Mumbai: Indian equity investors are facing a great dilemma: benchmark stock indices hover near record highs when economic growth is near multi-quarter lows. The BSE Sensex closed just shy of its lifetime high on Wednesday. After scaling a new intra-day record of 40,816, the 30-share index ended 181 points, or 0.45%, higher at 40,651, 2 points short of its all-time closing high, hit on November 7, 2019. Nifty closed just below the crucial 12,000 mark, advancing 59 points, or 0.49%, to end at 11,999. But the broader market is telling a different story, indicating that only a narrow band of stocks are supporting the rally. “It is only at the index level and a narrow list of stocks that are making it look like the market is doing very well. The broader market has not been in a great shape for the past couple of years,” said Gautam Chhaochharia, Head of Research at UBS Securities. BSE-500 index closed at 15,461 on Wednesday, and was 2.67 per cent, or 426 points, away from … [Read more...] about What’s driving stock market to record high despite multi-quarter low growth?
Stock market 3 1 2018
The company that ran the World Chess Championships plans to issue a cryptocurrency-like digital token ahead of a stock market float in London as it tries to cash in the growing popularity of the game online. World Chess on Thursday said it aims carry out an unsual “hybrid initial public offering” in 2020, issuing digital tokens followed by floating shares on London’s Alternative Investment Market. World Chess, which has been incorporated in the UK since 2017, will raise “low millions of euros” in money from the token offering, according to Ilya Merenzon, the company’s chief executive and founder. The tokens will use blockchain ledgers to simplify the fundraising process, and will be convertible to shares at a later point, he said. Chess is popular around the world and has a large online following, but financial profitability has long taken a secondary place to politics. During the cold war the board game played a part in the battle for supremacy … [Read more...] about World Chess to issue digital tokens in stock market flotation
MEXICO CITY (Reuters) - Mexico’s main stock index closed out its worst quarter in over 17 years on Monday, dragged down by doubts about how the new leftist government will manage the economy as well as concerns over global growth and trade. A worker cleans the glass doors of the building of Mexico's Stock Exchange in Mexico City, Mexico December 28, 2018. REUTERS/Daniel Becerril The S&P/BMV IPC stock index .MXX lost 15.89 percent in the fourth quarter, its steepest drop for a three-month period since the third quarter of 2001, when the Sept. 11 terrorist attacks hit the United States. That quarter the market fell by nearly 19 percent. Before taking office earlier this month, President Andres Manuel Lopez Obrador rattled financial markets when on Oct. 29 he said he would scrap a partly built $13 billion new Mexico City airport on the basis of a straw poll that was widely criticized. The decision kicked off a dispute with some bondholders of debt issued to finance … [Read more...] about Mexico stocks post worst quarter in 17 years, government weighs
Mumbai: Off-road tyre maker Balkrishna Industries has put off its plans to build a $100-million greenfield plant in the US, joining a swelling list of companies in deferring capital expenditure amid evident signs of weakness in major trading blocs across the globe. Welcoming the decision, analysts said that although near-term outlook for the company and the industry is weak, dropping US capex plans would benefit Balkrishna in the long term. This announcement has come a day after auto-ancillaries maker Endurance Technologies withdrew its plan of entering into manufacturing of two- and threewheeler tyres last week on the back of a stock price crash. Shares of Balkrishna Industries, which plunged 8 per cent on September 3, 2018, or the day the capex announcement was made, has declined 46 per cent since then to Rs 772 on Friday. “After reviewing various aspects of the project in the backdrop of current challenging economic and business environment, the board has decided to put it … [Read more...] about Now Balkrishna Industries shelves US capex plan
The NDA has won general elections with a solid majority, and the strong mandate will help in continuity of reforms by the government. With elections out of the way, the focus will now shift to what reforms the government will undertake in its second term. The fledgling capex or investment cycle may be one, the government may choose to focus on going ahead, to help revive India’s growth trajectory. We are seeing some signs of recovery in the capex cycle as indicated by gross fixed capital formation (GFCF) or investments (as a percentage of GDP), which has bottomed out and has been gradually recovering for the past few quarters. The government’s own think-tank body (NITI Aayog), has outlined in its strategy for New India report that the target is to raise the investment rate (or GFCF) from around 29 pe cent of GDP in FY18 to 36 per cent of GDP by FY23. This will require a slew of measures, and a boost to both private and public investment. Private capex is still … [Read more...] about Is a capex recovery on the cards?