Value stocks require a certain growth scenario to outperform. But with manufacturing growth in a rut, GDP growth in low single digits, value is not a big draw for investors even though there are plenty of them going abegging. Hence, we have many of these stocks trading at single-digit PE multiple. As industry veteran Gopal Agrawal points out once there is an uptick in growth, these below price-to-book value and very high dividend yield stocks will bounce back suddenly. Till then, it got to be a blended approach between value and growth.
STREET PULSE: Where we stand Nifty futures on the Singapore Exchange traded nearly 170 points down at 7 am (IST), signalling a major meltdown ahead on Dalal Street. Elsewhere in Asia, share markets tracked another overnight plunge in Wall Street's benchmarks on Friday with the markets in China, Japan and South Korea all posting heavy losses.
HERE'S WHAT TO WATCH  | MSCI's Asia index excluding Japan shed 1.4%. Japan's Nikkei fell 3.3% on rising fears the Olympics planned in July-August may be called off due to the coronavirus. Australian shares dropped 2.8% to a six-month low while South Korean shares shed 2.1%. |
| Overnight, Wall Street shares led the rout as the S&P500 fell 4.42%, its largest percentage drop since August 2011. It has lost 12% since hitting a record close on Feb. 19, marking its fastest correction ever in just six trading days. Dow fell 1,190 points, marking its biggest points drop ever. |
| Oil prices fell for a sixth straight session on Friday and were on track for about a 12% weekly fall, the biggest in more than four years. Brent crude contract for May was down 90 cents, or 1.7%, at $50.83 a barrel, marking a 14-month low. WTI futures fell 73 cents, or 1.6%, to $56.36 |
| Extending gains for the third day, the rupee climbed 4 paise to close at 71.61 against the US dollar on Thursday amid easing crude oil prices and weakening of the greenback overseas. |
| LOOK WHO'S |  |
DEBT FUND BUFFER… Sebi has exhorted the mutual fund industry to build an adequate 'liquidity buffer' for debt schemes to be better prepared for any event of a crisis in future. The capital markets regulator has also asked mutual funds to participate more in the voting process of company resolutions rather than abstain from them. The market regulator said the ongoing credit crisis that resulted in returns of various debt mutual fund schemes taking sharp hits has brought to surface the kind of liquidity pressures that the industry could face.
Read More REALTY BOOSTER… Real estate loans worth Rs 20,000 crore may come up for restructuring after new Reserve Bank of India rules that allowed banks and housing finance companies to defer the classification of troubled builder loans as bad for one year giving the industry more time to restructure its loans. This measure, coupled with the set-up of Rs 25,000 crore real estate alternative investment fund, should help ease the asset quality pain at least in the near term.
Read More FUEL PRICE CUT… Domestic rates of petrol and diesel, down about Rs 4 a litre since mid-January, are set to decline further as crude oil slumped to a 13-month low on Thursday to about $52/barrel on fears that the coronavirus outbreak may take a heavy toll on global economic growth and oil demand. Petrol is down Rs 3.74 a litre and diesel Rs 4.41 a litre since mid-January. In Delhi, petrol was priced at Rs 71.96 and diesel Rs 64.65 a litre on Thursday.
Read More | WHO'S |  |
BEAR HUG… Traders carried forward bearish bets to the March derivatives series as the stock market could remain on shaky ground because of continued worries over Covid-19 outbreak turning into a world-wide pandemic. With benchmark indices hitting four-month lows on Thursday, expiry day of the February series, analysts expect a bounceback, but fear any renewed strength could be short-lived. Nifty rollovers on expiry day stood at 69% on provisional basis, higher than the February series figure of 66%, said analysts.
Read More TATA POWER THREAT… Tata Power, which runs one of the country's largest power plants at Mundra in Gujarat, has threatened to stop supply from the plant to five states beginning March if they don't agree to tariff increases. The Mumbai-based company, which may incur a loss of Rs 1,000 crore from this one unit alone this year, has issued notices over the past few weeks to distribution companies owned by the state governments of Gujarat, Haryana, Rajasthan, Punjab and Maharashtra on the possible disruption.
Read More BLEAK HUL OUTLOOK: Unilever, which operates through local unit Hindustan Unilever, said India business growth will be "soft" because of the rural slump amid a broader economic slowdown. India, which accounts for 9% of Unilever's overall sales, has been regularly outperforming several key emerging markets for the conglomerate. But Brazil and Indonesia, which contribute 6% and 5% each, respectively, will be stronger in 2020, it said. For the Anglo-Dutch consumer giant, emerging markets generate about 60% of total turnover but average growth in these markets has fallen to 5-6% in past five years from 8-10% earlier.
Read More Meanwhile... AGR WAR RAGES… Mobile phone operators are prepared to move the telecom tribunal if the department of telecom demands higher adjusted gross revenue dues than their self-assessed amounts, said industry executives. They said operators are finding huge discrepancies in the way DoT has calculated AGR dues, resulting in the government's estimates being far higher than their own assessments.
Read More 
Buy
No comments:
Post a Comment