Latest Stock Market News

The interplay between a Central Bank’s actions and the stock market’s response is complex and dynamic; even a minor policy adjustment can set off a chain reaction across various sectors, leading to substantial market movements and volatility.

Speculators increased their net short positions on five-year Treasuries to a record high, while bearish bets on 10-year Treasuries reached their highest level since February, according to the latest CFTC data.

From Aug. 2 to Aug. 8, hedge funds aggressively boosted their bearish bets on Japanese stocks following a sharp decline in the Nikkei index. Goldman Sachs reported that net exposure to Japanese equities fell to 4.8%. Globally, hedge funds remained bearish for the fourth week in a row, increasing short positions amid the market turbulence.

Nasdaq short interest dropped by 2% in late July, with shorted shares falling from 14.356 billion to 14.068 billion, indicating a shift in market sentiment.

During the week, only 30 smallcap companies offered double-digit returns with Century Enka the top gainer (35%), followed by Authum Investment (34.19%), Symphony (33.53%), and Garware Hi-Tech (26%).

The S&P 500 closed higher on Friday, recovering from a recession-fueled slump. Gains were driven by the technology sector. Investors now focus on upcoming economic data and the Federal Reserve meeting in September, where rate cuts are anticipated.

Considering these factors, I do not believe that the Indian market will fall significantly. Instead, it is likely to hover around current levels for some time due to global market volatility. This volatility and consolidation at elevated levels are actually beneficial for the market’s long-term health.

​So, PSU banks look very interesting. If I look at it, PSU banks have also underperformed in these last two months. So, my sense, PSU banks again remain the top bets.

In July, bank business saw slower growth in both credit and deposits compared to last year, according to the Reserve Bank of India. Deposits rose 10.6 percent year-on-year while credit grew by 13.7 percent. Banks are being urged to focus more on deposit mobilisation to avoid potential liquidity issues due to reliance on non-retail deposits.

Lemon Tree Hotels intended to list its subsidiary, Fleur Hotels, soon to address its Rs 1850 crore debt. Fleur Hotels includes 4,000 rooms and major properties. Despite election and heat wave challenges, Q1 2025 marked the highest revenue for Lemon Tree, although occupancy slightly decreased, and renovation investments impacted EBITDA margins.