- A + A (June 23): Oil retreated along with other key commodities as concern over a global economic slowdown intensified, with Federal Reserve Chair Jerome Powell warning that a US recession is possible. West Texas Intermediate sank below $103 a barrel after closing at a six-week low on Wednesday. The US benchmark has lost more than 15% since the close on June 8 as the drumbeat of warnings over the state of the world’s economy has grown steadily louder, drowning out signs the oil market remains tight. Powell said while he didn’t see the likelihood of a recession as particularly elevated, it was a possibility. Commodity price hikes were “clearly” connected to the war in Ukraine, he said. Crude’s retreat has been accompanied by deep losses in other raw materials, especially base metals such as copper. Oil is rapidly giving up its gains in what’s been a volatile quarter as investors attempt to gauge the trajectory of the US economy and its impact on raw materials. … [Read more...] about Crude oil sinks again as specter of US slowdown alarms investors
India buys which crude oil
Pullback likely as sentiment turns extremely bearish. These 19 stocks are bargain buys now
The market seems to have seen extreme bearishness after the recent fall way below even its March lows, indicating the Nifty50 index moved near the oversold territory, experts said. A rising concern over inflation and fears of a recession because of rapid tightening of monetary policies weighed on the sentiment. The March 2022 low was 15,671. The Nifty50 plunged nearly 18 percent from its record high of 18,604 on June 19 last year, to 15,183 levels on June 17 this year. Even from its June high (current month), it lost nearly 10 percent, followed by recent recovery of 3.4 percent from 15,183. ICICI Direct highlighted four factors that clearly indicated that we are in an oversold territory, indicating more than 9 percent recovery from the recent lows. Only around 15 percent stocks traded above 200 day moving average in the recent fall, which means around 85 percent stocks fell below 200 DMAs, which clearly signifies extreme pessimism in the market. Technical experts usually … [Read more...] about Pullback likely as sentiment turns extremely bearish. These 19 stocks are bargain buys now
Long winter on the Street set to get longer! FIIs don’t seem to be coming back anytime soon
Representative image A characteristic of the ongoing market correction has been heavy selling by foreign investors. Since October last year, they have withdrawn about net Rs 2.08 lakh crore equities, as per NSDL data. Not surprisingly, indices are trading lower by about 18 percent from their highs. Apparently the nine month long winter is likely to get even longer now. Commentaries from foreign money managers and expectations from domestic analysts suggest that it will take a lot of factors to culminate for them to come back. A couple of major reasons why foreign investors have been bearish on Indian markets are rising US dollar which has also led to more yields on bonds, and monetary tightening that is likely to have a negative impact on the economy. Concerns over near-term risks including tightening monetary conditions, a slowing economic outlook, likely earnings cut for the Nifty and headwinds from higher crude oil prices will likely keep them away, say analysts. BofA … [Read more...] about Long winter on the Street set to get longer! FIIs don’t seem to be coming back anytime soon
FMCG stocks surge on easing concerns over margins
Representative image Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Shares of fast-moving consumer goods companies saw hefty buying on June 24 on the perception that ongoing decline in global commodity prices could improve profitability of these companies going ahead. FMCG companies had come under pressure earlier this year as rising prices of commodities, such as wheat, crude palm oil and others, led to fears of continued decline in margins of these companies. In the quarter ended March, most FMCG companies reported a year-on-year decline in their margins due to high input price inflation. However, recent decline in global commodity prices due to rising concerns over demand in the West and the government’s efforts to contain prices of key imports like edible oils have helped ease concerns around margins of these companies. … [Read more...] about FMCG stocks surge on easing concerns over margins