A look at Nifty or Sensex may make one feel as if we are in a bull market, the economy is booming. But midcaps and smallcaps would make you feel we are in a recession. That's the story not just in India, but also in the US. That's because largecaps or quality is where people are hiding in view of the many uncertainties in front of them. But once the cloud is lifted and the economies come back on track, midcaps and smallcaps would rally much faster than largecaps. As it stands today, it looks like that cloud-lifting will take time coming.
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded with a 10 points cut at 7 am (IST), signalling indecisiveness ahead on Dalal Street. Elsewhere in Asia, stocks edged up, catching some of Wall Street's momentum after surprisingly strong US jobs data although regional gains were capped by concerns about China's economy.
HERE'S WHAT TO WATCH  | MSCI index for Asia-Pacific shares outside Japan gained 0.3%, with Australian stocks and South Korea's Kospi rose 0.2% and 0.6%, respectively. Japan's Nikkei advanced 0.3% |
| US stocks surged on Friday on the back of jobs growth that easily topped analyst expectations. Dow rose 337 points, or 1.2% to 28,015, while S&P500 closed 0.9% higher at 3,145 and the Nasdaq jumped 1% to 8,656. |
| Oil prices fell after data showing China's overall exports of goods and services shrank for a fourth straight month. Brent futures slipped 33 cents, or 0.5%, to $64.06 a barrel while WTI oil futures fell 37 cents, to $58.85 |
| The rupee appreciated 9 paise to close at 71.20 against the US dollar on Friday, a day after RBI kept the policy rate unchanged and decided to continue with its accommodative stance to support the economy. |
| LOOK WHO'S |  |
RIL on Loan Hunt… Reliance Industries is in negotiations with three top banks for a Rs 5,000 crore long-term loan facility to fund its acquisition of textile company Alok Industries in a bankruptcy takeover. India's biggest company by market value is in talks SBI, HDFC Bank and ICICI Bank for financing, four people familiar with the company's plans said. RIL won the right to buy Alok Industries in the Insolvency and Bankruptcy Code process in March this year.
Read More FIs Optimistic on Economy... Major banks and financial institutions in the country are 'largely optimistic' about the Indian economy, according to a survey assessing the country's short-term financial conditions. The CII-IBA Financial Conditions Index, which is based on a survey of 22 banks and financial institutions, slipped 1.5 points quarter-on-quarter in the three months to December, but remained comfortably above 50 at 68.9. A reading above 50 on the index is considered largely optimistic, 50 is optimistic and below 50 is considered sub-optimistic.
Read More US Jobless Rate Best in 50 Years… US non-farm payrolls increased by 266,000 jobs last month, the biggest gain in 10 months, while the unemployment rate ticked back down to 3.5%, its lowest level in nearly half a century. Those figures suggested the Trump administration's 17-month trade war with China, which has plunged manufacturing into recession, has not yet spilled over to the broader US economy. The dollar held firm on Monday after data showed surprise strength in the US jobs market, but the currency was restrained from moving higher by worries about an escalation in the US-China trade war.
Read More | WHO'S |  |
Reality Bites FMCG Stocks… Valuations of FMCG stocks have finally started correcting, with prices falling between 3% and 12% in the past one month as compared with the marginally positive returns on the Nifty. On an average, shares of FMCG companies are currently trading 15% below their yearly highs as foreign portfolio investors reduced their positions on the sector, citing expensive valuations. According to analysts, earnings outperformance is critical for maintaining premium valuations.
Read More FY20 GDP Growth Below 5%?... India's real GDP growth in 2019-20 fiscal is expected to be slightly below 5% as the impact of stimulus measures will take time to filter through to the economy, IHS Markit has said. Latest GDP data for July-September quarter showed a significant further moderation in the pace of economic growth to 4.5%, the weakest in six years, led by manufacturing slump. This compared with the 5% in the previous quarter and 7% a year ago in September quarter of 2018.
Read More Oil Headache for North Block… North Block's money managers have a burning problem to deal with besides tepid growth — of likely higher oil import bills. Oil traders on the US-based commodities exchange ICE believe Brent crude will test the 67 dollar per barrel mark in the short term, with Opec and its Russian partner deciding to reduce output by 0.5 million barrels to offset price declines caused by booming US production. Total cuts through March 2020 would be 1.7 mbpd, Opec said on Friday.
Read More Meanwhile... Good News for millions of India's organised sector employees. They may soon have the option of reducing their provident fund contribution — currently at 12% of basic salary — and therefore increase their take-home pay. Labour ministry officials said this provision is part of the Social Security Code Bill, 2019, approved by the Cabinet and expected to be tabled in Parliament this week. The rationale for allowing lower employee PF contribution is that higher take-home pay may boost consumption, which has been falling, dragging growth down. The Bill, however, retains employers' PF contribution at 12%.
Read More 
Sell
No comments:
Post a Comment