NIFTY 50 & Shanghai Exchanges...Two Important Global Equity Indices
Every week, I look at the highest market cap indexes around the world. Two of them come from Asia, the NIFTY 50 and the Shanghai Exchange.
The NIFTY 50 is an index that benchmarks India's stock market index representing the 50 of Indian's top public companies in 13 sectors. The NIFTY 50 Index consist of by weight 39.47% to financial services, 15.31% to Energy, 13.01% to IT, 12.38% to Consumer Goods, 6.11 to Automobile, etc. Some of the publicly known companies traded on the NIFTY 50 are Infosys and Tata Motors.
Out of the nearly two-thirds of companies that trade on the NIFTY 50 that have reported their June quarter results, 20 have surpassed profit estimates, four companies have met estimates and nine have missed estimates. Just like in the US, analysts weren’t expecting much if anything, leading to many of the companies exceeding estimates.
However, on Friday the Nifty 50 indexes ended lower due to weakness in heavyweights their bank sector like HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank. The benchmarks opened higher and were trading in a narrow range. The Nifty dropped 255 points after reaching a high and ended the day on the lows at 11,111. Will the daily supply hold up or get breached...only time will tell?
The Shanghai Stock Exchange (SSE) is the largest stock exchange in mainland China and in the top five of all exchanges in the world. The exchange is run by the China Securities Regulatory Commission (CSRC) where one can buy and sell stocks, funds, bonds, and derivatives. But despite this option at the disposal of companies in China that want to go public, these companies getting listed on the US exchanges. More than 20 companies from China have gone public in 2020 either on the Nasdaq Stock Market or New York Stock Exchange. However, be careful as some investors have gotten really burned this year.
Shares of Chinese streaming service iQiyi plunged in after-hours trade in the U.S. after it announced the Securities and Exchange Commission (SEC) has launched a probe into the company, CNBC reported.
The SEC investigation was prompted by a report in April from Wolfpack Research, which describes itself as an “activist research and due-diligence firm.” In that report, Wolfpack accused iQiyi of fraud and inflating its numbers.
iQiyi said the SEC is “seeking the production of certain financial and operating records dating from January 1, 2018, as well as documents related to certain acquisitions and investments that were identified in a report issued by short-seller from Wolfpack Research in April 2020.”
Price on the Shanghai exchange is in the middle of weekly supply and demand. Although price has consolidated in the last couple of weeks, momentum is still up, meaning price could move higher in the coming weeks.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Posted Using LeoFinance
