In behavioural finance, 'optimism bias' refers to the human tendency of overestimating the likelihood of one experiencing good events and underestimating the possibility of things going bad. It manifests in investing decisions most of the times, including in overpaying for assets or taking on more risk than is warranted. While research often links this bias to better well-being and long-term success, it does work the other way when one faces a deluge of misinformation or refuses to accept the ground reality. The buoyancy that stock markets are often reflecting amid the Covid-19 ruins at times makes one smell such biases in investor behaviour.
MARKET CUES: Where we stand >>>  | Nifty futures on the Singapore Exchange traded 27 points lower at 7 am (IST) signalling some weakness ahead on Dalal Street. |
| Nifty50 on Wednesday formed a bullish candle on the daily chart and partially filled the gap area, thus, negating the negative implication of the Bearish Island Reversal pattern. |
| India VIX fell 5.26 per cent to 42.82 level and hovered around its support of the previous swing highs. |
| Asian stocks edged higher, tracking gains on Wall Street, as investors took some comfort from earnings reports and signs the coronavirus outbreak is easing. In early trade, Hang Seng, Kospi, Nikkei and STI gained up to 0.5 per cent. China's Shanghai Composite edged 0.04 per cent lower. |
| US stocks rose for the first time in three days on Wednesday as crude prices stabilized. Dow jumped 456 points, or nearly 2%, S&P500 climbed 2.3% and the Nasdaq 2.8%. |
| The rupee on Wednesday recovered from record low levels to settle higher by 15 paise at 76.68 against the US dollar following gains in domestic stocks and some weakness in the greenback against global currencies. |
| The dollar pushed ahead against the currencies of oil producers while the euro held steady against the greenback and the pound. |
| Oil futures pushed higher for a second day in early trading, following the historic tumble earlier in the week. WTI futures rose 3.5 per cent at $14.27 a barrel while Brent crude gained 2.60 per cent to $20.90 in early Asian trade. |
| LOOK WHO'S |  |
Ambani on top in Asia... Mukesh Ambani is again Asia's richest person after a deal with Mark Zuckerberg's Facebook sent his conglomerate's stock surging. Ambani's fortune rose about $4.7 billion to $49.2 billion on Wednesday, after Reliance Industries gained 10%. The jump put Ambani about $3.2 billion ahead of China's Jack Ma, according to the Bloomberg Billionaires Index.
Read More Voda pumps cash in India venture... The Vodafone Group has injected $200 million or Rs 1,530 crore into Vodafone Idea under a condition agreed upon during the 2018 merger of its Indian subsidiary and Idea Cellular, offering some relief to the cash-strapped local telco. The carrier additionally faces AGR-based dues of Rs 58,254 crore, out of this it paid Rs 6,854 crore in three tranches last month.
Read More | AND WHO'S |  |
FB-RIL deal faces CCI scrutiny... The $5.7 billion Facebook-Reliance Jio deal will face scrutiny by the country's competition watchdog, mainly from the point of view of data that the combined entity will control, government officials and industry experts said. The two companies are "data elephants" in terms of controlling private data of Indians, and together the combined reach of Reliance Jio, Facebook and its messaging app WhatsApp would provide undue advantage against rivals.
Read More Flood of pink slips coming... Technology startups are likely to cut hundreds of jobs over the next 6-8 months, as demand stutters amid tight funding, top venture capitalists and founders said. Much of the layoffs will stem from distress sales and company closures. Multiple internet businesses like Oyo, BlackBuck, Treebo, Acko, Fab Hotels, Meesho, Shuttl, Capillary, Niki.ai, Swiggy and Fareportal have on average cut workforce by 30%, including temporary staff, in last one month. Others, such as Ola, Zomato, Zoomcar, MakeMyTrip, Chaipoint, Cashify, Livspace and Shopmatic, have reduced pay by as much as 50%.
Read More Sharp drop in remittances flow... The World Bank expects remittances to South Asia will drop 22% this year, underscoring the economic distress stemming from the Covid-19 pandemic and the ensuing lockdown aimed at curbing the disease. This reflects loss of income for expatriate Indians working in the Gulf and elsewhere who support families back home in Kerala and other states at a time when the local economy is at a near standstill. India is the world's biggest recipient of remittances, which bolster the country's foreign exchange reserves and help fund its current account deficit.
Read More Meanwhile... FMCG plants non-starter... Almost half the plants of top FMCG firms such as Colgate, ITC, Britannia, Nestle and Dabur are located in Covid-19 hotspots, indicating that a huge production shortage could continue even after lockdown is eased. Out of 157 units owned by pureplay listed FMCG firms, 68 facilities are in Covid-19 red zone districts, and they are facing big issues in sourcing of raw material and movement of products.
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