Latest news with #NiftyITIndex
Economic Times
14 hours ago
- Business
- Economic Times
Nifty 25K under fire: Aamar Deo's strategy for BEML, Adani Power and 4 others stocks amidst Mideast war
Stock markets may be headed for choppier waters as the US joins Israel's war with Iran, bombing critical nuclear sites and if Iran retaliates by blocking the Strait of Hormuz, oil could explode higher, pulling market sentiment down with it, Aamar Deo Singh, Senior Vice President-Equity, Commodity & Currency at Angel One warns. This analyst recommends investment strategy for last week's big winners and losers viz. Swiggy, BEML, Adani Power and three more stocks. Excerpts: ADVERTISEMENT Q: Nifty ended with weekly gains of 1.6%, closing decisively above the 25,000 mark, thanks to Friday surge. Can it sustain this level unlike in the previous instances?Markets have displayed strong resilience and a bullish momentum in the past week, with the benchmark indices closing strongly in the green. Overall, the rally has been broad-based with positive gains witnessed in midcap and smallcap as well, clearly indicating investor interest. And all this, despite the rising geo-political tensions in the Middle East. Further the India VIX, too continues to trade within a comfortable band of 14-16, further cementing the comfort of the investor community. But given the latest developments of USA directly entering into the war with Iran, and bombing its key nuclear facilities, could have graver ramifications as Iran threatens to block the Strait of Hormuz, which accounts for almost 20% of the daily world crude oil consumption. This could lead to a further spike in crude oil prices, and we could witness volatile trading sessions this week. Investors need to brace themselves for increased volatility, while at the same time, stay cautious. Q: What are key levels for Nifty and Bank Nifty, this week? Overall, Nifty has been in a consolidation mode, for the past few weeks, with strong support seen around the 24,400-24,600 zone whereas immediate resistance on the upside is seen around the 25,200-25,400 zone. Bank Nifty on the other hand, has displayed a stronger move as compared to Nifty, on the back of a sharp rally in Financials. Bank Nifty has crucial support around the 55,200-55,400 zone whereas resistance is seen around the 56,700-57,000 zones. Q: IT stocks have been in action this week and with Accenture beating third quarter revenue estimates, is it time to go hammer & tongs on the tech stocks? Most of the IT stocks witnessed positive moves last week, with gains ranging from 1%-3% WoW, with the exception of TCS, LtMindTree & Oracle which ended marginally in the red. The benchmark Nifty IT Index is up 4.5% MoM, indicating that overall investor interest remains strong in this sector. However, it would be prudent to go slow and steady in the sector, given the mixed economic trends emerging from the USA, which accounts for a major chunk of the IT business of Indian IT companies. ADVERTISEMENT Q: In case you are recommending IT stocks, where will your money go – Tier-1 stocks or tier-2 and which will be these bets? A limited exposure should be maintained in the IT sector, given the headwinds in the industry, while at the same time, the emerging opportunities emerging in this sector, offers scope for capital appreciation. But primarily, the gainers will be those who shall be able to leverage the emerging technologies and service their clients most competitively. Hence, an ideal mix of a Tier1 & a Tier2 stock can be looked at from a long-term investment perspective. Q: While the FII trends in June have been negative so far, the financial services sector has returned with a bang with FII buying to the tune of Rs 4,685 crore in the first fortnight of June. Energy sector is another major recipient at Rs 1,200 crore. How are you viewing this development? ADVERTISEMENT Overall, the financial sector has performed exceedingly well in the current quarter, and with the recent RBI rate cut of 50 basis points and a 100-basis cut in CRR, spread over 4 tranches starting September till November, is likely to infuse Rs.2.5 trillion into the banking system by year this clearly indicates, that going forward, that credit growth shall be a key theme. Given such optimism in this sector, it is very likely that FIIs have begun buying into the sector, and this sector could see solid double digit growth in coming years. As far as the energy sector is concerned, there are too many variables at play, both in the domestic and global scenario, hence it would be advisable to adopt a cautious approach. ADVERTISEMENT However, renewables space is something that can be looked at from a long-term perspective. Q: Midcaps and smallcaps have continued to outperform largecaps over the last one month with double-digit returns at the index level versus Nifty 1.7% Nifty. Is this exuberance or are stock picking in your assessment? Midcaps and smallcaps have indeed delivered superior returns over the past month, as compared to large caps, on the back of the expectations that many stocks in these categories are likely to report better financial numbers in the coming quarters. Earlier, during the sharp correction post September, many of these stocks had witnessed significant erosion in value, which led investors to dump these stocks. But over the past couple of months, interest in back in these two categories, but it has become more stock and sector specific. ADVERTISEMENT Companies strong on fundamentals shall continue to do well, and it would be prudent to stay invested in the leaders in these two categories. Q: There were some big winners this week like Swiggy, Aditya Birla Capital and BEML while Hindustan Zinc, Concord Biotech and Adani Power were among the worst losers. What should investors do with them along with Raymond post the carving out of the realty business? The market witnessed a sharp rally last week, and few stocks such as Swiggy, Aditya Birla Capital and BEML gained almost 10%, 8% and 8% respectively WoW. Investors can look at holding these stocks from a long-term perspective, as they all are leaders in their respective those having a short-term view, can look at booking part profit and hold the balance. On the other hand, stocks such as Hindustan Zinc, Concord Biotech and Adani Power, corrected by almost 15%, 13% and 7% respectively WoW. Investors can hold their positions, with crucial support seen at 410, 1700 and 480 levels respectively. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Time of India
14 hours ago
- Business
- Time of India
Nifty 25K under fire: Aamar Deo's strategy for BEML, Adani Power and 4 others stocks amidst Mideast war
Live Events Markets have displayed strong resilience and a bullish momentum in the past week, with the benchmark indices closing strongly in the green. Overall, the rally has been broad-based with positive gains witnessed in midcap and smallcap as well, clearly indicating investor interest. And all this, despite the rising geo-political tensions in the Middle East. Further the India VIX , too continues to trade within a comfortable band of 14-16, further cementing the comfort of the investor community. But given the latest developments of USA directly entering into the war with Iran, and bombing its key nuclear facilities, could have graver ramifications asIran threatens to block the Strait of Hormuz, which accounts for almost 20% of the daily world crude oil consumption. This could lead to a further spike in crude oil prices, and we could witness volatile trading sessions this week. Investors need to brace themselves for increased volatility, while at the same time, stay Nifty has been in a consolidation mode, for the past few weeks, with strong support seen around the 24,400-24,600 zone whereas immediate resistance on the upside is seen around the 25,200-25,400 zone. Bank Nifty on the other hand, has displayed a stronger move as compared to Nifty, on the back of a sharp rally in Financials. Bank Nifty has crucial support around the 55,200-55,400 zone whereas resistance is seen around the 56,700-57,000 of the IT stocks witnessed positive moves last week, with gains ranging from 1%-3% WoW, with the exception of TCS , LtMindTree & Oracle which ended marginally in the benchmark Nifty IT Index is up 4.5% MoM, indicating that overall investor interest remains strong in this sector. However, it would be prudent to go slow and steady in the sector, given the mixed economic trends emerging from the USA, which accounts for a major chunk of the IT business of Indian IT companies.A limited exposure should be maintained in the IT sector, given the headwinds in the industry, while at the same time, the emerging opportunities emerging in this sector, offers scope for capital appreciation. But primarily, the gainers will be those who shall be able to leverage the emerging technologies and service their clients most competitively. Hence, an ideal mix of a Tier1 & a Tier2 stock can be looked at from a long-term investment the financial sector has performed exceedingly well in the current quarter, and with the recent RBI rate cut of 50 basis points and a 100-basis cut in CRR, spread over 4 tranches starting September till November, is likely to infuse Rs.2.5 trillion into the banking system by year this clearly indicates, that going forward, that credit growth shall be a key theme. Given such optimism in this sector, it is very likely that FIIs have begun buying into the sector, and this sector could see solid double digit growth in coming years. As far as the energy sector is concerned, there are too many variables at play, both in the domestic and global scenario, hence it would be advisable to adopt a cautious renewables space is something that can be looked at from a long-term and smallcaps have indeed delivered superior returns over the past month, as compared to large caps, on the back of the expectations that many stocks in these categories are likely to report better financial numbers in the coming quarters. Earlier, during the sharp correction post September, many of these stocks had witnessed significant erosion in value, which led investors to dump these stocks. But over the past couple of months, interest in back in these two categories, but it has become more stock and sector strong on fundamentals shall continue to do well, and it would be prudent to stay invested in the leaders in these two market witnessed a sharp rally last week, and few stocks such as Swiggy, Aditya Birla Capital and BEML gained almost 10%, 8% and 8% respectively WoW. Investors can look at holding these stocks from a long-term perspective, as they all are leaders in their respective those having a short-term view, can look at booking part profit and hold the balance. On the other hand, stocks such as Hindustan Zinc, Concord Biotech and Adani Power, corrected by almost 15%, 13% and 7% respectively WoW. Investors can hold their positions, with crucial support seen at 410, 1700 and 480 levels respectively.
Mint
12-06-2025
- Business
- Mint
IT sector Q4FY25 review: After a muted show, can investors expect a turnaround in next quarter?
''The earnings season for the quarter ending March 31, 2025, began with leading IT firms releasing their financial results in the first week of April and concluded in the final week of May 2025. In Q4FY25, major Indian IT services company saw a quarter-on-quarter decline in revenue—marking the first time this has happened since Q1FY21, when performance was affected by the COVID-19 outbreak According to analysts, the slowdown was primarily caused by delays in project ramp-ups, weak performance in certain industry segments, and reduced demand stemming from the ongoing tariff war. Brokerage firm Choice Broking said in a note that Tier-l IT players have lowered their FY26E revenue guidance band by 1%, with the lower end factoring in continued demand weakness and the midpoint assuming the closure of key large deals under current macro conditions, in response to the uncertain environment. ' We expect IT services companies to post modest growth in FY26E, constrained by cautious client spending and a challenging demand environment. Tier-I players are expected to grow in the range of -2.2% to 4.0%, while mid-tier firms are likely to outperform with growth of 5% to 28%,' said the brokerage firm. The Nifty IT Index has surpassed the broader market's performance by 2.2% in the past month, fueled by renewed optimism stemming from the US-China trade deal. 'We remain constructive on firms with diversified portfolios catering to both costs takeout and discretionary IT spending. Within large caps, we favor TCS and Tech Mahindra for their balanced exposure and execution strength. In the mid-cap space, Coforge stands out for superior growth prospects and margin resilience,' the firm said. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
03-06-2025
- Business
- Economic Times
NFO Alert: DSP Mutual Fund launches index funds on IT and Healthcare sectors
The IT and healthcare sectors benefit from diversified global revenues, which reduce their dependence on domestic economic cycles. DSP Mutual Fund has launched two new index funds — the DSP Nifty IT Index Fund and the DSP Nifty Healthcare Index Fund. These offerings provide investors a strategic avenue to gain exposure to the IT and healthcare sectors, both known for their relative resilience in volatile equity markets. The new fund offer, or NFO, for both funds, is open for subscription and will close on June 16. The DSP Nifty IT Index Fund aims to replicate/track the Nifty IT Index and would be investing in the top 10 IT companies by free float market capitalisation. The Indian IT sector has demonstrated smooth earnings growth with relatively low earnings variability, which has helped to reduce earnings surprises. Over the last 12 years, the Nifty IT index has delivered consistent earnings growth, outperforming many other sectors. While the IT sector has underperformed the broader market in recent years, historical cycles suggest potential for a turnaround, making this an opportune moment for investors to consider sector-focused exposure. Also Read | NFO Insight: Nippon Income Plus Arbitrage Active FoF opens. Is it time to add this emerging category to your portfolio? The DSP Nifty Healthcare Index Fund aims to replicate or track the Nifty Healthcare Index, investing in the top 20 healthcare companies based on free-float market capitalisation. Notably, India's healthcare sector accounts for a relatively small share of the country's total market capitalisation compared to developed and emerging markets. This indicates significant growth potential, supported by expanding healthcare infrastructure, rising insurance penetration, and ongoing medical innovation. "The launch of the DSP Nifty IT Index Fund and DSP Nifty Healthcare Index Fund offers investors a balanced approach to participate in sectors that combine growth with resilience. In uncertain market environments, defensive sectors like IT and healthcare have seen lower drawdowns, with the potential to deliver attractive returns,' said Anil Ghelani, CFA, Head of Passive Investments & Products at DSP Mutual Fund.'By strategically including low-beta sectors such as Information Technology and Healthcare, investors can construct a more resilient and efficient portfolio, which may help them optimise returns and effectively manage market risk. Defensive sectors are currently underrepresented in broader indices, and history shows that when underweight, sectors like IT and Healthcare tend to outperform the market over the following year. Our disciplined passive management approach aims to closely track these sectors, helping investors capture structural growth with lower volatility,' said Gurjeet Kalra, Business Head – Passive Funds, DSP Mutual Read | Gold prices may fall 12-15% in next 2 months, warns Quant Mutual Fund Defensive sectors such as Information Technology (IT) and Healthcare have historically exhibited low beta relative to the broader equity market, meaning they are less affected by market downturns, economic crises, or geopolitical events. For instance, during the Global Financial Crisis (Jan – Oct 2008) and the Covid-19 pandemic (Jan – March 2020), Nifty Healthcare and Nifty IT indices outperformed the broader Nifty 500 Index by experiencing lower drawdowns and quicker sectors benefit from diversified global revenues, which reduce their dependence on domestic economic cycles. To put this in context of numbers, ~ 96% of total revenues for the companies in the Nifty IT Index come from various global markets other than India. Notably, 52% of the total revenues for companies in the Nifty Healthcare Index are derived from global markets, compared to just 25% for companies in the Nifty 50 Index.
Time of India
03-06-2025
- Business
- Time of India
NFO Alert: DSP Mutual Fund launches index funds on IT and Healthcare sectors
DSP Mutual Fund has launched two new index funds — the DSP Nifty IT Index Fund and the DSP Nifty Healthcare Index Fund . These offerings provide investors a strategic avenue to gain exposure to the IT and healthcare sectors, both known for their relative resilience in volatile equity markets. The new fund offer, or NFO , for both funds, is open for subscription and will close on June 16. The DSP Nifty IT Index Fund aims to replicate/track the Nifty IT Index and would be investing in the top 10 IT companies by free float market capitalisation. The Indian IT sector has demonstrated smooth earnings growth with relatively low earnings variability, which has helped to reduce earnings surprises. Over the last 12 years, the Nifty IT index has delivered consistent earnings growth, outperforming many other sectors. While the IT sector has underperformed the broader market in recent years, historical cycles suggest potential for a turnaround, making this an opportune moment for investors to consider sector-focused exposure. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Also Read | NFO Insight: Nippon Income Plus Arbitrage Active FoF opens. Is it time to add this emerging category to your portfolio? The DSP Nifty Healthcare Index Fund aims to replicate or track the Nifty Healthcare Index, investing in the top 20 healthcare companies based on free-float market capitalisation. Notably, India's healthcare sector accounts for a relatively small share of the country's total market capitalisation compared to developed and emerging markets. This indicates significant growth potential, supported by expanding healthcare infrastructure, rising insurance penetration, and ongoing medical innovation. Live Events "The launch of the DSP Nifty IT Index Fund and DSP Nifty Healthcare Index Fund offers investors a balanced approach to participate in sectors that combine growth with resilience. In uncertain market environments, defensive sectors like IT and healthcare have seen lower drawdowns, with the potential to deliver attractive returns,' said Anil Ghelani, CFA, Head of Passive Investments & Products at DSP Mutual Fund. 'By strategically including low-beta sectors such as Information Technology and Healthcare, investors can construct a more resilient and efficient portfolio, which may help them optimise returns and effectively manage market risk. Defensive sectors are currently underrepresented in broader indices, and history shows that when underweight, sectors like IT and Healthcare tend to outperform the market over the following year. Our disciplined passive management approach aims to closely track these sectors, helping investors capture structural growth with lower volatility,' said Gurjeet Kalra, Business Head – Passive Funds, DSP Mutual Fund. Also Read | Gold prices may fall 12-15% in next 2 months, warns Quant Mutual Fund Defensive sectors such as Information Technology (IT) and Healthcare have historically exhibited low beta relative to the broader equity market, meaning they are less affected by market downturns, economic crises, or geopolitical events. For instance, during the Global Financial Crisis (Jan – Oct 2008) and the Covid-19 pandemic (Jan – March 2020), Nifty Healthcare and Nifty IT indices outperformed the broader Nifty 500 Index by experiencing lower drawdowns and quicker recoveries. These sectors benefit from diversified global revenues, which reduce their dependence on domestic economic cycles. To put this in context of numbers, ~ 96% of total revenues for the companies in the Nifty IT Index come from various global markets other than India. Notably, 52% of the total revenues for companies in the Nifty Healthcare Index are derived from global markets, compared to just 25% for companies in the Nifty 50 Index.
