Gaurang Shah picks Indian Bank, SBI, ICICI Bank, Federal Bank as preferred banking bets - BusinessToday

• The BSE Sensex surged 965 points and the Nifty50 closed above 24,300 during a volatile trading session on Thursday. • Gains in IT stocks helped the indices remain resilient, offsetting significant profit booking in heavyweight banking and financial shares.

• South Korea is experiencing an AI-driven stock boom, with leveraged single-stock ETFs tied to Samsung Electronics and SK Hynix causing extreme market volatility. • A Hong Kong-listed twice-levered SK Hynix ETF has surged over 20-fold this year to reach $7.78 billion, while some single-name leveraged ETFs trade at four times the volume of their underlying stocks.

• MSCI’s Asia Pacific gauge fell 2.5% to a two-month low as investors rotated away from technology stocks, leading to a significant downturn in regional benchmarks. • Japan’s Nikkei 225 faced its worst session since March, while TSMC shares dropped 5% despite a solid earnings outlook, weighed down by higher spending forecasts.

• Analyst Gaurang Shah suggests that foreign investors may shift their focus toward the Indian market as the global AI trade momentum begins to fade. • Shah argues that India currently offers significant relative value, earnings resilience, and policy-backed sectoral opportunities compared to high-growth tech sectors.

• Global stocks have ended a two-week winning streak as the "AI-trade" loses momentum, causing semiconductor stocks to enter a bear market. • Oracle's credit risk gauge has reached a record high, reflecting growing investor concerns regarding the sustainability of massive AI-related spending.

• Asian stock markets declined due to a combination of technology sector losses and rising tensions involving Iran. • Major indices saw significant drops, including China's Shanghai Composite falling 1.6%, the CSI 300 dipping 2.5%, and Hong Kong's Hang Seng sliding 2%.

• The Reserve Bank of India (RBI) is preparing to transition to plastic (polymer) banknotes, marking one of the most significant makeovers in the history of Indian currency. • To facilitate this shift, Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) has issued a global Expression of Interest (EOI) to establish a polymer substrate manufacturing facility within India.

• BHP Group Ltd (ASX:BHP) shares are trading lower today due to a broader decline in the resource sector and weakening sentiment surrounding iron ore. • The stock is under pressure from concerns over Chinese steel demand and a 0.51% dip in copper prices, both of which are critical earnings drivers for the company.

• US stock futures remained steady or climbed slightly, with the Nasdaq 100 leading gains by 186 points (0.7%) and the Dow Jones rising by 79 points (0.2%). • Market stability was supported by record earnings from TSMC and a generally resilient US corporate earnings season, which helped offset concerns over geopolitical tensions near the Strait of Hormuz.

• The US-Iran conflict has entered its sixth consecutive day of escalating hostilities, with both nations intensifying their military strikes. • Iran has targeted critical infrastructure in Kuwait, specifically attacking power generation and water desalination plants, while maintaining a strategic grip on the Strait of Hormuz.

• The EUR/USD currency pair has remained stagnant recently, fluctuating around the 1.1450 mark as investors adopt a cautious stance. • Market volatility is being driven by escalating tensions in the Middle East and anticipation of the upcoming European Central Bank (ECB) decision.