Market veteran Vetri Subramaniam makes an interesting point: It can't be about breaking down largecaps and midcaps or focussing excessively on particular sectors when the market looks up. "You want to see which companies are likely to come through this challenging period relatively unscathed, and which ones would be best placed to capitalise on growth as and when things start to normalise. Because when damage happens on the supply side, the survivors actually come out much stronger." That requires one to be a little more judicious in stock picking.
STREET PULSE: Where we stand Nifty futures on the Singapore Exchange traded some 170 points higher at 7am (IST), signalling a possible rebound ahead on Dalal Street. Elsewhere in Asia, shares managed a tentative rally as factory data from China held out the hope of a rebound in activity even as other countries across the globe all but shut down.
Read More  | MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.1%, while Japan's Nikkei firmed 1.0% after a jittery start and South Korea added 2%. |
| In overnight trade, healthcare stocks led Wall Street higher, with the Dow ending up 3.19%, while the S&P 500 gained 3.35% and the Nasdaq 3.62%. |
| Oil price recovered some ground on Tuesday as US President Donald Trump and Russian President Vladimir Putin agreed to discuss stabilising energy markets. Brent rose by 19 cents, or 0.8%, to $22.95 a barrel while WTI crude gained 59 cents, or 2.9%, to $20.68 |
| The rupee tumbled by 70 paise to close at 75.59 against the US dollar on Monday as concerns around coronavirus impact on economies continued to hurt sentiment globally. |
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BANKS DITHER ON WAIVERS... Some of the banks are reluctant to extend the RBI moratorium on interest and loan repayment to certain categories of borrowers, such as government employees whose salaries have not been impacted or large companies with the wherewithal to tide over the crisis. They fear that if a large number of borrowers refuse to service loans, RBI measures to soften the blow from Covid-19 could fall short of requirement and the moratorium will more than offset the benefits of extra-liquidity.
Read More BLEAK OUTLOOK… S&P Global Ratings has slashed its forecast on India's economic growth to 3.5% for the new financial year from 5.2%, the second downgrade in as many weeks, even as it likened the Covid-19 impact to the 1997-98 Asian Financial Crisis. S&P warned of higher defaults resulting from a demand slump due to the Covid-19 outbreak in many countries and a recession across the Asia-Pacific region.
Read More BAIN IN TROUBLE… As Axis Bank shares sank in the ongoing market meltdown, PE major Bain Capital is understood to have come under pressure from top offshore banks that had part-funded its investment in the private sector lender three years ago, said multiple people in the know. Discussions are underway between the PE major and the lenders to restructure the terms of the loan or offer more cash or additional securities.
Read More LOOK, WHO'S BLEEDING… The country's labour-intensive export sectors such as leather, textiles, gems and jewellery, carpets and handicrafts have borne the brunt of the Covid-19 pandemic with orders getting cancelled, shipments delayed indefinitely, payments missed and consignments stuck at ports. According to sectoral estimates, about Rs 7,600 crore of leather export orders have been cancelled, Rs 2,000 crore carpet orders are stuck and handicraft sector losses are seen at Rs 8,000 crore.
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TAX SOPS COMING… India is close to finalising a second economic relief package that may include tax concessions for industry sectors hit hard by the disruption due to Covid-19, particularly MSMEs, services and exports. Some of the steps being considered include a moratorium on select tax payments for some sectors, reduction in import and export duties, relaxation in payment of dues and fees and additional interest subvention for exports.
Read More RATING CONCESSION… Sebi has allowed credit rating agencies to not consider non-payment of interest and principal by companies on account of disruptions caused by Covid-19 as default. Separately, the markets regulator has also allowed custodians to accept scanned copies of documents for existing as well as for fresh registration of foreign portfolio investors.
Read More Meanwhile... A SWEET DEAL IN DEPRESSING TIMES... Shares of sugar producers advanced in a falling market on Monday as investors bet on demand for the commodity remaining strong despite the ongoing 21-day lockdown. Hopes of sugar producers in UP securing permission from the state government to manufacture hand sanitisers also boosted sentiment.
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