Business News

Ahead of Market: 10 things that will decide stock market action on Tuesday

Business News - March 31, 2025 - 11:10am
The Indian market was closed on Monday for a national holiday in observance of Eid al-Fitr 2025.On Friday, the Indian benchmark indices, Sensex and Nifty, ended in the red, pressured by declines in auto and IT stocks as investor sentiment turned cautious ahead of this week's announcement of US reciprocal tariffs. However, intraday volatility persisted, driven by foreign inflows and optimism about a domestic growth recovery.The benchmark BSE Sensex declined 191.51 points, or 0.25%, to close at 77,414.92, while the broader Nifty 50 index closed at 23,519.35, down 72.60 points, or 0.31%. Here's how analysts read the market pulse:Asian markets are experiencing a new phase of consolidation as the latest U.S. tariff measures are expected to have a significant impact on major manufacturing economies, said Vinod Nair, Head of Research at Geojit Investments, adding that a rise in Japan's CPI has contributed to the prevailing weakness. “Domestically, the market’s upward momentum has stalled as investors evaluate the implications of these tariffs on the auto, ancillary, pharma and others sectors. Meanwhile, gold prices have reached a new high, on concerns that a deepening of the trade war could further deteriorate global economic health," said Nair.Also read | 5 Wall Street moguls who dismissed Bitcoin as a fad — Guess what they’re saying now!US marketsWall Street stocks tumbled on Friday, weighed down by sharp declines in Amazon, Microsoft, and other major tech firms, as fresh U.S. economic data reignited concerns over sluggish growth and persistent inflation. Investor anxiety was further heightened by the Trump administration’s escalating tariff measures.The S&P 500 fell 1.97% to close at 5,580.94, while the Nasdaq slid 2.70% to 17,322.99. The Dow Jones Industrial Average also took a hit, dropping 1.69% to finish at 41,583.90.European marketsEuropean stocks declined on Friday as fresh US economic data deepened concerns over rising inflation, capping a turbulent week marked by new tariff announcements from the US President Donald Trump that drove investors away from riskier assets.The pan-European STOXX 600 closed 0.7% lower, extending its weekly loss to 1.4%—its steepest drop since December 16.Tech viewThe Nifty remained volatile on the first day of the new series before closing with weakness and since Nifty made a high around the previous swing of 23,800, the index has been consolidating, said Rupak De, Senior Technical Analyst at LKP Securities, adding that “going forward, 23,400 might act as immediate support. A fall below 23,400 could take Nifty towards 23,200, where crucial support is placed.”“If Nifty holds above 24,200, it may witness further upside. On the other hand, if the Nifty does not fall below 23,400, it might rise towards 23,600 and higher," said De.Also read | Explained: Why banks are flying gold worth billions from London to New York amid Trump tariff fearsMost active stocks in terms of turnover BSE (Rs 10,044 crore), HDFC Bank (Rs 2,621 crore), Reliance Industries Ltd (Rs 2,319 crore), Mahindra & Mahindra (Rs 1,616 crore), Zomato (Rs 1,530 crore), CDSL (Rs 1,439 crore) and HAL (Rs 1,394 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in value terms can help identify the counters with highest trading turnovers in the day.Most active stocks in volume termsVodafone Idea (Traded shares: 81.77 crore), YES Bank (Traded shares: 9.80 crore), Reliance Power (Traded shares: 8.49 crore), Zomato (Traded shares: 7.48 crore), NHPC (Traded shares: 7.23 crore), Capri Global (Traded shares: 6.07 crore) and IDFC First Bank (Traded shares: 4.89 crore) were among the most actively traded stocks in volume terms on NSE. Stocks showing buying interestShares of BSE, Aster DM Healthcare, Atul, Sumitomo Chemical India, Carborundum Universal, JSW Holdings and Authum Investment & Infrastructure were among the stocks that witnessed strong buying interest from market participants.52 week highOver 62 stocks hit their 56 week highs today while 428 stocks slipped to their 52-week lows. Stocks seeing selling pressureStocks which witnessed significant selling pressure were Aegis Logistics, Indian Overseas Bank, Brainbees Solutions, Intellect Design Arena, ICICI Prudential Life Insurance, Firstsource Solutions and UNO Minda.Sentiment meter bearishThe market sentiments were bearish. Out of the 4,120 stocks that traded on the BSE on Friday, 2,564 stocks witnessed declines, 1,447 saw advances, while 109 stocks remained unchanged.Also read | At $165 billion, BYD is now bigger than India's top 5 automakers combined(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Categories: Business News

Who should invest in REITs? Understanding risk and investment goals

Business News - March 31, 2025 - 9:54am
Real Estate Investment Trusts (REITs) have gained popularity in India, offering retail investors a chance to invest in premium real estate without the hassle of direct ownership. Previously, such opportunities were available only to high-net-worth individuals, but REITs have made commercial real estate more accessible to a wider range of investors.Understanding REITs: the basicsREITs are companies that own, manage, or operate high-quality, income-generating real estate assets. They allow investors to participate in real estate markets without buying physical property. REITs pool money from multiple investors to acquire and manage real estate assets, distributing at least 90% of their earnings once every six months. This makes them a compelling option for those seeking regular income.In India, REITs are regulated by the Securities and Exchange Board of India (SEBI).Who should consider investing in REITs?REITs are suitable for investors who:Want to own premium Grade-A commercial real estate with a small capital outlay.Are comfortable with moderate risk and market fluctuations but want lower complexity than directly owning and managing property.Seek a steady income stream through regular, tax-efficient distributions.Want to diversify their portfolio with real estate exposure.Aim for long-term wealth accumulation through rental yields and potential capital appreciation.Assessing risk appetiteLike any investment, REITs come with some risks. Key risks to consider include:Market risk – REIT unit prices can fluctuate based on global and domestic economic conditions, affecting investment returns.Distribution risk – Regular distributions depend on rental income, interest rates, tenant demand, operating costs, and economic conditions. A decline in occupancy rates or rental values may impact distributions.Setting investment goalsIndian REITs offer attractive investment opportunities for retail investors. When considering REITs, primary goals should include:Earning regular income – REITs are required to distribute 90% of their cash flows once every six months, ensuring consistent payouts.Building a diversified portfolio – REITs have low correlation with other asset classes and cover different sectors and locations.Maintaining liquidity – Unlike traditional real estate investments, REIT units trade freely on stock exchanges, allowing investors to buy and sell easily.Balancing goals and risksREITs provide an opportunity for stable income and potential capital appreciation, making them a valuable addition to an investment portfolio. However, investors must carefully assess their financial goals, risk tolerance, and market conditions before investing.By conducting thorough research and aligning REIT investments with long-term financial plans, retail investors can build a resilient and diversified portfolio. As the Indian REIT market continues to evolve, it presents significant potential for those looking to benefit from this innovative asset class.(The author, Pratik Dantara, is Head of Investor Relations & Strategy at Nexus Select Trust and an Executive Committee Member of the Indian REITs Association. Views are personal.)Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own and do not represent the views of The Economic Times.
Categories: Business News

TikTok sale deal to come before April 5

Business News - March 31, 2025 - 7:37am
US President Donald Trump said a deal with TikTok's Chinese parent ByteDance to sell the short video app used by 170 million Americans would be struck before a deadline on Saturday. Trump set the April 5 deadline in January for TikTok to find a non-Chinese buyer or face a U.S. ban on national security grounds due to have taken effect that month under a 2024 law. "We have a lot of potential buyers," Trump told reporters on Air Force One late on Sunday. "There's tremendous interest in Tiktok," adding, "I'd like to see Tiktok remain alive." TikTok did not immediately comment. Reuters reported on Friday private equity firm Blackstone is evaluating making a small minority investment in TikTok's U.S. operations, according to two people familiar with the matter. Blackstone is discussing joining ByteDance's existing non-Chinese shareholders, led by Susquehanna International Group and General Atlantic, in contributing fresh capital to bid for TikTok's U.S. business. The group has emerged as front-runners. Washington says TikTok's ownership by ByteDance makes it beholden to the Chinese government and Beijing could use the app to conduct influence operations against the United States and collect data on Americans. Trump previously said he was willing to extend the April deadline if an agreement over the social media app was not reached. Last week, he acknowledged the role China will play in getting any deal done, including giving its approval, saying "maybe I'll give them a little reduction in tariffs or something to get it done." Vice President JD Vance has said he expects the general terms of an agreement resolving the ownership of the social media platform to be reached by April 5. The future of the app used by nearly half of all Americans has been up in the air since a 2024 law, passed with overwhelming bipartisan support, required ByteDance to divest TikTok by January 19. The White House has been involved to an unprecedented level in the closely watched deal talks, effectively playing the role of investment bank.
Categories: Business News

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