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The ongoing <keyword id="20168812" type="General" weightage="20" keywordseo="sell-off" source="keywords">sell-off</keyword> by <keyword id="19900795" type="General" weightage="20" keywordseo="foreign-investors" source="keywords">foreign investors</keyword> continues to loom large on <keyword id="19991358" type="General" weightage="20" keywordseo="Indian-markets" source="keywords">Indian markets</keyword>. In October so far, <keyword id="19950996" type="General" weightage="100" keywordseo="FIIs" source="keywords">FIIs</keyword> (foreign institutional investors) have already withdrawn Rs 74,732.20 crores. Not for a single day this month have FIIs poured money into <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword>. The sell-off started on October 1, when foreign investors withdrew Rs 5,579.35 crore. The highest withdrawal of this month came on October 3. 2024, when FIIs sold Rs 15,243.27 crore worth of assets. Yesterday, i.e. on October 17th, FIIs pulled out Rs 7,421.40 crore from the markets. Experts state that FIIs are continuously putting pressure on Indian stocks, but the situation is expected to improve in the coming weeks with a sharp recovery anticipated. "We remain optimistic as the FII selling may have crossed the half way mark already and as it tones down, the domestic flows will help a recovery. When the recovery happens it will sharp and concentrated, giving long term investors motivation to stay put during the harrowing volatility of a roller coaster market that has repeatedly tested support levels but remains oversold, hence ripe for a bounce sometime in the next few weeks" said Ajay Bagga, Banking and Market Expert to ANI. Between January and October 2024, foreign investors have invested a net of 1,87,298 crore in India. This year, apart from the current sell-off, January, April and May also saw <keyword id="23593694" type="General" weightage="20" keywordseo="investment-outflows" source="keywords">investment outflows</keyword> by FIIs. The intense selloff comes right after September, when foreign investors invested a record Rs 93,538 crore in the Indian markets. June, July and August 2024 had also seen positive inflows from foreign investors of about Rs 41,757 crore, Rs 48,796 crore and Rs 25,493 crore respectively. However, a resilient, strong domestic investor base is keeping Indian markets afloat. <keyword id="21714171" type="General" weightage="20" keywordseo="DIIs" source="keywords">DIIs</keyword> (domestic institutional investors) have been consistent buyers throughout this month, largely balancing the outflows prompted by FIIs. In October so far, DIIs have invested about Rs 68,961.37 crore in the market, with the highest monthly inflow coming in on October 7th. While DIIs invested Rs 13,245.12 crore in Indian markets on that day, foreign investors withdrew Rs 8,293.41 crore. Yesterday i.e. on October 17, 2024, DIIs invested Rs 4,979.83 crore in the markets. At present, experts note that DIIs are flush with cash at the moment, with <keyword id="20052797" type="General" weightage="20" keywordseo="mutual-fund-inflows" source="keywords">mutual fund inflows</keyword> reaching an all-time high of Rs 24,509 crore in September 2024, a record 52.78% jump from the corresponding year ago period, where they stood at Rs 16,042 crore. Generally, keeping around 3-5% of their assets in cash is considered an acceptable practice amongst mutual fund houses. As per reports, mutual funds are currently in possession of Rs 1.86 lakh crore worth of cash, which constitutes 5.03% of their total AUM as of September 2024.

Exodus of foreign investors from Indian markets continues unabated in October. But DIIs are holding the fort steady

<ul><li>The Indian wearable market has declined for the second consecutive quarter.</li><li>The smartwatch segment has recorded a huge decline in shipments in Q3 2024.</li><li>The earwear segment has also declined, while the smart ring segment remains strong.</li></ul>The <keyword id="22725790" type="General" weightage="20" keywordseo="Indian-wearables-market" source="keywords">Indian wearables market</keyword> has declined for the second consecutive quarter, recording a 20.7% year-on-year decline in shipments in Q3 2024. There was a 10% decline in shipments in Q2 2024. According to a report by the International Data Corporation, 38 million devices were shipped in the country’s wearables market in Q3 2024. The decline is being attributed to a reduction in new product launches and a cautious inventory strategy. <h2>Smartwatch shipments decline</h2>The smartwatch category recorded a decline of 44.8% as shipments declined from 16.92 million devices in Q3 2023 to 9.34 million in Q3 2024. Not just the basic smartwatches, the shipments of premium smartwatches also declined by 39.9% year-on-year. The Smartwatch average selling price (ASP) however increased by 1.4% from $25.8 to $26.2. The wristband category, which remained strong in Q2 has also declined in Q3, recording a 48.4% year-on-year decline in shipments. The earwear category also struggled, with a 7.5% decline in shipments from 30.29 million in Q3 2023 to 28.52 in Q3 2024. <h2>The smart ring category continues to shine</h2>The smart ring market has remained strong, with 92 thousand smart rings shipped in Q3 2024. The quarter also recorded a decline in the average selling price of 16.2% to $162.1. Ultrahuman continues to lead the smart ring category in India with a 36.8% market share, boAt comes in second with a 20.5% share and Pi Ring is third with a 16.3% market share. <h2>Smartwatch market share in India</h2><table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q3 2024 </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q3 2023 </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Noise </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">27.40% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">20.70% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">boAt </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">16.80% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">14.20% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Titan </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">12.60% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.10% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Fire-Boltt </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.80% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">23.60% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Boult </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.30% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.10% </td></tr></tbody></table> Source: IDC Noise continues to dominate the Indian smartwatch market with a 27.4% market share in Q3 2024, up from a 20.7% market share in Q3 2023. boAt comes in second with a 16.7% market share, up from a 14.2% market share in Q3 2023. “Amid market trends like consolidation, premiumization, and evolving consumer expectations, we have not only weathered these changes but thrived, with a 10-15% year-on-year increase in average selling prices across marketplaces,” said Amit Khatri, Co-Founder, Noise in a statement to Business Insider India. “The smartwatch category remains stressed as we head into 2025 due to undifferentiated products and a limited number of brands in play. Its market is expected to remain flat or decline marginally in 2025,” said Vikas Sharma, senior market analyst, Smart Wearable Devices, IDC India. “However, we are seeing early signs of a gradual consumer shift from basic to advanced smartwatches, as the need for better health tracking with efficient sensors and advanced functionality is gradually coming to the fore,” Sharma added. <h2>TWS market share in India</h2><table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q3 2024 </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#000000;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q3 2023 </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">boAt </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">36.80% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">38.10% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Boult </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">13.50% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.70% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Noise </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.10% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">7.70% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Realme </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.90% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">3.50% </td></tr><tr><td style="border-left:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">Oppo + OnePlus </td><td style="border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.00% </td><td style="border-right:solid #000000 0.5008695000000001pt;border-bottom:solid #000000 0.5008695000000001pt;border-top:solid #000000 0.5008695000000001pt;vertical-align:bottom;background-color:#d9d9d9;padding:0pt 5pt 0pt 5pt;overflow:hidden;overflow-wrap:break-word;">8.10% </td></tr></tbody></table> Source: IDC boAt continues to be the market leader in the TWS segment in Q3 2024 despite a decline in its market share. The company leads the market with a 36.8% market share, with Boult a distant second with a 13.5% market share. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/tata-to-buy-a-majority-stake-in-pegatrons-iphone-plant-in-india/articleshow/115414852.cms">Tata to buy a majority stake in Pegatron's iPhone plant in India</a> <a href="https://www.businessinsider.in/stock-market/webstories/ntpc-green-energy-ipo-gmp-risk-factors-and-all-you-need-to-know/slidelist/115403791.cms">NTPC Green Energy IPO – GMP, risk factors and all you need to know</a> <a href="https://www.businessinsider.in/tech/mobile/news/indian-smartphone-shipments-grow-5-6-in-q3-2024-vivo-leads-the-market/articleshow/115329847.cms">Indian smartphone shipments grow 5.6% in Q3 2024, Vivo leads the market</a>

Indian wearables market declines 20.7% in Q3 2024, smartwatch and earwear categories struggle

<ul class="summary-list"><li>US stocks dropped on Wednesday, dragged by a continued rise in Treasury yields. </li><li>Tech shares sold off, with the Nasdaq losing almost 2%.</li></ul>US stocks notched their worst losses in over a month, driven by rising bond yields that dragged tech shares lower. Major averages tumbled, with the Dow Jones Industrial Average losing over 400 points and the Nasdaq Composite losing 1.6%. The session marks the third losing day in a row for the S&amp;P 500 and the Dow, which both traded at all-time highs at the end of last week. <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/apple-stock-price-tumbles-analyst-says-iphone-16-orders-slashed-2024-10">Apple led a decline</a> in tech stocks after a prominent supply chain analyst said the company was seeing waning demand for its new iPhone 16. The stock dropped as much as 3% Wednesday afternoon, and closing lower by more than 2% to mark its worst day since early August. Nvidia, Amazon, Microsoft, and other large-cap tech stocks also moved lower in Wednesday trades. Tesla shares slid 2% as traders headed into the carmaker's third-quarter <a target="_blank" class="" href="https://www.businessinsider.com/tesla-stock-tsla-earnings-call-report-live-updates-2024-10#wedbush-analyst-dan-ives-sticks-with-bullish-view-on-tesla-despite-recent-volatility">earnings results,</a> which will be published after the closing bell. Wall Street expects the company to report $25.43 billion in revenue, with analysts keeping a close eye on profit margins for the last quarter.Bond yields continued to rise on Wednesday, with prices extending the week's decline as traders dialed back expectations for coming Fed rate cuts amid hot economic data and cautious comments from officials this week. Odds for 75 basis points of cuts through January of next year dropped to 44%, down from 66% last week, according to the <a target="_blank" class="" href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">CME FedWatch tool</a>.The yield on the 10-year US Treasury briefly rose above 4.25% and hovered around its highest level since July. "Treasury yields continue to move higher this week, which is causing the stock market to settle down," Louis Navellier, the chief investment officer of Navellier &amp; Associates, said in a note. "The stock market is going to need some earnings surprises from more flagship stocks to get its "mojo" back. Fortunately, next week will be the biggest week for earnings announcements." MacDonald's stock ended 5% lower as traders reacted to the news of an E.Coli outbreak linked to the chain's Quarter-Pounder, which the Centers for Disease Control and Prevention said had caused one death and numerous hospitalizations. Here's where US indexes stood at the 4:00 p.m. closing bell on Wednesday:<ul><li><a target="_blank" href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 5,797.42, down 0.92%</li><li><a target="_blank" href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 42,514.95, down 0.96% (-409.94 points)</li><li><a target="_blank" href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq composite</a>: 18,276.65, down 1.6%</li></ul>Here's what else is going on:<ul><li><a target="_blank" class="" href="https://www.businessinsider.com/trump-election-odds-polymarket-bets-polls-kamala-harris-2024-10">Here are a few theories about the "whale"</a> betting big on a Trump win in November. </li><li><a target="_blank" class="" href="https://www.businessinsider.com/existing-home-sales-2010-housing-market-outlook-mortgage-rates-fed-2024-10">Existing home sales hit a 14-month low in September. </a></li><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-warning-signs-investor-exposure-sp500-nasdaq-citi-2024-10">The stock market is flashing a signal</a> that preceded a 10% slump in the past, according to Citi.</li><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/europe-trump-win-outlook-trade-war-tariff-crypto-djt-election-2024-10">One global market is already pricing in a Trump victory</a>.</li><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/commodities/oil-commodities-geopolitical-tensions-middle-east-chinese-stimulus-2024-10">Energy markets are "schizophrenic"</a> amid rising geopolitical tensions and China's stimulus, according to one energy expert.</li></ul>In commodities, bonds, and crypto:<ul><li><a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">West Texas Intermediate</a> crude oil was down 1.37% to $70.76 a barrel. <a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">Brent crude</a>, the international benchmark held steady around $74.99 a barrel.</li><li><a target="_blank" href="https://markets.businessinsider.com/commodities/gold-price">Gold</a> slipped 1.2% to $2,715.75 an ounce.</li><li>The 10-year Treasury yield climbed three basis points to 4.24%.</li><li><a target="_blank" href="https://markets.businessinsider.com/currencies/btc-usd">Bitcoin</a> fell 1.7% to $66,294.</li></ul>

Tech sell-off drags stocks to worst day in 6 weeks 

When George Coulam decided to retire, he had a problem. He owned the Texas Renaissance Festival — which bills itself as the largest such gathering in America, drawing over 500,000 annual visitors — and he needed to find a successor. Several longtime associates were eager to take over, but Coulam had run the fair for decades; he wanted his pride and joy to land in the right hands. Suitor after suitor put in bids to buy the business, but none felt like the right fit.Across the US, older business owners are arriving at the same juncture. Over half of <a target="_blank" class="" href="https://www.businessinsider.com/recession-outlook-small-business-owner-economy-interest-rate-cuts-2024-9">small businesses</a> — those with a single owner and fewer than 500 employees — are owned by people over 50. The wealth-management firm NewEdge Wealth has estimated that boomer-owned businesses in the US are worth about $10 trillion. Those boomers can't retire and enjoy their sunset years until they figure out <a target="_blank" class="" href="https://www.businessinsider.com/entrepreneurs-small-business-owners-share-challenges-of-starting-company-2023-10">what to do with their businesses</a>. Can a relative or longtime employee take over? Should they shut down? Or can they sell?For millennials with the entrepreneurial bug, this <a target="_blank" class="" href="https://www.businessinsider.com/boomers-not-enough-retirement-savings-gen-z-millennials-eldercare-2024-1">boomer retirement bomb</a> could be a boon. As they enter their prime wealth-building years, many are anxious about how they'll <a target="_blank" class="" href="https://www.businessinsider.com/how-much-millennials-need-for-retirement-savings-strategies-401k-ira-2024-5">save up for retirement</a>; in a <a target="_blank" href="https://www.businessinsider.com/home-sellers-summer-disappointment-mortgage-rates-house-prices-real-estate-2024-5">turbulent housing market</a>, buying an existing business offers a tantalizing opportunity. The market-research firm Forrester found in a survey it conducted last year that 64% of people buying businesses were millennials or younger. Sure, many small businesses aren't glamorous — think dental practices or accounting firms — and they involve long hours and unpredictable market forces. But they might just be a better pathway to retirement than building a business from scratch.<a target="_blank" href="https://www.businessinsider.com/more-startups-get-bought-up-by-private-equity-vc-2024-8">Private-equity firms</a> have long seen the wisdom in acquiring small businesses. Why should they be the only ones reaping the fruits of boomer labor?In the late 1990s, Nancy Forster-Holt, an accountant at Ernst &amp; Young, was transferred from Sacramento, California, to Maine. She fell in love with the state and her now-husband, Steve Holt. They decided to buy a business together. Since she had experience as a chief financial officer and he was an engineer, they focused on manufacturing companies. They soon found Shaw &amp; Tenney, a century-and-a-half-old manufacturer of wooden paddles and oars in Orono. Before the Holts bought it in 2003, Shaw &amp; Tenney had had only two other owners: the Tenney family, which operated it until 1978, and Paul and Helen Reagan.When they decided to retire two years ago, the Holts thought their children might want to take over. But no one showed any interest. "They all grew up in it and worked in it," Forster-Holt, who's also a clinical associate professor at the University of Rhode Island's business school, told me. "Our last one graduated in 2022, and he's a food scientist, and we're a manufacturer of oars and paddles." The couple realized they had to sell, and they started marketing the company while planning the graduation party.That's when Jennifer and Neil Gutekunst came along. When they acquired Shaw &amp; Tenney in 2023, they had two other small businesses under their belt. They took what the Holts built — a recognized brand, equipment, a highly skilled workforce, and customer relationships — and ran with it."The businesses we purchased all had cash day one," Neil Gutekunst said. Neither of the Gutekunsts had a sales background, but the three companies they purchased had strong customer bases and solid reputations. All they had to do was keep things running.The US Small Business Administration said in July that there were nearly 35 million small businesses in the US. The vast majority of those, 82%, had no employees other than the owner, meaning they probably wouldn't make sense to sell. But each year, about 65,000 of the remaining chunk of businesses are listed on BizBuySell, an online listing service of businesses for sale.Edie Ellis, who runs a consulting firm in Chicago and has advised industrial companies on acquisitions, said the peak of small-business sales began when baby boomers started to turn 60, in about 2006. Many owners found that their children didn't want to take over, so they looked for buyers. The kids of small-business owners "run the opposite direction, because they saw the lifestyle," Ellis said. "They saw that mom and dad worked 24/7, they didn't have a weekend off, you know? They don't want to do that."Data from BizBuySell indicates that sales of small businesses have been lower since the 2006 peak and dipped during the pandemic, but quarterly transaction volume has largely recovered from 2020 and has held steady. In the second quarter of this year, BizBuySell had listings for over 35,000 businesses with a median asking price of $395,000 and a median revenue of over $700,000 — meanwhile, in the housing market, the median home price recently hit $412,000. Demand for these businesses is growing, pushing the median sales price up 25% over last year. While not all of these companies will be a good investment, the right venture could offer an edge over more traditional wealth-building routes.The upside of buying an existing small business, besides inheriting foundational elements — a brand, suppliers, systems, and customers — is that financing an acquisition is often easier than financing a brand-new business. You don't need to have hundreds of thousands in cash on hand to take advantage. In some cases, sellers are willing to assist in financing because they want the business out of their hands. Some will accept deferred compensation or a share of future earnings as a way to lessen the up-front cost. Buyers with good credit can also borrow money through the Small Business Administration.Existing companies often have assets that can help make financing easier. If the business owns land, buildings, or equipment, that can serve as collateral for a bank loan. Plus, with revenue already coming in the door, lenders know they won't have to wait to receive payment. Of course, there are some logistical challenges in finding the right business — fewer than a quarter of the businesses listed on BizBuySell sell in a given year. For one thing, great small businesses aren't always in places where people want to move. Dave Specht, the director of the Drucker School Global Family Business Institute at Claremont Graduate University, told me that the situation is compounded when people in small towns don't want to talk to their neighbors about their plans for their businesses. "There's great secrecy around the timing of transitions and things like that," Specht, who lives in a small town in Washington, said. Often, potential buyers end up looking elsewhere. "They go to a larger town or a larger city because they just don't know."Some businesses need a buyer with a combination of skills that isn't easy to find. Some have real estate that's worth more than the rest of the assets. And some are "lifestyle companies," such as bookstores, yarn stores, and other Main Street businesses, that don't generate much profit beyond the owner's small salary.Other businesses might have hidden problems, Ellis told me. "Have they been paying their bills? Have they been paying the IRS? You don't know what you don't know," she said.The challenges don't stop once you've made the purchase. Fewer than two-thirds of small businesses in the US in 2022 were profitable, and over a million businesses of all sizes close each year. "You get people that come up from Wall Street and they want to buy a bed-and-breakfast in Maine because they've always loved Maine," Forster-Holt said. "But guess what? They're working 24/7, 365, helping other people enjoy Maine."She's noticed that people with experience working in corporations sometimes struggle with the flat hierarchy and ever-changing priorities of a small business. "You come to work and you've got your to-do list, and a truck has hit your building, and now your day is something completely different," she said. "Do you have the temperament for that?"The Holts found that they did. "I loved working there," Forster-Holt told me. And those who can roll with a little bit of upheaval can reap the financial upsides.<a target="_blank" class="" href="https://www.businessinsider.com/startups-deals-private-equity-acquihires-ai-tech-vc-2024-8">Private-equity firms</a> are certainly familiar with those upsides. The American Investment Council reported that 85% of private-equity investments in 2022 were small businesses. Citing the data provider Preqin, PwC recently reported that, as of the end of May, private equity firms had $1 trillion in liquid assets that were looking for investments. These companies are interested in small businesses that operate similarly in many markets and can be rolled up together, such as plumbing or HVAC companies."Private equity is smart in targeting family businesses," Specht told me. "Many of them are great businesses." Fortunately for millennial buyers, many family owners would prefer not to deal with Wall Street.In 2022, Dinkel's Bakery, a beloved Chicago institution, closed after a century in business. Norm Dinkel, the third-generation owner, wanted to retire, and he <a target="_blank" href="https://blockclubchicago.org/2022/04/05/dinkels-bakery-is-closing-after-100-years-on-the-north-side/?fbclid=IwAR0BZXSbl9TRiwoiT-brphpBBhEbM9RU9LgMygGULYZg0kNZpESJxBYUxyU">couldn't find a buyer</a> who also wanted to operate the business. Anyone fortunate enough to have had a Dinkel's chocolate doughnut or fresh strawberry paczki knows the loss.Traditionally, small businesses were family businesses, and the eldest male child was expected to take it over when the patriarch was ready to step down. That got Dinkel's through a hundred years of operation. Many small-business owners want to keep the company in the family, said Brian Brogan, who works as a wealth advisor to family-business owners and teaches in the family-business program at Saint Joseph's University in Pennsylvania. If that isn't an option, they look for someone they can trust to carry on the business. Coulam, the owner of the Texas Renaissance Festival, is slightly older than the average boomer business owner — he's entering his late 80s. But even he hasn't found a suitable buyer. His succession search, which was documented in the recent HBO series "Ren Faire," highlights the difficulty of passing along a business someone spent their whole life building. With small businesses especially, it's not just about the numbers — it's a very personal decision.Still, for buyers able to find the right match, snatching up an existing business could be a smart move. For the Gutekunsts, one acquisition intended as a lifestyle change has turned into a collection of businesses built around southern Maine's deep tradition of woodcrafting. "It's fun," Jennifer Gutekunst tells me. It also beats not having a satisfying retirement plan.Last year I wrote about the <a target="_blank" href="https://www.businessinsider.com/boomer-wealth-transfer-myth-dont-count-on-inheritance-estate-planning-2023-10">myth of the "Great Boomer Wealth Transfer</a>" — about how most boomers don't have many assets to pass along, and those that do are likely to get eaten up by the high cost of elder care. But even if you can't plan on receiving an inheritance, you can create one for yourself (and your own children). Buying up small businesses allows people without wealthy boomer parents to cash in on the trillions of dollars of wealth the generation is sitting on.<a target="_blank" rel="" href="https://www.businessinsider.com/author/ann-c-logue">Ann C. Logue</a> is a writer specializing in business and finance. She lives in Chicago.

Boomers are selling off their businesses. Millennials are swooping in. 

<ul class="summary-list"><li>An index of non-US stocks saw their steepest decline since August this week. </li><li>The broad sell-off came after Trump's election win stoked fears of coming trade wars. </li></ul>Donald Trump's win has <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/trump-election-win-stock-market-today-record-high-sp500-dow-2024-11">sent US stocks on a tear</a>, but for equities in the rest of the world, it's sparked a sell-off on fears of a widespread economic downturn due to tariff risks.An MSCI <a target="_blank" href="https://www.msci.com/indexes/index/899901">index</a> of large and mid-sized stocks outside the US tumbled 1.6% on Tuesday, its steepest daily drop since August.The Stoxx Europe 600 Index, meanwhile, lost 2.1% for its worst one-day drop in three months, while an <a target="_blank" href="https://www.msci.com/indexes/index/891800">index</a> of emerging market stocks dropped 2%. Another index shows emerging market currencies have nearly pared their year-to-date gains with a 1% drop since the election.The losses come a week after Trump's US election win and as the president-elect has appointed some key cabinet members.<a target="_blank" href="https://www.businessinsider.com/donald-trump-white-house-staff-cabinet-picks-list-2024-11">Trump's appointments</a> have shown a preference toward his most loyal supporters and those who he says share his "America First" protectionist agenda. Along the campaign trail, Trump proposed an across-the-board tariff of at least 10%, with a far steeper tariff of 60% on imports from China. If enacted, those duties would pose <a target="_blank" href="https://www.businessinsider.com/global-reaction-donald-trump-election-victory-tariffs-trade-disputes-2024-11?utm_medium=ingest&amp;utm_source=markets&amp;_gl=1*1mwwhu3*_ga*MTY3OTgyNjg0MS4xNzIxMDE2MDM2*_ga_E21CV80ZCZ*MTczMTUxMDc3NS4zOTkuMS4xNzMxNTEyMDU5LjcuMC4w">huge obstacles</a> for international economies reliant on trade with the US.In Europe, analysts at Dutch bank ING say there could be a "full blown recession" under Trump's tariffs, while Germany in particular could suffer a <a target="_blank" href="https://www.reuters.com/markets/europe/bundesbanks-nagel-trump-tariffs-could-cost-germany-1-economic-output-2024-11-13/">1% hit to GDP</a>, according to the country's central bank president Joachim Nagel.China's already fragile economy, meanwhile, will only be further damaged by a new trade war. Analysts at UBS say tariffs would hamstring most trade between the two nations and likely affect China's GDP."The mooted 60% tariff on imports from China and a 10% tariff on imports from the rest of the world could make much of US-China trade unviable, reduce US domestic demand and corporate profits, and lead to lower GDP growth around the world, particularly in China," the analysts wrote in a note last week.As stocks in the rest of the world have faced steep declines, US shares have rallied sharply since the election.The S&amp;P 500 and the Dow Jones Industrial Average have each jumped to record highs, driven by gains in Trump trades like bitcoin, <a target="_blank" href="https://markets.businessinsider.com/news/stocks/tesla-stock-price-trillion-valuation-donald-trump-election-win-tsla-2024-11?_gl=1*jyqhh7*_ga*MTY3OTgyNjg0MS4xNzIxMDE2MDM2*_ga_E21CV80ZCZ*MTczMTQxOTczNy4zOTIuMS4xNzMxNDE5NzcxLjI2LjAuMA..&amp;utm_medium=ingest&amp;utm_source=markets">Tesla</a> and shares of banks expected to benefit from deregulation and tax cuts.

Non-US stocks have seen their sharpest sell-off since August on fears over Trump's tariffs

<div type="image" title="Companies are embracing the unbossing trend" msid="113256383" hostid="261" sizebytes="1440779"></div> If there’s one thing both a productive team member and an underperformer hates in the corporate world, it’s being micromanaged. Now, imagine a workplace where the boss isn’t calling all the shots. Instead, everyone has a voice, and innovation flows freely. The recent corporate trend of "Unbossing" promises to do just that, empowering employees by eliminating the heavy hands of hierarchy. Sounds too good to be true? Well, globally, not just the new-age start-ups, but dozens of major corporations have embraced this trend and trimmed their middle management. <h2>Managers managing managers — no more!</h2>In January last year, <keyword id="399907" type="General" weightage="20" keywordseo="META" source="Orion">Meta</keyword> CEO Mark Zuckerberg made headlines for declaring 2023 as the “year of efficiency” and saying that he doesn’t want a management structure that's just “managers managing managers”. <div type="image" title="Meta CEO Mark Zuckerberg" agency="ANI" msid="113256403" hostid="261"></div> The same month, it was also reported by Command Line that Meta's chief product officer Chris Cox, had shared a post on the company's communication platform, Workplace, highlighting the necessity to "flatten" the organisation's structure. What followed was reports of Meta slashing middle management roles. Gradually, other companies like Shopify, Bayer, and Cisco began making headlines for showing the exit door to some of their middle managers. Loosely, unbossing is essentially cutting down the middle management roles. It cuts significant costs for the company and the new-age workforce also endorses the trend as efficient in enabling faster decision-making and innovation. However, critics argue this trend also limits the extent of mentorship that the younger generation receives while entering the workforce, which often remains an intangible value if your boss turns out to be a good mentor. Therefore, for some, it’s not about firing the middle management, but just another leadership philosophy on how leaders (and ‘bosses’) should conduct themselves. This approach advocates bosses working along with the team as a part rather than shouting instructions from the top. Whatever one’s understanding, this trend of “Unbossing” appears to be taking corporate America by storm in 2023, as evidenced by hundreds of media reports highlighting the same. Overall, most agree that the trend is restructuring organisational hierarchy to enable direct communication between employees and leaders. Cut to 2024, this trend is still prevalent and making headlines. A Bloomberg report recently said that Georges Elhedery, the incoming CEO of HSBC Holdings, might also consider plans to streamline the company's operations by reducing layers of middle management. But what’s the scenario in India? Are Indian companies ready to ditch the old-school approach and adopt this new way of working? Let’s dive in and see what the experts have to say! <h2>Layoffs to impact senior professionals: Naukri.com survey</h2>A survey by job portal Naukri.com early last year had suggested that recruiters in India expect a decline in layoffs during the first half of 2023. The survey, which included responses from 1,400 recruiters and consultants across ten industries, revealed that only 4 percent of participants anticipated layoffs to be the main focus of hiring activities within their organisations. However, the survey also highlighted that information technology roles and senior professionals were likely to be the most affected by hiring adjustments. About 20 percent of recruiters predicted that layoffs would predominantly impact senior professionals, while freshers are expected to face the least disruption from these hiring corrections. Interestingly the survey came around the same time when the Unbossing trend had begun picking up pace abroad. <h2>Layoffs at Wipro, <keyword id="18635" type="General" weightage="20" keywordseo="amazon" source="Orion">Amazon</keyword> and Collegedunia</h2>In January this year, Wipro India was in the limelight for laying off hundreds of its mid-level executives. The company reportedly culled many jobs as part of its strategy to improve margins. An ET report citing two sources familiar with the situation had said that the leading Indian IT firm reduced mid-level roles at its onsite locations. "Notices began being issued earlier this month, and hundreds of mid-level executives onsite are being let go," one source revealed. Another source added, "They have costly resources onsite in Capco, and although growth is returning, it's not sufficient. Aparna Iyer, Wipro's chief financial officer, has been tasked with delivering better margins this quarter." <div type="image" title="Amazon decided to lay-off middle managers in May" msid="113256170" hostid="261"></div>Then in May, Amazon also decided to reduce layers of middle management within its customer service divisions as part of an organisational restructuring, a Fortune report had said. The cuts impacted over 100 customer service managers in Level 5 and Level 6 middle management roles, both in call centres and virtual positions, primarily based in the U.S. and India. Not just large tech companies, startups too seem to be adapting the <keyword id="23125775" type="General" weightage="100" keywordseo="unbossing-trend-in-India" source="Orion">unbossing trend in India</keyword>. Last month, educational portal Collegedunia confirmed that around 100 employees from its Study Abroad department had been given the pink slip. A report in CNBC-TV18 had said that additional job cuts were happening across other departments as part of a broader reorganisation. The restructuring, as per the report, was aimed at automating many tasks to reduce costs. Interestingly, despite the layoffs, Collegedunia had posted 13 job openings on LinkedIn for various roles in different locations, primarily entry-level positions requiring up to two years of experience. "While Collegedunia is laying off several employees, it is also hiring fresh talent, allowing them to keep staffing levels up but at a lower cost," one employee told CNBC-TV18 at the time. Another source confirmed that while Collegedunia had been actively recruiting for some months, it has also been letting go of employees, including senior staff members with 7-8 years of experience at the company. <h2>What do experts say?</h2> <div type="image" title="Experts&amp;#39; opinion on unbossing trend" msid="113256250" hostid="261"></div>Mr. Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship, told Business Insider India, “From the perspective of HR leaders and CEOs, the strategic culling of middle management is viewed as a means to streamline operations, reduce overhead, and foster a culture of autonomy and innovation.” He also noted that even though employees can “exercise greater ownership and agility in decision-making” through this approach, there are also significant downsides. “The erosion of middle management creates a vacuum in leadership development, mentorship, and the retention of institutional knowledge, potentially leading to disengagement, a weakened talent pipeline, and misalignment with organisational objectives,” Kumar noted. Talking specifically about the Indian scenario, he said, “Implementing this trend in India would be a strategic move, positioning organisations to remain competitive in a rapidly evolving business environment. However, to fully capitalise on this approach, developing a more robust talent pipeline that integrates the ability to multitask at all levels is imperative. In today's landscape, leadership demands thinkers, strategic visionaries, and individuals who can execute with precision. We need to cultivate a new breed of leaders who are both thinkers and doers, capable of navigating complex challenges while driving innovation and growth. By building versatile, agile leaders through targeted talent development programs, Indian organisations can ensure they are well-prepared to thrive in a decentralised, high-performance environment.” RP Yadav, Chairman and Managing Director of Genius Consultants Limited, told ET recently that the Unbossing approach simplifies hierarchies and encourages open communication between frontline employees and senior management. He had added that the concept of “the oldest in the room is always the wisest of all” is no longer applicable. Meanwhile, Aditya Narayan Mishra, MD and CEO of CIEL HR Services told ET that the unbossing trend is predominantly seen in tech companies, creative roles, and startups, where swift decision-making and the unrestricted exchange of ideas are crucial. For example, the tech sector often thrives with flattened hierarchies that support rapid innovation and agility, while creative industries such as advertising and media use unbossing to cultivate a more collaborative and idea-focused environment. Thus, the unbossing trend is gaining traction beyond global companies and is finding its way into Indian organisations as well. While this approach can streamline operations, reduce costs, and enhance agility, experts caution that it also brings challenges, such as gaps in leadership development and the loss of institutional knowledge. To fully harness the benefits of unbossing, Indian companies must focus on cultivating agile leaders who can navigate complex challenges and drive growth. By building a strong talent pipeline and fostering a culture of innovation and collaboration, Indian organisations can position themselves to thrive in a more decentralised and dynamic business environment. Do you have insights or personal experience to s hare on layoffs, <keyword id="34447" type="General" weightage="20" keywordseo="workplace-trends" source="Orion">workplace trends</keyword>, or career changes? Contact us at businessinsider@timesinternet.in.

SIMPLY PUT: What’s with all “Unbossing” talks? Are Indian companies also embracing this global trend?

<ul class="summary-list"><li>US stocks wavered on Wednesday as traders looked to recover from a sell-off in the chip sector.</li><li>ASML shares continued to decline after issuing weak guidance for next year.</li></ul>US stocks wavered on Wednesday as traders looked to recover from a <a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/chipmakers-tumble-asml-guidance-semiconductor-nvidia-chip-growth-2024-10">sell-off in the chip sector</a> and waited for another round of corporate earnings reports. The S&amp;P 500 edged further from record highs reached on Monday, while the Dow Jones Industrial Average inched up. The Nasdaq was down slightly as chip stocks struggled to recover from Tuesday's sell-off. Chip stocks stumbled in the previous session after ASML cut its sales guidance for 2025. Shares of the Dutch chipmaker fell another 5% on Wednesday after ending Tuesday down by 16%. Other prominent chipmakers, like AMD and Nvidia, ticked slightly higher. Corporate earnings still look on par for a strong third-quarter. The S&amp;P 500 is on track to report over 7% year-per-year earnings growth over the last three-month period, according to an estimate from <a target="_blank" class="" href="https://insight.factset.com/sp-500-will-likely-report-earnings-growth-above-7-for-q3">FactSet</a>.Morgan Stanley rounded out the big bank earnings reports on Wednesday morning, beating Wall Street's estimates on a surge in investment banking activity. Revenue from investment banking soared 56% last quarter. The stock jumped more than 6% shortly after the opening bell, trading around $119.60 a share. Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday:<ul><li><a target="_blank" href="https://markets.businessinsider.com/index/s&amp;p_500?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">S&amp;P 500</a>: 5,810.93, down 0.07% </li><li><a target="_blank" href="https://markets.businessinsider.com/index/dow_jones?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Dow Jones Industrial Average</a>: 42,762.71, up 0.05% (+22.29 points)</li><li><a target="_blank" href="https://markets.businessinsider.com/index/nasdaq_composite?utm_source=markets&amp;utm_medium=ingest%3Futm_source%3Dmarkets&amp;utm_medium=ingest&amp;utm_medium=ingest&amp;utm_source=markets">Nasdaq composite</a>: 18,292.80, down 0.1% </li></ul>Here's what else is going on:<ul><li><a target="_blank" class="" href="https://www.businessinsider.com/tsmc-making-apple-iphone-chips-helps-us-semiconductor-bet-2024-10">Apple's Made-in-the-USA chips signal a turnaround</a> for the US' big semiconductor bet.</li><li><a target="_blank" class="" href="https://www.businessinsider.com/goldman-sachs-3q-results-dealmaking-trading-resurgence-david-solomon-2024-10">Goldman Sachs' blowout earnings</a> could be a sign of a long-awaited return of M&amp;A. </li><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/stock-market-outlook-overvalued-sp500-bullish-earnings-momentum-rally-valuations-2024-10">The stock market looks overvalued</a>, but that's no reason to turn bearish, according to one analyst.</li><li><a target="_blank" class="" href="https://markets.businessinsider.com/news/stocks/financial-stocks-bank-cyclicals-investment-advise-jobs-data-morgan-stanley-2024-10">Financial stocks are being woefully underappreciated</a> by investors, according to Morgan Stanley.</li></ul>In commodities, bonds, and crypto:<ul><li><a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">West Texas Intermediate</a> crude oil inched up by 0.3% to $70.79 a barrel. <a target="_blank" href="https://markets.businessinsider.com/commodities/oil-price">Brent crude</a>, the international benchmark was about flat at $74.42. </li><li><a target="_blank" href="https://markets.businessinsider.com/commodities/gold-price">Gold</a> ticked higher 0.8% to $2,699 an ounce.</li><li>The 10-year Treasury yield dipped three basis points to 4.004%.</li><li><a target="_blank" href="https://markets.businessinsider.com/currencies/btc-usd">Bitcoin</a> was higher by 2.69% to $67,780.</li></ul>

Stock market today: Indexes mixed as traders look to recover from chip sell-off

<ul class="summary-list"><li>Emerging markets stocks are set for their worst monthly decline since January. </li><li>The slump comes as investors price in higher odds of a Trump win in the upcoming US election.</li></ul>It's been a tough month for emerging market stocks as the odds of a Donald Trump election win rise — and with it, the odds that his proposed tariff plan will actually see the light of day. Emerging market stocks are headed for their worst monthly decline since January, with the MSCI Emerging Markets Index falling for a fourth day on Thursday for a 3.1% decline this month.A select few EM stocks have taken the biggest hits, with Samsung, Alibaba, Tencent, and Meituan accounting for more than half of the index's fall. The decline comes as the market prices in higher odds of a win for former President Donald Trump with just two weeks until the election.On crypto betting market Polymarket, Trump's odds of winning soared as high as to 66% on Tuesday, their highest since President Joe Biden was still in the race in July. Odds are now slightly lower at 62%.Polls, meanwhile, are much closer, with the most recent national polling average compiled by <a target="_blank" href="https://www.realclearpolling.com/polls/president/general/2024/trump-vs-harris">RealClearPolitics</a> showing Harris at 48.7% versus 48.5% for Trump.Trump has proposed raising tariffs on imports from all countries to as high as 20% and has said imports from China would be <a target="_blank" class="" href="https://www.businessinsider.com/donald-trump-impose-tariffs-china-if-elected-2024-2">subject to a 60% tariff</a>.Investors' fears of a damaging trade war aren't unfounded. In 2018, Trump's trade war with China led to a significant underperformance compared to US stocks, and strategists say the election's outcome is again pushing investors away from EM shares as uncertainty builds. "US elections have become a key driver of uncertainty as risk positioning is clearly fluctuating to a more cautious stance. In our recent client interactions, we have sensed global EM investors' appetite to increase risk budgets over the next weeks may have been significantly reduced," analysts from Citi wrote in a note last week.The strategists note that the latest sentiment is a sharp contrast from a month ago, when investors were pricing in higher odds of a Harris win."There has been a significant change in investor sentiment, and investors' risk budgets have likely been changing as a function of that."Other factors, like rising geopolitical tensions in the Middle East and a bond market sell-off, are also driving investors away from riskier assets. Investors are also expressing disappointment in <a target="_blank" href="https://www.businessinsider.com/china-economy-aggressive-monetary-stimulus-interest-rate-rrr-2024-9">China's stimulus measures</a>, which <a target="_blank" href="https://www.businessinsider.com/chinas-stimulus-boosts-emerging-markets-stocks-2024-9">initially fueled a rally</a> in EM stocks last month.

Prospects of a Trump win and huge tariffs spark worst sell-off for emerging market stocks in 10 months

<ul class="summary-list"><li>Apple shares were down 3% on Monday, leading a drop in the wider tech sector. </li><li>The slide came after analyst Ming-Chi Kuo warned of light iPhone 16 demand.</li></ul>Apple shares tumbled about 3% on Monday, leading a broader tech selloff that weighed on the Nasdaq Composite. Apple's stock was trading at $215.90 a share, down 2.9% shortly after midday on Monday. The decline came shortly after TF International Securities analyst Ming-Chi Kuo estimated the <a target="_blank" class="" href="https://www.businessinsider.com/guides/tech/iphone-16">iPhone 16 series</a> garnered 37 million pre-orders in its first weekend — nearly 13% short of last year's iPhone 15 debut weekend.The lack of demand for the newest iPhone is likely because Apple has yet to roll out its most anticipated new feature, Apple Intelligence, Kuo said."One of the key factors for the lower-than-expected demand for the iPhone 16 Pro series is that the major selling point, Apple Intelligence, is not available at launch alongside the iPhone 16 release," Kuo said in a <a target="_blank" href="https://medium.com/@mingchikuo/iphone-16-first-weekend-pre-order-analysis-estimated-total-sales-of-about-37-million-units-pro-0a04869b147c">Sunday note</a>.In an announcement last week, the company said Apple Intelligence will start rolling out in English next month, with more features to come in the months following. AI integration won't be available in other languages until next year.Apple's downturn is pulling weighing on the wider tech space, with the Nasdaq Composite down 0.8% compared to the S&amp;P 500, which is trading nearly flat, while the Dow Jones Industrial Average was up slightly. Many top semiconductor names were tumbling Monday afternoon. Micron and Broadcom fell 4.5% and 3%, respectively, while Super Micro Computer, Inc dropped about 1% around noon ET. Taiwan Semiconductor Manufacturing Company Limited, Apple's primary chip manufacturer, saw its stock down about 3%.Apple's losses come after four months of gains, fueled by forecasts of higher iPhone sales with new AI features. The stock has gained around 12% this year, slightly behind the Nasdaq's 15% jump.Kuo said that if shipments don't increase with the release of Apple Intelligence and holiday season promotions, the company will likely need to pivot its product strategy."In that case, I believe that Apple will implement more aggressive iPhone product strategies in 2025 to stimulate market demand," Kuo said.

Apple leads tech sell-off after analyst warns of light iPhone 16 demand

“Ye le beta, humare khaandani sone ke gehne. Ise girvi rakhva de, shayad kuch paise aa jaye ghar main.” How many times have we seen similar dialogues repeat itself in Bollywood films of the 70s and 80s—abject poverty and a frail-looking old mother pleading to her son to pawn the family’s heirloom gold ornaments to a jeweller, all to get a few bucks? Well, if you’d ask that son in 2024, he’d rather hit the loan button on his <keyword id="105386" type="General" weightage="20" keywordseo="Demat-account" source="Orion">Demat account</keyword> than pawn his mother’s gold jewellery. Given how Indians are rapidly resorting to taking loans against their investments in shares and mutual funds, these might as well be a cherished family heirloom in today’s time. Fair warning though; it's not as if gold and loans against it are going down in India’s lending scene. It's very much the opposite, shining brighter than ever! The secured loan category is having its time in the spotlight, and people are certainly looking beyond land and property to get their hands on some extra monies! But what is funding the steep rise behind these loans? And are they as failsafe and secure as they’re made out to be? We decode for you in this week’s Simply Put. <h2 style="margin-bottom: 0.7em; line-height: 1.3; color: rgb(0, 0, 0); font-size: 24px; background: 0px 0px; text-rendering: optimizelegibility;">The great Indian pawning party</h2>Pawning one’s gold has been, by far, the OG Indian financial move to get a loan. That continues well into 2024, and apparently, more so when India decides to wed and celebrate! Data from <keyword id="30067" type="General" weightage="20" keywordseo="RBI" source="Orion">RBI</keyword> suggests that the outstanding amount on gold loans has swelled from Rs 85,009 crore in September 2022 to Rs 1,47,081 crore in September 2024. It looks like Gold took the motto of rise and shine too seriously! Table 1: Growth in gold loans <table class="redcator-table-advance" style="border-width: initial; border-style: none; background-color: rgb(255, 255, 255); font-size: 16px; line-height: 1.6em; box-shadow: none; width: 468pt; font-family: Merriweather; table-layout: fixed; padding-bottom: 10px !important; background-image: inherit !important; background-position: inherit !important; background-size: inherit !important; background-repeat: inherit !important; background-attachment: inherit !important; background-origin: inherit !important; background-clip: inherit !important;"></colgroup><tbody><tr><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">Year </td><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">Amount (In Rs crore) </td></tr><tr><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">September 2022 </td><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">85,009 </td></tr><tr><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">March 2023 </td><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">89,370 </td></tr><tr><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">September 2023 </td><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">97,426 </td></tr><tr><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">March 2024 </td><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">1,02,562 </td></tr><tr><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">September 2024 </td><td style="border-width: 1pt; border-style: solid; border-color: rgb(0, 0, 0); padding: 5pt; font-size: 16px; vertical-align: top; overflow: hidden; overflow-wrap: break-word;">1,47,081 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Source: RBI data While the world continues to be riled up in multiple geopolitical crises in 2024, gold has been making merry of these tough times. Thus far this year, <keyword id="3886593" type="General" weightage="20" keywordseo="domestic-gold" source="Orion">domestic gold</keyword> prices have grown by 23%, outperforming benchmark indices like Nifty and Sensex by a mile, which have gone up by 9.85% and 8.86%, respectively. The growth in gold loan disbursal rates month on month this year could also put Nifty and Sensex’s growth to shame. In just September 2024, gold loans grew an astounding 51%, up from 40.9% in August, 30.5% in June, and just 14.8% in March. <h2 style="margin-bottom: 0.7em; line-height: 1.3; color: rgb(0, 0, 0); font-size: 24px; background: 0px 0px; text-rendering: optimizelegibility;">Hey, wait up for me, says LAS</h2>In lockstep with the elder, gold loan sibling, advances against shares and bonds have also been inching up since 2022. Data from RBI (Reserve Bank of India) notes that as of September 2022, the outstanding quantum of loans that were taken against shares (LAS) and bonds stood at Rs 7,397.94 crores. This inched up to Rs 7,764 crore in September 2023. Come 2024, and it looked like this was LAS’ time to shine. Loans swiftly skyrocketed, with outstanding loans in this category going up from Rs 8,492 crore in March 2022 to a staggering Rs 9,546 crore at the end of September 2024. Naturally, the smoke of LAS has its fire in the record inflows that Indians are pouring into the stock market and mutual funds month on month. Per AMFI (<keyword id="134904" type="General" weightage="20" keywordseo="Association-of-Mutual-Funds-in-India" source="Orion">Association of Mutual Funds in India</keyword>), the net AUM (assets under management) of India’s mutual fund industry grew to Rs 67,25,614.61 crores in October 2024, up from Rs 67,09,259.24 crores in September 2024. Even the number of retail mutual fund folios, which include equity, hybrid, and solution-oriented mutual funds, burgeoned to 17,23,52,296 in October, as compared to 16,81,61,366 in September. The same goes for stock investments in India, where the number of new demat accounts that are added every month just simply refuses to climb down. As of last month, total demat accounts in the country stood at 17.9 crore, which is more than the entire population of full-fledged nations like Japan (12.45 crore), Russia (14.38 crore), and Bangladesh (17.3 crore). In fact, since February this year, the monthly growth of LAS has been hitting double digits. From 11.3% in March to 21.6% in May to 26.8% in August, growth in LAS has been exceptional, hitting 22.9% in September this year. For context, monthly growth in the LAS segment was at a mere 5% in September 2023. <h2 style="margin-bottom: 0.7em; line-height: 1.3; color: rgb(0, 0, 0); font-size: 24px; background: 0px 0px; text-rendering: optimizelegibility;">What's driving the growth?</h2>It's a win-win for both the bank and the customer. Customers love them because LAS is available at a lower interest rate compared to unsecured personal loans. You can get a loan at an interest rate of anywhere between 9 and 12% by pledging your gold, MF units, or shares. Compare this to over 10-28% rates, which is the range where unsecured personal loans charge interest. Banks love <keyword id="827883" type="General" weightage="100" keywordseo="Secured-Loans" source="Orion">secured loans</keyword> since they are well-secured. In case you default on paying back, the bank can sell off your gold, shares, or mutual fund units to recover the amount. This takes a lot of stress off the banks, which are already dealing with secured loans’ riskier sibling-<keyword id="947940" type="General" weightage="20" keywordseo="unsecured-lending" source="Orion">unsecured lending</keyword>. High NPAs (non-performing assets) and non-payments in the unsecured borrowing space have already put RBI on red alert, which is why the apex bank is tightening the screws on unsecured lending, which was well on its way to becoming a ticking time bomb. As a result, credit growth has moderated to 12.8% YoY in October, as against the 19.3% rise recorded in the year-ago period. Yet it's not like the banks won't feel the heat. Analysts at Nomura note that <keyword id="23954457" type="General" weightage="20" keywordseo="personal-loan-delinquencies" source="Orion">personal loan delinquencies</keyword> in India that have been overdue by over 90 days rose to 5.1% in the last financial year, as opposed to just 3.9% in the year prior. <h2 style="margin-bottom: 0.7em; line-height: 1.3; color: rgb(0, 0, 0); font-size: 24px; background: 0px 0px; text-rendering: optimizelegibility;">How does it work?</h2>Both these loans work on a similar principle: Your <keyword id="857141" type="General" weightage="20" keywordseo="loan-amount" source="Orion">loan amount</keyword> is equal to a certain percentage of the actual market value of your asset. This is known as the LTV (loan-to-value ratio). In the case of gold and debt mutual funds, RBI mandates that this LTV be about 75-80%. So, for every Rs 100 of gold or debt mutual fund unit you pledge, your maximum loan amount cannot exceed Rs 80. If you pledge gold, which has a market value of Rs 10 lakh, you can take a loan of up to Rs 8,00,000. In the case of shares and mutual fund units, this limit is set at 50%. So, your shares worth Rs 5,00,000 can only get you a loan worth Rs 2,50,000. But the bright side? You can continue earning returns on your investments and pay interest only on the amount you use, since this loan works as an overdraft facility. <h2 style="margin-bottom: 0.7em; line-height: 1.3; color: rgb(0, 0, 0); font-size: 24px; background: 0px 0px; text-rendering: optimizelegibility;">Super safe, you say?</h2>Interest rates on both of these loans are very much dependent on the market value of the asset, which wildly fluctuates on a day-to-day basis. So, in case the value of your asset falls, you’ll have to keep a margin or more of the same asset in order to continue with the loan and maintain the LTV balance. Failure to do so could mean the bank can even sell off your asset. Says financial planner Nema Chaya Buch. “Yes, LAS offers easy availability of funds since these loans come with a lower interest rate as compared to personal loans. Also, you continue to earn average returns of 10–13% on your equity investments. But the downside is, in case of emergency, those pledged securities cannot be sold. Also, if the equity market goes down, then the bank may ask for additional collateral. Raghvendra Nath, MD, Ladderup Wealth Management notes that taking a LAS is best when the value of your securities has appreciated significantly. “This allows you to maximize the loan amount based on your collateral while also addressing financial needs without having to liquidate your investment portfolio. However, there are notable disadvantages to consider. The market risk is significant; a substantial decline in market value could lead to margin calls, which may incur fees and charges if there are delays or prepayments, ultimately increasing the effective cost of borrowing. Furthermore, failure to make timely payments could result in the loss of your assets.”. Umesh Mohanan, ED &amp; CEO, of Indel Money, cautions that one should have a sufficient quantity of gold to get the loan amount one wants. "According to the current RBI rules, the loan applicant/borrower can draw up to 75% of the total market value of the collateral/gold jewellery. So, always carry a sufficient quantity of gold based on one’s loan requirement. “The most important thing is that the valuation of the gold depends on the purity of the gold. If the borrower pledges gold with higher purity, such as 24 carats or 22 carats, he will get the maximum loan amount," he adds.

You Searched For "india shares sell off" and got 10 results

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