While the Q2 earnings season by and large managed to create some kind of a feel good factor, a lot of the earnings growth came from the corporate tax break. A deeper probe reveals while largecaps showed negative top line growth along with flattish Ebitda, the tax effect helped some to increase EPSes. Analysts see a cue for investors there. The fact that some firms posted positive Ebitda despite negative top line growth means they were able to use the downturn to improve operational efficiency, which is a healthy thing for the longer term.
SGX Nifty traded some 14 points higher at 7 am (IST), signalling a possible positive start on Dalal Street. Asian shares made guarded gains as investors braced for another week of likely conflicting commentary on the Sino-US trade dispute, while the outperformance of recent US economic data gave the dollar a legup on its peers.
HERE'S WHAT TO WATCH  | MSCI index for Asia-Pacific shares outside Japan bounced 0.26%, after losing 0.4% last week. Japan's Nikkei firmed 0.8% in early trade, while Australian stocks rose 0.5%. |
| US stocks closed higher on Friday, but halted their multiweek gains. Dow rose 109 points to 27,875, while S&P500 advanced 6.75 points and the Nasdaq 13.67 points. |
| Oil prices held near two-month highs helped by expectations of an extension to production cuts by the Opec + grouping. Brent crude futures firmed 19 cents to $63.58, while US crude rose 24 cents to $58.01 a barrel. |
| The rupee furthered its gains by 5 paise to close at 71.71 against the US dollar on Friday, helped by sustained foreign fund inflows and lower crude oil prices. |
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Paytm Gets Large Funding... Digital payments company Paytm said it has raised $1 billion in a financing round led by US asset manager T Rowe Price with existing investors Ant Financial and SoftBank Vision Fund also participating. This is the largest amount raised by an Indian startup this year. The company said this values it at close to $16 billion. Discovery Capital, an existing shareholder in the Noida-headquartered firm, also took part in the latest funding round.
Read More PMO Focus on Land Reforms... The Prime Minister's Office has set up a group of 12 ministers to resolve differences over the proposed Model Agricultural Land Leasing Act, 2016. The GoM includes the ministers of defence, home, agriculture and rural development. The model legislation, drafted by the Aayog three years ago, is yet to be adopted by states. Most state governments have either legally banned or slapped restrictions on agricultural land leasing that have forced tenancy to be informal, insecure and inefficient.
Read More South Delhi Realty Unscathed… The real estate industry might be going through a crisis, but posh areas in South Delhi seem to be untouched by it. Real estate consultant CBRE said capital values in South Delhi increased 10-15% during 2017-19, while the number of units sold has also grown by almost 50% since 2016. According to the developers and property agents, this growth is fuelled by the third and fourth generation of owners seeking better returns from the property.
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MFs Go After DHFL... Many mutual fund houses having exposure to DHFL are keen to turn the heat on the promoters of the crippled mortgage lender. These institutional lenders want Wadhawans, the promoter group, to arrange funds in the light of the findings of the forensic audit conducted by a Big4 firm. MFs will soon raise the issue in the three-member committee formed by the Reserve Bank of India (RBI) to help the administrator in recovering about Rs 84,000 crore that DHFL owes to the system. One of the members is a senior office bearer of AMFI, the MF industry lobby.
Read More Race for RCom Assets… Bitter telecom rivals Reliance Jio Infocomm and Bharti Airtel, besides private equity firm Varde Partners and infrastructure-focused I Squared Capital fund, are set to compete for Reliance Communications' assets, bids for which will be opened Monday. While Airtel and Jio are expected to bid mainly for RCom's 850 MHz spectrum, I Squared Capital is likely to vie for the telco's data centres and optic fibre assets. RCom's 43,000 towers, housed under Reliance Infratel, are also up for sale.
Read More Meanwhile... The stock broking industry is undergoing an unprecedented shakeup. The trigger is the capital market regulator's seemingly innocuous set of rules on separation of client shares from broker accounts, a move aimed at preventing misuse of investors' stocks and money. But the step is having unexpected ramifications, including a slew of defaults — the most recent being Karvy Stock Broking — and an increase in the cost of business that has made it unviable for many small firms to continue.
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