Central Huijin Investment Ltd. said it will continue to increase holdings of exchange-traded funds, adding to signs that China’s authorities are stepping up efforts to revive the struggling stock market. Stocks rallied, offering a reprieve to investors who have had to grapple with wild market swings over the past two sessions. The onshore benchmark CSI 300 Index climbed more than 2 percent.
Open FlipInflation and the U.S. presidential election will be the biggest drivers of global markets this year, while liquidity challenges are a growing focus, according to traders surveyed by JPMorgan. Some 27% of traders see inflation as having the biggest impact, followed by 20% for the November election, the survey published on Tuesday showed. Bonds and equities rallied late last year on hopes.
Open FlipShare indices ended lower on Monday, tracking the weakness in Asian markets, but there were several individual stocks in the market that were in action and public sector stocks were among them.The benchmark Nifty 50 ended 0.4% down at 21771.70 points, and the Sensex closed 0.5% lower at 71731.42 points. On the other hand, the Nifty PSE index closed 2% higher at 9189.20 points.
Open FlipFounder and fund manager of Right Horizons, Anil Rego, believes the Reserve Bank of India will maintain status quo in its first policy decision of 2024 on February 8. Inflation has been rising but Rego doesn't expect rate cuts. He advises caution on PSU stocks due to high valuations and sees opportunities in sectors such as cement, infrastructure, tourism, defence and Nano DAP.
Open FlipIn summary, the 2021 election year budget has followed convention and focused on maintaining government functioning without committing to new initiatives. Indirect tax trends show an increase in GST revenue and improved efficiency in customs processing. The budget includes measures for enforcing discipline in high tax evasion sectors, distributing credit among multi-locational firms.
Open FlipBoard members of Tesla are giving Elon Musk a lot of leeway due to his visionary leadership in popularizing electric cars and dominating the aerospace market with SpaceX. However, recent allegations of drug use and close financial ties between directors raise concerns about their independence. Regulatory regimes across many economies have become stringent due to past scandals.
Open FlipVirgin Galactic reported an alignment pin detachment from its VMS Eve carrier jet during post-flight reviews and notified the FAA. The company stated that the issue did not pose a danger to the crew or vehicles, and the flight was deemed safe and successful. Further updates will be provided after a review is completed.
Open FlipThere has been a significant rise in jobseekers from fintech company Paytm in the last 15 days, with over 6,000 active and accessible talent currently in the job market. This is believed to be a result of recent events such as AI automation leading to layoffs and RBI restrictions on Paytm Payment Bank. Employees are looking for job security and stability amidst uncertainty about the future.
Open Flip1. Indian stock market indices declined due to heavy selling in index heavyweights, pointing to increased volatility and investor apprehension. 2. Stocks of state-owned companies have surged past private peers, causing concern over a potential short-term shakeout and profit booking. 3. Paytm Payments Bank faced regulatory action for alleged regulatory and compliance lapses.
Open FlipExperts advise caution in the stock market, citing bearish candlestick patterns and upcoming events such as the Monetary Policy Committee meeting. The Nifty 50 and BSE Sensex both saw declines on February 5, while stocks like Cipla, Bharat Forge, and Redington India showed positive performance. These stocks may continue to perform well, with Cipla expected to reach levels of Rs 1,550.
Open FlipInterest rates are expected to fall as central banks, including the Reserve Bank of India, get ready to cut them. While bank fixed deposits may seem attractive, there have been instances of depositors facing issues with accessing their money. However, India's banking sector has improved since 2016-17 and according to recent data, the health of the sector is showing positive signs.
Open FlipAsian shares rose slightly on Tuesday, boosted by a rebound in Chinese markets and expectations of a ceasefire in the Middle East. However, investors were still cautious after Wall Street's decline and uncertainties about a Federal Reserve rate cut. China has taken steps to support its stock market, while the Australian central bank is expected to keep rates unchanged.
Open FlipDollar steady as traders await Fed decision and US jobs data. Markets predict a 46.6% chance of rate cuts in March, down from 73.4% a month ago. FOMC meeting may not be as dovish as expected, says analyst. Eurozone GDP data to be released, expecting weaker outlook than US. ECB members disagree on timing of potential rate cut. BOJ optimistic on investment outlook, but uncertain about wage gains.
Open FlipHDFC Bank clarified that the recent RBI approval for acquiring a stake in IndusInd Bank was for its Asset Management Company and Life Insurance arms, not HDFC Bank itself. The approval is valid for one year and allows HDFC Bank to hold up to 9.50% of IndusInd Bank's paid-up share capital or voting rights. It was emphasized that HDFC Bank as a promoter had to seek approvals from RBI.
Open FlipChinese regulator tightens trading restrictions to prevent market rout, following recent record low in CSI-300 index. Bank of Japan prepares to end negative interest rates and revamp monetary framework, while Softbank-backed Invitae files for bankruptcy amid $1.5 billion debt. Drug maker Novartis bids for cancer treatment company MorphoSys, and Yandex sells Russian assets.
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