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Business Standard
4 days ago
- Business
- Business Standard
Israel stock market shrugs off war concerns as TA-125 trades near record
Equity markets in Israel remained resilient, with benchmark indices hitting record highs despite continued deadly missile strikes exchanged with Iran for the fourth straight day. Even as the West Asia conflict sent shock waves to global stock market and sent crude oil prices soaring, Israel's TA-125 rose 2.7 per cent on Monday to a fresh high of 2,790.07. Since the beginning of the latest attacks on June 13, the index has risen nearly 3 per cent, while the MSCI Asia ex Japan has seen a mere 0.7 per cent gain. In the year so far, the TA-125 index has risen 14 per cent, while the MSCI Asia ex Japan and MSCI World indices are up 12 per cent and 6 per cent, respectively. Israel's stock market is at an all-time high, said Jitendra Gohil, chief investment strategist at Kotak Alternate Asset Managers, and it is a preconceived notion that geopolitical tensions may lead to stock market corrections. "In fact, heightened geopolitical tensions can lead to more fiscal and monetary easing, and the market loves loose policies. This won't be true in the case of countries that face sanctions (Iran, Venezuela, etc.), but today the US's ability to effectively implement sanctions has eroded. Look at Russia. The world is a very different place today, with multipolar forces emerging," Gohil said. On Friday, the Israeli military began airstrikes against Iran, targeting nuclear locations to block Tehran from developing atomic weapons, in an operation dubbed 'Rising Lion'. Israel's Defence Minister, Israel Katz, declared a state of emergency shortly after the strikes. The head of the Islamic Revolutionary Guard Corps, Hossein Salami, was killed in the strikes. The risk-off sentiment soared with oil prices spiking over 10 per cent, making it the biggest weekly gain since 2022. Brent prices can touch $150 a barrel (bbl) — up a whopping 103 per cent from the current levels — in the worst-case scenario if the Israel–Iran geopolitical tensions escalate, suggest analysts. Read more Back home, stock markets remained cautious on hopes that high oil prices would not always dampen market sentiment. The BSE Sensex index was at 81,604.18, lower by 192 points or 0.23 per cent, while the Nifty50 was at 24,890.2, down 56 points or 0.22 per cent. Despite the escalation of the Iran-Israel conflict globally, stock markets are steady and resilient, according to VK Vijayakumar, Chief Investment Strategist, Geojit Investments. "The decline in the US volatility index CBOE suggests that markets are unlikely to correct sharply unless the conflict takes a dramatic turn for the worse."
Time of India
12-05-2025
- Business
- Time of India
Markets could Start a Relief Rally amid India-Pak Pause
Equity indices are poised for a relief rally Monday after the weekend announcement of a 'pause' in hostilities with Pakistan, although the breather could well be short-lived if the situation along the border were to worsen yet again. #Operation Sindoor India responds to Pak's ceasefire violation; All that happened India-Pakistan ceasefire reactions: Who said what Punjab's hopes for normalcy dimmed by fresh violations Both benchmark indices declined around 1.3% over the past week, including a 1.1% fall on Friday, as concerns of a full-scale conflict prompted traders to liquidate their bets ahead of the weekend. 'There was apprehension among investors, especially at the fag end of the week, due to the rising tensions between India and Pakistan, which led to lightened positions,' said Lakshmi Iyer, CEO–Investment & Strategy, Kotak Alternate Asset Managers. 'The ceasefire is a big respite and is expected to trigger a relief rally on Monday.' Iyer noted that while markets may react positively to de-escalation, a sharp upmove is unlikely. Trading could remain choppy in the near term as geopolitical developments continue to weigh on sentiment, according to Iyer. The truce between India and Pakistan is shrouded in an uneasy calm, as both countries have accused each other of violating the ceasefire. The Volatility Index (VIX), often referred to as the market's fear gauge, surged 16.4% to 21.63 over the past five sessions, indicating heightened risk perception among traders. Foreign portfolio investors (FPIs) sold shares worth a net ₹3,798 crore on Friday—turning sellers for the first time in 16 trading sessions. Domestic institutional investors (DIIs) bought shares worth ₹7,278 crore. So far in May, FPIs have bought equities worth ₹9,257.95 crore after purchasing ₹3,416.08 crore in April. 'The markets were holding up despite the geopolitical noise. Now that some uncertainty has receded, they are expected to breathe a little easier,' said Mahesh Patil, CIO, Aditya Birla Sun Life AMC. Patil said traders who built bearish positions ahead of the weekend could not rush to liquidate their positions and that could push the markets higher. Still, he warned that current valuations remain elevated, which may limit any sharp rally. Iyer also expects the upside to be capped. 'When the conflict first broke out, the markets didn't crash in a big way. So while there may not be a sharp rebound, respite buying is expected now that some uncertainty is out of the way,' Iyer said. Patil noted that domestic investors had been cautious in deploying funds, and this withheld capital could gradually enter the markets in the coming days.
Economic Times
12-05-2025
- Business
- Economic Times
Markets poised for a relief rally amid India-Pak ceasefire
Mumbai: Equity indices are poised for a relief rally Monday after the weekend announcement of a "pause" in hostilities with Pakistan, although the breather could well be short-lived if the situation along the border were to worsen yet again. ADVERTISEMENT Both benchmark indices declined around 1.3% over the past week, including a 1.1% fall on Friday, as concerns of a full-scale conflict prompted traders to liquidate their bets ahead of the weekend. "There was apprehension among investors, especially at the fag end of the week, due to the rising tensions between India and Pakistan, which led to lightened positions," said Lakshmi Iyer, CEO-Investment & Strategy, Kotak Alternate Asset Managers. "The ceasefire is a big respite and is expected to trigger a relief rally on Monday." Iyer noted that while markets may react positively to de-escalation, a sharp upmove is unlikely. Valuations Remain Elevated Trading could remain choppy in the near term as geopolitical developments continue to weigh on sentiment, according to Iyer. ADVERTISEMENT The truce between India and Pakistan is shrouded in an uneasy calm, as both countries have accused each other of violating the Volatility Index (VIX), often referred to as the market's fear gauge, surged 16.4% to 21.63 over the past five sessions, indicating heightened risk perception among traders. ADVERTISEMENT Foreign portfolio investors (FPIs) sold shares worth a net ₹3,798 crore on Friday-turning sellers for the first time in 16 trading sessions. Domestic institutional investors (DIIs) bought shares worth ₹7,278 crore. So far in May, FPIs have bought equities worth ₹9,257.95 crore after purchasing ₹3,416.08 crore in April. Calm After the Storm "The markets were holding up despite the geopolitical noise. Now that some uncertainty has receded, they are expected to breathe a little easier," said Mahesh Patil, CIO, Aditya Birla Sun Life AMC. ADVERTISEMENT Patil said traders who built bearish positions ahead of the weekend could not rush to liquidate their positions and that could push the markets higher. Still, he warned that current valuations remain elevated, which may limit any sharp also expects the upside to be capped. ADVERTISEMENT "When the conflict first broke out, the markets didn't crash in a big way. So while there may not be a sharp rebound, respite buying is expected now that some uncertainty is out of the way," Iyer said. Patil noted that domestic investors had been cautious in deploying funds, and this withheld capital could gradually enter the markets in the coming days. (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
12-05-2025
- Business
- Time of India
Markets poised for a relief rally amid India-Pak ceasefire
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Equity indices are poised for a relief rally Monday after the weekend announcement of a "pause" in hostilities with Pakistan, although the breather could well be short-lived if the situation along the border were to worsen yet benchmark indices declined around 1.3% over the past week, including a 1.1% fall on Friday, as concerns of a full-scale conflict prompted traders to liquidate their bets ahead of the weekend."There was apprehension among investors, especially at the fag end of the week, due to the rising tensions between India and Pakistan, which led to lightened positions," said Lakshmi Iyer, CEO-Investment & Strategy, Kotak Alternate Asset Managers. "The ceasefire is a big respite and is expected to trigger a relief rally on Monday."Iyer noted that while markets may react positively to de-escalation, a sharp upmove is could remain choppy in the near term as geopolitical developments continue to weigh on sentiment, according to truce between India and Pakistan is shrouded in an uneasy calm, as both countries have accused each other of violating the Volatility Index (VIX), often referred to as the market's fear gauge, surged 16.4% to 21.63 over the past five sessions, indicating heightened risk perception among portfolio investors (FPIs) sold shares worth a net ₹3,798 crore on Friday-turning sellers for the first time in 16 trading sessions. Domestic institutional investors (DIIs) bought shares worth ₹7,278 crore. So far in May, FPIs have bought equities worth ₹9,257.95 crore after purchasing ₹3,416.08 crore in April."The markets were holding up despite the geopolitical noise. Now that some uncertainty has receded, they are expected to breathe a little easier," said Mahesh Patil, CIO, Aditya Birla Sun Life AMC Patil said traders who built bearish positions ahead of the weekend could not rush to liquidate their positions and that could push the markets higher. Still, he warned that current valuations remain elevated, which may limit any sharp also expects the upside to be capped."When the conflict first broke out, the markets didn't crash in a big way. So while there may not be a sharp rebound, respite buying is expected now that some uncertainty is out of the way," Iyer noted that domestic investors had been cautious in deploying funds, and this withheld capital could gradually enter the markets in the coming days.
Time of India
08-05-2025
- Business
- Time of India
India to outpace global peers as growth slows worldwide: Kotak Report
Global economic growth is set to slow in the coming months, with major economies such as the United States and China projected to experience notable deceleration. However, India is expected to outpace global peers amid this global downturn, according to a recent report by Kotak Alternate Asset Managers. The report forecasts a 90 basis point slowdown in the US economy and a 60 basis point decline for China, while highlighting that India is expected to maintain its position as the fastest-growing major economy. A key factor supporting India's economic resilience is its strong manufacturing performance, with the Purchasing Managers' Index (PMI) figures continuing to indicate positive momentum—setting India apart from many global counterparts. Operation Sindoor Operation Sindoor: Several airports in India closed - check full list Did Pak shoot down Indian jets? What MEA said India foils Pakistan's attack on Jammu airport: What we know so far Despite mixed signals from high-frequency indicators, India's overall macroeconomic outlook remains robust. Although credit growth and government expenditure have shown some moderation, the report points to other encouraging trends that continue to support economic activity. Among them is a favourable monsoon forecast, which is expected to lift rural demand and improve the inflation outlook, providing a timely boost to the agricultural sector. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Legendary Stars: Timeless Icons Boite A Scoop Undo Indian equity markets have also displayed significant resilience, despite softer-than-expected Q4 FY25 earnings and rising geopolitical tensions with Pakistan. The report notes that markets have rebounded sharply from recent lows. Investor sentiment remains buoyant, with Domestic Institutional Investors (DIIs) continuing as net buyers and Foreign Portfolio Investors (FPIs) returning to net buying positions for the second consecutive month. A declining risk premium on Indian assets has contributed to expanding equity valuations. Still, the report cautions that volatility may persist in the near term due to ongoing geopolitical uncertainties. The Indian rupee (INR) has also gained strength against the US dollar, backed by a combination of factors such as a weaker dollar, renewed FPI inflows, and falling oil prices—all of which have improved India's trade balance. However, the upside in the rupee has been partly capped by the Reserve Bank of India, which used the currency's strength as an opportunity to build foreign exchange reserves. These reserves have surged by USD 50 billion, reaching USD 688 billion in just two months. Looking ahead, the narrowing yield gap between Indian and US 10-year bonds, along with sustained dollar weakness, is expected to keep the rupees relatively strong in the short term Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
