Dalal Street veteran S Naren has an interesting way of looking at the current market crash. When stock valuations are high, volatility is part of the game. If people think there would not be volatility in equities, they have to be periodically told that it is there. If volatility never comes like it happened in 2017, people would think why invest in debt, why invest in largecaps, let's choose only smallcaps.
STREET PULSE: Where we stand Nifty futures on the Singapore Exchange traded nearly 37 points higher at 7 am (IST), signalling a possible rebound on Dalal Street. Elsewhere in Asia, shares and oil prices extended their rebound on mounting speculation policymakers around the world would move to ease the economic fallout from the spreading coronavirus.
HERE'S WHAT TO WATCH  | Japan's Nikkei jumped 1.6 per cent while MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.8 per cent. South Korea's Kospi added 2.4 per cent and Australian shares advanced 1.8 per cent ahead of an expected rate cut by the Reserve Bank of Australia. |
| US' Dow Jones surged over 5 per cent in overnight trade while S&P500 and Nasdaq each jumped more than 4 per cent in a major rebound following last week's steep sell-off sparked by fears about the coronavirus. Dow Jones jumped 5.09 per cent to end at 26,703.32, while the S&P500 surged 4.60 per cent to 3,090.23. Nasdaq Composite added 4.49 per cent to 8,952.17 |
| Oil prices rose for a second day on expectations that central banks are likely to enact financial stimulus to offset the impacts of the coronavirus outbreak and growing optimism that OPEC will order deeper output cuts this week. Brent crude rose $1.48 to $53.18 a barrel, while WTI crude rose by $1.33 to $48.07 |
| The Indian rupee weakened for the third straight session on Monday, falling to its lowest level in more than 15 months at 72.7650 to the dollar, after two fresh cases of the coronavirus were detected in the country. |
| WHO'S |  |
DDT HIT ON InvITs, REITs: The central government's decision to implement dividend distribution tax (DDT) on infrastructure investment trusts (InvIT) and real estate investment trusts (REIT) will severely impact at least six such trusts planned over the next one year. The proposed tax framework in the Budget 2020 could also bring the proposed REITs including K Raheja; Blackstone , Brookfield and Prestige Estates, to a grinding halt. According to the new decision, unit holders will need to pay tax on dividend income from special purpose vehicles received and distributed by REIT/InvIT leading to double taxation in the hands of SPV and unit holders.
Read More GROWTH OUTLOOK CUT… The OECD has slashed India's growth forecast for 2020-21 by 110 basis points on Monday to 5.1% over adverse impacts of the coronavirus outbreak on confidence, financial markets and supply chains. It said the Covid-19 outbreak is plunging the world economy into its worst downturn since the global financial crisis, and urged governments and central banks to fight back to avoid an even steeper slump. The global economy is set to grow only 2.4% this year, the lowest since 2009 and down from a forecast of 2.9% in November, OECD said in an update of its outlook.
Read More FACTORY OUTPUT DOWN… India's factory activity growth slowed in February from the previous month's eight-year high as business sentiment faded over the expected impact of the coronavirus (COVID-19) outbreak on exports and supply chains, a private survey showed on Monday. The Nikkei Manufacturing Purchasing Managers' Index fell to 54.5 last month from January's 55.3. A reading above 50 on the index means expansion. Growth was led by makers of consumer goods, followed closely by intermediate goods producers.
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PMS PECKING ORDER… There's a shake-up taking place in the league tables featuring India's biggest portfolio managers. Over the past few months, ASK Investment Managers has been topping the AUM charts, outpacing traditional heavyweights such as Motilal Oswal PMS and Enam Asset Management. As per data from Sebi, ASK ended January managing over Rs 22,100 crore – belonging to 23,561 investors – across three schemes. Enam and Motilal Oswal PMS trailed in the second and third place, with Rs 16,382 crore and Rs 15,915 crore, respectively, in assets under management. ASK has managed to keep the top spot for ten months now.
Read More AIRTEL'S AGR COUNT… Bharti Airtel's own assessment of adjusted gross revenue (AGR) dues is nearly a third of the government's as it has taken into account certain deductions the telecom department had initially refused and also duplicated entries, among other discrepancies, a person familiar with the matter said. DoT has not allowed certain deductions owing to the absence of certain documents and these had inflated the bill by as much as seven-eight times over some years.
Read More Meanwhile... HIGHER INTEREST ON HNIs… Non-bank lenders are raising cash so that HNIs seeking to buy into one of India's biggest IPOs can bid aggressively. But they may have to pay more – perhaps 15% by way of interest – to deploy borrowed funds into the ongoing IPO of SBI Cards. Domestic institutions have issued CPs worth more than Rs 80,000 crore to fund SBI Cards and Payments Services IPO at an interest rate of 11-13%. That means HNIs will have to pay interest in the range 13-15% since there is a mark-up over and above the cost of raising funds at local institutions.
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