MSCI Financial News

MUMBAI : Foreign investors in India’s equity markets have shed their pre-election jitters and remain on a bullish streak ahead of the Union budget, assured of political and economic continuity with Narendra Modi returning as Prime Minister for a third successive term. Nirmala Sitharaman, in her second successive term as India’s finance minister, will present the federal budget for 2024-25 next month. Foreign institutional investors, or FIIs, have turnedbullish ahead of the budget not just in the cash segment of Indian equities but also on the derivatives segment.

It has been hard to make money in Chinese stocks. Unlike the U.S. market, even the country’s tech giants have disappointed investors in the past few years.

markets braced for a key U.S. inflation reading, while the yen lurked just shy of 160 per dollar level, keeping traders on alert for another round of intervention by Japanese authorities. Risk sentiment was also capped as hawkish comments from Federal Reserve officials kept near-term U.S. rate cut expectations in check in a boost to the dollar.

Asian shares are ending the week with a whimper after a recent rally to 26-month highs drew profit-taking, while the relentless strength in the U.S. dollar pushed the Japanese yen towards the intervention zone. Europe is set for a flat open, having bounced a day earlier as rate cuts there gathered pace. Both EUROSTOXX 50 futures and FTSE were little changed but S&P 500 futures rose 0.1% and Nasdaq futures gained 0.2%.

₹1,672.85 against its previous close of ₹1,669.35 but soon fell about 1.5 per cent to the level of ₹1,644.85 on profit booking.Market benchmark Nifty 50 also erased all gains and declined by 0.3 per cent after hitting a fresh record high of 23,667.10.The HDFC Bank share price has gained nearly 7 per cent in the last seven sessions. However, the stock's last one-year performance has been quite sombre.

Asian shares are ending the week with a whimper after a rally to 26-month highs earlier this week drew profit-taking, while the strength in the U.S. dollar as central banks in Europe cut rates kept pressuring the yen towards the intervention zone. Overnight, the Swiss National Bank cut rates for a second time while the Bank of England opened the door to an easing in August after holding rates steady. Sterling, the Swiss franc and the euro fell, lifting the dollar broadly.

₹1,757.50 hit on 3 July last year, following the merger of mortgage lender HDFC with the bank. The anticipation among domestic investors is of the so-called foreign room of the stock widening to 25% from March quarter’s 24.94%.Foreign room refers to the proportion of shares still available to foreign investors relative to the foreign ownership limit, which is 74%.

Investors may want to consider hedging their emerging market plays, according to one exchange-traded fund expert.

Asian stocks took a breather on Thursday, hovering near their highest in two years as traders waited for more U.S. policy clues, while sterling was steady before a Bank of England meeting where rates are expected to remain unchanged. Apart from the BoE, investors will also watch out for central bank decisions from Switzerland and Norway on Thursday to set the tone for global rates outlook.

In its annual results published today (18 June), AWEM reported a net asset value total return of 11.8% for the period between its listing on 15 March 2023 and 31 March 2024. This compared to a 7.9% return from its benchmark, the MSCI Emerging Markets index. Chair Martin Shenfield commended the trust's investment manager, Acorn Asset Management, for its bottom-up stock selection approach which has been a «key driver of performance», despite the challenges faced by emerging markets over the period. He explained the approach supported the manager's «overweighting of mid- and small-cap st...

Asian stocks fell on Friday as investors pondered the outlook for U.S. rates after the Federal Reserve tempered its rate-cut views even as inflation came in softer than expected, while the yen was shaky before the Bank of Japan's policy meeting. The dollar was hovering near a one-month high on the back of the hawkish tone from the Fed this week, while political uncertainty in Europe kept the euro under pressure.

MSCI'S global equities index edged higher on Monday while investors waited for key U.S. inflation data and central bank policy meetings but the euro fell after French President Emmanuel Macron called a snap election. U.S. Treasury yields rose as investors digested Friday's labor market data and looked toward consumer price data and a Federal Reserve policy announcement this week. Investors are also waiting on Bank of Japan policy news.

Asian stocks sank on Monday as traders heavily pared back on bets for Federal Reserve rate cuts this year given a still-tight U.S. labour market, while a snap election call in France sparked wider political concerns and weighed on the euro. Trading was thinned in Asia with Australia, China, Hong Kong and Taiwan out for public holidays, but MSCI's broadest index of Asia-Pacific shares outside Japan still slumped 0.46%.

defence and infrastructure plays also offer strong earnings growth prospects, but we find limited upside at current expensive valuations, which are pricing in all the good news. We expect the Union government to achieve a lower fiscal deficit of 5% in FY25.

policy reforms and rapid economic growth under Prime Minister Narendra Modi to justify its record premium over emerging-market peers. Now, with the leader facing coalition politics after a weaker-than-expected mandate in this week’s national election, the so-called Modi premium is under scrutiny. Investors want to see evidence that Modi can sustain his reforms with the same vigor, while keeping alliance partners happy and avoiding populist measures to regain public support.

stocks in the wake of a possibly narrower-than-expected victory for Prime Minister Narendra Modi has weighed on the broader Asian market. The 10 biggest losers on the MSCI Asia Pacific Index are all from India. They consist of state-run companies and units of the Adani group, which rallied on Monday after exit polls initially projected a landslide win for Modi.

PB Fintech, Sundaram Finance, NHPC, Phoenix Mills, Indus Towers, Bosch, Jindal Stainless, Solar Industries, Torrent Power, Mankind Pharma, JSW Energy, Canara Bank and Thermax in the MSCI Global Standard Index. Read here: MSCI May 2024 rejig: JSW Energy, Canara Bank among 13 additions; Paytm, Berger Paints among 3 exclusionsPB Fintech is estimated to receive the highest inflow worth approximately $283 million, followed by Sundaram Finance at $243 million, as per data by Nuvama Institutional Equities.Indus Towers, Phoenix Mills and NHPC are expected to see inflows in the range of $216 million - $234 million.On the other hand, the exclusions from the index include Berger Paints, Indraprastha Gas and One 97 Communications, the parent company of fintech giant Paytm.

rupee ended higher on Thursday, halting a three-day losing streak, supported by dollar inflows related to the rebalancing of the MSCI equity indices. The rupee ended at 83.3175 to the U.S. dollar, compared with the close of 83.3450 in the previous session. The local currency had dipped to 83.4375 earlier in the session, following a further rise in U.S. Treasury yields.

Asian stocks were a sea of red on Thursday and bonds slid on bets global interest rates would stay higher for longer, as investors looked to key inflation readings at the end of the week for further clues on the future path of monetary policy. The dollar rode U.S. Treasury yields higher while gold remained under pressure on renewed expectations that the Federal Reserve is unlikely to cut rates any time soon.

The investor argued strongly that following a value strategy in India could be more lucrative. To support his point, he presented data from the MSCI India Value and MSCI India Growth indexes over 3, 5, and 10-year periods. In each case, the Value index outperformed the Growth index. He was confident that this trend would continue in the future.

Asian stocks fell on Friday, while the dollar advanced as strong U.S. economic data bolstered the prospect of interest rates staying higher for longer and the Federal Reserve taking its time in cutting rates, keeping investors away from risky assets. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.5% and was on course for a 1% weekly decline, snapping its four-week winning streak. Japan's Nikkei fell 1.45%.