Gold prices fell on Monday. A strong US dollar near six-month highs impacted the precious metal. Hopes for a December interest rate cut by the US Federal Reserve diminished. This development is significant for investors. Other precious metals like silver, platinum, and palladium also saw price movements. Investors are closely watching economic indicators.
Most Indian individual investors saw their net worth decline in the July-September quarter due to market downturns. While benchmark indices like the Nifty experienced losses, midcap and smallcap indices fell more significantly. Nemish Shah's portfolio, however, bucked the trend with a substantial gain, while other prominent investors like Vijay Kedia and Madhusudan Kela also reported positive returns.
Truhome Finance, supported by Warburg Pincus, is preparing for a public listing in the next financial year. The company aims to secure the position of the second-largest affordable housing financier in India. Truhome Finance expects significant growth in its assets under management.
Indian banks witnessed their first operating profit decline in 13 quarters during July-September, primarily due to sluggish net interest income growth. This dip, a 1% year-on-year fall to 1.5 lakh crore, stemmed from faster loan repricing downwards than deposits, squeezing margins. Analysts anticipate this contraction phase is nearing its end, with stabilization expected soon.
The microfinance sector is prioritizing asset quality stabilization and cautious credit expansion, implementing guardrails like limiting lenders per borrower to three and capping household loan exposure at 2 lakh. These measures have led to a stabilizing portfolio and consistent repayment behavior, with gross loan portfolio contracting and short-term delinquencies falling.
Nifty is poised for new record highs if it surpasses 26,250-26,300, with support at 25,500-25,800. Analysts suggest upside targets of 26,500-27,200, but a dip below 26,000 could trigger selling. Tata Consumer is a top pick, alongside Shriram Finance, with bullish technical indicators supporting potential gains.
Stock markets face a volatile year-end. Investors are worried about Federal Reserve interest rate cuts and the high valuation of artificial intelligence companies. This has caused market slides and increased anxiety. The holiday season is expected to be challenging for investors. Volatility has picked up significantly, indicating persistent investor unease.
