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India's mcap rises $1 trn since March; leads gains in top 10 equity markets
India's mcap rises $1 trn since March; leads gains in top 10 equity markets

Business Standard

time11-06-2025

  • Business
  • Business Standard

India's mcap rises $1 trn since March; leads gains in top 10 equity markets

India's listed companies have added nearly $1 trillion in market capitalisation since early March 2025, taking the total to $5.33 trillion. This sharp increase comes on the back of a strong rally that followed a five-month correction between October 2024 and February 2025, Moneycontrol reported. In percentage terms, India's market capitalisation (mcap) surged by over 21 per cent — the highest growth among the world's top 10 equity markets. India now ranks as the fifth-largest equity market globally, trailing only the US, China, Japan, and Hong Kong. Germany recorded the second-largest gain during this period, with its mcap rising nearly 14 per cent. Canada followed with an 11 per cent jump, while Hong Kong's mcap increased by more than 9 per cent. Japan and the UK also saw gains of around 8 per cent each. By contrast, the US, the world's biggest equity market, reported a modest increase of around 2.4 per cent. China, the second-largest, recorded a 2.7 per cent rise. France and Taiwan reported gains of over 3.9 per cent and 3.2 per cent, respectively. Sensex and Nifty ride the rally India's benchmark indices, the Sensex and Nifty, rose by 12.5 per cent and 13.5 per cent, respectively, during this period. Broader market indices performed even better: the BSE MidCap index climbed over 20.7 per cent, and the SmallCap index jumped by 26 per cent. However, the rally has also led to stretched valuations, raising concerns among analysts. Many have started lowering their earnings forecasts, the report said. Earnings estimates reflect caution According to a recent note from JM Financial, the Nifty 50's earnings per share (EPS) estimate for FY25 saw a minor upward revision of 0.3 per cent in April 2025. However, estimates for FY26 and FY27 were downgraded by 1.1 per cent and 1.0 per cent, respectively. The slight upgrade for FY25 EPS is due to muted analyst expectations for Nifty's fourth-quarter FY25 profit after tax (PAT) heading into the results season, the news report said. The trend of downgrades continues, with the April 2025 cuts for FY26 and FY27 being sharper than those recorded in earlier months — 0.9/0.6 per cent in February and 0.2/0.6 per cent in March. This points to a cautious outlook on forward earnings. According to Bloomberg consensus estimates, the Nifty 50 companies are projected to grow earnings by 14 per cent year-on-year in FY26.

Indian markets close lower amid global trade concerns and tepid earnings
Indian markets close lower amid global trade concerns and tepid earnings

New Indian Express

time03-06-2025

  • Business
  • New Indian Express

Indian markets close lower amid global trade concerns and tepid earnings

CHENNAI: Indian equity markets ended in the red on Tuesday (June 3) as investor sentiment was dampened by escalating global trade tensions and subdued corporate earnings. Market Performance BSE Sensex closed at 80,737.51, down 636.24 points or 0.78%, and Nifty 50 settled at 24,542.50, declining by 174.10 points or 0.70%. Sectoral Trends The broader markets also faced pressure, with the BSE MidCap index falling by 0.32% and the BSE SmallCap index declining by 0.0048%. Key Influencing Factors Adani Group shares witnessed broad-based declines during Tuesday's trade following reports suggesting alleged links to Iranian LPG shipments, which the company strongly denied.

Smallcaps vs Largecaps: As markets recover, which is the better investment bet currently?
Smallcaps vs Largecaps: As markets recover, which is the better investment bet currently?

Economic Times

time20-05-2025

  • Business
  • Economic Times

Smallcaps vs Largecaps: As markets recover, which is the better investment bet currently?

Small-cap stocks are known for their potential to deliver high returns, especially during market recoveries whereas largecaps offer stability and are less volatile, making them appealing to conservative investors. Smallcap stocks have recently outperformed largecaps, sparking debate among investors. While smallcaps offer high growth potential but come with increased risk, largecaps provide stability with potentially lower returns. Experts suggest a diversified approach, considering individual risk tolerance and investment goals, as large caps are better positioned for investment in the current cycle. Tired of too many ads? Remove Ads Smallcaps vs largecaps Tired of too many ads? Remove Ads Which is a better investment currently? In the recent market rally, smallcap stocks have outperformed their large-cap counterparts, drawing significant investor interest. The BSE SmallCap index surged by 9% last week, while the BSE MidCap index gained 7%, both outpacing the Sensex and Nifty 50, which rose by 4.2%. This trend has led to a debate among investors about the merits of smallcap versus largecap investments in the current stocks are known for their potential to deliver high returns, especially during market recoveries. However, this potential comes with increased volatility and risk. The Nifty Smallcap 250 index currently has a price-to-earnings (P/E) ratio of 32.2, indicating that valuations are on the higher Parakh, CEO of Bigul, notes that small caps are attractively valued and poised for earnings growth, making them suitable for investors with a medium- to long-term horizon and a higher risk tolerance Chakrivardhan Kuppala, co-founder of Prime Wealth Finserv, adds that many small-cap companies are still trading 35–40% below their previous highs, suggesting room for convention suggests that largecaps offer stability and are less volatile, making them appealing to conservative investors. They have shown improved earnings compared to the past two quarters, and there has been a revival in foreign institutional investor (FII) interest, particularly in sectors like banking, infrastructure, healthcare, and the current market dynamics, a diversified investment approach that includes both smallcap and largecap stocks can help balance risk and return, experts should consider their risk tolerance, investment horizon, and financial goals when making investment decisions. While smallcaps offer higher growth potential, they come with increased volatility. Largecaps provide stability and steady returns but may offer lower growth prospects in the short Gupta, Director at SKG Investment and Advisory, believes that large caps are better positioned for investment in the current cycle, offering steady returns with lower risk.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Smallcaps vs Largecaps: As markets recover, which is the better investment bet currently?
Smallcaps vs Largecaps: As markets recover, which is the better investment bet currently?

Time of India

time20-05-2025

  • Business
  • Time of India

Smallcaps vs Largecaps: As markets recover, which is the better investment bet currently?

In the recent market rally, smallcap stocks have outperformed their large-cap counterparts, drawing significant investor interest. The BSE SmallCap index surged by 9% last week, while the BSE MidCap index gained 7%, both outpacing the Sensex and Nifty 50, which rose by 4.2%. This trend has led to a debate among investors about the merits of smallcap versus largecap investments in the current market. Smallcaps vs largecaps Small-cap stocks are known for their potential to deliver high returns, especially during market recoveries. However, this potential comes with increased volatility and risk. The Nifty Smallcap 250 index currently has a price-to-earnings (P/E) ratio of 32.2, indicating that valuations are on the higher side. Atul Parakh, CEO of Bigul, notes that small caps are attractively valued and poised for earnings growth, making them suitable for investors with a medium- to long-term horizon and a higher risk tolerance . Chakrivardhan Kuppala, co-founder of Prime Wealth Finserv, adds that many small-cap companies are still trading 35–40% below their previous highs, suggesting room for growth. Meanwhile, convention suggests that largecaps offer stability and are less volatile, making them appealing to conservative investors. They have shown improved earnings compared to the past two quarters, and there has been a revival in foreign institutional investor (FII) interest, particularly in sectors like banking, infrastructure, healthcare, and power. Which is a better investment currently? Given the current market dynamics, a diversified investment approach that includes both smallcap and largecap stocks can help balance risk and return, experts say. Investors should consider their risk tolerance, investment horizon, and financial goals when making investment decisions. While smallcaps offer higher growth potential, they come with increased volatility. Largecaps provide stability and steady returns but may offer lower growth prospects in the short term. Kush Gupta, Director at SKG Investment and Advisory, believes that large caps are better positioned for investment in the current cycle, offering steady returns with lower risk.

Market tumbles as geopolitical tensions flare up; Nifty holds 24K
Market tumbles as geopolitical tensions flare up; Nifty holds 24K

Business Standard

time09-05-2025

  • Business
  • Business Standard

Market tumbles as geopolitical tensions flare up; Nifty holds 24K

The key equity benchmarks closed sharply lower today as mounting geopolitical tensions rattled investor confidence. The market selloff followed reports from the Indian Army of overnight drone and munition attacks by Pakistani forces along the western border, raising concerns over a potential escalation between the two nuclear-armed nations. The Nifty ended below the 24,010 level. Private banks and real estate stocks bore the brunt of the decline, while PSU banks and consumer durables attracted buying interest. The S&P BSE Sensex, tumbled 880.34 points or 1.10% to 79,454.47. The Nifty 50 index fell 265.80 points or 1.10% to 24,008. ICICI Bank dropped 3.16%, while HDFC Bank and Reliance Industries slipped 1.93% each, weighing on the market. The broader market was relatively resilientthe BSE MidCap dipped 0.10%, and the SmallCap index lost 0.30%. Market breadth remained weak, with 2,522 stocks declining against 1,343 advancing on the BSE. Volatility picked up, with the India VIX rising 2.97% to 21.63, signaling heightened investor nervousness. Also Read Amid rising tensions with Pakistan, India has ramped up security in New Delhi by deploying additional forces and intensifying police surveillance. The move follows Indias successful neutralization of multiple Pakistani drone and missile attacks targeting military sites in Jammu, Pathankot, and Udhampur, along with similar threats in 15 other northern and western locations. No casualties were reported. A major infiltration attempt along the international border in Samba was also foiled. Meanwhile, Pakistan conducted heavy shelling along the Line of Control in Poonch, Rajouri, Uri, and Chowkibal Kupwara, resulting in property damage and the reported death of a woman in Uri. The developments come in the aftermath of the April 22 Pahalgam terror attack, which claimed 26 lives. Numbers to Track: The yield on India's 10-year benchmark federal paper rose 1.36% to 6.482 as compared with previous close 6.494. In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 85.3900, compared with its close of 84.5800 during the previous trading session. MCX Gold futures for 5 June 2025 settlement shed 0.02% to Rs 96,148. The US Dollar index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.20% to 100.44. The United States 10-year bond yield added 0.07% to 4.376. In the commodities market, Brent crude for July 2025 settlement added $1.13 or 1.80% to $63.97 a barrel. Global Markets: European market advanced on Friday after the U.K. and U.S. confirmed a trade agreement, and investors look ahead to the U.S.-China trade negotiations set to begin this weekend. Investors will be digesting earnings updates from German lender Commerzbank and Italys Mediobanca, both acquisition targets for UniCredit. Portugals utility company EDP is also revealing its quarterly results after a major power outage earlier this month. Most Asian stocks ended mixed as investors awaited China's trade data for April. Concerns persisted over a potential deceleration in Chinese export growth due to recently imposed U.S. tariffs. Additionally, market sentiment remained cautious amid uncertainty surrounding the outcome of scheduled trade discussions between the United States and China in Switzerland. On Wall Street, major indices advanced after U.S. President Donald Trump outlined a preliminary trade agreement with the United Kingdom the first such deal since the U.S. halted its broader "reciprocal" tariff measures in April. According to the initial framework, the U.S. will maintain a 10% tariff on UK imports. In return, the UK will reduce its tariff rate from 5.1% to 1.8% and offer expanded access to U.S. goods. Imports of steel and aluminum from the UK will also be exempt from the existing 25% U.S. levy. While investors interpreted the framework as a sign of potential future trade progress, the lack of a signed agreement or detailed documentation limited market certainty. President Trump indicated that final terms are still being finalized and are expected to be formalized in the coming weeks. The Dow Jones Industrial Average rose by 0.62%, the S&P 500 increased 0.58%, and the Nasdaq Composite climbed 1.07%. In corporate earnings news, shares of Kenvue Inc gained 4% following better-than-expected first-quarter results. Tapestry Inc rose nearly 4% after the company raised its annual earnings outlook. Conversely, Restaurant Brands International declined slightly after reporting revenue and profit below estimates. Shares of Arm Holdings fell 6% following the release of weaker-than-expected guidance. The number of Americans filing new applications for unemployment benefits fell more than expected last week, as initial claims for state unemployment benefits dropped 13,000 to a seasonally adjusted 228,000 for the week ended May 3, the Labor Department said on Thursday. Stocks in Spotlight: Larsen & Toubro rallied 3.77% after the company reported a consolidated profit after tax at Rs 5,497 crore in Q4 March 2025, a growth of 25% on year-on-year basis. In Q4 March 2025, the consolidated revenues were at Rs 74,392 crore, a y-o-y growth of 11%. Titan Company jumped 4.38% after the companys consolidated net profit jumped 12.97% to Rs 871 crore in Q4 FY25 as compared with Rs 771 crore in Q4 FY24. Revenue from operations increased 23.76% year on year to Rs 13,897 crore in Q4 FY25. Britannia Industries added 0.59%. The company consolidated net profit increased 4.02% to Rs 559.95 crore on 8.29% jump in revenue from operations to Rs 4,495.21 crore in Q4 FY25 over Q4 FY24. Pidilite Industries rose 0.71%. The company's consolidated net profit soared 40.50% to Rs 422.34 crore on 8.24% rise in revenue from operations to Rs 3,141.14 crore in Q4 FY25 over Q4 FY24. Meanwhile, the board has recommended a dividend of Rs 20 per share for the financial year. Kalyan Jewellers India advanced 1.57% after the companys consolidated net profit rallied 36.45% to Rs 187.61 crore, driven by a 36.61% increase in revenue from operations to Rs 6,181.53 crore in Q4 FY25 over Q4 FY24. Zee Entertainment Enterprises gained 4.28% after the company has reported a net profit of Rs 188.4 crore in Q4 FY25, which is significantly higher as compared with the PAT of Rs 13.4 crore recorded in Q4 FY24. Operating revenue rose by 1% year-over-year (YoY) to Rs 2184.1 crore during the period under review. REC declined 1.9%. The company reported a consolidated net profit rose 5.66% to Rs 4,309.98 crore in Q4 FY25 as against Rs 4,079.09 crore posted in Q4 FY24. Total income stood at Rs 15,348.37 crore in the quarter ended 31 March 2025, up 20.78% from Rs 12,706.66 crore reported in the same period a year ago. Sula Vineyards advanced 2.51%. The company reported consolidated net profit fell 3.84% to Rs 13.03 crore in Q4 FY25 as against Rs 13.55 crore posted in Q4 FY24. Revenue from operations (excluding excise duty) rose 2.6% YoY to Rs 125.71 crore during the quarter. Muthoot Microfin slumped 12.4% after the company reported a net loss of Rs 401.15 crore in Q4 FY25 as against a net profit of Rs 119.76 crore in Q4 FY24. Revenue from operations declined by 13.71% YoY to Rs 555.03 crore during the quarter. Aarti Industries rose 0.85%. The companys consolidated net profit surged 108.7% to Rs 96 core during the quarter as compared with Rs 46 crore posted in Q3 FY25. Revenue from operations increased 8.64% to Rs 2,214 crore in Q4 FY25 as compared with Rs 2,038 crore in Q3 FY25. R Systems International added 1.17% after the companys consolidated net profit jumped 40.43% to Rs 38.59 crore on 6.2% increase in revenue from operations to Rs 442.46 crore in Q4 FY25 over Q4 FY24. Intellect Design Arena shed 0.36%. The company reported an 85.45% year-on-year (YoY) jump in consolidated net profit to Rs 135.32 crore in Q4 FY25, supported by an 18.69% increase in total income to Rs 748.55 crore. K.P.R. Mill surged 11.27% after the company reported a 1.14% quarter-on-quarter (QoQ) increase in consolidated net profit to Rs 204.55 crore for Q4 FY25, driven by a 15.2% rise in total income to Rs 1,780.15 crore. On a year-on-year (YoY) basis, net profit declined 4.24%, while total income grew 4.19% compared to Q4 FY24.

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