It is very unlikely that the West Asia flareup will turn into a prolonged sabre rattling, which makes the current dip on Dalal Street an opportunity to buy stocks. But if oil prices stay high for long, they will have a bearing on a host of sectors from auto to OMCs, tyres, paints, plastics, chemicals, packaging and even select FMCG, as it would result in higher raw material costs. Stock pickers will do well to bake that in.
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded nearly 106 points higher at 7 am (IST), signalling a spurt on Dalal Street. Asian stocks rebounded on Thursday and oil beat a retreat, as the US and Iran backed away from the brink of further conflict.
HERE'S WHAT TO WATCH  | Japan's Nikkei opened 1.6% higher, putting stocks back where they were on Tuesday. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1%. Australian shares added a percentage point. |
| US stocks rallied and oil sank Wednesday as President Donald Trump said Iran appeared to be "standing down." Dow jumped 161 points, or 0.6%, to 28,745, the S&P500 climbed 0.5% to 3,253 and the Nasdaq added 0.7% to 9,129. |
| Crude oil now sits cheaper than it was before the killing of the Iranian commander, Qassem Soleimani, in Baghdad, a strike that raised fears of an escalating regional conflict. Brent futures nursed overnight losses of 4% to $65.44 a barrel, near the cheapest since mid-December. |
| The rupee retrieved early losses to settle 12 paise higher at 71.70 against the US dollar on Wednesday, but overall forex market sentiments remained subdued amid further escalation in US-Iran tensions. |
| LOOK WHO'S |  |
Coal Mining Opened Up… India has opened up the coal sector completely for commercial mining for all local and global firms after easing restrictions on end-use and prior experience in auctions via an ordinance on Wednesday, but the mining minister said the move will not hurt state-monopoly Coal India. The Union Cabinet on Wednesday approved promulgation of Mineral Laws (Amendment) Ordinance 2020 to amend the Coal Mines (Special Provisions) Act, 2015, as well as the Mines and Minerals (Development and Regulation) Act, 1957. The ordinance will have to be adopted in the forthcoming Budget session once it is cleared by the President.
Read More Trump Says Iran Standing Down: President Donald Trump said no Americans were harmed by an Iranian missile attack on US bases in Iraq early Wednesday, defended the US killing of a top Iranian general and said he would impose new sanctions on Tehran. "As long as I'm president of the US, Iran will never be allowed to have a nuclear weapon," Trump said as he began remarks to the nation on Wednesday morning. "Iran appears to be standing down," Trump said. "Which is a good thing for all parties concerned and a very good thing for the world."
Read More Guaranteed Homes… The country's largest commercial bank SBI has come up with a product to provide assurance of project delivery or returning the home-buyers' funds to address uncertainties related to delivery of housing projects. The scheme is currently available in 10 cities. This is the first time ever any financial institution is offering guarantee with regards to any housing project's delivery. Under the scheme, SBI will provide guarantee for completion of projects to customers availing SBI home loans.
Read More | WHO'S |  |
Corp Honchos' Distress... A rule mandating top managers to disclose personal financial dealings is turning out to be a tricky problem for many, with senior corporate executives scrambling to shield themselves from unintended consequences. The new disclosure directives from Sebi on 'material financial relationships' require company insiders to divulge details of all financial transactions that amount to more than 25% of the individual's annual income. The move is aimed at curbing insider trading. But lawyers said many such transactions are personal and executives are wary of sharing these details with their employers.
Read More Gati Family Fight… The spouse and sons of Mahendra Agarwal, the promoter of listed logistics firm Gati, have approached the NCLT against him for alleged oppression and mismanagement in the company and have sought reconstitution of the board. Brothers Dhruv and Manish along with their mother Neera Agarwal approached the Hyderabad bench of the NCLT seeking tribunal's intervention in the affairs of the company. They filed two separate petitions for Gati and TCI Finance, where Mahendra Agarwal is the promoter.
Read More Meanwhile... The World Bank has cut India's growth for financial year 2020 to 5% from 6% estimated earlier, a day after the country's statistics office pegged growth in the current financial year at 5%, the lowest in 11 years. The multilateral lender expects the country's growth to recover only slightly to 5.8% in the next financial year. The bank's Global Economic Prospects report released on Wednesday cited a lingering weakness in credit from NBFCs as the main cause for the downgrade.
Read More 
Buy
No comments:
Post a Comment