty50 jumped 176 points to 19,996 on Monday, taking the total seven-day gains to 3.85 percent, while the broader markets remained on the buyers’ radar as the Nifty Midcap 100 and Smallcap 100 indices rallied over a percent each on Monday.

“The Nifty has now reached to the uncharted territory. The band of 19,800-19,900 now becomes the strong support for the Nifty in the short term,” Vinay Rajani, CMT, senior technical and derivative analyst at HDFC Securities.

As far as the upside target is concerned, he feels the index is now headed for the level of 20,924, which happens to be the 100 percent Fibonacci extension resistance of the entire swing seen from June 2022 (15,183) bottom to December 2022 (18,887) top, and from December 2022 (18,887) top to March 2023 bottom (16,828).

Breadth of the market is very strong as more than 91 percent of the stocks are trading above their 200 DMA in the NSE500 index. This reading is obviously overbought, he said.

Rahul Sharma, Director, Head- Technical & Derivative Research at JM Financial Services said the good thing was that the new leadership was coming from IT, capital goods and PSEs. BFSI, which remained pressured for some time, is also back in the positive territory.

The Nifty50, therefore, seems to be on track to hit 20,432 this month and 21,000 by Diwali.

Let’s take a look at the top 10 trading ideas by experts for the next three-four weeks. Returns are based on the September 11 closing prices:

Source: https://www.moneycontrol.com/news/business/markets/nifty-scales-summit-20000-10-best-bets-for-double-digit-returns-as-bulls-keep-up-the-rally-11350851.html

Morning Buzz: Nifty hits all-time high of 20,000, Byju’s to sell Epic, Great Learning to pay loan

Nifty hits all-time high of 20,000
The Nifty hit an all-time high of 20,000 taking 51 trading sessions to get there after breaching the 19,000 mark on June 28. The move was on account of both local and FPI flows. FPI flows have been constrained in their China investments on account of the dire outlook for its economy. A portion of those flows have come to India. Year to date FPIs have invested $15.9 billion.
(Economic Times, Mint, Business Standard, BusinessLine)

Kotak pulls mid- and small-cap recommendations
Kotak Institutional Equites has dropped recommendations on midcaps that it covers as it cannot see too many opportunities for upside beyond the BFSI space. The brokerage has removed its favourite stocks in capital goods, healthcare, QSR and real estate sectors as it says it would be incorrect to recommend stocks with low conviction and potential downside to their fair values.
(BusinessLine)

Source: https://www.forbesindia.com/article/news/morning-buzz-nifty-hits-alltime-high-of-20000-byjus-to-sell-epic-great-learning-to-pay-loan/88163/1

PhonePe enters stock trading segment with Share.Market app: All you need to know

The app is PhonePe’s ‘biggest launch of the year,’ according to CEO and co-founder Sameer Nigam.

A QR code for the PhonePe digital payment system at a store in Mumbai. (Bloomberg)

Digital payments platform PhonePe on Wednesday announced its foray into the stock broking segment, doing so by launching an online service called ‘Share.Market.’

Sameer Nigam, CEO and co-founder, PhonePe, described the app as the company’s ‘biggest launch of the year.’

“Earlier this year, we had introduced innovative solutions such as PinCode, but this new offering is our biggest launch of the year,” Nigam said, according to CNBCTV18.

Meanwhile Ujjawal Jain, appointed as the CEO of Share.Market, said, “The service will bring newer demographics into broking, helping people to get started on their investing journey with off-the-shelf quant research-led offerings, including WealthBaskets.”

Share.Market app: All you need to know
(1.) According to CNBCTV18, which cited information from PhonePe, the app will have a one-time onboarding price of ₹199; this includes benefits that users can avail till March 31, 2024.

(2.) Available both as a mobile app and a dedicated web portal, the facility will aid retail investors in buying stocks, doing intraday trading, and purchasing curated WealthBaskets and mutual funds.

Source: https://www.hindustantimes.com/business/phonepe-enters-stock-trading-segment-with-share-market-app-all-you-need-to-know-101693393490477.html

Warren Buffett says Berkshire is cautious on banking sector

A crisis of confidence in the U.S. banking sector has led to the failure of three midsized banks since March as depositors fled from smaller banks, with calls for the Federal Deposit Insurance Corp (FDIC) to raise its $250,000 limit guarantee on deposits.

Warren Buffett says Berkshire is cautious on banking sector

Warren Buffett on Saturday said Berkshire Hathaway (BRKa.N) is cautious around the banking sector, largely because of poor messaging by officials around government-insured deposits, as well as distorted incentives he said were brought on by banking regulation.

A crisis of confidence in the U.S. banking sector has led to the failure of three midsized banks since March as depositors fled from smaller banks, with calls for the Federal Deposit Insurance Corp (FDIC) to raise its $250,000 limit guarantee on deposits.

The messaging by politicians, government agencies and the media around the safety of the banking system has been poor, the nonagenarian billionaire said at Berkshire’s annual meeting in Omaha, Nebraska.

“The U.S. government and the American public have no interest in having a bank fail and having deposits actually lost by people,” he said.

“We had a demonstration project the weekend of Silicon Valley Bank and the public is still confused.”

In March, startup-focused lender SVB Financial Group (SIVB.O) became the largest bank to fail since the 2008 financial crisis after depositors tried to pull more than $42 billion in a single day, kicking off the deposit flight across other regional banks and prompting the collapse of Signature Bank.

While 89% of SVB’s $175 billion in deposits were uninsured as of the end of 2022, according to the FDIC, depositors were protected, even those whose accounts exceeded $250,000, through a “systemic risk exception” designed to prevent broader contagion to the U.S. banking system.

Berkshire keeps around $128 billion in cash and Treasury bills, Buffett said.

“We want to be there if the banking system temporarily even gets stalled in some way – it shouldn’t – I don’t think it will, but I think it could,” he said.

Part of the reason for that is that incentives in banking regulation are “so messed up,” he said.

First Republic Bank, the latest regional U.S. bank to fail, disclosed that it was offering non-guaranteed jumbo-sized mortgages at fixed rates in its annual report.

“That’s what First Republic was doing and it was in plain sight and the world ignored it until it blew up,” said Buffett, who earlier noted his own father lost his job in 1931 because of a bank run.

“The incentives in bank regulation are so messed up and so many people have an interest in having them messed up — it’s totally crazy,” Buffett said. “So we are very cautious in a situation like that about ownership.”

Buffett made the comments while sitting behind a sign that said “Available for sale,” while his longtime business partner, Charlie Munger, sat behind a “Held-to-maturity” sign, referencing how banks account for their securities, which has been at the heart of the regional bank crisis.

First Republic, which was seized by regulators and sold to JPMorgan N>, had significant losses in its held-to-maturity investment portfolio, mainly government-backed debt.

Source: https://www.moneycontrol.com/news/world/warren-buffett-says-berkshire-is-cautious-on-banking-sector-10540311.html

Sharad Pawar Backs Gautam Adani, Says Hindenburg Report ‘Seems Targeted’

Nationalist Congress Party (NCP) chief Sharad Pawar on Friday came in support of industrialist Gautam Adani on the Adani-Hindenburg row. The Opposition, especially the Congress is targeting Prime Minister Narendra Modi and Adani over the Hindenburg’s report.

NCP Chief Sharad Pawar (File Image)
Photo : PTI

New Delhi: Nationalist Congress Party (NCP) chief Sharad Pawar on Friday came in support of industrialist Gautam Adani on the Adani-Hindenburg row. Notably, Pawar’s views are contrary to the Opposition’s take on the issue. The Opposition, especially the Congress is targeting Prime Minister Narendra Modi and Adani over the Hindenburg’s report.
In an interview with NDTV, the NCP president said that undue importance was given to the issue. “Such statements were given by other individuals too earlier and there was a ruckus in parliament for a few days but this time out of proportion importance was given to the issue. The issues that were kept, who kept them, we had never heard of these people who gave the statement, what is the background,” Pawar told NDTV.

Taking a dig at other opposition parties, Pawar said that the ruckus caused over issue was “targeted”. The NCP chief told the media house, “When they raise issues that cause a ruckus across the country, the cost is borne by the country’s economy, we cannot disregard these things. It seems this was targeted.”

“An individual industrial group of the country was targeted, that is what it seems. If they have done anything wrong, there should be an inquiry,” Pawar added. When asked about the Congress demanding a Joint Parliamentary Committee (JPC) over the issue, the NCP president said that he had a different view from his Maharashtra ally.

Wait For Exchanges To Update Data At Quarter-End, Says Adani CFO On Promoter Pledge

Adani Group CFO Jugeshinder Robbie Singh on Tuesday said stock exchanges update data on promoter share pledges at the end of the quarter, as he tried to clarify on present data not matching with the conglomerate’s statement of repaying all the $2.15 billion of share-backed debt.

Singh termed reports suggesting that the company’s March 7 and 12 announcements did not match with the information available on stock exchanges as “deliberate misrepresentation”.

“…they know that relevant exchanges will update end of quarter,” he said in a Twitter post. “The deliberate subterfuge will be clear to all once exchanges update the data post end of quarter.”

On March 12, the conglomerate stated that it had repaid $2.15 billion of loans that were taken by pledging promoter shares.

“In continuation of promoters’ commitment to repay the promoter leverage, Adani has completed full prepayment of margin-linked share backed financing aggregating to $2.15 billion, well before the committed timeline of March 31, 2023,” it had said.

Reports, however, suggested that regulatory filings with stock exchanges showed promoter shares in group companies Adani Ports and SEZ Ltd., Adani Transmission Ltd., Adani Green Energy Ltd. and Adani Enterprises Ltd. showed continuing pledge of shares with lenders.

This, Singh said, was “deliberate misrepresentation (and if I speculate outright lies)”.

The current quarter will end on March 31 and exchanges will update data thereafter.

He said the group’s “public disclosure on the payments” could have been “easily verified that all margin loans of the promoters have been paid in full”.

The group had on March 7 stated that it had prepaid Rs 7,374 crore (about $902 million) loans that were taken pledging shares in four group companies. On March 12, it said the aggregate repaid loans now stood at $2.15 billion.

“In addition, promoters have also prepaid a $500 million facility taken for Ambuja acquisition financing,” it said.

Founder Chairman Gautam Adani on March 2 sold shares worth $1.87 billion in flagship incubating firm Adani Enterprises Ltd., port company Adani Ports and Special Economic Zone Ltd., electricity transmitting firm Adani Transmission Ltd. and renewable energy firm Adani Green Energy Ltd. to GQG Partners in an attempt to turn the narrative building since U.S. short-seller Hindenburg Research released a damning report on Jan. 24.

Source: https://www.bqprime.com/business/wait-for-exchanges-to-update-data-at-quarter-end-says-adani-cfo-on-promoter-pledge

Stock Market Today: All You Need To Know Going Into Trade On March 10

Asian markets traded lower following the sharpest decline in the U.S. equities in two weeks after a rout in bank shares picked up steam.

The S&P 500 on Thursday fell to the lowest since Jan. 19, with financial companies in the index plunging. Banks came under fire after the collapse of Silvergate Capital Corp. amid growing scrutiny in Washington.

Silicon Valley-based lender SVB Financial Group lost 60% after taking steps to shore up its capital position, stoking concern that soaring interest rates are eroding balance sheets.

Meanwhile, the yield on 10-year Treasuries advanced to 3.88%. Crude prices were trading around $81-mark, while Bitcoin was trading around 20,000-level.

At 6:27 a.m., the Singapore-traded SGX Nifty, an early indicator of India’s benchmark Nifty 50, was down 0.51% at 17,529.

Both Indian benchmark indices—Sensex and Nifty—declined almost 1%, registering their worst fall in more than two weeks amid fears of faster rate hikes.

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