Finance

Auto and finance stocks can bounce back even if the market crashes in July

Published

3 years ago

June 24, 2022

Auto and finance stocks can bounce back even if the market crashes in July

Issues of a worldwide slowdown have put a cease within the bull run within the IT and pharma sectors, however analysts have two new picks to select from.
Whereas the auto sector has struggled and underperformed the benchmark Nifty 50 index, analysts consider easing supply-side pressures are bringing the shine again on this sector.
Finance sector, too, which remained largely unblemished throughout the Covid pandemic, has an opportunity to shine now that rates of interest are surging.

Indian inventory markets are flirting with bear market territory due to rising rates of interest within the US – which has taken away the shine off IT and pharma sectors.

Nonetheless, it’s not all doom and gloom as analysts consider buyers can take a look at two sectors to place their cash in – finance and cars.

Talking to Enterprise Insider India, Shrikant Chouhan, vp at Kotak Securities highlighted that these two sectors may see a rebound after maybe yet another dip – almost definitely after the US Fed’s July assembly.

Whereas finance and commodities have seen a significant correction, the auto index has outperformed the benchmark Nifty 50 index.

How varied Nifty indices have carried out this 12 monthsNSE / Enterprise Insider India / Flourish

Why are fairness markets struggling?

Inflation, rising bond yields and provide chain constraints on account of geopolitical incidents have led to main corrections in international fairness markets.

India’s benchmark Nifty 50 index is down over 11% this 12 months, whereas its US counterpart Nasdaq composite has seen a 30% decline.

Rising rates of interest within the US and different developed markets have additionally made a dent within the forecasts of Indian IT giants like TCS, Infosys and Wipro, who have been already battling rising worker churn.

The pharma sector has been impacted, too, however in keeping with Chouhan, vp, Kotak Securities, that is extra as a result of ongoing investigations by US FDA into India’s pharma majors.

Additionally Learn

M&M shares hit 52-week high on the back of rural revival – more good news in store

M&M shares hit 52-week excessive on the again of rural revival – extra excellent news in retailer

Whereas the auto sector has struggled and underperformed the benchmark Nifty 50 index, analysts consider easing supply-side pressures are bringing the shine again on this sector. Finance sector, too, which remained largely unblemished throughout the Covid pandemic, has an opportunity to shine now that rates of interest are surging. Indian inventory markets are flirting with bear market territory due to rising rates of interest within the US – which has taken away the shine off IT and pharma sectors.

The connection between auto and finance

Rising rates of interest are often thought-about a optimistic for finance corporations, since their major supply of earnings is the curiosity they earn on loans and advances. Whereas curiosity on deposits have additionally seen a average improve, curiosity on loans is way larger compared, as is the quantum of loans.

With the
rural revival pushing tractor gross sales and kharif output anticipated to be ‘bumper’, analysts consider the auto sector will expertise progress and the upper rates of interest can be absorbed, which advantages each finance and auto sectors.

“Persons are paying their dues on time. Banks have change into aggressive in automobile finance now. Availability of finance is now not an issue,” mentioned a report by Spark Capital, stating that 9 out of ten tractors are actually bought on credit score, versus 5 a number of years again.

The analysis agency states that it has noticed that the demand for loans has gone up within the final two months within the building and auto sectors, with HDFC, ICICI Financial institution and Axis Financial institution providing loans with none hassles.

So far as the auto sector is worried, analysts at ICICI Securities consider that the headwinds for the sector are actually “largely receding”. With key commodity costs now seeing main corrections of as much as 35%, the gross margins of auto corporations are anticipated to extend by 3-5%.

Analysts at Morgan Stanley even have a optimistic outlook on the auto sector, underlining that commodity and provide chain pressures have eased, volumes are sturdy and EVs are actually part of auto corporations’ progress plans.

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M&M shares hit 52-week excessive on the again of rural revival – extra excellent news in retailer

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Finance

Financial empowerment trainings and workshops

Published

2 minutes ago

January 6, 2025

Press Room

Financial empowerment trainings and workshops

BANGOR, Maine (PENQUIS) – As the new year begins many people have dreams of starting their own business or are thinking about turning a passion or hobby into a way to make money, but they are not sure how to start the process. Thankfully, there is a local resource available to help provide guidance right here in Penobscot, Piscataquis and Knox counties.

MaineStream Finance, a subsidiary of Penquis, is a nonprofit community development financial institution (CDFI) certified by the US Treasury, helping ALL Maine home-buyers, business owners, and consumers secure advice and financing to grow and thrive. MaineStream Finance offers a wide variety of workshops and classes on business, home buying, and financial empowerment for you and your co-workers. They deliver these services throughlending, savings products, classes, and one on one advisory support. MaineStream works closely with federal and state agencies, foundations, and local financial institutions, including banks, to help them meet Community Reinvestment Act (CRA) goals through financial education programs, loan capital, and volunteering opportunities for homeowners and small businesses.

Thinking of starting a business? Check out the Business 101 classes. These free workshops will provide an overview of the pros and cons of operating a microenterprise or small business. What a business plan is and why it is needed, plus resources for your business development. Topics include being an Entrepreneur, Business Success; Professionalism; Business Plans, Networking; Business Loans; Resources; Budgets; Credit; and Review of Upcoming Classes and Workshops. These workshops are FREE and offered via Zoom. The dates of the classes are: Monday, 1/27/25 & 2/3/25 @ 6 pm via Zoom; Tuesday, 2/18/25 & 2/25/25 @ 6 pm via Zoom, and Monday, 3/17/25 & 3/24/25 @ 6 pm via Zoom.

Are you interested in turning your passion or hobby into a business? Do you have a passion for creating or is your hobby sellable? Be sure to check out their free two-night Hobby workshop, where you will discuss what to think about before creating a new business. Areas that will be discussed: Questions to ask myself; Is there a market for my products and/or services; Business Plan; Recordkeeping; Regulations; Taxes; Marketing; Funding sources and more. The two-night workshop is FREE! The first two classes are on Monday, 1/27/25 & 2/3/25 @ 6 pm via Zoom, the next two nights run on Tuesday, 2/18/25 & 2/25/25 @ 6 pm via Zoom, and the final two classes run Monday, 3/17/25 & 3/24/25 @ 6 pm via Zoom.

To register for any of these classes or for more information to sign up visit: www.mainestreamfinance.org

MaineStream Finance can also help turn childcare into a business and they provide business lending too. Does children’s laughter sound like music to your ears? The number of working parents–including single-parent families and families with both parents employed–is climbing, creating an ever-growing need for quality childcare. That need creates a tremendous entrepreneurial opportunity for people who love children and want to build a business caring for them. Child-care services range from small home-based operations to large commercial centers and can be started with an investment of as little as a few hundred dollars. You can stay very small, essentially just creating a job for yourself, and possibly others. Our team of business advisors can help you create a business plan, design, develop, provide assistance with the Child Care Provider Licensing process and more. Our business advising services are free.

Are you aware that Mainstream Finance does business loans? MaineStream Finance offers a variety of loan products throughout Maine to small businesses that may have trouble finding credit.

Amount: Minimum $500 – Up to $200,000 / Term: Up to 20 years.

Whether you are a startup or an existing business we can do financing to help you move your project forward. MaineStream Finance does what is called “Gap financing” so the difference between the amount of your down payment you have and what another lender has and can lend. This Gap amount could stop your project, we may be able to help finance that Gap to complete the project. We are also looking at startup businesses in need of financing to purchase equipment, inventory, training, a building, or an existing business. The team at Mainstream Finance will help a business develop a business plan and business financials as well as help you prepare the loan documents that you will need to apply for a loan and all of this is at no charge. The MaineStream Finance mission is to help small businesses grow in Maine.

To learn more about what MaineStream Finance has to offer go to their webpage at mainestreamfinance.org, or call 207-973-3500 or email the team at MSFInfo@penquis.org for more information.

Finance

Security Bank, JuanHand tie up for financial inclusion in Philippines

Published

8 hours ago

January 6, 2025

Press Room

Security Bank, JuanHand tie up for financial inclusion in Philippines

JuanHand app users can now apply for loans by providing basic personal information and one valid ID. Credit: JuanHand/ Security Bank.

Filipino lender Security Bank has signed a credit facility agreement with WeFund Lending, the operator of fintech cash lending app JuanHand in Philippines.

This partnership aims to bolster financial inclusion by providing Filipinos with accessible financial solutions.

JuanHand app users can now apply for loans by providing basic personal information and one valid ID.

Utilising Finvolution group’s proprietary AI technology, borrowers are said to get loan approvals in under five minutes, without collateral or the need to upload proof of income or a billing address.

The signing event was attended by Security Bank executive vice president John Cary L. Ong and assistant vice president and relationship manager Earvin Lucido.

Finvolution and WeFund Lending were represented by chief financial officer Alexis Xu and CEO Francisco “Coco” Mauricio.

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Cary L. Ong said: “We are grateful for the opportunity to be part of the JuanHand family. We resonate with JuanHand’s vision of one family with one heart that gives Filipinos a helping hand with their financial needs.”

JuanHand, operated by WeFund Lending, has disbursed over PHP 40bn in loans and boasts over 12 million registered users.

“Coco” Mauricio stated: “We are thrilled that Security Bank chose JuanHand as their first fintech lending company partner. By giving us their trust and confidence, this truly exemplifies Security Bank’s commitment to rapidly expand financial inclusion for all underserved Pinoys. Security Bank’s support helps fulfil our mission of being a helping hand for every Juan.”

In November 2024, Security Bank signed an agreement to acquire a 25% stake in HC Consumer Finance Philippines, also known as Home Credit Philippines.

Finance

Where to put your money in 2025

Published

15 hours ago

January 6, 2025

Press Room

The most frustrating answer in financial services is ‘it depends’, so if you’re keen to find out where to put your money in 2025, you’re not going to like the answer – because it really does depend.

Fortunately, that’s not the start and end of the answer, because once you know what it depends on, it’s actually much more useful advice than someone simply giving you the name of a fund or telling you to keep your cash in a shoebox under the bed.

Read more: 7 post-budget steps to protect your finances

When people ask about the best home for their money, they’re usually thinking about external factors, but the key is to start with your own needs. Think about your finances in the round. Are your short-term debts under control? Do you have protection in place for your family?

Do you have enough saved for emergencies? Are you on track with your pension? And are you investing to make the most of your money? There’s a decent chance that you’re falling short in one or more areas, so these are your key priorities for the year.

It’s important to think about your finances in the round. Are things like credit card debts under control? · boonchai wedmakawand via Getty Images

If short-term debt, like credit cards and loans, are an issue, it makes sense to set up a direct debit to pay down the most expensive of them first. Over time, you’ll spend less on interest, so you can free up more money for your other financial goals. If protection is a priority, you need to consider how to free up cash for insurance premiums to cover those who rely on you.

For emergency savings, the first step is working out how much you ought to have. This is another frustrating ‘it depends’ answer. While you’re working age, you should have enough cash to cover 3-6 months’ worth of essential spending – and in retirement that grows to 1-3 years. It means considering the cost of your essentials, and then looking at your circumstances to figure out where on the saving spectrum you need to be. The answers will be radically different for every household, but as a very rough starting point, the Hl Savings & Resilience Barometer shows that the median spent on essentials is £1,842 a month.

Read more: 6 red flags that will help you spot a scam

For any other cash you’ll need over the next five years, savings is still the most sensible home for it, but you can consider tying it up for periods in a fixed rate account, in order to lock in a decent rate. You need to decide what the money is for, when you’ll need it, and how long you can fix it for.

British pound notes in savings jar — For emergency savings, you should have enough cash to cover 3-6 months’ worth of essential spending – and in retirement that grows to 1-3 years · Peter Dazeley via Getty Images

You also need to look ahead, and consider your pension. The best approach is to start with a pension calculator, where you put in details of what you’ve saved so far, what you’re putting aside each month, and when you want to retire. It will show you what you’re on track for, and whether you need to do more.