While Dalal Street indices may be ruling near record highs, this euphoria is not broadbased, which is a cause for alarm. Yet, market veterans say value trades happen when things look bleak. The cheaper prices are available because things do not look rosy. If and when they start looking rosy, these prices will not be available. It's an opportunity going abegging.
STREET PULSE: Where we stand Asian shares started softer this morning for another day awaiting clearer news on the progress of US-China trade negotiations.
HERE'S WHAT TO WATCH  | SGX Nifty fell 31 points at 7 am (IST), signalling a possible negative start for Dalal Street. MSCI index for Asia-Pacific shares outside Japan fell 0.1%. Japan's Nikkei traded 0.2% lower in early trade. Australia's S&P/ASX 200 index was flat |
| In overnight trade, Dow rose 31 points to 28,036, while S&P500 gained 1.57 points and the Nasdaq 9.11 points |
| US oil prices fell for the second straight day on Tuesday amid market jitters over limited progress between China and the US on rolling back trade tariffs, exacerbated by a rise in US inventories. WTI crude fell 10 cents to $56.95 a barrel while Brent crude futures were down 12 cents at $62.32 |
| The rupee pared early morning gains to settle down by 6 paise at 71.84 against the US currency on Monday due to continued forex outflows and gains in the dollar in global markets. |
| LOOK WHO'S |  |
New 'Promoter'... Listed Indian companies may soon see a radical shift in the way 'promoters' are classified. Sebi is planning to overhaul the concept of promoters that could lead to the introduction of 'controlling shareholders' — a structure new to India but prevalent in various developed markets. The capital markets regulator thinks the promoter concept is outdated, as many promoters have little or no say in the way companies are run but have the power to create nuisance value.
Read More Zee Deal... EuroKids, a leading playschool chain in the country controlled by US private equity firm KKR, is in preliminary talks to acquire Asia's largest preschool chain Kidzee from Zee Learn for Rs 1,000–1,200 crore. The deal, if it goes through, will help Subhas Chandra-promoted Essel Group further deleverage its consolidated balance sheet. New York-headquartered KKR — which bought 92% stake in Euro-Kids for about Rs 1,500 crore in September — is believed to have made a non-binding offer to acquire educational portfolio of Zee Learn.
Read More Pay Bonanza... Performance-linked incentive is set to become the buzzword for about eight lakh PSU bank employees, which they may receive for the first time from next financial year over and above their revised salaries. This is a major shift from managements' insistence on variable pay, or performance-linked pay, which was earlier proposed as part of wage increase.
Read More | WHO'S |  |
IT Job Cuts... Technology services companies could shed as many as 40,000 mid-level jobs by next year as India's biggest export industry, battling mounting cost pressures, looks to cut more expensive resources and replace them with headcount at the base. Mid-level resources, with work experience of 10-20 years, account for one-fifth of the workforce across IT companies. That works out to about 6,00,000 professionals, and about 7% of such jobs could be axed in next 12 months.
Read More Telecom Tariff Hike... Vodafone Idea and Bharti Airtel said they would increase tariffs in December, the first price hike in more than three years that could help shore up revenue and operating income for the two loss-making telecom companies but also cause some subscribers to shift to rival Reliance Jio Infocomm. In separate statements on Monday, the two companies cited financial stress, current low tariffs and the need to invest in networks to keep up with surging data demand as reasons for the move.
Read More Meanwhile... Wedding season demand for gold has dropped this winter. Although the price of gold, of which India is among the two biggest consumers in the world, has moderated by about 5% from record highs over the past six weeks, off-take has trailed expectations of most jewellers. The All India Gem & Jewellery Domestic Council says that demand has shrunk 40%, though India Bullion & Jewellers Association (IBJA) pegged the drop at 15% compared with last year's wedding season. However, both associations believe the worst may be over.
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