Cycling Financial News

US Fed has finally cut its interest by 50 bps. Our analysis showcases that since the turn of the century the US has witnessed 3 instances of a pivot of 50 bps rate cut, which were driven by the need to reduce a recession. Excluding COVID, US markets corrected as much 24% to 28% one year post the first cut. Indian markets too followed suit, correcting 15% to 30% during these two instances. However, this time US GDP is still growing at around 2% and fears of recession are lower. Theoretically, falling interest rates in the longer run should revive demand, increase capex and lower cost of capital and increase valuations and earnings of markets, especially if the economy is growing. India in our eyes falls under this basket of “growing economies with stable corporate earnings drivers”. Surge in domestic liquidity led to belief the equities could delink from the world and US markets at least shunting any significant falls.

Subscribe to enjoy similar stories. The Nifty IT index surged 2.5% in early trading on Friday, buoyed by Accenture’s latest earnings report. The global IT major reported 5% year-on-year revenue growth in constant currency (CC) for the quarter ended August (Q4FY24), exceeding the mid-point of its 2-6% guidance.

equity mutual funds had a portfolio turnover ratio of more than 100% for the last three consecutive months. ETMutualFunds looked at the portfolio turnover ratio of around 266 equity mutual funds for three straight months. A higher portfolio turnover ratio indicates continuous buying and selling of stocks by the fund managers. The continuous churning of the portfolio by the fund manager increases the costs and drags down the return of the scheme. Bandhan Large Cap Fund had a portfolio ratio of more than 150% in all the three months. Baroda BNP Paribas ELSS Tax Saver Fund, an ELSS fund, had a portfolio turnover ratio of more than 100%.

Sandip Sabharwal, asksandipsabharwal.com, says portfolio allocation varies from person to person and the age group which they are in, etc. But for people who do not stay in the US and their currency is a reserve currency, gold has always been a very good investment. Today, it is one of the biggest sources of wealth for Indians as per current calculations. It is almost 75% of the country's GDP. It is pure currency and can be easily encashed at any point of time. Gold should be 10-15% of the asset allocation. Bonds and debt depend on person to person. But everyone should have one year of expenditure and some additional amount in fixed income and bonds to take care of your need if you cannot pull out of risky assets. This massive rally which is underway in auto, completely undoes what you were saying a couple of weeks ago, the inventory buildup and the fact that there was a lot of discounting and all those clamours which were coming through. What do you make of the auto sector right now? Sandip Sabharwal: When we were discussing the industry at that time, the two-wheeler stocks were running up and the four-wheelers were correcting and what I had said was that in anticipation of festival demand, it is likely that the four-wheelers will also see some sort of revival going forward. Now, it is a question of delivery. These companies have to deliver on the festival season sales and that is the challenge.

Subscribe to enjoy similar stories. India surpassed emerging markets peers to again solidify its status as a premier destination for foreign portfolio investors (FPIs), drawing consistent inflows despite bouts of turbulence and concerns over high valuations. Overseas buyers net invested $5.9 billion into domestic stocks this month alone so far, according to data from Bloomberg, attracted by the country’s economic fundamentals and beginning of the rate cut cycle in the US.

Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...

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The stock market’s unrelenting rally this year has claimed its share of celebrity bears, the best known beingJPMorgan Chase & Co. market strategist Marko Kolanovic.

Reasons to buyReasons to avoidThe Bosch Inverter Control Fully Automatic Front Load Washing Machine is designed for convenience and efficiency. With a 7kg capacity, it's suitable for medium-sized families. The inverter motor ensures quiet and energy-efficient operation, while the VarioDrum's wave-droplet design is gentle on your clothes.

Federal Reserve policy makers later in the day for clues on the pace of interest rate cuts. The U.S. currency rebounded strongly overnight from a more than one-year low to the euro and 2 1/2-year trough versus sterling.

Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...

Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...

Since graduating with a degree in economics from the University of Birmingham in 2018, Joel has worked as a financial market/cryptocurrency analyst. He firmly believes that emerging crypto technology...

FIIs lead sectoral churning in the market ahead of the beginning of the rate-cut cycle in India, private bank stocks have once again begun to outperform their high-flying PSU peers. In the last one month, the private bank index has risen 8% while PSU banks have lost 4.3% of their value. HDFC Bank and ICICI Bank led the turnaround in private banks with strong support coming from other heavyweights like Axis Bank, Kotak Mahindra Bank, Bandhan Bank and IndusInd Bank.

BEIJING — People's Bank of China Gov. Pan Gongsheng is set to speak to reporters Tuesday alongside two other financial regulator heads.

With holiday shopping season around the corner, experts recommend caution when your favorite store offers you a credit card

Aadhar Housing Finance is large, affordable-focused and yet undervalued, domestic brokerage firm JM Financial initiated coverage on the stock with a ‘buy’ rating and a target price of Rs 600. The target price given by the domestic brokerage firm signals an upside potential of 30% from Friday’s closing price of the stock.

Over time, certain institutions have improved their ability to harness this “madness of men”.

Federal Reserve started its rate easing cycle last week. The benchmark 10-year yield is likely to move between 6.75% and 6.78% on Monday, compared with its previous close of 6.7626%, a trader with a primary dealership said.

Subscribe to enjoy similar stories. A dramatic surge in purchases of index futures contracts and in cash buying by foreign investors on Friday signalled a sharp improvement in their sentiment towards India. The bullishness became apparent after the US Federal Reserve cut its policy rates by an outsized 0.5 percentage points on Wednesday.

Subscribe to enjoy similar stories. Mumbai: Known as the ‘Dean of Valuation’, Aswath Damodaran, professor of finance at the Stern School of Business at New York University, is out with a new book, The Corporate Life Cycle. Companies have a life cycle very much like humans—they are born, witness growth spurts, mature and then inevitably decline.