The bottom-up approach to investing begins at the specific and moves to the general. Most often, these are buy-and-hold investors who have a deep understanding of a company's fundamentals. Some analysts say this would be the best approach to play India's economic recovery, which is likely to show up in pockets rather than the entire midcap pack. The trick of the trade, thus, would be to identify where the delta, or the ratio of price change to the corresponding change in the price of its derivative, is highest.
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded 14 points down at 7 am (IST), signalling indecisiveness on Dalal Street. Elsewhere in Asia, shares skidded on Tuesday after US President Donald Trump stunned markets with tariffs against Brazil and Argentina, recharging fears about global trade tensions.
HERE'S WHAT TO WATCH  | MSCI index for Asia-Pacific shares outside Japan was down 0.45% in early trade, with Australian shares dropping nearly 2%, on track for their worst day in two months. Japan's Nikkei shed 1.1%. |
| US stock indices saw their biggest one-day fall in nearly eight weeks on Monday, after US manufacturing data showed a continued contraction in November and fresh trade jitters put investors on the defensive. Dow fell 268.37 points, the S&P500 index 27.11 points and the Nasdaq 97.48 points |
| Oil prices continued to rise on expectations that the OPEC and its allies may agree to deepen output cuts at a meeting this week. WTI crude rose 0.25% to $56.10 a barrel. |
| The rupee settled 8 paise higher at 71.66 against the US dollar on Monday amid hopes that RBI would go for another rate cut in the ensuing RBI policy review meet this week. |
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Spike in CPs to Fund IPOs... Domestic institutions have issued commercial papers worth more than Rs 32,500 crore to fund IPOs of Ujjivan and CSB Bank. IIFL, Infina Finance, Aditya Birla Finance, JM Financial and Sharekhan BNP Paribas are among the institutions that have issued commercial papers, mostly for a 14-day period offering 7.5-8.0% yield, specifically to fund these IPOs. Out of the 15 IPOs so far this year, only three — Affle India, IRCTC and CSB Bank — were financed by the NBFCs, but this would be the highest amount raised this year. In 2018 only three of the 24 IPO saw demand for IPO finance.
Read More Karvy Clients Shift Out... Share depositories have transferred the majority of shares owned by clients of Karvy Stock Broking back to their demat accounts after a directive from Sebi, said two people with direct knowledge of the matter. The shares, which were illegally pledged with lenders, were deposited back into the investors' accounts before Karvy's creditors could stake claim. Bajaj Finance — one of the lenders to Karvy — has challenged the Sebi directive in the SAT, which heard the matter and reserved its order till December 3. Karvy had pledged securities worth Rs 2,300 crore of over 95,000 clients with ICICI Bank, HDFC Bank, IndusInd Bank and Bajaj Finance as collateral to raise over Rs 600 crore in loans for itself.
Read More Slow & Steady… Investors' interest is likely to sustain in companies such as Varun Beverages, Endurance, Amara Raja, Bata, PVR, Gujarat Gas, and Asian Paints that have been able to improve financial performance in the second quarter despite the challenges in the economy. These companies were successful in reporting better business growth than their respective sector averages.
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Job Cuts in Manufacturing… Business conditions in India's manufacturing sector improved in November, but firms shed jobs for the first time in 20 months, a private survey showed on Monday. The IHS Markit India Manufacturing PMI rose to 51.2 in November from 50.6 in October when it had fallen to a two-year low. It remained above the 50-mark threshold that separates contraction from expansion. Employment fell for first time since March 2018. As per the survey, subdued sales prevented hiring in November, with payroll numbers declining for the first time in 20 months.
Read More First NBFC at NCLT… DHFL has become India's first non-banking finance company to face insolvency proceedings after RBI took the company to the Mumbai bench of the NCLT, which has admitted the insolvency resolution plea. On Monday, a bench of MK Shrawat and Chandra Bhan Singh admitted the plea filed by the RBI and approved the administrator's appointment.
Read More Under Watch… NSE put eight companies under surveillance measures for high promoter pledges. They include Dish TV India, Future Enterprises, Gayatri Projects, GMR Infrastructure, Jindal Steel & Power, Max India, Sadbhav Infrastructure Project and Sequent Scientific.
Read More Meanwhile... Global trade tensions returned to haunt financial markets after US President Donald Trump stunned markets with tariffs against Brazil and Argentina, accusing them of "massive devaluation of currencies." Meanwhile, the US government said it may slap punitive duties of up to 100% on $2.4 billion in imports from France of Champagne, handbags, cheese and other products, after concluding that France's new digital services tax would harm US tech companies.
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