IDFC First Bank's stock plummeted 16% after a 590 crore fraud was discovered at its Chandigarh branch. This incident has significantly dented its valuation multiple, shrinking its price-book ratio to 1.3. The bank faces potential pressure on its CASA deposits as the Haryana government de-empanelled it, raising concerns for other smaller lenders.
Indian equity benchmarks rose on Monday, with the Nifty and Sensex gaining 0.6% amid mixed investor sentiment. While optimism surrounded lower US tariffs, renewed negotiation uncertainty loomed. Foreign portfolio investors were net buyers, contributing to the market's uptick, though the IT sector saw a decline.
Jefferies has downgraded several major Indian IT stocks, including Infosys and TCS, citing AI-related disruptions and greater downside risks. The brokerage shifted its preference to mid-sized IT firms, identifying Coforge, Sagility, and IKS as top picks with projected returns of 19-26%.
Investors are flocking to international mutual funds for higher returns. However, many overseas ETFs are trading at a 20-25% premium to their actual value. This is due to Reserve Bank of India's investment limits for mutual funds. Investors buying these ETFs on exchanges face a risk of significant capital loss if the RBI lifts these restrictions.
The Park District pitched state officials on converting the 61,500-seat venue to a destination for concerts and other special events once the Bears leave.
