INVESTING UPDATE 24

  In the coming week, after consistent run up in past six weeks, the market is expected to see a rangebound trade and consolidation, with major focus on the Fed meet outcome and the Powell commentary. The equity markets had a spectacular run in the week ended December 8, reporting the biggest weekly gain in last 16 months and hitting the much-awaited psychological 21,000 mark for the first time. Favourable state elections results hinting more infrastructure investment from government, better-than-expected economic growth for Q2FY24, increase in full year GDP growth estimates by RBI while maintaining status quo on policy rates & retaining full year inflation forecast, strong hopes of ending rate hike cycle despite inflation concerns, and stable oil prices lifted market sentiment. In the coming week, after consistent run up in past six weeks, the market is expected to see a rangebound trade and consolidation, with major focus on the Fed meet outcome and the Powell commentary espe...

KEY POINTS The New Zealand dollar jumped 1% to nearly 0.62 against the U.S. dollar, hitting a near four-month high. The Reserve Bank of New Zealand holds official cash rate at 5.5%, warned rates could go higher to tackle inflation.   The  New Zealand dollar  jumped 1% to nearly 0.62 against the  U.S. dollar  after the Reserve Bank of New Zealand held its official cash rate at 5.5% and warned that rates could go higher to tackle inflation. The kiwi dollar jumped to its highest level in nearly four months after the decision. The currency is down 2.5% so far this year, and is headed for its third straight yearly decline. The central bank noted  that inflation remained too high  and said monetary policy will need to remain restrictive in order to control it. “The official cash rate   will need to stay restrictive, so demand growth remains subdued, and inflation returns to the 1 to 3 percent target range,” the RBNZ said in its monetary policy statement...

"What market participants have told us that we will need to start at T+0 and then move to instantaneous," Buch said. SEBI Chief Madhabi Puri Buch announced on November 25 that a roadmap has been devised for the same-day settlement of trades by March 2024, followed by an optional parallel system for instantaneous settlement. Addressing a press conference in Mumbai after SEBI's Board meeting, Buch stated that for instantaneous settlement, market infrastructure and brokers have emphasized the need for a technological path where the interim step should not be a one-hour delay but rather move directly from T+0 to instantaneous. Buch expressed satisfaction with the progress, stating, "The progress is very good, a lot of discussion has happened. A roadmap is pretty much ready. It is a parallel system that is completely optional." Regarding the timeline, she explained, "What market participants have told us is that we will need to start at T+0 and then move to inst...

After recent corrections from record high levels, the market is expected to be largely volatile and rangebound in the coming week, with focus mostly on global cues given the lack of domestic triggers, experts said.... Selling pressure sustained with bears tightening their grip over Dalal Street in the week ended December 16. The hawkish tone with hints of more rate hikes to control inflation by Federal Reserve after 50 bps hike in interest rates in December policy meeting, and growing recession fears in developed nations weighed on the market sentiment.  After  recent correction from record high levels, the market is largely expected to be volatile and rangebound in the coming week, with focus mostly on global cues given the lack of domestic triggers, experts said.     Most of sectors slipped into the red with maximum pressure in FMCG, technology, and MNC, while Bank Nifty also fell nearly a percent for the week largely on profit booking after crossing 44,000 mark du...

the recent rally in metals, real estate and media stocks had led to some overvaluation, feel experts. sectors like metals might remain under pressure for the near term due to global constrains .  Renowned investor and ‘big bull' Rakesh Jhunjhunwala churned in his stock portfolio during the quarter ended June 2022, and partially or completely exited from 10 stocks, while adding one name. The ace investor marked a re-entry into a stock he had exited during January – March period, as he bought 1.4 per cent stake in farm equipment / industrial auto major, Escorts Kubota Ltd. At the end of December 2021, Jhunjhunwala's holding was at 5.4 per cent of total shareholding of the company. Now, the total value of his stake in the company stands at ~Rs 300 crore. With the correction in metals and crude prices, experts believe that the demand for farm equipment should rise, with a good monsoon boosting tractor sales. “India has so far received good rainfall this time and demand pickup was s...

 Healthy corporate earnings, coupled with the return of foreign institutional investors, aided the positive sentiment. Indian equity markets outpaced most global markets other than the Nasdaq in July, buoyed by declining commodity prices, expectations of a normal monsoon and the return of foreign investors. Expectations that central banks globally would adopt a softer policy stance after raising interest rates to cool inflation also helped. Both the BSE Sensex and the National Stock Exchange's Nifty rose over 9.5% each in July, in dollar as well as local currency terms, according to Bloomberg data. Nasdaq Composite index rose nearly 12% in July. In July, the S&P 500 rose 8.1%, the Nikkei 225 advanced 6.1%, the Straits Time Index jumped 5%, and the Dow Jones Industrial Average and CAC 40 gained 5% each. Ibovespa Brasil and FTSE 100 rose nearly 5% each while the Philippines and Korean stock exchange benchmarks rose 3% each. Deutsche Boerse AG, FTSE Bursa Malaysia, Jakarta Stock E...

      'ways in which we want to strengthen having forign currencies coming into India are very many and RBI and the ministry are fairly engaged in it,' Nirmala Sitharaman said,  The Indian government and the Reserve Bank of India are looking at ways to boost inflows into the country, the finance minister said on August 2.       “Ways in which we want to strengthen having foreign currencies coming into India are very many and RBI and the ministry are fairly engaged in it,” Nirmala Sitharaman said in the upper house of parliament in response to a lawmaker's question.      "There are discussions between the government and the RBI to see how best we can have various different similar such schemes through which we are able to draw foreign remittances directly," the minister said, but added the final call would rest with the central bank.       Rupee finding its natural course The minister added that the rupee, that has fallen o...