For investors waiting for a rebound in midcaps, there is bad news. NSE Midcap index is now down 26% from its all-time high hit in January 2018, and trades at the lowest levels since February, 2017. Its trailing P/E is down to 28 times from the peak of 48 times, but higher than the 10-25 times range seen during 2005-2015. And FY20 earnings revisions have been much worse. The pain is far from over!
STREET PULSE: Where we stand  | Nifty futures on Singapore Exchange traded 32 points down at 7 am (IST), signalling more pain for Dalal Street. Asian shares weakened in early trade, rattled by a threat from President Trump to Beijing. MSCI's broadest index of Asia-Pacific shares outside Japan traded 0.04% down while Nikkei slid 0.84%. Wall Street stock averages ended slightly lower on Tuesday. Dow shed 0.1%, and Nasdaq 0.2%. Read More |
| Oil prices rose for a fifth day on Wednesday, buoyed by a bigger-than-expected drop in US inventories. Brent futures rose 33 cents to $65.05 a barrel while WTI crude gained 28 cents to $58.33. Read More |
| LOOK WHO'S |  |
Deal in sight?... After two nights of deliberations, Zee promoters seem to be leaning towards the binding agreement from a financial investor for a partial stake sale as the transaction moves towards closure. Zee has also received a non-binding offer from a consortium led by US cable major Comcast.
Read More A recast in the works... Distressed mortgage lender DHFL has submitted a restructuring plan to its core committee of creditors, Reuters reported quoting two sources involved in the matter. The plan includes the founder's family reducing stake and a restructuring of loans that would include easier repayment terms, such as longer tenure and reduced interest rates.
Read More | WHO'S |  |
Buying cheap is not always a good buy...
The sharp correction in the stock market over the past few months has pushed valuations of several stocks below their book values. About 105 of BSE500 companies, including some prominent names, are currently quoting below their book values, meaning they have become dirt cheap. However, analysts warn that it does not mean the worst is over for these stocks.
Read More Another blow.. . The government is looking to set a revenue threshold of Rs 20 crore and a limit of 500,000 users above which non-resident technology companies such as Google, Facebook and Twitter will have to pay direct taxes on profits earned locally. These limits are part of the 'Significant Economic Presence' concept introduced in last year's Budget.
Read More Meanwhile... The government has drawn up a list of around a dozen PSU firms which can go for possible buybacks this financial year. The list has PFC, CCI and some rail sector CPSEs.
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Reduce
Buy
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