Latest Stock Market News

The board of AIA Engineering has approved its first-ever share buyback, totaling Rs 500 crore at Rs 5,000 per share—a premium of nearly 10% over the closing price of Rs 4,553 on Friday. August 20 has been set as the record date. While the company has not issued bonus shares, it consistently pays dividends to its shareholders.

The Indian market is expected to rise on Monday due to positive global cues. On Friday, the Nifty50 closed 397 points higher at 24,541, and the Indian VIX fell over 6% to 14.40. Foreign portfolio investors bought shares worth Rs 766 crore, while DIIs purchased shares worth Rs 2,606 crore.

Data from the past 10 years shows that stocks removed from the Nifty 50 index often perform better than those newly added. Of the 28 excluded stocks analyzed, 17 outperformed their replacements. Research indicates that stocks removed from indices might experience initial drops but generally recover and outperform in the long term.

Following a customs duty reduction and a fall in gold prices, investors were drawn to gold ETFs and funds. The budget announcement made long-term gold investments more tax-efficient, and with no new sovereign gold bond issues expected, experts recommended a 10% portfolio allocation. Gold remains a hedge against inflation and provides diversification.

Technical analysts noted a strong bounceback in Nifty, predicting further upward momentum. Stocks such as Vedanta and Hindustan Copper formed bullish setups. Investors are advised to focus on IT and FMCG sectors, while considering partial profits in pharma. Positive trends were also seen in metal and banking sectors.

Four European banks expected permission from their national regulators to continue trading with India’s Clearing Corporation despite an imminent deadline. Recent communications between Indian and European authorities indicated potential resolution to the regulatory dispute that started when ESMA de-recognised the Clearing Corporation in October 2022, impacting major bond and derivatives trading.

Oil prices fell in early Asian trading on Monday amid fears of lower demand from China. Brent crude and U.S. West Texas Intermediate futures both dropped by 0.2%. Investors are closely watching ceasefire talks in the Middle East, which could ease supply concerns.

In August, foreign investors sold Indian shares worth ₹21,201 crore, reversing inflows seen in July and June. The sell-off was influenced by global factors like the unwinding of the Yen carry trade, recession fears, and geopolitical tensions. Additionally, profit-booking after recent market gains contributed to the outflow.

Health insurers have raised premiums to counter high loss ratios, influenced by regulations and increased claims. Star Health and Lombard showed substantial premium hikes, while New India struggled with high loss ratios. With improved valuations, health insurance stocks seem more appealing, and the industry is expected to see significant growth in the coming years.

On Monday, Australian shares held steady, bolstered by financials and gold miners despite declines in other sectors. The S&P/ASX 200 index remained at 7,957.1 points. Strong U.S. retail sales reduced recession fears. Financial stocks advanced by 0.3%, and gold stocks saw notable gains, while top mining firms experienced minor losses.