Most midcaps and smallcaps have become untouchables on Dalal Street. After a steep drop in share prices following a series of defaults and corporate governance issues, brokerages have stopped coverage of nearly 350 companies in last one year while fewer analysts are covering 225 others. Winnowing does not work when there are no clear heavier and lighter components in the mixture.
STREET PULSE: Where we stand  | Nifty futures on Singapore Exchange traded 40 points higher at 7 am (IST), signalling a positive start for Dalal Street. Asian stocks gained this morning. Australian stocks added 0.4%, KOSPI rose 0.8% and Nikkei advanced 1%. US stocks finished stronger on Thursday, snapping a two-day losing streak. Read More |
| Crude oil prices rose more than 1% on Friday after the US Navy destroyed an Iranian drone in the Strait of Hormuz. Brent futures rose 82 cents to $62.75 while WTI futures firmed 61 cents at 55.91. Read More |
| LOOK WHO'S |  |
Silver lining... Hope springs for the auto industry which has been going through a long slump. Even as carmakers witnessed a 10% decline in sales between January and June this year, SUV sales have shrunk by a much more modest at 1.8 per cent. New launches of MG Hector, Hyundai Venue, Kia Seltos, Mahindra XUV 300 and Tata Harrier have been greeted with enthusiasm by prospective customers.
Read More Rate cut coming... A top Fed official on Thursday all but cemented expectations of a US interest rate cut later this month. New York Fed President John Williams said policymakers need to add stimulus early to deal with too-low inflation and cannot wait for economic disaster to unfold.
Read More | WHO'S |  |
Oops…another setback for FM?
Sebi has told the government that it would be difficult to implement the Budget proposal to raise minimum public shareholding of listed companies to 35 per cent from 25 per cent when PSU companies have been laggards in meeting even the current 25% norm. It could lead to a conflict of interest with the regulator having to enforce the shareholding cap and PSUs seeking delays and exemptions for various reasons.
Read More It's a NO, NO... Finance minister Nirmala Sitharaman stuck to her Budget proposal and declined to relent on the demand by foreign portfolio investors structured as trusts that they be exempted from a higher surcharge. She said they should adopt a company structure in order to avoid the surcharge.
Read More Meanwhile... The Asian Development Bank has trimmed India's growth forecast for the current financial year to 7% from 7.2% estimated earlier, as the fiscal 2018 outturn fell short. In April, the bank had lowered India's growth forecast for 2019-20 to 7.2% from 7.6%, owing to moderation in global demand and likely shortfall in revenue on the domestic front.
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