Latest news with #NuvamaAlternative&QuantitativeResearch
Mint
12 hours ago
- Business
- Mint
Trent share price: Why is this Tata group stock rising despite the stock market crash? EXPLAINED
Trent share price in focus today: Shares of Tata Group's retail arm, Trent, rose 3% on June 23 to hit a five-month high of ₹ 6,078 apiece, outperforming a weak broader market as the stock was officially included in the BSE Sensex today, a move expected to trigger $330 million in passive inflows, about 5.8 times its average daily volume (ADV), according to Nuvama Alternative & Quantitative Research. The Tata Group stock has been buzzing of late on Dalal Street, despite the Indian stock market being under pressure amid rising tensions in the Middle East, as the conflict between Iran and Israel deepens. Optimism surrounding the stock was fueled by the company's continued commitment to its long-term target of achieving 25% annual growth, with a focus on value fashion brand Zudio, expansion into micro-markets, and entry into new categories, the the retailer told analysts at its investor day on June 18.
Mint
3 days ago
- Business
- 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.
Mint
29-05-2025
- Business
- Mint
Ather Energy to Borana Weaves: IPO-lock-in expiry for 61 companies to release $21 bn worth of shares in 4 months
IPO lock-in expiry: A total of 61 companies are slated to have their pre-listing shareholder lock-ins lifted between May 28, 2025 and September 22, 2025, which could potentially free up shares amounting to $21 billion, according to a report by domestic brokerage Nuvama Alternative & Quantitative Research. Some of the key companies that will witness IPO lock-in expiries include recently listed Ather Energy and Borana Weaves. While the value of shares set to be open for trading pertains to the total lock-up opening shares, it's important to understand that not all of these shares will be sold. This is because a sizable portion of these shares is also held by the promoter and promoter group companies. Nuvama said it has only considered those companies that got listed on the Indian stock exchanges by May 26, 2025. The lock-in period for an IPO is a specified duration during which certain shareholders, like promoters and anchor investors, are prohibited from selling their shares. These lock-in regulations are designed to promote stock price stability and allow the company time to establish itself in the market after its IPO. The duration of the IPO lock-in period varies depending on the category of investor — such as promoters, anchor investors, and non-promoter shareholders. Here is a detailed list of companies set to face IPO lock-in expiry over the next few months: Only Ather Energy and Borana Weaves shares are among those that will see one-month and three-month IPO lock-in expiries. Around 21 million shares of Ather Energy will be available for trade on June 2, followed by another 21 million on July 31. Meanwhile, 2 million shares of Borana Weaves will be available for trading on June 23, and an additional 2 million will be up for trading on August 21. Ather Energy shares are currently trading below their IPO price of ₹ 321 apiece. The stock had listed at ₹ 328 in May. Meanwhile, Borana Weaves stock had listed two days ago at ₹ 243 as against the IPO price of ₹ 216. Today, the stock closed the session at ₹ 232.55, below its listing price but above the issue price. Some 28 companies will see their six-month IPO lock-in expiry between June 2 and August 18. Enviro Infra, Vishal Mega Mart, Sai Life Sciences, Mamata Machinery, Unichem Aerospace and Dr Agarwal's Health Care are some of the companies up for six-month lock-in expiries. Disclaimer: 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.
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Business Standard
15-05-2025
- Business
- Business Standard
Fund managers lapped up IT stocks in April after index correction
As per an analysis by Nuvama Alternative & Quantitative Research, companies in the information technology (IT) sector found favour among fund managers following a sharp correction in the IT index BS Reporter Mumbai Listen to This Article Markets rose for a second straight month in April with net flows from both domestic mutual funds (MFs) and foreign portfolio investors (FPIs) remaining positive. MFs bought shares worth ₹17,000 crore, while FPIs pumped in ₹10,400 crore. Monthly disclosures by equity MF schemes gives a peak into companies that were on the radar for fund managers. According to an analysis by Nuvama Alternative & Quantitative Research, companies in the information technology (IT) sector found favour among fund managers following a sharp correction in the IT index. MFs pumped in close to ₹3,000 crore in Infosys and another ₹2,400 crore in
Mint
15-05-2025
- Business
- Mint
Nifty logs highest close in 7 months as conflict fears recede. But volatility lingers.
India's benchmark Nifty 50 index surged past the key 25,000 mark on Thursday, notching its highest close in seven months amid signs of easing geopolitical tensions. The rally coincided with the weekly derivatives expiry, pushing volume turnover on the National Stock Exchange to ₹ 1.28 trillion—the highest since 27 March's ₹ 1.5 trillion mark. Besides, potential short covering investor sentiment got a lift after US President Donald Trump said India had offered a 'zero-tariff' trade deal for American goods. However, after market hours, India dismissed Trump's claim with external affairs minister S. Jaishankar clarifying that trade talks with the US were still ongoing and 'complicated'. Adding to the market buzz, MSCI India's upcoming index rejig on 30 May likely prompted mutual funds and exchange-traded funds (ETFs) tracking the index to begin realigning their portfolios. According to Abhilash Pagaria, head of Nuvama Alternative & Quantitative Research, India could see passive inflows of nearly $200 million from foreign institutional investors (FIIs) due to these changes. 'India continues to hold its position as the second-largest country weight in the MSCI EM (emerging market) index, maintaining a weight close to 19.5%. With the latest changes, the stock count will rise from 157 to 159,' he said. On Thursday, Nifty 50 jumped 1.6% higher to settle at 25,062.10 points, the highest since it reached 25,127.95 on 14 October 2024. The S&P BSE Sensex climbed 1.5% to close the day at 82,530.74 points, the highest since 82,497.1 on 3 October. Thursday belonged to the largecaps, which outshone their midcap and smallcap peers. The Nifty Midcap 100 edged up just 0.7% and the Nifty Smallcap 250 managed a modest 0.8% gain. Irrespective of geopolitical developments, investors need to focus on 'fundamentals like economic growth, where India stands out among major economies, a falling interest rate regime, lower oil prices, and relatively robust earnings, to name only a few', said Sunil Singhania, founder of Abakkus Asset Manager. Sandeep Bagla, chief executive of TRUST Mutual Fund, said while the worst of geopolitical tensions may have eased, volatility could still remain elevated in the near future. 'India is a distinct and attractive opportunity compared to other emerging markets,' he said, adding, however, that although investors have several opportunities on a relative basis, valuations remain high. Still, Bagla remains optimistic about the long-term prospects of sectors such as defense, premium consumption, and financials. On Thursday, all sectors ended in the green with Nifty Auto and Nifty Realty leading the charge, gaining 2% each. In terms of stocks, index heavyweights Reliance Industries Ltd, Infosys Ltd, and ICICI Bank Ltd were the biggest contributors to the rise in Nifty 50 index. Asian markets lost momentum on Thursday—Japan's Nikkei, China's CSI 300, Hong Kong's Hang Seng, and South Korea's Kospi all lost about 1%. India faced heightened concerns the past fortnight due to the escalating conflict with Pakistan, sparking a wave of hedging activity. However, following the ceasefire between both nations, India's equity market experienced a relief rally. The positive shift was further supported by a global rebound driven by easing tensions in US-China trade talks. The big question now is how long this momentum can keep its stride. 'Sustenance in the long run will depend on market earnings,' said Jitendra Sriram, senior fund manager, Baroda BNP Paribas Mutual Fund. The relief rally post the brief India-Pakistan conflict has been the single biggest factor for the near-term optimism. Also, any let up in global tariff wars could mean that global growth may not suffer as much as has been feared, Sriram explained. Also, the contours of Trump's final proposals for the US pharmaceutical sector were also relatively watered down from the original proposals. This also fueled some pick-up in global plays like metals, technology, and pharmaceuticals, which have meaningful weights in Indian indices, Sriram added. Corporate earnings have also been weighing on the markets. Bernstein Research said in a 13 May report that 'the single largest concern that we… received from investors has been on the earnings risks front'. But the brokerage does not expect more corporate rating downgrades for now. Overall, there is a slight slowdown with NSE100 firms growing at 10%, compared with 11% in the previous quarter. However, the worst-case earnings projections that resulted from continuous downgrades since September have not materialized. About 51% of companies exceeded market estimates by over 4% in the final quarter of 2024-25, the highest since June 2023, Bernstein said. The percentage of companies missing estimates was at its lowest since September 2021. (With inputs from Ram Sahgal)
