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<keyword id="22661695" type="General" weightage="20" keywordseo="Regulatory-moves" source="Orion">Regulatory moves</keyword> discouraging <keyword id="19972907" type="General" weightage="20" keywordseo="retail-investors" source="keywords">retail investors</keyword>' <keyword id="22661696" type="General" weightage="20" keywordseo="derivative-market-bets" source="Orion">derivative market bets</keyword> may help the <keyword id="59197" type="General" weightage="20" keywordseo="banking-system" source="Orion">banking system</keyword> garner the much-needed <keyword id="6496248" type="General" weightage="20" keywordseo="deposits" source="Orion">deposits</keyword>, <keyword id="46004" type="General" weightage="20" keywordseo="SBI-Chairman" source="Orion">SBI Chairman</keyword> <keyword id="1937145" type="General" weightage="20" keywordseo="Dinesh-Kumar-Khara" source="Orion">Dinesh Kumar Khara</keyword> has said. Khara said the budget announcements like the tweaks on the short-term and long-term capital gains will not lead to much gains from a deposit accretion perspective. "<keyword id="20031465" type="General" weightage="100" keywordseo="FO" source="keywords">F&amp;O</keyword> (future and options) kind of things are being discouraged for the retail (investor) by the regulator. Those who are resorting to such kind of an instrument, they might come back to the banking system," Khara told PTI over the weekend. It can be noted that concerns over losses incurred by 90 per cent of investors in the derivative trades have led to fears of household savings being blown in speculation rather than being deployed for productive purposes among policymakers. As per <keyword id="20033427" type="General" weightage="20" keywordseo="capital-markets" source="keywords">capital markets</keyword> regulator Sebi, retail investors lost Rs 52,000 crore in such activity in FY24 alone which necessitates a clampdown. Sebi has come up with a seven-point plan to reduce such trades, while some moves in the Union Budget are also targeted to reduce such activities. For the last three years, the deposit growth is unable to keep pace with credit expansion, and Khara said the money is going into alternative avenues like capital markets. He, however, stressed that the bank account is the primary avenue for parking the savings and continue to attract interest, and reminded that there was a phase of deposit growth trailing credit growth in 2011 as well witnessed by the banking system. At present, concerns are being raised about the wedge between the deposit and credit growth leading banks to go slower on granting loans, which can be be detrimental for the overall economic growth. <keyword id="19898108" type="General" weightage="20" keywordseo="SBI" source="keywords" meta.keywordsubtype="org" meta.entityname="SBI" meta.hostid="153" meta.entityid="SBI">SBI</keyword>, the country's largest lender which commands over a fifth of market share, is targeting a credit growth of 15 per cent in FY25 and a deposit growth of 8 per cent, Khara said. Stating that the bank will try to get the deposit growth at 10 per cent, he made it clear that the credit growth target can be achieved even with a slower pace of deposit growth of 8 per cent due to its liquidity position. The bank chose to deploy excess deposits in the past into its investment book and is currently unwinding the same as it caters to the credit demand, Khara said. He said the bank's liquidity coverage ratio stands at 128 per cent and it has decided to keep it over 110 per cent.

Discouraging retail play in F&O may help banks garner deposits: SBI Chairman

Stock <keyword id="20345915" type="General" weightage="20" keywordseo="exchanges" source="keywords">exchanges</keyword> and <keyword id="20710434" type="General" weightage="20" keywordseo="brokers" source="keywords">brokers</keyword>, catering to retail traders, could be hit hard by the regulator <keyword id="19901201" type="General" weightage="100" keywordseo="Sebi" source="keywords">SEBI</keyword>'s proposed measures for Futures &amp; Options (F&amp;O) <keyword id="22748189" type="General" weightage="20" keywordseo="trading-regulations" source="keywords">trading regulations</keyword>, with market volumes slumping 30-40 %, according to reports. If these measures are implemented, the number of investors could decrease, it added. Moreover, discount brokers, who depend heavily on retail investors, are expected to be more affected than traditional full-service brokers. SEBI, in its consultation paper in July, proposed seven measures, including increasing minimum contract size and upfront collection of option premiums, intra-day monitoring of position limits, rationalisation of strike prices, removal of calendar spread benefit on expiry day and increase in near contract expiry margin. SEBI stated that these measures are aimed at enhancing <keyword id="20775670" type="General" weightage="20" keywordseo="investor-protection" source="keywords">investor protection</keyword> and promoting <keyword id="20813757" type="General" weightage="20" keywordseo="market-stability" source="keywords">market stability</keyword> in derivative markets. According to a report by Jefferies, SEBI's proposed measures to reduce the number of weekly option contracts from 18 to 6 could impact around 35% of industry premiums. However, if trading shifts to the remaining contracts, the overall impact can be reduced to 20-25%. Among its 7 proposed measures, IIFL Securities see the highest impact from the withdrawal of <keyword id="22353333" type="General" weightage="20" keywordseo="weekly-options" source="keywords">weekly options</keyword> (only 1 per exchange allowed) as index Options account for 98% of the volumes. IIFL Securities expects the National Stock Exchange (NSE) to be more affected than the BSE because 60 % of NSE's revenue comes from options trading, compared to 40% for BSE. It estimates that by the financial year 2026, NSE's earnings could be reduced by 25-30% while BSE's earnings could drop by 15-18%. Jefferies also believes that the removal of Bankex weekly contract can impact BSE's earnings per share (EPS) by 7-9% over FY25-27. It further said that BSE might see a small decline in earnings, but if trading activity shifts from discontinued products, it could offset the impact or even lead to earnings growth. "We don't see any impact on MCX from these regulations. Within the value chain, discount brokers are likely to be more impacted than traditional full-service brokers given the former's dependence on retail investors," IIFL Securities said. Jefferies believes that clearing members like Nuvama, which caters to institutional players High-Frequency Traders (HFTs), and Foreign Portfolio Investors (FPIs) are less impacted. Rationalizing weekly options to only one benchmark index per exchange will significantly affect the NSE because it currently has four weekly index expiries, with "Bank Nifty" being the most important, contributing to 50 % of its options volume. The change could reduce NSE's overall trading volumes by 30-35 %, IIFL Securities said. On the other hand, BSE is expected to be less affected since it only has two contracts, with Sensex making up 85 % of its volumes in FY24. Even if "Bankex" contributes 30% by FY26, the impact on BSE's volumes is expected to be smaller compared to NSE, it said. Additionally, with just two expiries, BSE might gain market share and experience higher trading volumes, resulting in an estimated 20 % reduction in its overall volumes, it added. Jefferies said that SEBI's proposed measure of increasing lot sizes by 3-4 times over six months could lead to higher costs for retail traders, potentially reducing their participation in the market. The proposed margin increase for options sellers close to expiry could reduce leverage and profitability, especially for retail traders with limited funds. "Finally other measures like increasing ELM (extreme loss margin) around expiry, and withdrawal of calendar spread margin on expiry will increase the margin requirements and thereby could impact the liquidity. Based on our initial estimates we expect a 30-40 % impact on market volume," IIFL Securities said. SEBI Chief Madhabi Puri Buch recently mentioned that households are losing up to Rs 60,000 crore a year in the problematic futures and options segment. Earlier, SEBI research showed retail traders lose money in nine out of 10 trades in the F&amp;O segment Last month, the government in the Union Budget raised the securities transaction tax (STT) on both futures and options trade from October 1 to allay concerns about hyperactive interest in the derivative segment. Before that, the Economic Survey flagged concerns over rising retail investors' interest in derivative trading. The survey stated that speculative trade has no place in a developing country. It also pointed out that the sharp increase in retail investor participation in F&amp;O trading is likely driven by humans' gambling instincts.

SEBI proposed F&O norms to hit exchanges, brokers, says reports

<div type="image" title="For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire" height="900" width="1200" msid="114064202" hostid="261" caption="&amp;lt;p&amp;gt;For the unversed, trading in futures and options can be akin to setting their hard-earned money on fire&amp;lt;/p&amp;gt;"></div> Once upon a time, there thrived a wild, wild land. Here, it was all about super high monetary stakes, lightning-fast trade deals, and bucketloads of money shifting hands every single second. This wilderness lured millions of individuals with the promise of super duper high returns. But, at what cost? Welcome to the unforgiving, ultra-risky wild west of <keyword id="19991165" type="General" weightage="20" keywordseo="Indian-equity-markets" source="keywords">Indian equity markets</keyword> called the <keyword id="145718" type="General" weightage="100" keywordseo="Futures-and-Options" source="Orion">futures and options</keyword>. Here, everyone seems to just fly right through the bright red-flagged warnings of financial risks to earn even a fraction of these promised returns. Most burn themselves in the process, but carry on nevertheless, as if nothing ever happened. <h2>Chasing the cloudy profits</h2>The data conclusively proves that every 9 out of 10 individuals only lost their hard-earned money in this land. But hey, what do the numbers know? Some hide their losses out of shame, some out of fear. The proponents, meanwhile, proudly boast unusually high returns on their investments, some open social media channels while others encourage their friends and family to take the plunge. Naturally, news of this unstoppable and humongous en-masse migration to the F&amp;O (futures and options) town has reached sheriff <keyword id="19901201" type="General" weightage="20" keywordseo="SEBI" source="keywords" meta.keywordsubtype="org" meta.entityname="SEBI" meta.hostid="261" meta.entityid="SEBI">SEBI</keyword>, galvanising them into action. After all, it was time to put a leash on this madness and save the common man. The inhabitants of this town doubled in the last 2 years, from 51 lakh in FY22 to 96 lakh in FY24—99.8% of whom were small and mid-income traders. But profits? Well, that's a different, rather completely absent story. <h2>Que Sera Sera, much?</h2>A recent report by SEBI (Securities and Exchange Board of India) that studied profits and losses made by traders in the equity derivatives segment between FY22-24 exposed the mad mania of futures and options trading in India, especially since the pandemic. Per the report, 91.1% of individual traders, or about 73 lakh traders had only lost money trading in futures and options in FY24. Between FY 22-24, over 1 crore traders, or about 92.8% of individual traders, had lost Rs 2 lakh each. But once bitten, twice shy? Well, not in this case. More than 75% of individuals, who had only made losses trading in F&amp;O in FY22 and FY23, continued to trade vigorously in FY24 as well, without any changes in the bottom line, which remained deep in red and negative. So, then all these traders must be uber-rich, with tons of cash and not much care to spare? Nope. 76% of traders in the F&amp;O space in FY24 had an annual income of less than Rs 5 lakh. 2 years ago, their share stood at 71%. And their choice of poison? Options! In FY24, 60% of traders made losses trading in futures, but a whopping 91.5% burnt their funds trading in options. Mind you, futures are riskier than options. With futures, which require significant capital investment, the buyer and seller both are contractually bound to adhere to the pre-determined strike price of the futures or options contract, irrespective of whether the prevailing prices are higher or lower (and thus, resulting in losses for either the buyer or seller). With options, since this adherence ain't necessary, individuals end up taking debt to take highly leveraged positions while trading here. <h2>Scale of the explosion</h2>Anyone who trades even infrequently will tell you that a demat account is the mitochondria or powerhouse of the trading cell. As of August 2024, India had over 17.1 crore <keyword id="20957284" type="General" weightage="20" keywordseo="demat-accounts" source="keywords">demat accounts</keyword>, which are a prerequisite for trading in the markets. India is the 9th biggest country in the world, in terms of total demat accounts. Did you know that our demat accounts are at par with the entire population of Bangladesh? Talk about scale! Just 4 years ago, in March 2020, this number was a mere 4 crore. Naturally, the total F&amp;O turnover on both <keyword id="20004725" type="General" weightage="20" keywordseo="NSE" source="keywords" meta.keywordsubtype="org" meta.entityname="NSE" meta.hostid="261" meta.entityid="NSE">NSE</keyword> and BSE has hit the roof, and also broken it. As of October 4, 2024, the total futures and options turnover on NSE stood at a massive Rs 4,78,27,27,750.30 crore. Good luck counting the thousands! <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Year </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total Turnover (Both Futures and Options) (In Rs Crore) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2020-21 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">64,36,03,951.51 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2021-22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,69,52,33,134.47 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2022-23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3,82,23,26,468.06 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2023-24 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7,99,27,67,152.43 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Source : NSE Another metric that underlines the meteoric growth of trading in India is the collection of STT or <keyword id="20930760" type="General" weightage="20" keywordseo="Securities-Transaction-Tax" source="keywords">Securities Transaction Tax</keyword>. As of September 2024, India's STT mop-up had gone past Rs 26,000 crore. Traders have to pay STT whenever they buy or sell any security in the market. So, more trading brings in more STT, and hence, more revenue for the government, so they're not really complaining. After all, this is certainly what they'd call enviable growth. As of August 2023, our STT collection stood at about Rs 21,599 crores. And in FY20-21, India's STT collection had been Rs 16,000 crore. If only our salaries also managed to grow at this rate! <h2>So, what's happening?</h2>Two things. One, it's the big bulls who are raking in all the moolah. And it's the younger lot (those aged under 30) who are propping them up for this. In FY24, 43% of individual traders in the market were less than 30 years of age. In just one year, this number has swelled by 12 percentage points from just 31% of individual traders. But who says ageing is bad? Wrinkles and silver hair seemingly have a propensity of incurring lesser losses in the market. In FY24, only 79% of traders aged above 60 years made losses, as compared to 93% of those aged below 30. Small and mid-income traders, which make up 98% of the total trader base, witnessed average losses per person of Rs 65,000 and Rs 1.5 lakh in FY24 in futures and options, respectively. The winner here? Clearly, the big bulls, who declared an annual income of over Rs 1 crore, ended up with average profits of Rs 96,000 per person this year. <h2>What’s the sheriff up to?</h2>The government has finally swung into action, hiking the STT rate for F&amp;O during this year’s budget. Effective October 1, 2024, the STT on futures stands at 0.02%, up from 0.0125%. For options, it was upped to 0.1% versus 0.0625% previously. Small margins, but huge impact oncoming. Says Puneet Sharma- CEO and Fund Manager at Whitespace Alpha, “SEBI aims to enhance market stability while safeguarding investor interests, reflecting the regulator's intent to balance risk management with market participation”. But this might come with its own share of challenges, too. “Stricter norms around leverage, transparency, and capital adequacy could limit the ability of investors to determine their own risk appetite, thereby stifling innovation in trading strategies. Over-regulation in an environment that thrives on strategic flexibility and creativity could dampen the market’s dynamism, affecting India's competitiveness in the global derivatives landscape”, he observes. SEBI recently came out with a set of guidelines that aim to thwart <keyword id="19972907" type="General" weightage="20" keywordseo="retail-investors" source="keywords">retail investors</keyword>' participation in futures and options and hinder them from taking undue risks. Here's a quick recap of what's to come for the residents of the F&amp;O town Margin Requirements: To battle the high volatility and chaos which is generally seen on expiry days(i.e the last mandated date, post which an option becomes invalid), SEBI will put in place an extreme loss margin (ELM) of 2% for all open short options on the day of expiry. Translation? Traders will need to pony up more cash upfront, leaving them with fewer funds to take on risky bets. It ain't a choice: No more of one expiry every single day! Going ahead, an exchange like BSE or NSE will just be able to offer weekly expiries, that too, only on one benchmark index, as opposed to an entire buffet it currently offers. At present, NSE offers weekly options contracts for its financial index, bank and midcap indices. But say goodbye to this, and hello to derivatives on only 1 index per exchange. Raising the bar: Effective November 30, 2024, the minimum contract value for index derivatives will be upped to Rs 15 lakh, from the present Rs 5-10 lakh. The hope is that by making it ultra-expensive to enter these trades, investors will be dissuaded from taking on risky trades. Pay upfront: Starting February 2025, those trading in options will have to pay the entire options premium upfront, even before their trades are executed. This is because options generally carry very high leverage, and paying a significant sum upfront can force traders to think twice. Invigilation Pro Max: Starting April 1 2025, to make sure that the number of positions for equity index derivatives does not slyly slip over the mandated limit, especially on expiry days when trade volumes are huge, the exchanges will have to take a minimum of 4 position snapshots randomly. The question is, will these injections of sobriety be enough to calm down the steroid-fed bull of the futures and options market in India? Well, only time and market turnover will tell! For more insights into the financial markets and business news, stay tuned to our site and social media handles. And don’t forget to subscribe to Business Insider India’s newsletters for your weekly dose of Simply Put! Disclaimer: The content on this website is for informational purposes only and should not be construed as investment advice. We recommend readers consult certified, qualified and registered advisors for professional and personalised financial advice.

SIMPLY PUT: SEBI is on a mission to take on the wild, wild west of futures and options in India. Here’s why, what, and how

<ul><li>STT increased on futures and options trading </li><li>Changes in <keyword id="22258595" type="General" weightage="20" keywordseo="TDS-rates" source="keywords">TDS rates</keyword> (from 5% to 2%) on payments for life insurance policy, brokerage </li><li>Buybacks to be treated as dividends for taxation purposes</li><li>Small savings account rates left unchanged for Oct-Dec 2024</li></ul>Starting October 1st, a lot is set to change with your money. From <keyword id="20852321" type="General" weightage="100" keywordseo="FO-trading" source="keywords">F&amp;O trading</keyword> (futures and options) and buybacks getting more expensive in the hands of the individual, to changes in TDS slabs for payments concerning life insurance, brokerage, and more, here's a ready reckoner for all that you need to know: 1. STT upped for F&amp;O (Futures and Options) trading This budget, in a bid to discourage retail investors from burning their hands in the highly risky F&amp;O segment, the government had proposed raising the STT (securities transaction tax) for both futures and options. Starting today, you will have to pay an STT of 0.1% on premium earned from option sales, as opposed to 0.0625% previously. As for futures, the STT is set to rise to 0.02% of trade price, up from its previous mark of 0.0125%. Notably, STT is levied every time an individual purchases or sells a security, which significantly increases its incidence and coverage. For instance, if the trading price of the futures you're selling today is Rs 1,000, you'd have to pay Rs 0.2 as STT today. Till September 30th, the STT applicable would be Rs 0.12. Similarly, for options, if the settlement price of your options contract is Rs 1,000, your STT payable today would be Re 1, which earlier stood at Rs 0.625 While this may sound super inconvenient for frequent or intraday traders, a recent SEBI study has highlighted that a staggering 93% individual traders have incurred just losses while trading in the F&amp;O segment between FY22 and FY24, with the total losses exceeding Rs 1.8 lakh crore during this period. Only a tiny 1% traders managed to rake in profits above Rs 1,00,000. Perhaps SEBI is thinking along the lines of prevention being better than cure? 2. Changes in Debit card rules for ICICI bank ICICI debit card users, who also happen to be frequent flyers, listen up! Starting today, you will be able to access the complimentary airport lounge service twice, but only if you have spent Rs 10,000 or more via your card in the previous quarter. So, suppose you've spent just Rs 8,000 between July-September 2024 via your ICICI debit card. Since this falls below the Rs 10,000-threshold, you wont be able to access complimentary airport lounge service two times between October-December 2024. 3. Changes in rules for PPF, small savings account The interest rates on various small savings schemes were left unchanged by the Finance Ministry for the upcoming quarter i.e. October-December 2024. For this quarter, Public Provident Funds (PPF) will earn you 7.1% interest p.a., while Sukanya Samriddhi Yojana (SSY) and Senior Citizens Savings Scheme (SCSS) will offer interest at the rate of 8.2% p.a. <div type="Article" hostid="261" msid="113692667" title="Attention! Here's what's changing with your PPF accounts starting 1st October, 2024" mstype="2" mssubtype="0"></div> Also, these changes in PPF accounts will kick in from today: <ul><li>Have a PPF account in your child's name i.e. a minor? This account would earn the same interest as a POSA (Post Office Savings Account) i.e. at 4% p.a. currently. Once your child turns 18, the prevailing PPF interest rate, which is presently at 7.1%, will be levied. </li><li>No more interest earning via multiple PPF accounts! Starting today, only your primary PPF account will be eligible for interest. </li><li>Are you an NRI who currently holds an active PPF account, and you have not disclosed your residency status in Form H (used to extend the tenure of your PPF account by blocks of 5 years)? Starting today, such accounts will earn zero interest. </li></ul>4. Buyback set to get more expensive Buybacks happen when a company decides to buy back its own shares from its existing shareholders. What's in for the shareholders, you ask? The buyback price is usually higher than what is offered by the markets. You are eligible to participate in a company's buyback if you hold its shares on or before the record date that's set by the company. Starting today, buybacks will be treated just like dividends. This means starting today, the burden of tax payable on buybacks will fall on the shareholders selling the shares, and not the company. Buybacks will be taxed as per the individual's personal income tax bracket. 5. Revision of TDS rates Starting today, the TDS (tax deducted at source) on various payments you make for life insurance, lottery tickets and more is also set to change. Here's how TDS rates will look, starting today: <table class="redcator-table-advance"><tbody><tr><td>Category </td><td>Previous TDS rate</td><td>New TDS rate (Effective October 1st, 2024)</td></tr><tr><td>Payment made towards life insurance policies</td><td>5%</td><td>2%</td></tr><tr><td>Commission earned on sale of lottery tickets </td><td>5%</td><td>2%</td></tr><tr><td>Payment of commission/ brokerage </td><td>5%</td><td>2%</td></tr><tr><td>Payment of rent by certain individuals/HUF </td><td>5%</td><td>2%</td></tr><tr><td>Payment made by e-commerce operators/platforms to e-commerce participants/sellers </td><td>1%</td><td>0.1%</td></tr></tbody><tbody></tbody><tbody></tbody></table>

Attention! Here's what's changing with your PPF, F&O trading, and buybacks, starting today!

Tensions in Middle-East are rapidly inching closer to their zenith, with Iran firing about 200 ballistic missiles at Israel late yesterday night. In response today, the Indian markets witnessed their worst decline in two months, with Sensex dipping around 1,769 points, or 2.1% to close at 82,497.10. <keyword id="19896381" type="General" weightage="20" keywordseo="Nifty" source="keywords">Nifty</keyword> followed suit and was also down by 2.1% to close the day at 25,250.10. As a result, about Rs 11 lakh crore were wiped off the market today. The decline was broad-based, with sectors like realty (dipped by over 4%) auto, and energy suffering the most. Broader indices also fell, losing nearly 2% each. The Hang Seng index, which had rallied over 14% during the last week, largely on the back of various stimulus measures announced by the central bank to stir consumption in the Chinese economy, also slumped around 1.47%. With the possibility of an all-out war between Iran and Israel looming on the horizon, threatening to happen sooner than later, markets are expected to remain volatile in near future. Even the India VIX, seen as a gauge of uncertainty and investor fear in the market, jumped over 9% during the day. The war could throw a huge spanner on India's crude oil import plans. As of August 2024, about 44.6% of India's crude oil imports came from <keyword id="19904316" type="General" weightage="20" keywordseo="middle-east" source="keywords">Middle East</keyword>. Israel has already promised significant retaliation, in response to Iran's attack in the days to come. And the strong possibility of a full-blown Israeli attack in Middle East, particularly major oil fields in Iran has sent the crude oil prices surging. Closer home, ONGC (Oil and Natural Gas Corporation) was amongst the biggest gainers on NSE today. <h2>Should Indian investors worry? </h2>But is the impending action in Middle-East the only reason behind today's drastic fall? Vishnu Kant Upadhyay, AVP, Research &amp; Advisory at Master Capital Services notes that while it plays a significant role, other factors are also at play. "Recent regulatory changes in the F&amp;O segment by SEBI is expected to impact trading volumes, as retail participation may decline due to the increased contract size and limits on weekly expiries. Meanwhile, strength in the Chinese market, following the People’s Bank of China (PBoC) stimulus package, has also diverted foreign investment to China, where valuations remain more attractive compared to India", he noted. But Upadhyay believes that the extension of losses in Indian markets wont last long. "From a technical perspective, as long as prices hold above the 25,250–25,100 zone, any decline could present an opportunity to build fresh long positions. A stock-specific approach is advisable, with sectors such as Oil, IT, PSU Banks, Metals, and Chemicals likely to outperform in the coming days", he adds. Shrikant Chouhan, Head Equity Research, Kotak Securities observes that as long as market is trading below 25,365/82,800, the weak sentiment is likely to continue. On the down side, it could slip till 25,150-25,025/82,200-82,000 as well. On the other side, one quick technical pullback is likely if the market succeeds to trade above 25,365/82,800. Above the same, it could bounce back till 25,475-25,500/83,100-83,300. The current market texture is volatile hence; level based trading would be the ideal strategy for the day traders. <h2><keyword id="20760178" type="General" weightage="20" keywordseo="mutual-fund-investors" source="keywords">Mutual fund investors</keyword>, stay put</h2>In the aftermath of a <keyword id="19968045" type="General" weightage="20" keywordseo="market-correction" source="keywords">market correction</keyword>, most mutual fund investors often face a critical decision- should they stop their SIPs (<keyword id="21047553" type="General" weightage="20" keywordseo="Systematic-Investment-Plans" source="keywords">Systematic Investment Plans</keyword>) or to view the downturn as a valuable opportunity to acquire more mutual fund units? By continuing SIPs during such downturns, investors can take advantage of 'rupee-cost averaging,' i.e. accumulating more units when prices are down. This approach not only lowers the average cost per unit, but also positions the portfolio for greater returns when the market eventually recovers, and softens the impact of short-term volatility. Swapnil Aggarwal, Director, VSRK Capital explains that alongside maintaining regular investments, revisiting your asset allocation is also essential in these turbulent times. A well-diversified portfolio, that balances equities with safer assets like bonds can withstand market fluctuations more effectively. You can consider shifting some investments into bond funds or other stable instruments, which can provide a cushion against further declines. <h2>What happens next? </h2>While the immediate impact of a market correction may lead to declines in the NAV (Net Asset Value) of mutual funds, disciplined investors can view this as a moment to reassess their strategies. Focusing on your <keyword id="20908416" type="General" weightage="20" keywordseo="long-term-financial-goals" source="keywords">long-term financial goals</keyword> will let you turn market volatility into opportunity! The market will remain keenly focused on the evolving situation in the Middle East. What will also be equally important are the US monthly jobs data due tomorrow, which could determine the size of Fed's next interest rate move in November.

Nifty, Sensex in freefall today as Iran mounts attack on Israel. Here's what experts think you should do

<ul><li>Ten years ago markets were completely driven by FPIs but today the situation has changed, says <keyword id="5500681" type="General" weightage="80" keywordseo="v-s-sundaresan" source="Orion">V S Sundaresan</keyword>, executive director at SEBI. </li><li>The SEBI director believes that <keyword id="6416579" type="General" weightage="20" keywordseo="retail-investors" source="Orion">retail investors</keyword> are confident in Indian markets and enough to hold the markets strong despite <keyword id="16607640" type="General" weightage="20" keywordseo="fii-exits" source="Orion">FII exits</keyword>. </li><li>Lack of investor awareness, regulatory overreach and litigant mindset are weaknesses in our markets, said the SEBI official. </li></ul>A sell off by foreign institutional investors (FIIs) no longer impacts Indian equity markets like it used to a decade ago, said V S Sundaresan, executive director at Securities and Exchange Board of India (SEBI). He says that retail participation has become more important in the home market. “Ten years back, markets were completely driven by FPIs but today the situation has changed. Nobody is bothered if FPIs are putting or pulling money. It does not affect the market in any way and they are only now for headlines,” said Sundaresan at 14th Capital Market Summit on Wednesday. FII exits have been making headlines especially since December last year, while impacting markets and inducing volatility. In January, FIIs sold Indian equities worth ₹41,464 crore and in February, so far, they have sold ₹1,041 crore equities. As a result, Sensex has dropped over 2%, and Indian markets have been underperforming compared to others in China and Hong Kong. Retail participation balances flows in the home markets The SEBI director believes that retail investors are confident in Indian markets, and that’s enough to hold the markets strong despite FII exits. “Participation by retail investors has given fillip to this market that can do with or without FPIs. We should be proud of this. This clearly shows there is a good progressing capital formation. This is definitely proving that the savings potential of India is being channeled into capital markets. Capital markets are having enough support from non-FPIs so that markets are balanced,” added Sundaresan. He added that Indian markets are stable with considerably lower volatility compared to other markets. “Despite economic slowdown, increasing interest rates, we have a resilient market,” he said. He added that there is a lack of investor awareness, as new investors are incurring hefty losses in derivatives markets. “Data shows that 9 out of 10 are losing money in options in F&amp;O markets as everybody thinks they can play in options markets. There is a lot of scope for investor education,” said Sundaresan. Regulatory overreach, rising litigations are market weaknesses Lack of investor awareness, regulatory overreach and litigant mindset are weaknesses in our markets, said the SEBI official. The cost of compliance has increased substantially with non-compliances leading to a rise in the number of litigations. For which, he says there is a need to increase self governance. He cited the example of the government’s AGR (adjusted gross revenue) based revenue sharing model with the telecom players wherein the companies are unable to pay the dues, which eventually increases government’s stake. The government recently converted the interest on AGR dues that <a href="https://www.businessinsider.in/business/telecom/news/vodafone-idea-shares-hit-25-upper-circuit-after-govt-agrees-to-convert-16133-cr-dues-into-equity/articleshow/97643006.cms">Vodafone owes, into equity</a>. Instead of litigations he said there should be self corrective measures wherein disputes can go for settlements instead of choosing legal battles, which only leads to waste of money, time and resources.

Sell off by FIIs does not impact markets; retail participation is more important, says SEBI executive director

Mumbai, Feb 27 () Equity indices reeled for the fifth straight session on Thursday, pressured by a sell-off in bank, IT and energy counters, as the global markets grappled with fears of the coronavirus outbreak turning into a pandemic. The expiry of February series derivatives contracts too kept the domestic markets volatile, traders said. After plunging over 465.69 points during the day, the 30-share BSE Sensex finally settled 143.30 points, or 0.36 per cent, lower at 39,745.66. Similarly, the broader NSE Nifty fell 45.20 points or 0.39 per cent to end at 11,633.30. The Sensex has now lost 1,577.34 points in five days, while the Nifty has shed 492.60 points. ONGC was the top loser in the Sensex pack on Thursday, dropping 2.61 per cent, followed by HCL Tech, M&amp;M, SBI, IndusInd Bank and ICIC Bank. On the other hand, Sun Pharma, Titan, Axis Bank and Asian Paints climbed up to 3.68 per cent. World markets extended their losses while safe-haven assets like gold and US Treasuries strengthened after President Donald Trump announced that the US was stepping up its efforts to combat the Covid-19 outbreak, while the number of cases surpassed 81,000. Indian markets were in the negative territory as the rapid global spread of the coronavirus kept investors on the edge and made them seek safety in gold and bonds, said Narendra Solanki, Head Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares &amp; Stock Brokers. India is at risk of getting severely impacted by the epidemic economically because of its high reliance on Chinese imports for various goods, he noted. Benchmarks also remained volatile on account of monthly expiry of derivatives contracts, he said, adding that sentiment remained sluggish amid reports that GDP growth is likely to stay flat at 4.5 per cent in October-December 2019. The government's GDP estimate for the December quarter is scheduled to be released on Friday. Further, relentless selling by foreign portfolio investors (FPIs) spooked retail investors, traders said. According to provisional data available with stock exchanges, so far this week, FPIs have offloaded stocks worth a whopping Rs 6,812.57 crore on a net basis. Sectorally, BSE realty, oil and gas, metal, teck, IT, industrials, energy, telecom and auto indices ended up to 2.09 per cent lower, while consumer durables and healthcare settled on a positive note. Broader BSE midcap and smallcap indices fell up to 0.83 per cent. Bourses in Seoul and Tokyo ended with significant losses, while Shanghai and Hong Kong closed with gains. Stock exchanges in Europe plunged up to 1.80 per cent in their morning sessions. Brent crude oil futures fell 1.33 per cent to USD 52.11 per barrel. On the currency front, the Indian rupee appreciated marginally to 71.62 per US dollar (intra-day). ANS ABMABM

Markets slump for fifth day on coronavirus woes, F&O expiry

New Delhi, Jun 21 () Geopolitical developments and trend in COVID-19 cases will set the tone for equity markets this week, analysts said, adding that with no major events scheduled, indices may consolidate. "Going ahead, we expect the market momentum to continue in near term on back of changed sentiments and improved liquidity. "Apart from global cues and development around geo-political tensions, the monthly F&amp;O expiry would be some of the key monitarables," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd. According to analysts, besides stock-specific action, trend in global markets and foreign fund movement would also dictate sentiments. Rupee-dollar dynamics and crude oil movement would also be key factors to watch, they added. "Given that there are no major scheduled events both locally as well as globally, indices are expected to consolidate and move sideways. Across the world, markets are trying to decode how the easing of lockdown restrictions will help revive economic demand. "However, the current response seems to be a mixed bag across the world and foresight remains blurry as to how quickly the revival in economies pan out. It insinuates a long drawn journey which ultimately will be reflected in the stock prices," said Jimeet Modi, founder and CEO, SAMCO Securities &amp; StockNote. During the past week, the Sensex rallied 950.85 points or 2.81 per cent. Eight days after recording three lakh COVID-19 cases, India went past the 4,00,000-mark on Sunday with the biggest single-day spike of 15,413 new infections, while the death toll rose to 13,254, according to Union Health Ministry data. SUM BAL ABM ABM

Investors to monitor geopolitical developments, trend in COVID-19 cases: Analysts

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Getty/Stephanie KeithShoppers are buying things again.</div></div></div><ul class="summary-list"><li><a href="https://www.businessinsider.com/category/retail">Retail</a> has rebounded in the United States, according to a new report by Moody's Investors Service.</li><li>In a report released on Thursday, the financial services firm changed its outlook on the <keyword id="6354851" type="UNKNOWN" weightage="100" keywordseo="retail">retail</keyword> industry to "positive" for the next 12-18 months.</li><li>A strong US economy, investment in e-commerce, and greater efficiencies are fueling a better earnings outlook for retail companies.</li><li>It's the first time that Moody's has raised its outlook above "stable" since the <a href="https://www.businessinsider.com/category/retail-apocalypse">retail apocalypse</a> was looming in 2015, signifying the worst is likely now behind retailers.</li></ul>Good news for retailers: For the first time since 2015, Moody's Investors Service has raised its outlook for the retail sector at large from "stable" to "positive."A strong US economy, investment in e-commerce, and greater efficiencies - factors that all started coalescing last year - are fueling a better earnings outlook for retail companies and have led to a turnaround for retailers' fortunes.That means Moody's expects mostly positive news from retailers for the next 12-18 months, based on improving business conditions that would affect all companies. "The positive outlook for the US retail industry reflects increasing topline growth and operating profits as companies' investments to improve both the online and in-store shopping experience continue to gain traction," Mickey Chadha, a vice president at Moody's, said in a statement announcing the report.With high consumer confidence and low unemployment, many shoppers likely feel that they're in a better place to spend a few more dollars than they might otherwise spend.This plays in stark contrast to the situation retailers have been in over the last several years, as the so-called "retail apocalypse" has devastated retailers' profits and forced some to close stores or file fo bankruptcy. Moody's now projects 4.5%-5.5% sales growth for the year, up from the 3.5%-4.5% the firm predicted in July 2017. Online shopping is still outpacing overall retail growth. Moody's is projecting e-commerce to grow from 15% of the pie currently to 20% in about five years.Much of that will come from Amazon, which currently dominates online-only retail.It's not all good news for retailers: a tight labor market means retailers will need to pay more for good employees. Freight costs - especially stemming from a <a href="https://www.businessinsider.com/logistics-transportation-costs-threaten-companies-2018-10">shortage of truck drivers</a> - are another ongoing concern.Despite improving fortunes for the industry broadly, some retailers, like Sears, still aren't faring well. Cowen predicts that <a href="https://www.businessinsider.com/retail-apocalypse-is-still-in-early-innings-cowen-says-2018-10">more store and malls will close in the US</a> as retail space contracts and sales move online.<a href="https://www.businessinsider.com/intelligence/future-of-retail-ai?IR=T&amp;utm_source=businessinsider&amp;utm_medium=ctgr&amp;utm_term=ctgr_leadgen&amp;utm_content=ecommerce_ctgr_leadgen&amp;utm_campaign=ecommerce_ctgr_leadgen_future-of-retail-ai"></a> <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/buffalo-wild-wings-famous-blazin-wing-challenge-2018-10">Buffalo Wild Wings' Blazin' Wing Challenge requires a waiver before attempting</a></h3> <div> </div> </div>

Moody's is signaling that the retail apocalypse is over

<div class="KonaFilter image-container display-table"><div><div class="image"><a href="https://www.youtube.com/watch?v=gDEZYeSvKz8">YouTube/USA Food &amp; Vacation</a></div></div></div>Investors are going wild for El Pollo Loco, a chicken restaurant chain that debuted on the public market Friday.
The company's shares surged an eye-popping 55% from its IPO price of $15 on the first day of trading. So what's so great about this chain that's been around for more than two decades? 
For many investors, it resembles the massively successful Chipotle. 
Like Chipotle, it's a fast casual chain that serves Mexican-style food in large portions. Its same-store sales growth rate is comparable to Chipotle's, and actually surpassed Chipotle's in 2012 and 2013, according to <a href="http://www.fool.com/investing/general/2014/07/09/relax-chipotle-investors-el-pollo-loco-is-not-the.aspx">The Motley Fool</a>'s Nickey Friedman. 
El Pollo Loco, which translates to "the crazy chicken," is also extremely popular. It recently won second place for best-tasting fast food chicken restaurant in the country behind Chick-fil-A in a <a href="http://www.businessinsider.com/best-fast-food-chains-ranked-2014-7">Consumer Reports</a> survey.
The restaurant's first U.S. location opened in Los Angeles in 1980. It now has 401 restaurants, more than half of which are franchised. Most of the locations are in California and the rest are in Nevada, Texas, Arizona, and Utah. 
The chain is known for its citrus flavored fire-grilled chicken, which is served in family-sized portions or as part of individual dishes such as burritos, bowls, salads and tortas. Appetizers include chicken nachos and chicken tortilla soup and there are more than a half dozen sides, such as refried beans, corn, broccoli, macaroni and cheese, mashed potatoes, french fries, and rice.
The chicken is cooked over an open flame for about an hour, like in the photo below. 
<div class="KonaFilter image-container display-table"><div><div class="image"><a href="https://www.facebook.com/ElPolloLoco/photos/pb.84772351477.-2207520000.1406315702./10152126849506478/?type=3&amp;theater">Facebook/El Pollo Loco</a></div></div></div>At the self-serve salsa bar, customers can ladle unlimited amounts of salsa, jalapenos and cilantro onto their dishes.
<div class="KonaFilter image-container display-table"><div><div class="image"><a href="https://www.flickr.com/photos/drtran/2579083223/in/photolist-4VYJqh-4VUtA8-4VYJiE-6bpzxi-47m4jf-fpe3Kg-hTLPiR-3Qjh1-3Qjom-69JhKW-fGNCGj-fGw3s8-7saLX2-23VgfC-23QQxg-7seKrd-u6HLY-7ZsfPd-oAQ1i-a1ZXgR-7VUJaR-ncXzvA-nf1kaV-ncXxwe-ncXCVw-nf144D-nf1nDT-ncXyFi-ncXBkN-nf3jDG-ncXCyQ-ncXCpL-ncXSDU-ncY546-ncXVCt-nf1ghX-ncXECu-nf3CU9-ncXT2b-nf1xAg-nf3qwo-ncXNt9-nf3vSy-ncYedd-nf1snT-ncY8bU-ncXSK4-ncXVfp-nf1t2r-nf1pkF">Flickr/Al Pavangkanan</a></div></div></div>
The avocado salsa, pictured on top of the Carne Asada Tostada below, is a customer favorite. 
<div class="KonaFilter image-container"><div class="image"><a href="https://www.facebook.com/ElPolloLoco/photos/pb.84772351477.-2207520000.1406315702./10152111217316478/?type=3&amp;theater">Facebook/El Pollo Loco</a></div></div> 
El Pollo Loco says 47% of their sales come from bone-in chicken meals (like the one pictured below) while the rest come from their Mexican offerings, such as burritos and tostadas. 
<blockquote class="twitter-tweet" lang="en">
<a href="https://twitter.com/hashtag/closeup?src=hash">#closeup</a> of <a href="https://twitter.com/ElPolloLoco">@ElPolloLoco</a> in <a href="https://twitter.com/hashtag/dtla?src=hash">#dtla</a> for lunch earlier! <a href="https://twitter.com/hashtag/scbd?src=hash">#scbd</a> <a href="http://t.co/2fo2Mz015L">pic.twitter.com/2fo2Mz015L</a>
- SmallChick BigDeals (@smchickbigdeals) <a href="https://twitter.com/smchickbigdeals/statuses/428306438172450816">January 28, 2014</a></blockquote>

Investors Think El Pollo Loco Could Be The Next Chipotle

<ul class="summary-list"><li>Tati Westbrook said in a new video that she believed <keyword id="9082331" type="UNKNOWN" weightage="60" keywordseo="jeffree-star">Jeffree Star</keyword> is a co-owner of <keyword id="1325170" type="PERSON" weightage="60" keywordseo="Morphe">Morphe</keyword> Cosmetics. A representative for Morphe told Insider that's false.</li><li>"We can confirm that Jeffree Star retains no ownership of Morphe," a Morphe representative said. "He's not an investor. He's not a co-owner. Our only relationship is through retail distribution of <keyword id="9237758" type="UNKNOWN" weightage="60" keywordseo="jeffree-star-cosmetics">Jeffree Star Cosmetics</keyword> and our 2019 MorpheX collaboration."</li><li>In Westbrook's explosive 40-minute video, the <keyword id="6354629" type="UNKNOWN" weightage="60" keywordseo="beauty">beauty</keyword> star alleged that Star and <keyword id="7353406" type="UNKNOWN" weightage="60" keywordseo="Shane-Dawson">Shane Dawson</keyword> had stoked her feud with James Charles because they were jealous of the young YouTuber's success. </li><li>Westbrook suggested that Star's potential co-ownership of Morphe could point to a motive for his alleged role in stoking tensions that ripped apart the beauty community in 2019.</li></ul>In Tati Westbrook's <a href="https://www.youtube.com/watch?v=1aIYkgTcHBw">explosive YouTube video</a> published Tuesday, in <a href="https://www.insider.com/tati-westbrook-video-jeffree-star-shane-dawson-manipulated-james-charles-2020-6">which she alleged Shane Dawson and Jeffree Star</a> manipulated her into posting a 2019 video the started an all-out drama war, she said she believed that Jeffree Star is a co-owner of Morphe Cosmetics. The popular YouTube theory has been used in the past to suggest that Star's product reviews could be biased, and Westbrook suggested it could play a role in his reason for allegedly manipulating her. The company sells Star's makeup line and has released his<a href="https://www.insider.com/morphe-removes-shane-dawson-makeup-range-from-online-store-2020-6"> collaboration with Shane Dawson that Morphe has since dropped.</a> But a representative for Morphe told Insider on Tuesday evening that the claim is false."We can confirm that Jeffree Star retains no ownership of Morphe," the representative said. "He's not an investor. He's not a co-owner. Our only relationship is through retail distribution of Jeffree Star Cosmetics and our 2019 MorpheX collaboration."The theory gained traction in April after a video called "Jeffree Star owns Morphe!" pointed to Star's assertion in another April video that he's an investor in the company. A representative for Star did not return requests for comment on Tuesday evening. In 2019, private equity firm General Atlantic <a href="https://www.generalatlantic.com/media-article/morphe-holdings-and-general-atlantic-announce-partnership-and-strategic-growth-investment/">announced</a> that it had attained majority ownership of Morphe but that any current investors would retain partial ownership. Star's involvement with General Atlantic is still unclear, and they have not returned request for comment. In Westbrook's video, she said she'd recently learned of this theory, and that she believed Star's ownership of Morphe was part of why he <a href="https://www.insider.com/tati-westbrook-video-jeffree-star-is-owner-of-morphe-cosmetics-2020-6">wanted to allegedly take down James Charles</a>. Westbrook alleged that both Star and Dawson wanted "James marginalized and out of the way for their November launch of the 'Conspiracy Palette,'" referring to their <a href="https://www.insider.com/buy-shane-dawson-jeffree-star-conspiracy-palette-collection-2019-11">dual product collaboration with Morphe</a>. Westbrook also claimed that her infamous feud with Charles, which many have called "Dramageddon 2.0," was stoked by Dawson and Star out of their jealousy of the young YouTuber, who was rising to fame rapidly, after Dawson and Star had been among YouTube's top creators for more than a decade."On the advice of my attorneys, I cannot share with all of you right now the evidence that we have accumulated of the events that have occurred," Westbrook said in her video. "However, there will soon come a day where we will be able to present this evidence, and you will be able to see why it is that we believe Jeffree and Shane are responsible for so much fo the damage that has been caused." Dawson and his fiancé, Ryland Adams, both <a href="https://www.insider.com/shane-dawson-ryland-adams-tati-westbrook-responds-to-video-2020-6">denied Westbrook's allegations</a> on Twitter. <ul class="read-more-links"><li>Read more:</li><li><a href="https://www.insider.com/tati-westbrook-video-jeffree-star-shane-dawson-manipulated-james-charles-2020-6">Tati Westbrook releases new video claiming that Shane Dawson and Jeffree Star 'manipulated' her into starting the 2019 beauty-guru war</a></li><li><a href="https://www.insider.com/shane-dawson-tati-westbrook-video-jeffree-star-drama-timeline-cancelled-2020-6">A complete timeline of how the internet turned against top YouTubers Shane Dawson and Jeffree Star</a></li><li><a href="https://www.insider.com/tati-westbrook-video-jeffree-star-is-owner-of-morphe-cosmetics-2020-6">Tati Westbrook referenced a common unproven theory in her recent video that Jeffree Star is a co-owner of Morphe Cosmetics, claiming it played a part in the beauty war of 2019</a></li><li><a href="https://www.insider.com/tati-westbrook-video-shane-james-charles-youtube-bye-sister-private-2020-6">Tati Westbrook claimed that YouTube asked her to private her video slamming James Charles because it was a 'bad look'</a></li></ul>

Morphe Cosmetics says Jeffree Star is not a company owner or investor after Tati Westbrook supported the theory in an explosive video

<div class="KonaFilter image-container display-table"><div><div class="image on-image">GettyAmazon CEO Jeff Bezos</div></div></div><ul class="summary-list"><li><a href="https://www.businessinsider.com/category/amazon">Amazon</a> announced Thursday that it will not move forward with <a href="https://www.businessinsider.com/why-amazon-canceled-new-york-city-hq2-timeline-2019-2">building HQ2</a> in New York City.</li><li>Analysts say this will not impact Amazon's business outlook or stock in the long term, especially since it already has a presence in New York City.</li><li>While Amazon will not be able to add 25,000 jobs in New York City as planned, analysts expect the company to propel forward in hiring talent in Virginia and Tennessee.</li></ul>Amazon's decision to cancel a major office expansion into New York is a stunning about-face for the tech giant, but the change of plans is unlikely to have any serious impact on the company's $230 billion business engine, say analysts. "This is a blip and a minor bump in the road," Anthony Chukumba, research analyst at Loop Capital Markets, told Business Insider on Thursday, hours after Amazon <a href="https://www.businessinsider.com/amazon-cancels-new-york-hq2-2019-2?utm_source=notification&amp;utm_medium=referral">announced its surprise decision</a> not to move forward with <a href="https://www.businessinsider.com/why-amazon-canceled-new-york-city-hq2-timeline-2019-2">building a headquarters</a> in Long Island City, Queens,"Obviously, I'm sure Amazon has put considerable time and attention into the selection of <a href="https://www.businessinsider.com/amazon-nyc-queens-real-estate-2019-2">New York</a>, but long term, I don't think this will hurt the company at all," Chukumba said.Amazon, which dominates the online commerce and the cloud computing market, chose to build a headquarters in New York City because of its substantial population and workforce. However, Amazon already has a presence in New York, with 5,000 employees there."If Amazon had zero presence in New York City, they would lose out a ton," Simeon Siegel, senior equity analyst at Instinet, told Business Insider. "I don't believe this decision suggests they will not have a presence in New York."Analysts believe the decision will not change the <a href="https://markets.businessinsider.com/news/stocks/amazon-stock-price-reaction-to-amazon-hq2-new-york-city-cancellation-2019-2-1027954597">near or long term outlook</a> on Amazon.<h2>The real action for Amazon is near DC, not New York</h2>And although Amazon may not be able to add 25,000 jobs to New York, as the original plan called for, it can now focus on hiring more talent in Virginia and Tennessee. Amazon said on Thursday that it will fo forward with plans to continue building a headquarters in <a href="https://www.businessinsider.com/amazon-hq2-national-landing-headquarters-built-in-arlington-2018-11">Crystal City, Virginia</a>, as well as another office in Nashville. By building a headquarters in northern Virginia near Washington, DC, Amazon is likely working to boost its presence in federal circles and snag a $10 billion cloud contract with the Pentagon called the Joint <keyword id="6356323" type="UNKNOWN" weightage="100" keywordseo="enterprise">Enterprise</keyword> Defense Infrastructure contract, Daniel Ives, managing director of equity research at Wedbush Securities, said."They've doubled down on government and moving to Crystal City in the shadows of the Pentagon," Ives, managing director of equity research at Wedbush Securities, told Business Insider. "That's strategically the bigger headquarters move that investors are paying attention to rather than [New York]."Read more: <a href="https://www.businessinsider.com/amazon-might-move-hq2-to-crystal-city-because-of-jedi-pentagon-race-2018-11">Amazon and Microsoft are fighting for a $10 billion Pentagon contract - and HQ2 in Virginia could be Jeff Bezos' boss move</a>Overall, analysts don't expect this decision to change Amazon's business strategy, nor will it have major effects on its stock in the long term. If anything, they believe New York <a href="https://www.businessinsider.com/amazon-hq2-leaving-new-york-city-would-mean-tax-revenue-loss-2019-2">loses out more</a> than Amazon does, and in the future, it could prompt other businesses to think twice before they expand to New York."The business strategy is already in place," Mark Hamrick, senior economic analyst at Bankrate.com, told Business Insider. "It may have to forgo some opportunity from not having been able to do what it wanted to do in New York, but it doesn't affect its earnings prospects or ability to drive revenue." <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/tesla-model-x-perfect-safety-crash-test-rating-2019-2">Why Tesla's Model X was the first SUV to receive a perfect crash-test rating</a></h3> <div> </div> </div>

You Searched For "retail investor fo" and got 12 results

Discouraging retail play in F&O may help banks garner deposits: SBI Chairman

PTI

SEBI proposed F&O norms to hit exchanges, brokers, says reports

PTI

SIMPLY PUT: SEBI is on a mission to take on the wild, wild west of futures and options in India. Here’s why, what, and how

Ira Alok Puranik

Attention! Here's what's changing with your PPF, F&O trading, and buybacks, starting today!

Ira Alok Puranik

Nifty, Sensex in freefall today as Iran mounts attack on Israel. Here's what experts think you should do

Ira Alok Puranik

Sell off by FIIs does not impact markets; retail participation is more important, says SEBI executive director

Bhakti Makwana

Markets slump for fifth day on coronavirus woes, F&O expiry

PTI

Investors to monitor geopolitical developments, trend in COVID-19 cases: Analysts

PTI

Moody's is signaling that the retail apocalypse is over

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