The biggest investor dilemma in Indian equities now is that what is looking safe is not cheap anymore and what is looking cheap is not looking safe. The market has become so unpredictable that veterans like Nilesh Shah say if you are looking at a three-year horizon to invest in equity, you might as well not invest in equity. "Do not come to the equity market with a fixed time horizon. Come, only if you are flexible."
STREET PULSE: Where we stand Asian equities rose on Friday after the S&P500 notched a new record closing high, but investor sentiment remained fragile following weak data from China and Germany.
HERE'S WHAT TO WATCH  | SGX Nifty traded some 29 points higher at 7 am (IST), signalling possible upbeat start for Dalal Street. MSCI index for Asia-Pacific shares outside Japan rose 0.67%. Japan's Nikkei added 0.76% and Australian shares gained 0.8%. Chinese blue-chip shares gained 0.06% shortly after the start of trade. |
| On Wall Street, S&P set a new record, gaining 0.08% to 3,096. But Dow fell 0.01% to 27,781 and the Nasdaq dropped 0.04% to 8,479. |
| Oil prices posted early gains as OPEC's outlook for oil demand next year fueled hopes that the producer group and its associates will keep a lid on supply when they meet to discuss policy on output next month. Brent crude futures rose 30 cents to $62.58 a barrel while WTI crude gained 29 cents to $57.06. |
| The rupee on Thursday clocked its first gain after five sessions, closing 13 paise higher at 71.96 against the US dollar in line with domestic equities. |
| LOOK WHO'S |  |
Profits up, Revenues Down... India Inc's revenue dropped marginally in the September quarter, the first decline in nine quarters, reflecting demand-side woes, destocking of piled-up inventories and a higher base effect in the form of double-digit growth in the year earlier. However, net profit — based on a common sample of 1,697 companies that have declared results for each of the 13 quarters to September 2019 — increased by 22.5%, while revenue fell 0.2%. Excluding banks and financial services (BFS) institutions, the growth in net profit moderated to 11.3% while revenue fell 3.3%.
Read More Wholesale Inflation Down... India's wholesale inflation eased to 0.16% in October, its lowest in more than three years, on the back of a fall in prices of fuel and manufactured goods. Inflation for manufactured items stood at -0.84% in October, against -0.42% in September, while that for fuel and power stood at -8.27% last month against -7.05% in September. High food inflation, however, kept the Wholesale Price Index (WPI) from falling into negative zone.
Read More | WHO'S |  |
Telecom Pain... Vodafone Idea and Bharti Airtel have raised doubts over their ability to continue as going concerns while posting unprecedented losses of Rs 50,921.9 crore and Rs 23,045 crore, respectively, for September quarter, after provisioning for adjusted gross revenue-based dues following a recent Supreme Court ruling. Vodafone Idea posted its worst quarterly loss in India's corporate history after setting aside Rs 25,680 crore, while Bharti Airtel provided for Rs 28,450 crore.
Read More Bleak Outlook… Moody's has slashed its growth forecast for India for this calendar year to 5.6% from 6.2% it estimated earlier, citing "widespread weakness in consumption demand". "India's economic slowdown is lasting longer than previously expected," the international rating agency said in its Global Macro Outlook 2020-21 on Thursday. Economic activity is likely to pick up in 2020 and 2021 to 6.6% and 6.7%, respectively, but the pace will remain slower than in 2018 when the country's real GDP grew 7.4%, it said.
Read More Voda Pain Awaits MFs… Debt mutual fund schemes holding bonds of Vodafone Idea could see investor exits following concerns over Vodafone Idea's deteriorating financial health that has increased the risk of the company's insolvency. With the telecom company's owners — Aditya Birla Group and UK's Vodafone — ruling out further capital infusion, mutual funds holding the firm's securities are on the edge as any default could spark rating downgrades and erosion of scheme values.
Read More Meanwhile... China on Thursday said eliminating tariffs was a "condition" for reaching a trade agreement with the United States, a demand US President Donald Trump said earlier this month that he had rejected. The Commerce Ministry's remarks showed a sizeable distance still separates the Washington and Beijing dispute Trump's announcement last month that they had reached a "phase one" deal. White House economic adviser Larry Kudlow, however, said the two nations were getting close to a trade agreement.
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