Howard Marks makes an interesting point in his latest memo. He says going back to the 1950s, history suggests bear markets usually come back to retest its bottom. "In 15 bear markets since 1950, only one did not see the initial major low tested within three months... In all other cases, the bottom has been tested once or twice." At the same time, he also says waiting for market bottom is folly. One should just focus on purchasing assets that they deem intrinsically valuable at prices they think translate to discounts.
STREET PULSE: Where we stand Nifty futures on the Singapore Exchange traded some 49 points higher at 7am (IST), signalling a possible positive start ahead on Dalal Street. Elsewhere in Asia, markets traded mixed following a three-day rally as investors mulled the spread of the coronavirus and when economies will be able to ramp up again.
Read More  | Shares dipped in Tokyo and but moved higher in Hong Kong, Sydney and Seoul in early trade. |
| US stocks climbed back into bullish territory in overnight trade on optimism for another round of stimulus and an eventual move toward reopening the economy. The benchmark S&P500 jumped 3.4%, sending the gauge more than 20% over its March 23 low, which traditionally signals a bull market. Dow and Nasdaq also rose to almost four-week highs. |
| Crude futures rose on Thursday on expectations the world's largest oil producers would agree to cut production at a meeting later in the day. Brent crude futures rose 2.5%, or 81 cents, to $33.65 while WTI crude futures gained 4.3%, or $1.08, to $26.17 |
| The rupee settled 70 paise lower at 76.34 (provisional) against the US dollar on Wednesday amid rise in coronavirus cases in the country and weak domestic equities. |
| WHO'S |  |
PM HINTS AT LONGER LOCKDOWN… Prime Minister Narendra Modi indicated to legislature party leaders that the lockdown may have to stay in place beyond April 14 given the state of the battle against the Covid-19 pandemic in the country. He said several states, district administrations and experts have asked for an extension of the lockdown, likening the situation to a "national" and "social emergency." The three-week lockdown is scheduled to end on April 14. He also said tougher measures could be needed in the future.
Read More WORSE CASE NIFTY TARGET 6,000... UBS sees Nifty at 6,000 by March-end assuming coronavirus-related disruptions continue till September. The target is about 31% below the index's Wednesday closing of 8,748. "The 6,000 level assumes 14% decline in earnings in fiscal year 2021 and YoY decline in FY21 GDP, and a PE multiple of 12 times," UBS head of India research Gautam Chhaochharia said on Wednesday.
Read More GOVT ORDERS AUSTERITY... The Centre has tightened expenditure for the first quarter of FY21 and prioritised frontline spending to combat the Covid-19 pandemic as it seeks to cope with the strain of the economy coming to a near-standstill. In new directions issued to all government departments on April 8, the finance ministry has drawn up three categories of ministries/departments and restricted expenditure of several of these to within 15-20 per cent of FY21 Budget for the April-June period.
Read More WORLD TRADE TO SHRINK 32%... The decline in world trade due to Covid-19 will likely exceed the trade slump brought by the global financial crisis of 2008-09, the World Trade Organization said on Wednesday, with merchandise trade expected to decline 13-32% in 2020. For 2021, the organisation has forecast a rebound in global goods trade by between 21% and 24%, depending largely on the duration of the Covid-19 outbreak and the effectiveness of policy responses. Estimates of the expected recovery in 2021 are equally uncertain, it said.
Read More | LOOK WHO'S |  |
BOND WITH THE BEST... Investors looking for better returns and higher safety in fixed-income product basket could opt for Bharat Bond ETF comprising debt securities of government companies. The ETF comes with two tenures; one maturing on April 17, 2023, and the other on April 17, 2030 with yields of 6.35% and 7.43%, respectively, against 3.9-5.7% pre-tax returns on SBI fixed deposits and 5.25-5.75% yields on tax-free bonds.
Read More HUL ENTERS TOP 15 CLUB… A sharp rise in the stock price in 2020 so far has helped HUL enter the list of top 15 global consumer staple stocks by market capitalisation as flight to safety prompts investors to scout for defensive bets. HUL, India's largest consumer company, has surpassed the market cap of global peers like Altria Group, Colgate-Palmolive and Reckitt Benckiser, according to data from Bloomberg.
Read More OIL MAJORS RAISE RECORD DEBT… Oil majors Reliance Industries, IndianOil, HPCL and BPCL are on a debt-raising spree and have raised Rs 78,000 crore in short-term debt using commercial papers in nine weeks to pay for costly crude purchased before oil prices crashed, while sales revenue has fallen drastically during the lockdown. The amount raised was about 32% higher than the sum raised in the same period last year.
Read More Meanwhile... FASTER TAX REFUNDS ON ANVIL… The government will immediately release about Rs 18,000 crore in pending tax refunds to individuals and businesses to provide relief to those struggling to cope with the economic effects of the Covid-19 outbreak. These will include income tax refunds of up to Rs 5 lakh besides goods and services tax and customs refunds.
Read More 
Buy
No comments:
Post a Comment