For all those, who are surprised the fact that all of sudden bank nifty or finnifty witnessed a sharp fall, it would worth remembering that whether it is upward or southward movement of Nifty and Sensex, it is largely led by financial services because of high ownership of institutional investor’s both domestic and foreign portfolio investors. So if there a sell of due to risk off mode for emerging markets, which market has moved to in last few days. It is financials which are likely to lead to the decline, but, there is equal sharp recovery in them. So, be careful both in buying and selling decision in financial space.
HDFC Asset Management Company (HDFC AMC) reported a healthy profit after tax (PAT) of Rs 430 crore for the July-September quarter (Q2) of financial year 2023-24 (FY24).
It rose 20.2 per cent year-on-year (Y-o-Y) and decreased 8.4 per cent quarter-on-quarter (Q-o-Q).
This was driven by good equity returns, leading to a sequential improvement in revenue yields.
Whether it is upward or southward movement of Nifty and Sensex, it is largely led by financial services stocks which include banks, both private and public sector and other heavyweights which essentially are part of the financial services. The reason, high ownership of foreign portfolio investors ( FPIs) in the majority of financial services and banking stocks. Given the fact that yields on US bonds have reached closer to 5 percent mark and there are clear fears looming on the street, about an increase in global cost of capital.
Even markets are volatile, there is an underlying bias to volatility, it could be bullish or bearish. This bias is reflected in two things, first the market breadth which is essentially how many stocks are moving upward or downward. On a large number of days, market breadth is showing that its bias is toward bears. Because this correction is coming at a time when the global situation is not so good, both in terms of interest rate and also higher geopolitical risks, it would be better that “caution” should be added when decisions are taken about investing and sticking to largecap. ET screener powered by Refinitiv’s Stock Report Plus applies different algorithms & filters to all BSE and NSE stocks, and lists stocks that fulfill the various criteria as specified into the algorithms & filters to find those which might help navigate the stock market.