Wed, Jun 26, 2024 5:20 PM
US consumers are making economic doomers look silly
A Flip by Shubhangi Gupta
Despite S&P 500's 15% gain in first half & 50% from its bear market bottom, cracks are appearing in individual companies & sectors, with those having dicey balance sheets underperforming. The S&P 500 equal-weighted index has lagged, & risk premiums for global corporate bonds have narrowed. ETF investors are showing a strong preference for investment-grade fixed income over high-yield obligations.
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Haridas Kanani, promoter of Neogen Chemicals, sold a 5.67% stake in the company, retaining majority ownership. The stake was bought by institutional investors SBI Mutual Fund & White Oak Group. Proceeds from sale will be used for the promoter's long-term financial plans & goals. The sale resulted in a 4.76% decline in Neogen Chemicals' shares, which settled at ₹1,592.85, still up 8% year-to-date.
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Indian markets experienced a sharp 5.93% decline on June 4, 2024, but recovered within three trading days. Historical data shows that large single-day declines often indicate widespread panic and fear among investors. In 13 instances of 4%+ declines in Nifty 50 between 2011 and 2024, the average recovery time was 38 days, with markets recovering within 30 days in 9 out of 13 instances.
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