Quick Wrap: Nifty Realty Index gains 2.11%, NIFTY jumps 1.29%
Nifty Realty index closed up 2.11% at 1013.65 today. The index has gained 8.00% over last one month. Among the constituents, Macrotech Developers Ltd added 4.06%, Phoenix Mills Ltd gained 3.18% and Sobha Ltd fell 2.83%. The Nifty Realty index has fallen 11.00% over last one year compared to the 6.56% increase in benchmark Nifty 50 index. In other indices, Nifty Infrastructure index gained 1.73% and Nifty PSU Bank index added 1.64% on the day. In broad markets, the Nifty 50 added 1.29% to close at 25112.4 while the SENSEX recorded a gain of 1.29% to close at 82408.17 today.Powered by Capital Market - Live News
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Time of India
2 hours ago
- Time of India
RBI guidelines for project finance, CRE: A smaller provisions hike's no big worry for banks, NBFCs
MUMBAI: Central bank guidelines on provisions for project finance and commercial real estate (CRE) might have only a small and negligible profitability impact on both banks and NBFCs , as the increase in immediate liabilities is less than a percentage point from those existing rules - even in the worst-case scenario. Financial and banking stocks surged on Friday. Bankers and analysts, who had pencilled in up to a 150-basis point impact on return on assets (RoAs) for lenders, now expect no new provisioning requirements as NBFCs are already on the more stringent Ind-AS accounting norms while for banks the impact is small. One basis point is 0.01 percentage point. Karthik Srinivasan , group head, financial sector ratings at ICRA said with no retrospective provisions and peak provisions much below the 5% proposed in the draft guidelines, there will be a minimal impact on lenders. "Although we are yet to create a hypothesis and do a study on the impact, it is nothing like the 150 basis points on RoA basis we had predicted earlier. We do not expect any real impact on banks or NBFCs," Srinivasan said. ICRA had earlier expected the annual impact on RoA at 100-150 bps for lenders, with funding costs going up by 20-40 bps. Both these issues will not arise as in the final guidelines general provisions required for CRE, CRE-RH (CRE-Residential Housing) and other infrastructure projects have been reduced to between 1% and 1.25% in the construction phase from a peak of 5% in the draft guidelines. Live Events Financials Surge The Nifty financial index surged 1.3%, and financial stocks were at the forefront of the stellar Nifty 50 rebound Friday from a sharp sell-off Thursday. HDFC Bank , the biggest lender by market value, climbed 1.44%, while Bajaj Housing Finance too climbed 1.4%. Provisions for projects in the operational phase have also been reduced to between 0.40% and 1%, with operational infrastructure project provisions kept at 0.40%, the same as it is currently. The new guidelines will come into force from October 1. Rajkiran Rai , managing director at infrastructure financier NaBFID, said the final guidelines limit his firm's provision increase to just 5 basis points. "If we were pricing a loan at 8%, now we will price it at 8.05%. This would have increased to 9.50% if the original guidelines had remained, so this is a big relief. The new norms also have clauses saying at least 50% to 75% of the land must be acquired for the loan to be sanctioned. This could delay loan sanctions but it will bring uniformity in application since different projects were so far treated differently on land acquisition," Rai said. For loans on infrastructure projects which have been delayed beyond three years from the date of commencement of commercial operations (DCCO), lenders have to make an additional provision of 0.375% and a 0.5625% provision on non-infrastructure project loans (including CRE and CRE-RH), for each quarter of deferment, over and above the applicable standard asset provision. "Provisioning requirement for projects beyond DCCO up to two years will go up to 4% vis-a-vis original guidelines where provision was only 0.4%," said an analyst. "Now, within DCCO, the first quarter itself will attract higher provision."
Mint
4 hours ago
- Mint
Friday fortune: Nifty, Sensex end 3-day slide but caution lingers
India's benchmark equity indices snapped a three-day losing streak to end more than 1% higher on Friday, lifted by short-covering ahead of next week's monthly derivatives expiry and US president Donald Trump deferring his decision to join Israel's attack on Iran. Adding to the new market momentum were two significant semi-annual index rebalances: the Sensex and London's FTSE, according to Abhilash Pagaria, head of Nuvama Alternative & Quantitative Research. Siemens Energy is set to be dropped from the MSCI Global Standard Index, which could spark an estimated $210 million outflow. Since it's also part of the Nifty 50, an additional $50 million in outflows is anticipated from that front. In contrast, Tata Group fashion retailer Trent Ltd and state-run Bharat Electronics Ltd are set to replace Nestle and IndusInd Bank on the Sensex, potentially drawing in fresh investments. Meanwhile, the FTSE reshuffle is expected to bring in around $150 million into India, primarily due to the inclusion of Vishal Mega Mart. 'The market is like a person whose average temperature is fine as one leg is in cold water and the other leg is in boiling water,' said Nilesh Shah, managing director of Kotak Mahindra AMC. He said that stable domestic macros are currently outweighing geopolitical uncertainty. And, since the valuation of Indian equities is unlikely to be rated further up from here, Shah believes investor returns will come from earnings growth moving ahead. On Friday, both Nifty 50 and S&P BSE Sensex closed 1.3% higher at 25,112.40 and82,408.17points, respectively. Gains in Nifty 50 were led by a surge in heavyweight stocks such as HDFC Bank, Reliance Industries, Bharti Airtel, and ICICI Bank. The Nifty 50 finally broke past the 25,000-mark on Friday, a level that had acted as a key resistance. With the index closing firmly above it, Kkunal Parar, vice-president at Choice Equity Broking, sees room for further gains, possibly up to 25,300 points. 'If momentum holds and the index surpasses that level', he believes Indian equities could be on track for a fresh high. Meanwhile, Nifty Smallcap 250 ended the day 0.6% higher and Nifty Midcap 100 surged 1.5%. A 2 June report from Morgan Stanley highlights the resilience of Indian markets, noting that 'market wants to go up, not down.' Since September 2024, the market has absorbed a wave of negative developments—from stretched valuations in small- and mid-caps and a broad-based correction, to concerns over slowing macro growth and earnings, US tariff-related volatility, and even a major terrorist attack followed by India's response. Yet, large-cap indices remain just about 5% below all-time highs, 'and almost negligible changes in implied volumes,' the report said. Israel and Iran continue to exchange fire after Israel launched strikes on Iran's military and nuclear sites on 13 June, drawing a retaliation from the Islamic nation and ratcheting up geopolitical tensions. Both Israel and the US want Iran to abandon its nuclear programme, and Trump has deferred his decision on attacking Iran by two weeks, opening a potential negotiating window. Foreign institutional investors (FIIs) were net buyers on Friday, picking up ₹ 7,940.70 crore, while domestic institutional investors (DIIs) booked profits with net sales of ₹ 3,049.88 crore, according to BSE provisional data. Over the past week, both FIIs and DIIs emerged as net buyers, with inflows of ₹ 1,209.57 crore and ₹ 18,726.90 crore, respectively, according to NSDL data. Overall cash levels of the mutual fund industry remain elevated, particularly concentrated within three asset management companies (AMCs), as per an Elara Capital report dated 17 June. 'It is important to understand that this is not a short-term tactical move but a strategic positioning reflecting caution on current market valuations—especially in the Mid and Smallcap segments.' The report highlighted that almost 25% of the total cash in the system is held by only 4 schemes and 50% by 18 schemes. And most of these schemes have maintained elevated cash level for more than a year. Rather than channeling funds into the secondary market, fund managers are increasingly turning to the primary market, where issuance activity has seen a notable resurgence since May 2025, the report pointed out. Still, some amount of caution continues to linger among investors, considering the ongoing conflict in West Asia. market experts said. A flare-up in tensions could drive up crude oil prices and heighten volatility, quickly souring the overall investor sentiment.
United News of India
4 hours ago
- United News of India
Sensex Zooms by 1,046.30 points
Mumbai, Jun 20 (UNI) Snapping three consecutive sessions of losses, the BSE Sensex on Friday surged by 1,0436 points to close at 82,408.17. Today's surge is seen as the result of gains in Asian markets and renewed foreign fund inflow, a trader explained. Markets sentiments turned bullish after the US President Donald Trump announced that he will decide in the next two weeks whether or not to get involved in the Iran-Israel conflict. This announcement eased crude oil prices improving investor sentiments, the trader added. National Stock Exchange (NSE) too advanced by 319.15 points to settle at 25,112.40. The Sensex opened marginally lower at 81,354,85 against its previous close of 81,361.87 .66 Sensex recorded an intra day high of 82,641.54 and low of 81,323.20. The NSE registered a day's high at 25,132.80 and a day's low at 24,738.10 Mid-cap rose by 1.20 pc and the Small-cap advanced by 0.22 pc. The market breadth stayed strong on Friday. The BSE witnessed 2,469 shares rising and 1,471 shares falling. A total of 151 shares remained unchanged. All Sectoral indices ended the Session in green with Telecom being the Top Sectoral gainer up by 2.73 pc Other Sectoral gainer were Commodities by 0.54 pc. Energy By 0.99 pc, FMCG by 0.52 pc, Financial by 1.35 pc, Health Care by 0.78 pc, Industrial by 1.21 pc, IT by 0.65 pc, Utilities by 1.62 pc, Auto by 0.84 pc, Bankex by 1.15 pc, Capital Goods by 1.17 pc, Consumer Durables by 0.84 pc, Metals by 1.10 pc, Oil & Gas bty 0.61 pc, Power by 1,46 pc , Realty by 2.22 pc and Teck by 1.42 pc Among the 30 scrips, 27 advanced while 3 declined. Notable gainers were Bharti Airtel by 3.17 pc to Rs 1,935.00, Nestle India by 2.98 pc to Rs 2,388.20, M&M by 2.86 pc to Rs 3,180.20, Power Grid by 2.18 pc to Rs 292.55, Reliance by 2.16 pc to Rs 1,462.65, NTPC by 1.70 to RS 33.35 and Eternal by 1.60 pc to Rs 253.40. The losers were Axis Bnak by 0.16 pc to Rs 1,215.00, Ultra tech by 0.07 pc to Rs 11,399.70 and Maruti by 0.02 pc to Rs 12,803.00. US Dow Jones futures were up by 0.56 pc, European shares advanced on Friday, FTSE by 0.47 pc, CAC by 0.58 pc and DAX by 0.95 pc Most Asian markets ended higher as investors assessed China data and monitored escalating tensions between Israel and Iran. Nikkei was 225 down by 0.22 pc, Straits Times rose by 0.28 pc, Hang Seng advanced by 1.24 pc and Kospi by 1.46 pc. UNI JS RKM
