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Bank of America has downgraded FSN E-Commerce Ventures Ltd (Nykaa) to 'Underperform' from Neutral, reducing its target price from Rs 225 to Rs 150, indicating a potential 12% downside due to slower margin growth and challenges in the quick commerce segment. As of 9:30 AM, Nykaa's shares were down 1.4% at Rs 167, reflecting a year-to-date decline of over 1%, underperforming the Nifty 50's 7.5% rise. The brokerage anticipates that competition from global players like Shein and subdued growth in the apparel industry will further pressure Nykaa's revenue.
The implications of Donald Trump's new presidency on the economy and stock markets remain uncertain, with discussions focusing on the potential outcomes. The ongoing commentary from Mar-a-Lago highlights the controversies surrounding his announcements and personnel choices, often characterized by the word "could."
Nifty and Sensex opened lower on November 21, impacted by global and domestic issues, including rising geopolitical tensions from the Russia-Ukraine conflict and a $250 million bribery indictment against Gautam Adani. At 9:30 am, the Sensex fell 404.68 points (0.52%) to 77,173.70, while the Nifty dropped 147.20 points (0.63%) to 23,371.30, with a significant number of shares declining amid a cautious market atmosphere.
Landmark Cars reported a strong Q2 performance, benefiting from improved realisations and robust festive demand, with a notable increase in after-sales service growth. Despite challenges in the auto industry, the company is focused on expansion by onboarding new OEMs, while medium-term outlook remains encouraging. Valuations are reasonable, though profitability was impacted by discounting and ramp-up costs.
Philippine Stock Exchange CEO Ramon Monzon indicated that a quarter-point rate cut by the Bangko Sentral ng Pilipinas could boost the stock market, potentially pushing the index above 7,000 by year-end. This comes amid ongoing uncertainty regarding Donald Trump's policies.
Operating cash flows for BSE 500 firms have shown a significant slowdown, reflecting weak revenue growth and broader economic challenges. In the September quarter, revenue growth for these companies was below 10% year-on-year, marking a continued decline over the past six quarters.
Microfinance in India faces significant challenges, with shares of major lenders like CreditAccess Grameen and Spandana Sphoorty plummeting due to rising non-performing loans. Despite the transformative impact of microloans on rural livelihoods, the sector's cyclical nature raises questions about its investability and valuation. Vikram Akula's "Micro-Meltdown" offers insights into the industry's volatility and potential for recovery.
Nifty's ability to hold the 23,500 mark on expiry day is under scrutiny, with particular attention on Adani stocks and UPL. Market participants are keenly observing these developments as they unfold.
SBFC Finance reported strong performance in the September quarter, driven by robust asset growth and improved digital collections, capitalizing on the MSME credit growth cycle. The company achieved a record net profit in H1FY25, supported by consistent AUM growth despite a challenging environment. Valuations reflect a justified premium due to high growth prospects, with a stable loan book enhancing financial spreads.
The Indian markets are experiencing their longest losing streak in five months, down over 10% from September highs, driven by disappointing Q2 earnings, foreign outflows, and rising global tensions, particularly from the Ukraine conflict. With inflation surpassing the RBI's comfort zone and foreign investors retreating, the outlook remains bleak as the dollar reaches a one-year high, complicating the path to a bull market revival on Dalal Street. The current environment favors bears, leaving bulls with a challenging road ahead.
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