City Hill Financial News

By Ankika Biswas and Shashwat Chauhan

«Having said that, if you look at the valuations basically, we have started discounting FY26 and FY27, so that basically means that we are probably headed into a phase of time correction, consolidation, probably some amount of value correction that we should be prepared for,» says S Krishnakumar, Lion Hill Capital. Which camp are you in – the cautious, happy camp which has made a lot of money last three-four years and now taking it easy or still on the ball, completely looking for good ideas and not very cautious on the market. S Krishnakumar: I think I belong to the first camp and been cautious but invested, so we have been probably making good returns last three-four years. Of course, with all the news flow around us that we see, India is in a sweet spot in terms of foreign interest and also on domestic flows that are coming through.

By Akash Sriram and Zaheer Kachwala

By Herbert Lash and Marc Jones

Uber Technologies shot to a record high on Wednesday after announcing its first-ever buyback of $7 billion worth of company shares after a strong recovery in ride-share revenue and healthy demand in its food delivery business. The company posted its first annual net profit last week since it went public in 2019. Uber executives said they expect to make buybacks consistent over time.

S Krishnakumar, Founder & Director,Lion Hill Capital, says “a reversal in the interest rate cycle globally means that money is going to be available at a much lower cost and we are going to see more risk-on come through over the next couple of years. Also, the outcome of the state election results in India has removed uncertainties about political continuity following May 2024 elections. These two major factors have removed some uncertainty from markets and a rally that could have happened in the middle of 2024 has already happened in December ‘23 thereby front-ending a lot of the returns of 2024 in a way.” Which side of the argument would you lean on, given that on the one hand, how inherently domestic flows, and now increasingly overseas flows are also good, but on the other hand, the recent rally in the month of December has been pretty sharp? S Krishnakumar: A couple of uncertainties are out of the way. One is, the state elections in north India gave BJP a thumping victory and removed uncertainties about the central elections in May 24 which now seem to be very much in the bag for the BJP-led front.

Alibaba Group has scrapped plans to spin-off its cloud business, citing uncertainties created by US export curbs on chips used in artificial intelligence applications. The U.S.

By Sruthi Shankar and Amruta Khandekar

S Krishnakumar, Director, Lion Hill Capital, says “water, capex and water chemicals are big areas where there is a huge amount of growth that is kind of coming through. In addition to that, if you look at the green energy transition, people talk about hydrogen etc. A lot of global companies in India have their foot into those areas and we should look at some of the Indian listed entities of global MSEs. Valuations are a little steep because we are factoring in a lot of the next decade and less of the current numbers which are not as good as supportive valuations. So, one should definitely look at good entry points to get into some of these new trends.” We are seeing the US 10-year bond yield retreat to 4.8%. We are seeing positive global cues, but we are also seeing the Indian index in retreat mode. How should one look at it? In the near term definitely the global construct is not positive. Definitely, rising tensions in the Middle East is creating a lot of uncertainty on how this could go in the next one or two months. Also, the US 10-year has been moving up and hitting a 10-5% and above kind of a mark, bringing into focus the kind of stiff interstates kind of ahead of us for the next six to six months and more.

By Yuvraj Malik and Aditya Soni

(Reuters) — Media mogul Rupert Murdoch, 92, has stepped down as the chairman of Fox Corp and News Corp (NASDAQ:NWSA), ending a more than seven-decade career in which he created an empire spanning from Australia to the United States.

S Krishnakumar, Director, Lion Hill Capital, says a lot of change is coming in technology and the larger companies would be in a far better position to take advantage of these changes and invest for growth in that area. “So I would like to be more invested in largecap IT but at slightly better valuations. Given that the growth is kind of a little slow, we could probably wait for some corrections to get in there.”What about the IT space? IT has erased all the losses of this year and now deal visibility seems to be picking up. Would you buy any midcap IT, smallcap IT name or stick to largecaps? I think the valuations in small and midcaps in the IT space have been generally higher than the premium to the largecap companies. So one would probably look to buy largecap companies at better valuations relative to their own growth. Also there is the fact that they can handle all competitive intensity and also technology just like chatGPT, AI etc. I think a lot of changes are happening in the way delivery of IT is done and we are seeing a lot of investments going into artificial intelligence and ML.

data eased worries about a recession without raising fears of a Federal Reserve rate hike next week, while Arm Holdings soared in its stock market debut. SoftBank's Arm was valued at nearly $60 billion in a strong Nasdaq debut, with the chip designer's shares soaring nearly 25% in their first day of trading. Retail sales rose more than expected in August on higher gasoline prices, while initial claims for state unemployment benefits climbed to a seasonally adjusted 220,000 for the week ended Sept. 9 from 217,000 the week before. Monthly producer prices for final demand rose 0.7% last month, against expectations of a 0.4% increase.

Wall Street stocks ended lower on Tuesday as Oracle shares tumbled more than 13% after a weak forecast and surging oil prices deepened worries about persistent price pressures ahead of crucial inflation readings this week.Oracle shares dived to their lowest since June after the cloud-services provider forecast current-quarter revenue below targets and narrowly missed first-quarter expectations. Cloud-computing heavyweights Amazon.com and Microsoft each fell more than 1%, pressured by Oracle's weak forecast and by a rise in U.S. Treasury yields. Oil prices jumped more than 1%, building on a recent rally and stoking worries that sticky inflation could mean U.S.

By Ankika Biswas and Shristi Achar A

Upstreet, a local fintech that rewards shoppers with fractional shares on the ASX and US stock exchanges when buying everyday items, has shut shop seventeen months after it raised $3 million from investors.

By Noor Zainab Hussain, Chibuike Oguh and Jonathan Stempel

Six prominent asset managers have filed fresh applications to the US securities and exchange commission (SEC), for the approval of Ethereum (ETH) futures exchange-traded funds (ETFs). The filings come weeks after the regulator accepted spot Bitcoin (BTC) ETF applications in a span of one week.

Mercer Advisors has expanded its network of registered investment advisory firms with the acquisition of a $720 assets under management business in San Diego, California.

Six major asset managers including Grayscale and VanEck have filed fresh applications in a bid to launch Ethereum Futures (ETH) exchange traded funds (ETF) to United States customers.

By Carolina Mandl