Search

Just another WordPress site

Stock market most profitable

US stock market: S&P 500 ekes out slim gain as investors weigh elevated yields

by economictimes.indiatimes.com Leave a Comment

Synopsis

A possible shutdown has added to worries for stock investors as they grapple with benchmark Treasury yields that have climbed to 16-year highs after the Federal Reserve last week signaled a hawkish long-term path for interest rates.

The S&P 500 eked out a fractional gain on Wednesday after a see-saw session, as investors weighed whether to start bargain hunting following a sell-off fueled by elevated Treasury yields and uncertainty about the path ahead for interest rates .

Investors were also attuned to developments in Washington as divisions among U.S. lawmakers put the federal government at risk of a partial shutdown by the weekend.

A possible shutdown has added to worries for stock investors as they grapple with benchmark Treasury yields that have climbed to 16-year highs after the Federal Reserve last week signaled a hawkish long-term path for interest rates.

At the same time, as the S&P 500 has sharply pared its year-to-date gain, some investors are wondering if the market is close to a bottom.

“At some point people will start to buy stocks for the fourth quarter, and the third-quarter selling might be almost done,” said Peter Tuz, president of Chase Investment Counsel.

“At a certain level, people are going to get back in thinking the fourth quarter might be a pretty good one.”

The Dow Jones Industrial Average fell 68.61 points, or 0.2%, to 33,550.27, the S&P 500 gained 0.98 points, or 0.02%, at 4,274.51 and the Nasdaq Composite rose 29.24 points, or 0.22%, to 13,092.85.

During the session, the S&P 500 rose as much as 0.4% and fell as much as 0.8% before paring losses.

Among S&P 500 sectors, the rate-sensitive utilities group fell most, dropping 1.9%. Energy rose 2.5%, as Brent crude breached $97 a barrel, with the jump in oil prices posing a renewed threat to inflation that has been moderating.

The S&P 500 has fallen about 7% since late July, but remains up over 11% for 2023.

“Investors are looking for a turning point,” said Art Hogan, chief market strategist at B. Riley Wealth. “Clearly, it is not going to take much of a breath of fresh air in this market for people to chase this.”

In Washington, Republican U.S. House Speaker Kevin McCarthy rejected a stopgap funding bill advancing in the Senate, bringing the government closer to its fourth partial shutdown in a decade.

Data on Wednesday showed orders for long-lasting U.S. manufactured goods rose in August while business spending on equipment appeared to regain momentum after faltering early in the third quarter.

Investors are focusing on Friday’s monthly personal consumption expenditures price index for a fresh view of inflation. This week also brings second-quarter Gross Domestic Product and remarks from Federal Reserve Chair Jerome Powell.

In company news, Costco Wholesale shares rose 1.9% after the retailer topped market estimates for quarterly revenue and profit.

Declining issues were roughly split with advancers on the NYSE. There were 56 new highs and 440 new lows on the NYSE.

On the Nasdaq, advancing issues outnumbered decliners by a 1.1-to-1 ratio. The Nasdaq recorded 35 new highs and 333 new lows.

About 10.9 billion shares changed hands in U.S. exchanges, compared with the 10.2 billion daily average over the last 20 sessions.

Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here!

Print Edition
Print Edition Print Edition Thursday, 28 Sep, 2023

Experience Your Economic Times Newspaper, The Digital Way!

    Now, Tesla Rival VinFast Looks to Make in India Now, Tesla Rival VinFast Looks to Make in India

    Vietnamese electric vehicle maker VinFast Auto – a deemed Tesla rival that emerged as the world’s third most valuable carmaker last month – is mulling setting up a manufacturing unit in India, multiple people aware of the development told ET.

    Festive Wave may Lift IIP Growth in Coming Mths Festive Wave may Lift IIP Growth in Coming Mths

    India’s industrial economy is expected to receive a festive bump, growing around 6% year-on-year in the next couple of months with improvement in monsoon rains, softening inflation, and election-related rise in spending adding to the festive sentiment.

    Desi Snack Packs are a $1b Bite for Haldiram’s Desi Snack Packs are a $1b Bite for Haldiram’s

    ​Traditional sweets and snacks brand Haldiram’s earned over a billion dollars from packaged snacks during FY23, as Indians prefer to munch more desi snacks instead of Western ones such as chips.

(What’s moving Sensex and Nifty Track latest market news , stock tips and expert advice on ETMarkets . Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Top Trending Stocks: Sensex Today Live , SBI Share Price , Axis Bank Share Price , HDFC Bank Share Price , Infosys Share Price , Wipro Share Price , NTPC Share Price

… more less

Pick the best stocks for yourself
Powered by

Broking stocks surge up to 75% in FY24; what’s driving this exuberance?

by economictimes.indiatimes.com Leave a Comment

Synopsis

So far in the current financial year, listed broking firms have given upto 75% returns to investors, and a majority of them have also outperformed the benchmark Sensex in the said period.

Thanks to the stellar run in equities and a plethora of public issues, stock broking firms have been on a roll, and so have their stocks.

So far in the current financial year, listed broking firms have given upto 75% returns to investors, and a majority of them have also outperformed the benchmark Sensex in the said period.

The Sensex has given about 12% returns since April, while 10 broking stocks , which have a market capitalization exceeding Rs 500 crore, have gained 27-75%.

The primary market is having its best-ever time as a plethora of companies are tapping the market for capital amid strong investor interest.

So far in FY24, around 21 companies have got listed on the main board of exchanges, while eight of them have launched IPOs and will soon get listed.

More than the main board, the mini IPOs or the ones getting listed on the SME platforms of exchanges have caught investor frenzy.

Looking at the pipeline, FY24 may create a record by beating the FY23 numbers.

Healthy Earnings

The strong performance of equities and steady increase in retail participation have aided the industry’s earnings growth .

On Tuesday, India’s largest discount broking firm Zerodha released its FY23 numbers, which showed a 38% growth in the overall revenue to Rs 6,875 crore.

Motilal Oswal Financial reported a 17x rise in consolidated net profit for the quarter ended June to Rs 527 crore, while revenue nearly doubled to Rs 1,500 crore.

ICICI Securities reported a strong 18% year-on-year growth in revenue to Rs 934 crore in the first quarter of the current financial year.

Choice International has seen a steady increase in the revenue in the broking and distribution business in the last 4-5 quarters. Revenue from this segment stood at Rs 82.4 crore in the June quarter, against Rs 48 crore in the same period a year ago.

ADTO Traction

Another key parameter showing the growth resilience in the broking industry is the average daily turnover or ADTO, particularly in the derivatives segment.

For Motilal Oswal, the ADTO grew by a whopping 171% YoY in the last quarter to Rs 4.1 lakh crore, with the retail market share in the F&O ADTO growing by 44 basis points sequentially.

For ICICI Securities, the growth in derivative ADTO was 2.2x in the June quarter on a YoY basis.

Outlook

As the broader outlook for equities remains positive and the pipeline in the primary market strong, the overall earnings prospects for the broking industry remains buoyant.

In a recent interview with ETMarkets, Choice International MD Kamal Poddar said that the firm’s assets under management are likely to see a healthy 30-40% growth in the upcoming year.

While the business outlook remains the same, one may need to be selective while picking stocks after the sharp run-up.

The average target price for JM Financial is Rs 102, implying an upside of more than 20% from the current levels, according to Trendlyne.

For Motilal Oswal Financial, the average price target is Rs 867.50, implying marginal upside from current levels after the sharp rally in the last few months.

(Data inputs from Ritesh Presswala)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here!

Print Edition
Print Edition Print Edition Wednesday, 27 Sep, 2023

Experience Your Economic Times Newspaper, The Digital Way!

    Byju’s New India CEO to Cut More Than 4,500 Jobs Byju’s New India CEO to Cut More Than 4,500 Jobs

    Arjun Mohan, who took charge as the new chief executive of the India business at Byju’s last Wednesday, is set to unveil a series of changes at the financially troubled edtech firm, including cutting the headcount by a third or about 4,000-4,500 people to further tighten costs, people aware of the matter said.

    ADIA Looks to Put $600m into RIL’s Retail Business ADIA Looks to Put $600m into RIL’s Retail Business

    After QIA, yet another oil-rich Gulf sovereign fund, Abu Dhabi Investment Authority (ADIA), is looking to buy an additional stake in Mukesh Ambani’s retail empire. ADIA is seeking to invest $600 million into the organised retailing business of Asia’s richest person, people aware of the developments told ET, at valuations that significantly exceed those during an earlier concluded round three years ago.

    Bigger Ecommerce Sales Set to Light up Volumes Bigger Ecommerce Sales Set to Light up Volumes

    The upcoming festive season sales are expected to bring the steepest online discounts since Covid, up to 60% in certain categories, with several ecommerce majors indicating a push to expand volumes.

(What’s moving Sensex and Nifty Track latest market news , stock tips and expert advice on ETMarkets . Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Top Trending Stocks: Sensex Today Live , SBI Share Price , Axis Bank Share Price , HDFC Bank Share Price , Infosys Share Price , Wipro Share Price , NTPC Share Price

… more less

Pick the best stocks for yourself
Powered by

Deputy PM asks to clean up data on securities traders

by bizhub.vn Leave a Comment

Investors making transactions at an office of Bảo Việt Securities Company. — VNA/VNS Photo

The Deputy Prime Minister has requested the Ministry of Finance (MoF) to direct the review, authentication, and cleaning of information on securities traders, including relatives participating in transactions.

The Government Office on September 23 conveyed the direction of Deputy Prime Minister Trần Lưu Quang to the State Securities Commission, the Vietnam Stock Exchange (VNX), and the Vietnam Securities Depository and Clearing Corporation (VDSC) to connect the national database on population, electronic identification and authentication system.

The move aims to clean up the data of individuals involved in securities trading. This task is expected to be completed in November.

Cleaning up user data involves cross-referencing their information with the national database on population to ensure consistency and eliminating incorrect, duplicate or fictitious data.

The direction was issued as a result of numerous individuals being prosecuted for manipulating the stock market to gain profits.

In March 2022, former chairman of FLC, Trịnh Văn Quyết, was indicted by the Criminal Investigation Agency of the Ministry of Public Security (C01) for the crime of market manipulation, as stipulated in Article 211 of the Criminal Code.

In the first months of this year, the market continued to have many other cases of stock price manipulation, resulting in administrative sanctions and/or additional penalties (if applicable).

For example, in the case of 1369 Construction JSC (C69)’s stocks, Đoàn Bá Hồng was fined VNĐ550 million (US$22,511), while in the case of APG Securities JSC (APG)’s shares, Lê Thị Hải Bình was fined VNĐ1.5 billion, prohibited from securities trading for two years, and banned from holding positions in securities companies and funds for two years.

Previously, the MoF had set a direction for the number of investors in the stock market to reach 8 per cent of the population by 2025 and 10 per cent by 2030, focusing on developing institutional and professional investors and attracting the participation of foreign investors.

Data of VSDC showed that the number of domestic retail investor accounts recorded a rapid increase in the last four months, reaching over 100,000 accounts per month.

As of the end of August, the number reached 7.59 million units, which is approximately 7.6 per cent of the population.

The market’s participants are increasingly diverse in terms of profession and age. — VNS

Protean eGov Technologies eyes Rs 1,300-crore listing by end of October

by economictimes.indiatimes.com Leave a Comment

Synopsis

The IT-enabled solutions provider’s public issue will be entirely an offer for sale (OFS) by existing investors, giving an exit to eight of its over 20 investors, sources said.

Protean eGov Technologies (formerly NSDL e-Governance Infrastructure) is planning to make an initial public offering of around Rs 1,200-1,300 crore by the end of October, people privy to the development said.

“The company will submit its updated draft red herring prospectus before markets regulator Securities and Exchange Board of India this week … It aims to launch the IPO to the public by the third or fourth week of October,” one of the people said.

Elevate Your Tech Prowess with High-Value Skill Courses

Offering College Course Website
Indian School of Business ISB Professional Certificate in Digital Marketing Visit
IIM Lucknow IIML Executive Programme in Data Science Visit
Indian School of Business ISB Digital Marketing and Analytics Visit
Indian School of Business ISB Digital Transformation Visit

The IT-enabled solutions provider’s public issue will be entirely an offer for sale (OFS) by existing investors, giving an exit to eight of its over 20 investors, the people said.

ICICI Securities; Equirus Capital Private; IIFL Securities and Nomura Financial Advisory and Securities (India) are the merchant bankers to the issue.

Investors divesting partial shares as part of the OFS are IIFL Special Opportunities Funds, NSE Investments, Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), HDFC Bank , Axis Bank , Deutsche Bank, Punjab National Bank and Union Bank of India .

Its other shareholders include Canara Bank , HSBC, Citicorp Finance India, Standard Chartered Bank, Mauritius-based fund Soach Global and State Bank of India. In 2018, IDBI Bank had sold its entire 30% stake in the company to IIFL Wealth Management.

The company did not respond to a request for comment.

The company’s IPO plans were earlier pushed back by almost two years owing to subdued equity market conditions and weak macro environment, another person added.
A key player in the public digital infrastructure and e-governance projects for government institutions, Protean, then NSDL e-Governance Infrastructure, was set up as a depository in 1995. It operated as a subsidiary of National Securities Depository Ltd (NSDL) before its demerger in 2013.

Mumbai-headquartered Protean’s key competitors include CDSL Ventures, CMS Computer, Computer Age Management Services, CSC E-Governance Services, Karvv Data Management Services, Kfin Technologies, Sify Technologies and UTI Infrastructure Technology and Services.

For the financial year ended 2022, the company reported a net profit of Rs 143.9 crore on revenue from operations of Rs 690.9 crore, compared with the previous year’s net profit of Rs 92.1 crore on revenue of Rs 603 crore.

Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. click here!

Print Edition
Print Edition Print Edition Thursday, 28 Sep, 2023

Experience Your Economic Times Newspaper, The Digital Way!

    Now, Tesla Rival VinFast Looks to Make in India Now, Tesla Rival VinFast Looks to Make in India

    Vietnamese electric vehicle maker VinFast Auto – a deemed Tesla rival that emerged as the world’s third most valuable carmaker last month – is mulling setting up a manufacturing unit in India, multiple people aware of the development told ET.

    Festive Wave may Lift IIP Growth in Coming Mths Festive Wave may Lift IIP Growth in Coming Mths

    India’s industrial economy is expected to receive a festive bump, growing around 6% year-on-year in the next couple of months with improvement in monsoon rains, softening inflation, and election-related rise in spending adding to the festive sentiment.

    Desi Snack Packs are a $1b Bite for Haldiram’s Desi Snack Packs are a $1b Bite for Haldiram’s

    ​Traditional sweets and snacks brand Haldiram’s earned over a billion dollars from packaged snacks during FY23, as Indians prefer to munch more desi snacks instead of Western ones such as chips.

Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.

… more less

Industrial Profits Send Stocks Higher

by www.forbes.com Leave a Comment

Key News

Asian equities had a positive day on light volumes.

Mainland China and Hong Kong posted gains on light volumes ahead of China’s weeklong holiday starting on Friday. Markets jumped on the release of August industrial profits, rising +17.2% year over year versus July’s -6.7%, in another sign that China’s economy is rebounding (albeit slowly/incrementally). The PBOC released meeting notes of their quarterly Monetary Policy Committee that articulated the central bank’s efforts to support the economy through monetary policy and “focus on expanding domestic demand, boosting confidence, accelerating a virtuous economic cycle, and providing support for the real economy.”

Also helping sentiment was foreign investors’ net buying of Mainland stocks. Pharma stocks were the top sub-sector, and healthcare the best sector in both Hong Kong and Mainland China, following several US-listed biotech stocks flying on several successful drug studies/trials. Hong Kong internet stocks had a positive day following Alibaba’s logistics arm Cainiao filing for a Hong Kong listing yesterday. Shanghai and Shenzhen managed to rise above the 3,100 and 1,900 levels. The Shanghai and Shenzhen Stock Exchanges released rules that will limit insider selling while incentivizing paying dividends. Previously, rules limited parent companies from selling shares, which resulted in one hundred companies canceling planned share sales. IPOs have been limited as efforts to prevent more supply and increase demand equates to the government telling us to buy stocks. Evergrande was back in the news as their chairman is being investigated, though we should expect distressed players to be in the news whenever a bond coupon or principal payment is due. Overall, we’ll take the up day.

Do you know when China’s last recession was? 1993! Something to remember when the nattering nabobs of negativity call for the collapse of China’s economy.

China’s import of commodities has declined. The renminbi’s decline is a factor as the value of imports declines as the currency declines. A better tool is looking at the tonnage of imports, which has been shockingly resilient. China’s import of both oil and copper continues to increase, which runs counter to the common economic narrative. More work to do on this subject!

The Hang Seng and Hang Seng Tech gained +0.83% and +0.43% on volume -7.92% from yesterday, which is 66% of the 1-year average. 267 stocks advanced, while 198 declined. Main Board short turnover declined -0.95% from yesterday, which is 71% of the 1-year average, as 18% of turnover was short turnover. Value and growth factors were both off as large caps edged out small caps. The top sectors were healthcare +3.49%, tech +1.89%, and energy +1.25%, while materials -1.5%, industrials -0.13%, and real estate -0.06% were the worst. The top sub-sectors were pharma, semis, and insurance, while materials, food, and auto were the worst. Southbound Stock Connect volumes were light as Mainland investors bought +$470 million of Hong Kong-listed ETFs and stocks with Meituan, Tencent, and Kuiashou small/moderate net buys while CNOOC, China Mobile, and Innovent were small net sells.

Shanghai, Shenzhen, and STAR Board gained +0.16%, +0.39%, and +0.47% on volume +7.86% from yesterday, which is 82% of the 1-year average. 3,157 stocks advanced, while 1,576 stocks declined. The growth factor outperformed the value factor, while small caps outperformed large caps. The top sectors were healthcare +1.48%, tech +0.69%, and industrials +0.42%, while utilities -0.62%, energy -0.56%, and financials -0.49% were the worst. Tops sub-sectors were power generation equipment, pharma, and energy equipment, while precious metals, computer hardware, and highway industry were the worst. Northbound Stock Connect volumes were light/moderate as foreign investors bought +$246 million of Mainland stocks, with Longi seeing a large net inflow, Wuxi and Kunlun small/moderate net buys, while CATL, Zhongji, and Wuliangye were small/moderate net sells. CNY and the Asia dollar index were off small versus the US dollar. Treasury bonds rallied while copper and steel were off.

Upcoming Webinar

Join us on Wednesday, October 4th at 11:00 am EDT for our live webcast:

Investment Opportunities From the Blue Economy and Ocean

Please click here to register.

Last Night’s Performance

Last Night’s Exchange Rates, Prices, & Yields

  • CNY per USD 7.31 versus 7.30 yesterday
  • CNY per EUR 7.72 versus 7.74 yesterday
  • Yield on 10-Year Government Bond 2.69% versus 2.69% yesterday
  • Yield on 10-Year China Development Bank Bond 2.77% versus 2.78% yesterday
  • Copper Price -0.49% overnight
  • Steel Price -0.35% overnight