PSU stocks are looking like low-hanging fruits in a market that has been quite lop-sided in recent times. Dividend yields of many PSU companies are very attractive at 5-6 per cent and that becomes a draw following the DDT changes. Price-to-book multiples of most of these stocks have fallen below one, in some cases to 0.5-0.6 times, making them very attractive. Yet, they have fewer buyers simply because of the fear of a supply overhang and the sword of strategic sale hanging over their heads. That has led to a supply-demand issue.
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded 127 points higher at 7am (IST), signalling a possible bounce on Dalal Street. Asian stocks edged up, supported by a fall in coronavirus cases and expectations of more Chinese stimulus to offset the economic impact of the epidemic, while the Japanese yen nursed heavy losses after suffering its steepest drop in six months.
HERE'S WHAT TO WATCH  | MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1 per cent. Buoyed by the cheaper yen, Japan's Nikkei rallied 1.5 per cent. Markets in Australia and New Zealand minted record highs. |
| The S&P 500 and Nasdaq rose to record closing highs on Wednesday as optimism that China would take more measures to prop up its economy eased concerns about the economic impact of the coronavirus epidemic. Dow rose 115.84 points, or 0.4%, to 29,348; the S&P500 gained 15.86 points, or 0.47%, to 3,386, and the Nasdaq added 84.44 points, or 0.87%, to 9,817. |
| Oil prices rose nearly 1 per cent, extending big gains from a day earlier. Brent crude futures rose 45 cents, or 0.8 per cent, to $59.57 a barrel. |
| LOOK WHO'S |  |
AXIS SEES LIFE IN MAX… Axis Bank, India's fourth-largest private sector lender in terms of market capitalisation, is set to acquire more than 20% stake in Max Life Insurance through fresh issue of equity. The proposed deal is aimed at building a strategic and long-term relationship with Axis Bank, which contributes more than 54% to Max Life's revenue, they said. It will also eliminate uncertainty over the insurer having a strong, strategic bancassurance partner, they said. Axis Bank, which currently owns a little over 2% of Max Life, is expected to infuse more than Rs 2,000 crore in the insurer.
Read More A SIP OF WEALTH… Average SIP return for a basket of 139 diversified equity mutual funds over a two-year period has been 7.52%; while for a five-year period it has been 8.59%. Five equity fund schemes have stayed ahead of the pack and SIPs in them have delivered a 14% CAGR over the last five years. Investments into equity mutual funds through SIPs have picked up sharply over the last five years with many new investors coming in. The mutual fund industry has 3.04 crore SIP accounts and is adding 9.81 lakh SIP accounts on an average every month in 2019-20.
Read More | WHO'S |  |
INDIA-US TRADE DEAL NOT NOW… India and the US have delinked the much-anticipated bilateral trade deal from the forthcoming visit of President Donald Trump, while affirming to continue talks with the larger purpose of eventually moving toward a free trade agreement. "We can have a trade deal with India, but I am really saving the big trade deal for later on. We are doing a big trade deal with India. I don't know whether we will have it before the election, but we will have a very big deal with India," Trump said in Washington.
Read More TELCOS STARE AT LARGER AGR DUES… The statutory dues of telecom operators — pegged at Rs 1.64 lakh crore — is set to rise sharply with the Department of Telecommunications (DoT) now in the process of calculating dues for FY18 and FY19, officials said. The adjusted gross revenue (AGR) dues of Rs 92,642 crore in licence fees, interest and penalties — which was submitted to Parliament and the Supreme Court — is till FY17. Spectrum usage charge (SUC) dues of Rs 70,869 crore though are updated till January 23, 2020.
Read More Meanwhile... E-LEARNING FROM TCS… India's largest software exporters, Tata Consultancy Services and Infosys, are exploring options to open up their internal e-learning courses to consumers directly said top company executives, marking a first for the IT services companies as they look to build new streams of revenue. Currently, both companies use their skilling platforms – Infosys' Lex and TCS' Ion — to train over 700,000 employees, as they look to reskill their workforce.
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