Union AMC's Sanjay Bembalkar remains positive on equities despite the recent rally, favoring consumer discretionary, industrials, and financials. He advises caution on narrative-driven sectors lacking fundamental strength, suggesting potential corrections. Bembalkar recommends a diversified portfolio with 20-25% in gold/silver and a systematic investment approach for equities, considering near-term volatility.
Amid escalating conflict between Israel and Iran, countries are scrambling to evacuate their citizens by air, land, and sea. With airspace closures disrupting commercial flights, governments are utilizing land routes through neighboring countries. Bulgaria, China, the European Union, France, and Germany are among those assisting their nationals with evacuations, facing logistical challenges and security concerns in the process.
US equity futures saw moderated declines amidst President Trump's consideration of military support for Israel against Iran. Markets displayed uncertainty, with potential US involvement and energy-driven inflation posing risks. Brent crude experienced a fall, while the yen strengthened against the dollar, reflecting investor caution.
Indian banks are facing a significant slowdown in earnings growth, potentially halving to 6.5% in FY26 due to a cautious economy and reduced core profits. Muted credit demand, high deposit costs, and RBI's measures to control unsecured lending contribute to this deceleration. However, a rebound to 16.1% is expected in FY27 with anticipated rate cuts and improved demand.
Siemens Energy India debuted on the stock market at 2,840 per share. This followed its separation from Siemens. The stock reached 2,982 during the day. It closed at 2,760 with a market capitalisation of 98,289 crore. Analysts predict strong earnings growth for Siemens Energy. They cite the transmission and distribution sector's expansion.
Whirlpool Corp is divesting a 31% stake in its Indian arm, attracting interest from Reliance Retail, Havells India, and buyout funds like EQT and Bain Capital. This move is part of a global restructuring following a $1.5 billion loss, with the aim to raise $550-600 million.
The Indian rupee hit a three-month low of 86.89 against the dollar due to concerns over the Iran-Israel conflict and rising oil prices, settling slightly higher at 86.72 following suspected RBI intervention. Elevated Brent crude prices at $77 a barrel are adding pressure, with traders anticipating continued rupee weakness amid Middle East tensions and cautious exporter hedging.
Mid-cap and small-cap stocks, which had recently outperformed, experienced declines as investors grew concerned about high valuations. Profit-taking occurred after significant gains in May, with indices falling. Despite potential further declines, analysts suggest buying quality stocks during dips, as domestic liquidity and limited global impact offer optimism.
Some segments of the U.S. restaurant industry don't support President Donald Trumps proposal to eliminate federal taxes on tips, saying it would help too few people and obscure bigger issues in the way tipped workers are paid.
