Earnings estimates for India Inc have become rolling targets, elusive quarter after quarter with no sign of hope on the horizon. This is why a market that was chasing midcaps at crazy valuations till last December are now uneasy about buying them even at a 20% discount to Nifty50. Nifty Midcap100 PE has corrected from 25.6 times in August 2018 to 14.3 times now. Current estimate for FY20 earnings growth of Nifty Midcap100 is 15%.
STREET PULSE: Where we stand Stocks rose in Asia this morning as hopes of more stimulus from central banks the world over and steps taken by major economies such as Germany and China soothed investor fears about a sharp global economic slump.
Read More  | SGX Nifty showed promise, rising 27 points at 7 am (IST). MSCI index for Asia-Pacific shares outside Japan gained 0.25%. KOSPI rose 0.5% and Nikkei 0.7%. |
| Wall Street shares had rebounded on Friday. Dow gained 1.3%, S&P500 1.4% and Nasdaq 1.7% |
Crude oil prices rose following a weekend attack on a Saudi oil facility by Yemeni separatists, but an unusually downbeat OPEC demand forecast capped gains. Brent crude rose 45 cents to $59.09 a barrel while WTI crude gained 39 cents to $55.26.
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Picking up the Pieces... Lenders to DHFL have agreed on a three-level resolution plan that includes conversion of debt into equity and issuance of NCDs, steps that will give creditors majority stake in the embattled financier and help resume stalled credit lines. The plan will need green light from RBI as DHFL is a financial institution.
Read More | SBI may extend repo-linked home loan rate for existing customers as well >>> |
| Your I-T return form may soon come pre-filled with all the investment data >>> |
Rich man's world... HNI investors have nearly doubled purchases of market-linked debentures of NBFCs, helping them raise funds in a cautious environment. Many firms like L&T Finance, Kotak Mahindra Prime, Aditya Birla Finance, IIFL and Tata Capital raised Rs 12,408 crore through such debentures against Rs 6,825 crore raised in the year-ago period.
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Your midcap mutual fund SIP is bleeding...
Investors who started SIPs in midcap mutual funds three years ago are staring at losses because of the selloff since January 2018. Value Research data showed three-year SIP returns in 22 out of 25 midcap funds are in the red. In the smallcap space, all 13 funds are in the red. But financial advisers say now is the time to double down on these schemes.
Read More | Sebi has rejected rating agency Icra's consent application in the IL&FS case >>> |
| Tata Motors has told suppliers its CV and PV sales could fall by double digits >>> |
The Big Bite... US President Donald Trump says Apple CEO Tim Cook is concerned about losing the edge to Samsung because its products, unlike Apple's, won't be subject to tariffs when imported by the US. Trump said Cook offered a very compelling argument about the difficulty. Most Apple's products are due to be hit with 10% tariffs in the next few weeks.
Read More Meanwhile... Everyone is waiting to see the impact of the economic slowdown on the placement season. India's elite engineering colleges seem to remain insulated. Pre-placement offers are up at IITs this year with IITs in Roorkee, Madras and Guwahati seeing an 8 to 25% jump compared with last year. IIT-Hyderabad has already crossed last year's total PPO tally.
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