Street signs: PSB investors pin hopes on Q2, Ujjivan stock falls, and more

Traders rolled over their positions to November in PSBs with rollovers of 90% in Allahabad Bank, Bank of Baroda, Oriental Bank and Canara Bank ahead of their earnings

PSB investors pin hopes on Q2

Investors of public sector banks (PSBs) are pinning their hopes on positive earnings surprise from September quarter earnings going by Thursday’s rollover data, according to derivatives analysts. Traders rolled over their positions to November in PSBs with rollovers of 90 per cent in Allahabad Bank, Bank of Baroda, Oriental Bank and Canara Bank ahead of their earnings. “In the past one year, the index has lost more than half of its value. The worst could be behind us,” said an analyst.
 

Samie Modak

Tough times for advisors

For investment advisors, falling markets become a difficult period as the number of calls from investors shoots up. “Even seasoned investors ask whether they should stop their systematic investment plans (SIP) or book some profits (if there are any). So, it gets a little tiring,” says an investment advisor. The most difficult questions, however, are: Has the market bottomed out? Is it a good time to start an SIP? “While we keep on telling investors that there is no good time to start an SIP, no one really knows whether the market has bottomed out,” added the advisor.

Joydeep Ghosh

MFs hit by slide in Ujjivan, Equitass

The sharp slide in shares of Equitas Holdings and Ujjivan Financial Services has caught several fund managers on the wrong foot. At least half a dozen mutual funds (MFs) were aggressive buyers in both companies during the September quarter. Shares of Equitas fell 23 per cent, while Ujjivan declined 18 per cent on Friday after the central bank asked them to list their small finance banks within the stipulated time period. “We are surprised by the sharp correction. The regulatory advice has come at a time when the market sentiment is weak, particularly towards financial stocks. We think it is an overreaction as the diktat doesn’t change the fundamentals for the stocks,” said a fund manager.
 

Samie Modak