Sensex News for Today: Due to risk aversion brought on by ongoing worries over the state of the Chinese economy and U.S. interest rates, Indian equities were subdued on Tuesday. A decline in information technology (IT) companies offset broader sectoral advances. Ten of the 13 key industry indices posted increases, with heavy weightage financials contributing 0.4%, driven by a 2.5% increase in HDFC Life Insurance. The shares of the insurer had experienced losses in six of the previous seven trading days. The largest economy in the world’s largest IT companies lost 0.5% due to rising rate concerns in the U.S.
After GQG Partner increased their interest in Adani Ports last week, the Adani group equities continued their advance for a fourth session, rising between 0.5% and 5%.
Leading Adani Enterprises increased by 2.5%, helping the metal index improve by 1%. In the metal index, Adani Enterprises is weighted at more than 16%.
Umesh Mehta, chief investment officer of Samco Securities, said: “It is time to be prudent, to be in the wait-and-watch mode or book profits rather than going all out to buy.”
For equities investors in the near future, not just in India but worldwide, the risk-reward ratio is unfavourable.
After experiencing a severe decline in the previous session due to worries about China’s economy, Asian markets partially regained their losses. [MKTS/GLOB]
The newly listed Jio Financial Services dropped another 5% on Tuesday among individual equities after suffering a 5% loss in its market debut on Monday.
Lending is a different game, despite Reliance’s remarkable track record of upending the retail and telecom sectors, said analysts at Nomura.
Only time would reveal Jio Financial’s capability in terms of implementation.