The equity investor's puzzle at this point is serious: does she use the dip to buy or does she use any rebound to sell what she holds. Marc Faber says investors who are overweight stocks — or have more than 25% of money in equities — should use any rebound to lighten position, because the market is not cheap. "Sometimes experts tell you, markets went up after SARS. But in 2003, Nasdaq declined close to 80% from the high of 2000. The market was at a totally different junction in the cycle than where it is today. Today all markets are in the sky." Point to be noted.
STREET PULSE: Where we stand Nifty futures on the Singapore Exchange traded nearly 25 points down at 7 am (IST), signalling possible weakness ahead on Dalal Street. Elsewhere in Asia, Asian shares wobbled and bonds held gains, as an emergency rate cut from the US Federal Reserve did little to soothe investor fears over the coronavirus's widening fallout.
HERE'S WHAT TO WATCH  | MSCI's broadest index of Asia-Pacific shares outside Japan edged 0.2% higher, after easing hopes drove gains. Australia's S&P/ASX 200 index fell 1.2% and Japan's Nikkei was either side of flat in choppy trade. |
| US stocks ended sharply lower on Tuesday even after the US Fed delivered emergency interest-rate cut to stem the evolving risks to economic activity from the coronavirus crisis. Dow finished 785 points, or 2.9%, to 25,917, after being down by as many as 997.04 points at one point. S&P500 fell 86.86 points, or 2.8%, and the Nasdaq 268.07 points, or 3%. |
| Oil prices steadied, with Brent settling at $51.86 a barrel and US crude 0.4% firmer at $47.37 a barrel. |
| Falling for the third consecutive session, the rupee on Tuesday slumped 43 paise to close at a 16-month low of 73.19 against the US dollar as investor sentiment remained fragile amid concerns over the impact of coronavirus, and rising crude oil prices. |
| LOOK WHO'S |  |
NBCC GETS JP INFRA… NCLT on Tuesday approved the proposal of state-run NBCC to acquire bankrupt realty developer Jaypee Infratech. Resolution of Jaypee Infratech's bankruptcy case will provide relief to around 20,000 homebuyers in the company's residential projects in Noida and Greater Noida. In its bid, NBCC had proposed to complete these stuck projects. NCLT has ordered that the Rs 750 crore that Jaypee Infratech parent Jaiprakash Associates had deposited with Supreme Court registry would be part of the resolution plan.
Read More AGR DUES FLOW IN… DoT on Tuesday received about Rs 8,000 crore from telcos, with Vodafone Idea, Bharti Airtel and Reliance Jio paying for airwaves bought in the 2014 auctions, and Tata Teleservices paying Rs 2,000 crore towards AGR dues. People familiar with the matter said that Vodafone Idea paid the DoT Rs 3,042.80 crore and rivals Reliance Jio and Bharti Airtel paid Rs 1,053 crore and Rs 1,950 crore, respectively, meeting a deadline for spectrum payments.
Read More BOND WITH GOLD… Investors looking for safety amid the wild swings in stock market triggered by the spreading coronavirus could opt for sovereign gold bonds. The 10th Series of the bond, which will close on March 6, will allow investors to bet on gold without buying it physically. International gold prices are near their yearly highs as the precious metal is seen as a less risky option in uncertain times like now. Gold prices in the domestic market, which closed at Rs 42,276 on Tuesday, hit an all-time high of Rs 43,250 late in February.
Read More | WHO'S |  |
RATE CUTS NOT ENOUGH… The US Fed slashed its policy rate by 50 basis points to help inoculate the global economy against a slowdown caused by the Covid-19 outbreak. Malaysia and Australia have already cut rates while central banks in Britain, Japan and France have signalled willingness to ease policy measures. RBI said earlier on Tuesday that it stood ready to safeguard the country's banking system from financial and market risks. But those moves have failed to stem the stocks rout. Wall Street fell further overnight. Analysts said investors deemed Fed's surprise inter-meeting rate cut insufficient to restore confidence in a market. Instead, the rate cut actually ended up stoking recession fears.
Read More IL&FS ASSETS UP FOR SALE… Lenders to bankrupt infrastructure financier IL&FS have cleared the sale of three road projects that would fetch them nearly Rs 6,250 crore. The committee of creditors approved the sale of Chenani-Nashri Tunnel to Cube Highways with a vote of over 90%. While the sale of Pune Sholapur Road to Italy-headquartered Autostrade was cleared with a vote of 84% and Jorabat Shillong Expressway will be sold to Edelweiss-backed Sekura Roads with a 100% vote.
Read More Meanwhile... VIVAAD SE PUSH… The income-tax department is asking companies and individuals engaged in tax disputes to settle cases under the Vivaad Se Vishwas scheme even though the relevant law is yet to be passed by Parliament. Tax experts said that the department is pushing taxpayers, including those based overseas, to settle but the government maintains that it's only "encouraging" them to do so.
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