Swiggy
Swiggy shares had hit an all-time low of Rs 325.3 on February 14. It was driven by the falling trend which was fueled by its weak Q3 results, along with the initial selloff following the end of the IPO lock-in period. However, the stock has so far recovered over 14 percent to the current level. Despite the recovery, the stock is still significantly lower by 11 percent from its listing price of Rs 420 apiece.
Zomato
Zomato shares had hit an intraday low of Rs 213.44 on February 14. The stock has so far recovered nearly 9 percent since then to trade at the current level. Despite the recovery, the stock is still down nearly 23 percent from its all-time high level of Rs 305 that the stock had hit in December last year. The fall in stock price was fueled in January when the food delivery giant reported a 57 percent on-year fall in net profit to Rs 59 crore in the third quarter of the current financial year.
Swiggy shares had hit an all-time low of Rs 325.3 on February 14. It was driven by the falling trend which was fueled by its weak Q3 results, along with the initial selloff following the end of the IPO lock-in period. However, the stock has so far recovered over 14 percent to the current level. Despite the recovery, the stock is still significantly lower by 11 percent from its listing price of Rs 420 apiece.
Zomato
Zomato shares had hit an intraday low of Rs 213.44 on February 14. The stock has so far recovered nearly 9 percent since then to trade at the current level. Despite the recovery, the stock is still down nearly 23 percent from its all-time high level of Rs 305 that the stock had hit in December last year. The fall in stock price was fueled in January when the food delivery giant reported a 57 percent on-year fall in net profit to Rs 59 crore in the third quarter of the current financial year.
❤1
WHY IT STOCKS ARE FALLING TODAY?
- Continuous FII selling
The Foreign Institutional Investors has been on a selling spree. Out of 15 trading sessions in February, the FIIs were net sellers in 13 sessions. They have sold Rs 36.977 crore in February so far. While they sold Rs 87,375 crore in January. February will be the fourth consecutive month when FIIs sold equities in India.
- Tariff worries
The Trump tariff impact continues to be a key overhang for the markets including the technology sector. While the exact ramifications of the tariff structure are yet to be understood, it continues to be a sentiment negative. The Weak deal ramp up that’s being guided for Q4 along with the negative newsflow is also a dampener to overall investor sentiment in the market.
- Continuous FII selling
The Foreign Institutional Investors has been on a selling spree. Out of 15 trading sessions in February, the FIIs were net sellers in 13 sessions. They have sold Rs 36.977 crore in February so far. While they sold Rs 87,375 crore in January. February will be the fourth consecutive month when FIIs sold equities in India.
- Tariff worries
The Trump tariff impact continues to be a key overhang for the markets including the technology sector. While the exact ramifications of the tariff structure are yet to be understood, it continues to be a sentiment negative. The Weak deal ramp up that’s being guided for Q4 along with the negative newsflow is also a dampener to overall investor sentiment in the market.
❤1
JUST IN: 🇺🇸🇪🇺 President Trump announces 25% tariffs on the European Union.
The rally in banking stocks came in after Reserve Bank of India (RBI) reversed its earlier decision to increase the risk weight on bank loans to non-banking financial companies (NBFCs)
The RBI's revised policy will take effect from April 1, 2025. Lower risk weights mean that banks will be required to set aside less capital for these loans, thereby improving lending capacity.
Earlier, on November 16, 2023, the RBI had raised risk weights for bank loans to NBFCs by 25 percentage points—above the existing risk weight based on external ratings—whenever the original risk weight was below 100 percent. This led to an increase in capital requirements for bank loans to AAA-, AA-, and A-rated NBFCs.
The RBI's revised policy will take effect from April 1, 2025. Lower risk weights mean that banks will be required to set aside less capital for these loans, thereby improving lending capacity.
Earlier, on November 16, 2023, the RBI had raised risk weights for bank loans to NBFCs by 25 percentage points—above the existing risk weight based on external ratings—whenever the original risk weight was below 100 percent. This led to an increase in capital requirements for bank loans to AAA-, AA-, and A-rated NBFCs.
👍1
Indian stock market faces its worst slump in 29 years as Nifty50 falls for five consecutive months.
Weak earnings, foreign outflows, and economic uncertainty drive a 4% drop in February, with Nifty50 and Sensex down 14% and 13.2% from September peaks.
Weak earnings, foreign outflows, and economic uncertainty drive a 4% drop in February, with Nifty50 and Sensex down 14% and 13.2% from September peaks.
Here are key factors behind the market decline:
1) Trade war fears: On February 27, US President Donald Trump said that the 25% duties on imports from Canada and Mexico would come into effect on March 4 and not April 2 as he had suggested the day prior. Trump also said goods from China will be subject to an additional 10% duty, heightening fears of an escalating trade conflict.
2) Weak Asian markets: Hong Kong equities fell on Friday, and were set to snap a six-week winning streak, as Trump announced fresh tariffs on Chinese imports and investors booked profit on tech stocks. Hong Kong's benchmark Hang Seng slipped 2.3%. Chinese shares also fell, with the blue-chip CSI300 Index dropping 0.8% by the lunch break and the Shanghai Composite Index losing 0.9%.
3) Nvidia Q4 results effect: The Nikkei share average hit a five-month low of 37084.44 on Friday, dragged by chip-related stocks after Nvidia's strong growth forecast did little to lift sentiment.
Overnight, Nvidia tumbled 8.5% after the Silicon Valley company gave a weaker-than-expected quarterly forecast for gross margin that overshadowed an upbeat revenue outlook
4) US economy fears: The IT index tumbled 4% as data showed that U.S. weekly jobless claims rose more than expected last week, adding to worries that the world's largest economy may be slowing, with inflation expectations surging due to Trump's tariffs.
1) Trade war fears: On February 27, US President Donald Trump said that the 25% duties on imports from Canada and Mexico would come into effect on March 4 and not April 2 as he had suggested the day prior. Trump also said goods from China will be subject to an additional 10% duty, heightening fears of an escalating trade conflict.
2) Weak Asian markets: Hong Kong equities fell on Friday, and were set to snap a six-week winning streak, as Trump announced fresh tariffs on Chinese imports and investors booked profit on tech stocks. Hong Kong's benchmark Hang Seng slipped 2.3%. Chinese shares also fell, with the blue-chip CSI300 Index dropping 0.8% by the lunch break and the Shanghai Composite Index losing 0.9%.
3) Nvidia Q4 results effect: The Nikkei share average hit a five-month low of 37084.44 on Friday, dragged by chip-related stocks after Nvidia's strong growth forecast did little to lift sentiment.
Overnight, Nvidia tumbled 8.5% after the Silicon Valley company gave a weaker-than-expected quarterly forecast for gross margin that overshadowed an upbeat revenue outlook
4) US economy fears: The IT index tumbled 4% as data showed that U.S. weekly jobless claims rose more than expected last week, adding to worries that the world's largest economy may be slowing, with inflation expectations surging due to Trump's tariffs.
NSE has changed F&O expiry days for Nifty, Bank Nifty, FinNifty, Nifty Next50 and Nifty Midcap Select to Monday from the current Thursday expiry day. In a circular issued today, NSE made the changes and it will come into effect from April 4, 2025.
The monthly expiry day has been changed to last Monday of the expiry month for all the above contracts. Meanwhile, Nifty's weekly contract will also now expire on Monday.
As for stocks in the derivatives segment, the monthly expiry will be also be the last Monday of the month from the current last Thursday
The monthly expiry day has been changed to last Monday of the expiry month for all the above contracts. Meanwhile, Nifty's weekly contract will also now expire on Monday.
As for stocks in the derivatives segment, the monthly expiry will be also be the last Monday of the month from the current last Thursday