SJ FINANCE

  EPFO Records Highest-Ever Addition of 18.92 Lakh Net Members in April 2024 By MONEYCONTROL NEWS June 20, 2024 / 04:57 PM IST The Employees' Provident Fund Organisation (EPFO) achieved a significant milestone in April 2024, recording the highest-ever net addition of 18.92 lakh members. This marks a historic achievement since the first payroll data was published in April 2018. Key Highlights: Net Member Addition: 18.92 lakh members were added on a net basis in April 2024. First-Time Enrollments: Out of these, 8.87 lakh members enrolled with EPFO for the first time. Youth Workforce: The 18-25 age group constituted 55.50% of the total new members, highlighting the influx of young, first-time job seekers into the organized workforce. Gender Analysis: Approximately 2.49 lakh of the new members are female. The net female member addition for the month stood at around 3.91 lakh. Job Transitions: About 14.53 lakh members exited and subsequently rejoined EPFO, indicating job switches a...

  Around 4,300 Indian millionaires are expected to migrate out of India in 2024, positioning the country with the third-highest net outflow of millionaires globally, according to a report by investment migration consultancy Henley & Partners. This follows China and the United Kingdom, with projected losses of 15,200 and 9,500 millionaires, respectively. Trends in Global Millionaire Migration The global landscape is witnessing an unprecedented shift, with approximately 128,000 millionaires anticipated to relocate in 2024. This marks a significant rise from the previous record of 120,000 in 2023, reflecting a growing trend of high-net-worth individuals (HNWIs) seeking new destinations for better opportunities and living conditions. Why the UAE Tops the List The United Arab Emirates (UAE) is the most preferred destination for Indian millionaires, with a projected net inflow of 6,700 millionaires in 2024. The UAE has strategically positioned itself as a prime destination by offerin...

  India Dominates Global F&O Market Amid Regulatory Concerns By Ashish Rukhaiyar June 20, 2024 / 03:57 PM IST India's financial markets have achieved a significant milestone, with the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) emerging as the top two bourses globally in terms of futures and options (F&O) trading volumes. In April 2024, the combined turnover of these two exchanges accounted for over 80% of the global F&O volume, according to data from the Futures Industry Association. Unprecedented Trading Volumes The NSE led the global bourses with a staggering 8,484 million contracts traded in April, followed by BSE with over 2,224 million contracts. This surge in volume represents a 92% year-on-year increase for NSE. The BSE's growth in F&O trading is particularly notable, as it only began to see significant activity from May 2023, having previously hovered around near-zero levels. Overall, the combined trading volume of NSE and BSE was near...

The Markets and Fed Diverge Again The bull market rally is continuing to run on Thursday, with the S&P 500 poised to set yet another record. Investors see inflation in retreat, even if Fed policymakers don’t quite see it that way. The Gap Between Investors and the Fed The divergence between investors and the Federal Reserve is widening again. Following Wednesday’s tepid Consumer Price Index (CPI) report, futures markets have increased the odds of two interest rate cuts this year. This prospect has triggered a buying spree in both stocks and bonds. Fed's Perspective Contrary to market sentiment, the Fed’s “dot plot” projection released on Wednesday indicates just one cut this year, down from a previous forecast of three. Policymakers are concerned that inflation remains above their comfort levels, making the Fed more hawkish compared to other central banks, particularly those in Europe, which are expected to reduce borrowing costs several times this year. The White House has lar...

 At first glance, India’s merchandise exports for May 2024 show promising growth, with a 9.07 percent year-over-year increase. This is the strongest growth since February, following two months of lackluster performance. However, a closer look reveals a more nuanced picture. Despite this growth, total exports in May 2024 reached USD 38.1 billion, still below the USD 39 billion mark achieved in May 2022. Petroleum and Non-Petroleum Exports A significant contributor to this year's growth has been the petroleum sector, with exports rising by 15.72 percent compared to a year ago. Non-petroleum products also fared well, growing by 7.73 percent, marking a two-month high. This is a positive sign, especially since non-petroleum exports are slightly higher than in May 2022, suggesting resilience and potential for further growth. Import Trends and Economic Implications On the import front, May 2024 saw a slight increase compared to May 2022, primarily driven by a sharp rise in crude oil impor...

  In a significant policy decision, the Federal Reserve maintained its benchmark interest rate in the range of 5.25%-5.50%, the highest level in 23 years. This decision follows a two-day policy meeting and reflects the central bank’s cautious stance amid ongoing inflation concerns. Key Takeaways from the Latest Fed Meeting: Interest Rates and Predictions: Current Rate: The fed funds rate remains at 5.25%-5.50%, unchanged since July 2023. Future Cuts: The Fed scaled back its estimate for rate cuts in 2024 from three to one. However, projections for 2025 now include a median of four additional cuts, up from three. Inflation Outlook: Revised Forecast: The Fed raised its 2024 inflation forecast to 2.8% from 2.6%, based on the core Personal Consumption Expenditures (PCE) index. Positive Shift: The Fed's policy statement noted "modest further progress" towards the 2% inflation target, an optimistic update from previous statements. Fed Chair Jerome Powell’s Insights: No Prec...

  As Americans grapple with the persistent surge in prices, there's a glimmer of hope on the horizon – recent data indicates that inflation might finally be starting to cool down. The latest report from the Bureau of Labor Statistics reveals that the Consumer Price Index (CPI), a key measure of everyday expenses, remained flat compared to the previous month. While consumer prices were still 3.3% higher compared to a year ago, this figure is lower than economists had predicted and shows signs of a slowdown. Here's a breakdown of what these latest inflation numbers mean for your household budget: Shelter Costs: A Mixed Picture Renters, in particular, have been feeling the brunt of inflation, but there's some relief in sight. While rent prices remain elevated, they have slowed down from their peak in March 2023. Rising vacancy rates may further dampen rent hikes in the near future. Auto Expenses: A Tale of Two Trends Car insurance costs have skyrocketed, reaching levels not se...

  Indian Public Sector Units (PSUs) Drive Record Profit Growth The recent financial performance of Indian Public Sector Units (PSUs) has been nothing short of spectacular, marking a fivefold increase in profit from ₹1 lakh crore to ₹5.2 lakh crore between FY20 and FY24. This robust growth has significantly contributed to the overall profit-to-GDP ratio, which has reached a 15-year high. Key Highlights: Profit Surge : Indian PSUs have seen profits multiply fivefold, playing a pivotal role in boosting the overall profit-to-GDP ratio. Sector Contributions : The Banking, Financial Services, and Insurance (BFSI) sector alone accounted for 36% of the profit growth. Corporate Contribution : The Nifty-500 companies, representing 91% of India's market capitalization, now contribute 4.8% to GDP. Including all listed companies, this figure rises to 5.2%. Growth Trends : Corporate profits for the Nifty-500 grew 30% year-on-year (YoY) in FY24, following a 9.3% YoY growth in FY23. Sectoral Perfo...

On Thursday, the European Central Bank (ECB) confirmed a widely anticipated reduction in interest rates, lowering its key rate to 3.75% from the record 4% where it has stood since September 2023. This move comes despite ongoing inflationary pressures in the 20-nation euro zone. Moderating Monetary Policy In a statement, the ECB Governing Council explained the rationale behind the rate cut: “Based on an updated assessment of the inflation outlook, the dynamics of underlying inflation, and the strength of monetary policy transmission, it is now appropriate to moderate the degree of monetary policy restriction after nine months of holding rates steady.” This adjustment marks the first interest rate cut by the ECB since September 2019, a significant shift as the deposit facility was in negative territory back then. The decision reflects the central bank’s efforts to balance controlling inflation with supporting economic growth. Updated Inflation Projections The ECB's updated macroecono...

Introduction In a stunning shift within the tech industry, Nvidia's stock market value has surpassed that of Apple. This development highlights Nvidia's rapid growth and the evolving dynamics among the leading tech giants. Let’s analyze the chart details and explore the future prospects for Nvidia, Apple, and Microsoft. Chart Overview The chart, created by Thomson Reuters, depicts the market values of Nvidia, Apple, and Microsoft from January 2023 to April 2024. Nvidia, represented by the green line, shows a remarkable upward trajectory, eventually overtaking Apple's value, denoted by the orange line. Microsoft's value, shown in blue, remains relatively stable but significant throughout the period. Key Insights from the Chart Nvidia’s Growth: Nvidia's market value surged from under $1 trillion in early 2023 to over $2.5 trillion by April 2024. This growth can be attributed to Nvidia's leadership in AI, data centers, and emerging technologies like autonomous driv...

Introduction In the ever-evolving world of finance, staying ahead of the curve requires keen observation and timely decisions. Sandeep Tandon of Quant Mutual Fund exemplifies this strategic agility. Recently, he has made significant portfolio adjustments, exiting capital goods and PSU banks to focus on the burgeoning sectors of consumption, infrastructure, metal, cement, and power. Let's delve into the rationale behind these moves and explore the opportunities these sectors present. Exiting Capital Goods and PSU Banks Sandeep Tandon's decision to exit capital goods and PSU banks might raise some eyebrows. However, it's a calculated move based on current market indicators. Capital goods and PSU banks have experienced varying degrees of volatility and performance challenges. By reallocating resources, Tandon is positioning himself and his fund to capitalize on more promising sectors. The New Focus Areas Consumption Rationale: As economies recover and consumer confidence grows...

  On June 5, 2024, the National Stock Exchange of India (NSE) set a new world record by handling the highest number of transactions in a single day. NSE CEO Ashish Chauhan announced that the exchange processed 19.71 billion orders and 280.55 million trades during the trading session from 9:15 AM to 3:30 PM. This achievement underscores the robustness and efficiency of the Indian stock market infrastructure. The remarkable performance of the Indian stock market was further highlighted by a significant surge in share prices, with the Nifty 50 index climbing 3.4% to 22,620.35 points. This was the best one-day gain since February 1, 2021. The rally was driven by political stability as key allies reaffirmed their support for Prime Minister Narendra Modi's National Democratic Alliance (NDA) following a tight election outcome​ ( mint ) ​​ ( Argus English ) ​. In another notable development, the NSE has consistently been the world's largest derivatives exchange for the fifth consecut...

  📈 FMCG Sector Update: Rural Growth Fuels Optimism 🌟 Steady Macro Improvement: Positive trends in economic indicators signal a promising outlook. 📉 Sluggish Volume Growth: Key FMCG players report slow volume increases, despite a four-year CAGR of ~3%. 🌾 Rural Penetration & Seasonal Boost: Strong monsoon season and expanding rural markets drive recovery. 💪 Valuation Recovery Ahead: Volume growth could enhance stock valuations. 🛒 Challenges in Consumer Staples: High inflation and competitive pressure impact performance; discretionary spending rises. 📊 Rural Rebound: Q4 FY24 sees rural growth outpacing urban, promising volume recovery. 💼 Positive FY25 Outlook: Top-line growth expected from better execution, seasonal benefits, and innovation. 📈 Margin Expansion Limited: While raw material costs are low, brand investments cap EBITDA margin growth. Top Picks: Best Positioned Stocks Dabur: Leading in rural coverage and natural product differentiation. Key brands in oral care...

 U.S. Job Market Update: Key Trends and Insights The U.S. job market has experienced significant shifts, with key metrics indicating a move towards pre-pandemic normalcy. The latest data from the Bureau of Labor Statistics (BLS) and other sources highlight these changes, providing valuable insights into the current state and future outlook of the labor market. #### 1. **Job Openings to Unemployed Worker Ratio** The ratio of job openings to unemployed workers has reached its lowest level since February 2020, standing at approximately 1.3. This decrease from the peak of 2.0 in March 2022 signifies a cooling labor market. There are now fewer job openings available per unemployed worker than at any time in the past three years【10†source】【12†source】. #### 2. **Number of Job Openings** As of March 2024, the number of job openings has decreased to 8.5 million from 8.813 million in February, the lowest level since March 2021【11†source】. Despite this decline, job openings remain 22% higher ...

  ### Historic Stock Market Crash: ₹20 Lakh Crore Wiped Out in 20 Minutes In an unprecedented event in the Indian stock market, investors saw a staggering loss of ₹20 lakh crore within a mere 20 minutes. The market crash was triggered by an unexpectedly tight election race, which created widespread panic and uncertainty among investors. #### The Election Drama The Indian stock market has always been sensitive to political developments, and this incident underscores that relationship. The election race, tighter than predicted, has left investors in a state of anxiety. Political stability is a critical factor for market confidence, and the prospect of an uncertain government has made investors wary. Key figures in this political drama include Rahul Gandhi and Narendra Modi. Their respective parties, Congress and BJP, are in a fierce contest, with the election results looking too close to call. This tight race has injected a level of uncertainty that the market was not prepared for, l...

  The recent turmoil in the Indian stock market has sent shockwaves through investors, with the Sensex and Nifty experiencing their worst day in four years. On Tuesday, both indices plummeted over 6%, erasing significant market value and sparking fears of prolonged volatility. Overview of the Crash The Sensex nosedived by 6.1% to 71,900 points, while the Nifty witnessed a similar downfall, tumbling 6.2% to 21,824 points. This staggering decline marked the biggest single-day percentage drop since March 2020, catching many investors off guard. Factors Contributing to the Crash The market frenzy was largely triggered by early vote counting trends, which indicated that Prime Minister Narendra Modi's alliance might fall short of the anticipated landslide victory. This deviation from exit poll predictions, which had forecasted a significant win for the ruling BJP alliance, rattled investor confidence. Impact on Market Value The sharp sell-off resulted in the loss of approximately Rs 45 l...

 Upcoming FOMC Meeting: Potential Changes to the Federal Funds Rate As we approach the Federal Open Market Committee (FOMC) meeting scheduled for June 11 and June 12, all eyes are on whether the committee will decide to raise, maintain, or lower the federal funds rate. This decision is critical, influencing everything from loan interest rates to overall economic growth. Historical Context: Federal Funds Rate Hikes To better understand the potential outcomes of the upcoming meeting, let's review the recent history of federal funds rate hikes: 2023 July 27: Rate Increase: +0.25, New Range: 5.25 - 5.50 May 4: Rate Increase: +0.25, New Range: 5.00 - 5.25 March 23: Rate Increase: +0.25, New Range: 4.75 - 5.00 February 2: Rate Increase: +0.25, New Range: 4.50 - 4.75 2022 December 15: Rate Increase: +0.50, New Range: 4.25 - 4.50 November 3: Rate Increase: +0.75, New Range: 3.75 - 4.00 September 22: Rate Increase: +0.75, New Range: 3.00 - 3.25 July 28: Rate Increase: +0.75, New Range: 2.25...

  Nifty expected to open gap up, breaching 23,000 on Monday driven by strong exit poll results Market experts believe that there is a combination of factors that are hinting at a huge upside on Monday as the exit polls have come close on the heels of strong GDP numbers. Read More Money Control

  The coming week is set to be action-packed with significant events that will shape economic and policy directions both in India and globally. Here's a detailed look at what's on the radar. Monday, June 3 #AutomobileSales: Automobile manufacturers will release wholesale dispatch numbers for May. Channel checks by analysts indicate a moderation in passenger vehicle retail sales. #ManufacturingPMIs: HSBC will update the final India Manufacturing PMI data for May. Preliminary estimates indicated a moderation. May manufacturing PMIs for China, the Euro Area, and the US will also be updated. #IPO: The IPO of Kronox Lab Sciences opens for subscription, with a price band of Rs 129-136 per equity share. Tuesday, June 4 #IndiaElectionResults: Results of the General Elections conducted over April-June 2024 will be declared. These results will be closely tracked given their influence over future policy direction. S&P Global expects broad continuity in economic reforms and fiscal poli...