High prices of select stocks when the economy is at a low is suggesting a disconnect between the economy and the market. NSE Midcap index is almost 20-25% below peak, and the Smallcap index 40% off peak. But that's not the case with largecaps. Analysts say with the liquidity tap on, the market in giving robust valuation multiples to companies wherever there is comfort on growth, ignoring the rest, which is what has created these aberrations.
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded 22 points down at 7 am, signalling weakness ahead on Dalal Street. Elsewhere in Asia, share markets wobbled as concerns that tensions over Hong Kong could stymie a US-China trade deal cast a pall over Thanksgiving cheer from unexpectedly positive US economic data.
HERE'S WHAT TO WATCH  | MSCI index for Asia-Pacific shares outside Japan was little changed in early trade, while Japan's Nikkei flitted in and out of positive territory. Australia's S&P/ASX 200 touched a record intraday high in early trade, and was up 0.3%. |
| Wall Street indices hit fresh record highs overnight buoyed by trade deal hopes. Dow rose 0.15%, the S&P500 0.42% and the Nasdaq 0.66%. |
| Oil prices fell on Thursday, extending losses from the previous session after official data showed US crude and gasoline stocks rose against expectations and production hit a record. Brent crude futures slipped 16 cents, or 0.3%, to $63.90 a barrel while WTI crude fell 21 cents to $57.90 |
| The rupee on Wednesday appreciated by 15 paise to close at more than two-week high of 71.35 against the US dollar on gains in domestic equities and sustained foreign fund inflows. |
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MFs Get Zee Money... HDFC Mutual Fund, ICICI Prudential MF and Aditya Birla SL Mutual Fund have received payments from the Essel group after the promoters sold stake in Zee Entertainment Enterprises to repay lenders. The recovery is on loans that were given to Essel, with ZEE shares used as collateral. In a filing with the stock exchange, HDFC Mutual Fund said it has received Rs 167 crore toward part repayment of debt instruments, along with interest.
Read More FIIs Turn Bullish... Foreign funds have bought big in India this month and the last, pushing higher the broadest stock indices. And sustained reversal of their earlier bearish bets suggests the current 'bull' run will be of some duration, taking stock gauges even higher. Until November 27, FIIs have been net buyers of Indian shares worth Rs 22,710 crore this month. This short-covering and the likelihood of foreign funds turning net purchasers of index futures contracts could drive Nifty higher on further short squeeze.
Read More No Floor for Telecom Tariff… Setting a floor for mobile phone tariffs is now off the table, with the regulator and the telecom department unable to agree on the matter and private telcos Bharti Airtel, Vodafone Idea and Reliance Jio along with BSNL having decided to increase prices from next month, a senior government official said. Telcos appear to broadly agree there is no immediate need to set a floor price, given their intention to raise tariffs.
Read More | WHO'S |  |
No Recession Fears... Finance minister Nirmala Sitharaman said the Indian economy may be facing a slowdown but there's no danger of a recession taking hold. The government will make policy changes as and when required. "Every step being taken is in the interest of the country," the minister said in her reply to a discussion on the economic situation in the upper house of Parliament on Wednesday. "Looking at the economy in discerning view, you see that growth may have come down but it is not recession yet; it won't be recession ever."
Read More Tyagi Warning… Sebi Chairman Ajay Tyagi says brokers won't be allowed to misuse clients' securities as rules clearly prohibit it. He said the markets regulator was also looking at improving the existing norms on related party transactions for companies and concerns over independent directors not being "truly independent" especially in promoter-dominated companies. Tyagi's comments come in the wake of the regulator's recent crackdown on Karvy Broking for misusing clients' securities by pledging them with banks and an NBFC for raising funds for itself.
Read More Meanwhile... Bad news for cab aggregators. The central government plans to cap the commission earned on rides by firms such as Uber and Ola to a maximum of 10% of the total fare in its upcoming rules for taxi aggregators, people privy to the matter said. This is the first time the government is looking to regulate the commission collected by such firms, which currently stands at about 20%. Further, state governments, if they choose to, could levy a charge on the aggregators' earnings.
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