WEIGHTED AVERAGE CALL RATE
Incomplete transmission could delay rate reversal by RBI
High food inflation and incomplete transmission of the 250 basis point policy rate hikes since May 2022 could delay the Reserve Bank of India's (RBI) rate cut. Transmission through loan and deposit rates varied between 111 and 245 bps until May 2024, except for loans linked to external benchmarks, which had immediate full transmission.
Incomplete transmission of policy rates could delay reversal of rate cycle by RBI
RBI faces challenges in rate transmission due to incomplete hikes. Banks show varied transmission rates. Governor Das stresses effective transmission. Rate cuts may come post-October with clearer risk insights.
After Jio, Airtel and Vi answer revenue call, dial up tariffs
While Airtel and Jio - which dominate the market - say they need to improve returns after paying high prices for 5G airwaves in 2022, Vi is looking to back up its recent ₹23,000 crore equity fundraising efforts as it strives to become more competitive, stem user losses and repair a stressed balance sheet to pay vendors and statutory dues. Analysts said the three telcos will see a 13-17% rise in ARPU with the main effect being felt in second and third quarters of this fiscal year.
Rates on fresh loans and deposit moderate sequentially in May
In May 2024, the Reserve Bank of India reported a marginal decline in weighted average lending rates on fresh loans and deposits by 16 and one basis points, respectively. The WALR on fresh rupee loans fell to 9.39%, while the WADTDR on fresh term deposits dropped to 6.47%.
F&O Radar: Poised bulls may take Nifty to new highs, deploy Bull Call Spread for potential benefit
On the option front, the maximum call OI is at 24,000 then 23,600 strike, while the maximum put OI is at 23,000 and then 23,500 strike. Call writing is seen at 23,900, then 23,700, while put writing is seen at 23,400, then 23,500.
Nasdaq ends lower as Nvidia drags the tech sector for second day
S&P 500 and Nasdaq closed slightly lower on Friday, impacted by Nvidia's decline. Market volatility was observed due to triple witching, with positive PMI data.
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MFs cut weight on technology stocks by 170 bps in just 3 months. What are cues for investors?
In May, several MFs reduced tech stock weights by 0.1%-0.9%, with HSBC making the highest cut at 0.9%. HDFC MF, Mirae, and Franklin Templeton increased weights by up to 0.2%.
Ahead of Market: 10 things that will decide D-Street action on Thursday
The NSE Nifty 50 and S&P BSE Sensex opened at all-time highs, rising about 0.3% each, before closing with the Nifty down 0.18% to 23,516 and the Sensex up 0.05% to 77,337. The MACD indicator signals bullish momentum for Hitachi Energy India, Axis Bank, Force India, Ingersoll-Rand India, and JITF Infralogistics.
Global rate-cut juggernaut is struggling to start
Central banks cagey about joining the global interest-rate cutting cycle may reveal themselves this week with a quartet of decisions in advanced economies.
S&P hits new 52-week high; Dow, Nasdaq set for weekly gains after mixed data
The Labor Department's closely watched Nonfarm Payrolls report showed the economy added 272,000 jobs in May, far more than expected, while average hourly earnings beat expectations. That sent stocks lower initially, as traders slashed bets on a September rate reduction. However, indexes pared losses after other data pointed to underlying economic weakness.
Smartwatch companies turn to premium buyers looking for upgrade
Leading smartwatch brands like Noise, Boult, and Boat are targeting repeat buyers with premium hardware to increase average selling prices and improve profitability amid declining shipments and intense competition. They are using their own processors, high-end materials, and aesthetic enhancements, while aggressively expanding into offline retail channels. This shift follows a 7.3% drop in Q1 2024 shipments and a fall in ASP to $20.65. The focus is now on offering premium products with better features to attract discerning consumers.
Wall Street drifts to mixed finish after the latest signal of a slowing economy
U.S. stocks mixed as economy slows. S&P 500 up 0.1%. Dow down 0.3%. Nasdaq up 0.6%. Manufacturing shrinks, affecting Treasury yields. Companies struggle with high interest rates. Tech stocks soar. GameStop rises. AMC climbs. Waste Management to buy Stericycle. Bond market sees yield fluctuations. Investors watch economic reports.
Wall St Week Ahead-Struggling Dow transport stocks could be economic warning signal
The Dow Jones Transportation Average has fallen 5% this year, contrasting with the S&P 500 and Dow Jones Industrial Average. Chuck Carlson sees it as a barometer for economic activity, signaling a possible slowdown ahead.
View: Gotta get ready for the AI-ternative
The integration of AI, nano robotics, space tech, and battery tech is transforming industries and reshaping economic models. As digital workers replace human roles in areas like call centers and logistics, governments must address potential job losses. Suggested measures include reskilling programs, focusing on labor-intensive industries, and implementing universal basic income (UBI) to support displaced workers. This proactive approach will help manage the transition and harness the benefits of these groundbreaking technologies.
Pharma an undervalued, under-owned, high on comfort space for next 1-2 years: N Jayakumar
I think the market is not necessarily differentiated between consumption in the rural or consumption in the urban space. I think in general, consumption stocks have been lacklustre, languid if you will, but I think large scale recoveries in the market have happened across the board.
Nvidia's split of soaring stock could boost retail investor appeal, Dow chances
Nvidia's stock split announcement, aiming to attract more retail investors and potentially join the Dow Jones Industrial Average, follows a surge in share price. The split could make stock ownership more accessible and boost interest among individual investors.
Liquidity deficit surges to four-month high
The shortfall of funds has pushed up the weighted average call rate (WACR), which represents banks' overnight cost of borrowing and functions as a determinant of other borrowing costs in the economy too. On Wednesday, the WACR closed at 6.75%, the same rate as the RBI's Marginal Standing Facility (MSF).
Top Nifty50 stocks analysts suggest buying this week
Stock Reports Plus report on May 19, 2024 features 'Strong Buy/Buy' recommendations for Nifty50 stocks using IBES. It evaluates earnings surprises, estimate revisions, and 5 key components via Refinitiv.
From Tokyo to New York, stock markets are on a record-hitting spree around the world
Equity markets worldwide are experiencing highs. In the US, the S&P 500 and Nasdaq 100 indexes hit records this week, while the Dow Jones Industrial Average crossed 40,000 for the first time ever. Meanwhile, the biggest bourses in Europe, Canada, Brazil, India, Japan and Australia are currently at or near their peaks.
Weekly Top Picks: These stocks scored 10 on 10 on Stock Reports Plus
Stock Reports Plus, powered by Refinitiv, undertakes detailed company analysis for 4,000+ listed stocks. In addition to detailed company analysis, the report also collates analysts’ forecasts and trend analysis for each component. An average score in Stock Reports Plus is calculated by undertaking quantitative analysis of five key investment tools - earnings, fundamentals, relative valuation, risk and price momentum.
Lending and deposit rates rise across segments in FY'24
The weighted average lending rate (WALR) on fresh rupee loans of the commercial banks stood at 9.37 per cent in March 2024 (9.36 per cent in February 2024). It rose 13 basis points or bps (one basis point is 0.01 percent) over the last one year. Excluding the merger impact of HDFC with HDFC Bank, the WALR on outstanding rupee loans was at 9.85 per cent in March 2024 (9.83 per cent in February 2024. It rose 13 bps over the last one year.
Dr Reddy’s, Sun, Cipla and Biocon look to recreate Ozempic magic in India
Doctors say patients come with specific queries regarding weight-loss drugs, which have become both the first preference and the last resort for some. “I would rather go for these short cuts that the pharma industry offers than go under the knife for my appearance,” says Rajput. The drugs — Wegovy and Ozempic — which have the same ingredient, semaglutide, are all the rage ever since entrepreneur Elon Musk tweeted about it.
Weekly Top Picks: These stocks scored 10 on 10 on Stock Reports Plus
Stock Reports Plus, powered by Refinitiv, undertakes detailed company analysis for 4,000+ listed stocks. In addition to detailed company analysis, the report also collates analysts’ forecasts and trend analysis for each component. An average score in Stock Reports Plus is calculated by undertaking quantitative analysis of five key investment tools - earnings, fundamentals, relative valuation, risk and price momentum.
ET Explainer: The RBI's liquidity stance and its effect
The Reserve Bank of India's liquidity stance is not convincing experts. It follows a corridor liquidity management system with repo rate as the ceiling and reverse repo rate as the floor. Factors causing tight liquidity include withdrawal of accommodative stance, credit growth surpassing deposit growth, fund constraints, slower government spending, and Ukraine war impacting forex reserves.
Longer term repo operations to help ease call rates: Report
Goldman Sachs report suggests that longer-term repo operations beyond 14-days, especially when government cash balances are high, could help call money rates converge closer to the benchmark policy rate as and when the Reserve Bank starts easing its policy rates to address the recent tightness in India's inter-bank liquidity.
States borrowing cost falls to 32-week low of 7.40 percent
Eleven states raised Rs 28,000 crore from state government securities (SGS), which is 27 per cent lower than the Rs 38,200 crore indicated for this week in the auction calendar, according to a note by Icra Ratings. As a result, the weighted average cut-off eased by 4 bps to 7.40 per cent, the lowest in the past 32 weeks.
How stock splits affect price weighted and market-cap weighted indices?
Walmart implemented a three-for-one stock split last Friday meaning the investors would now hold three shares of the US retail giant instead of one.
Food weighting in India's consumer price index may be cut as spending shifts: Official
The Indian government is considering reducing food's weighting in the consumer price index to reduce inflation volatility. However, this decision has sparked protests from farmers who feel it favors urban consumers. Critics argue that actual consumer spending on food should be taken into account.
Disconnect between RBI rate corridor and call rate represents 'serious friction,' says MPC’s Varma
Jayanth Varma, external member of the Monetary Policy Committee, discusses the challenges in transmitting policy rate changes due to money market rates breaching the Reserve Bank of India's interest rate corridor. Liquidity management and the impact of benchmark policy rate on market rates need to be taken into consideration, he explains.
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