Category: Business & Economy

Dipan Mehta, who is a Director at Elixir Equities, believes that the economy is facing some tough challenges. Right now, the stock market isn’t doing great, and this is happening because the fundamentals—like corporate earnings and GDP growth—are steadily declining. Even though there’s a lot of money to invest and many retail investors are active, it’s important to focus on the basics of the market.

Mehta feels the market is in a correction phase, meaning it might stay stagnant for a while. He suggests that it could be wise to hold about 15-20% of your investment portfolio in cash as a safety net. Recently, the market showed a surprising recovery, but that doesn’t change the underlying problems.

When asked about the pharmaceutical sector, Mehta shared that it’s been doing well because it feels safer during uncertain economic times. He recommends investing in big pharmaceutical companies, particularly Sun Pharma, which is doing well with its specialized products. Other companies to watch include Caplin Point, Lupin, and Strides.

Regarding retail, many specialized retail companies like Go Fashion and Manyavar have faced tough times recently. However, Mehta thinks that urban shopping could bounce back soon, and he’s keeping an eye on companies like IndiaMart and Affle India.

On real estate, Mehta is optimistic due to steadily growing values of properties, so he suggests investing in established companies like DLF and Oberoi Realty.

However, the cement industry is having a rough time. With low prices and slow growth, Mehta doesn’t recommend investing in this sector right now.

When it comes to future stock market predictions, Mehta expects the Nifty to reach around 26,000, though he acknowledges there will be uncertainties and market ups and downs next year. He also highlights an important event in early 2025, which could affect global markets and the economy.

The Securities and Exchange Board of India (SEBI) has announced some important changes to help small and medium businesses get listed on the stock market. Here’s what you need to know:

– New Rules for IPOs: Now, companies must show they are profitable before they can offer their shares to the public. There will also be limits on how much existing shareholders can sell at once.

– Lock-In Period: Company owners (promoters) will have to keep their shares locked up for a certain period, which helps keep the stock stable.

– Merchant Bankers: These are the banks that help companies go public. They cannot manage a company’s IPO if the key staff owns too much of its shares, helping avoid conflicts of interest.

– Streamlined Fund Process: SEBI will set specific timelines for when new funds need to be used and make it easier for Asset Management Companies (AMCs) employees to comply with rules.

– New Agency for Risk Verification: There will be a new body created to check and confirm risk-return metrics for investment advisors and traders to ensure they are acting responsibly.

– Electronic Payments: To make buying and selling shares faster, SEBI will require everyone with a demat account to use electronic payments.

– Investment Banking Changes: SEBI is separating investment banks into two categories based on their size. Bigger banks need to meet higher revenue goals to keep their licenses.

– Expanded Definition of UPSI: The term “Unpublished Price Sensitive Information” (UPSI) has been broadened to include more important news that could affect stock prices.

– Improved Governance for Debt Issuers: New standard rules will help protect investors in debt instruments.

– Mandatory Reporting for ESG: Companies will need to share their Environmental, Social, and Governance (ESG) reports with both their investors and the public.

– High-Value Companies Defined: The threshold to be classified as a High-Value Debt Listed Entity has increased from ₹500 crore to ₹1,000 crore, which means only larger companies will be categorized this way.

– New Guidelines for Special Purpose Entities: There will be stricter rules around who can manage Special Purpose Distinct Entities for better accountability.

– AI Responsibility: Lastly, businesses using artificial intelligence tools must ensure they handle data responsibly and follow the rules to keep the market fair.

These new measures aim to build a safer and more trustworthy financial market for everyone.

On Wednesday, the U.S. central bank, known as the Federal Reserve, decided to lower interest rates as expected. However, its leader, Jerome Powell, warned that any future cuts would depend on further improvements in stubborn inflation. This news surprised Wall Street, causing stocks to drop and bond yields to rise.

During a press conference, Powell explained that while inflation has started to get better since it peaked in 2022, it hasn’t improved as quickly as they hoped, especially in housing costs. He mentioned that the Fed is now considering how changes in government policies under President-elect Donald Trump might affect the economy. Additions like higher tariffs, tax cuts, and stricter immigration laws could create more inflation, which could impact how often the Fed lowers interest rates.

The Fed had already cut rates once in September and again this week, lowering the benchmark rate by a quarter percentage point. However, many experts thought there would be more cuts, but Powell’s comments suggested that might not happen. He noted that while the economy is doing well with low unemployment and growth, the path ahead is uncertain. This means the Fed will take a careful approach before making further cuts.

Now, officials expect interest rates to decrease slowly, projecting just two small cuts by the end of 2025. Despite the new lower rates, the path to reaching the Fed’s goal of 2% inflation could take until 2027. Powell emphasized that it is too early to predict how Trump’s upcoming policies will play out, and the Fed is discussing how tariffs might impact prices.

Mumbai: Shares of Va Tech Wabag dropped over 11% on Wednesday after the company revealed they lost a major ₹2,700 crore deal for a large seawater desalination plant in Saudi Arabia. The stock price even fell by 20% during the day, closing at ₹1,672.95 on the BSE.

However, some analysts believe this drop could be a good chance for investors to buy the stock. They point out that Va Tech Wabag still has a solid order book worth ₹11,900 crore and good prospects for growth in the future.

For companies like Va Tech Wabag, the first year of a desalination project usually brings in 10-12% of its expected annual earnings. The cancelled project would have had a net profit margin of 10-11%. Due to the cancellation, it’s estimated that the company’s profits for FY26 could decrease by 8.1%, according to analyst Dheeraj Ram from Ashika Institutional Equity Research.

Currently, the stock is valued at 35 times its predicted earnings for FY26, and this price drop makes it a potentially smart investment. In the last six months, Va Tech Wabag shares have risen by 49%, performing much better than the Nifty index, which only went up by 3%.

In their official announcement on Tuesday, the company mentioned that they were informed on December 16, 2024, that the desalination project has been cancelled due to the client’s internal processes. Va Tech Wabag is now talking to the client to understand why the deal was cancelled and expects a new tender to be issued soon. They plan to participate in the re-bidding process.

India’s tourism business is set to grow by more than 24% each year for the next five years! This boost will come from the country’s strong economy, a growing middle class, and government efforts to make traveling better for everyone, both local and international, according to Tourism Minister Gajendra Singh Shekhawat. In 2025, we expect the sector to grow between 12% and 13%.

The government is working on lots of projects to improve popular tourist spots and create new ones. Many famous vacation destinations are packed with visitors every weekend, showing a big demand that isn’t fully met yet!

A new report says that India’s tourism and hospitality sectors could create 6.1 million new jobs by 2036-37. Foreign tourist arrivals are also increasing as we approach the end of the year, getting closer to numbers we saw before COVID. Domestic tourism is booming, making it important to solve the problem of too many visitors and not enough places to stay, which is causing prices to rise.

Good hotels at popular locations can cost between $200-400 a night. Because of this, many upper middle-class Indian families are choosing to travel abroad. Meanwhile, international tourists prefer hotels costing $100-125 per night, which is why they also look at other countries.

Shekhawat added that the government is encouraging states to build more affordable, quality hotels, sharing smart policies that have worked in states like Rajasthan. The finance ministry has backed 40 tourism projects across 23 states, allocating around Rs 3,300 crore to support this. For instance, Goa is launching campaigns to promote attractions beyond its famous beaches.

To help tourists discover more about Kashmir, new sites are being developed with help from the World Bank. From January to August, over 6.19 million foreign tourists visited India, which is a slight 3.7% increase from last year but 10.4% lower than in 2019.

In good news, foreign exchange earnings have hit $20.5 billion this year so far, up from $18 billion last year and $19.7 billion in 2019. This is exciting because it means that even though fewer tourists are arriving, the money they’re spending is more than before!

The e-visa is now available for travelers from 168 countries and covers seven types of visits. We even offer multiple entry visas and are discussing visa-on-arrival options with some countries. Prime Minister Narendra Modi is asking Indian citizens living abroad to invite more people to visit India. People referred by them will not have to pay visa fees. We plan to provide 100,000 free visas to these travelers to help grow tourism even more!

Starting this month, many popular brands like Hindustan Unilever, Godrej, and Nestle will raise prices on everyday items like snacks, soaps, and cooking oils. This is happening because the costs of ingredients and materials have gone up. Prices for products like tea, edible oil, and skin creams will increase by 5-20%, making this the largest price jump we’ve seen in the past year.

The rise in prices is mainly because the import tax on edible oils went up by 22% this September, with more increases expected in 2024. Other essential ingredients, such as sugar and wheat, have also gotten more expensive this year.

Mayank Shah from Parle Products, which makes well-known biscuits like Hide & Seek, said they are raising prices but are hopeful people will still buy their products. However, recent sales figures show a different story. In October, India’s grocery market grew by 4.3% thanks to rural demand, but sales dropped by 4.8% in November, affecting both city and country shoppers.

Companies hope these price increases won’t cut too deeply into what people buy. However, experts are cautious about the outlook for the next few months due to higher prices and weak demand from customers. Antique Broking, a company that studies markets, warned that inflation could slow down the recovery of the grocery sector. A tough winter season is also affecting sales of seasonal products.

To tackle these costs, companies are using strategies like buying products more efficiently and adjusting recipes before raising prices. Nestle, for example, has already upped their prices for coffee by about 20% due to the rising cost of green coffee, one of their main ingredients.

Overall, shoppers should expect to see rising prices across many products, but companies are trying to introduce these changes gradually to lessen the impact on customers

Volatility is back in the stock market! This means prices can go up and down a lot. In the next few days, trading activity might slow down, which could really affect stock prices. If you’re thinking about investing, especially in mid-sized companies, keep in mind that this time of year is often bumpy for the market. When stocks start moving a lot without many people buying or selling them, it’s important to be cautious. Always think things through before making decisions.

On Wednesday, at 1:28 PM (IST), shares of Punjab National Bank (PNB) were down by 2.35%, trading at Rs 103.5. This came as the BSE benchmark Sensex fell by 403.09 points, landing at 80,281.36. The previous closing price for PNB was Rs 106.

For PNB, the highest price over the last year was Rs 142.9, while the lowest was Rs 84.79. By 1:28 PM, about 753,834 shares had been traded, totaling Rs 7.88 crore. Currently, PNB’s shares are valued at 8.23 times its earnings per share (EPS) of Rs 12.59 from the last year and 1.34 times its book value.

A higher Price-to-Earnings (P/E) ratio indicates that investors believe PNB will grow, allowing them to pay more for its shares today. The Price-to-Book (P/B) value shows how much investors think the company is worth even if it doesn’t grow. PNB has a Beta value of 1.78, meaning its stock is more volatile than the overall market.

Shareholder Breakdown: As of September 30, 2024, promoters own 70.08% of the bank. Foreign Institutional Investors (FIIs) own 8.41%, and Domestic Institutional Investors (DIIs) hold 2.87%.

Technical Insights: The Relative Strength Index (RSI) for PNB stock is currently 44.2. The RSI ranges from 0 to 100. Generally, if the RSI goes over 70, it means the stock is overbought, and under 30 means it’s oversold. Analysts suggest not relying solely on the RSI or any single valuation to make buying or selling decisions.

Shares of Bajaj Holdings & Investment Ltd. fell by 0.24% to Rs 11,230.70 on Wednesday around 11:56 AM (IST). At the same time, the BSE Sensex, a key market indicator, dropped by 390.87 points to 80,293.58. Only 590 shares of Bajaj changed hands, bringing in a total of Rs 0.67 crore.

Bajaj Holdings hit a 52-week high price of Rs 11,515.10 and a low of Rs 7,631.10. Looking at its performance on technical charts, the 200-day moving average (200-DMA) is Rs 9,443.22, and the 50-day moving average (50-DMA) is Rs 10,597.18. If a stock is priced higher than both the 50-DMA and 200-DMA, it generally means the stock is on an upward trend. If the stock is below both averages, it suggests a downward trend. If it’s between the two, it means the stock’s future direction is unclear.

Over the past year, shares of Bajaj Holdings have risen 42.23%, while the Sensex increased by 20.02%. The stock currently has a price-to-earnings (P/E) ratio of 16.87 and a price-to-book (P/B) ratio of 1.7. A higher P/E ratio indicates investors believe the company will grow in the future. The P/B ratio shows how much investors are willing to pay for the company, even if it’s not currently growing. Bajaj Holdings is part of the Holding – Diversified industry.