Nouriel Roubini has prophesied a decade of despair ahead, triggered by 10 key risks including debts and defaults; deflation; a massive slack in goods & mass unemployment; currency debasement; de-globalization; geostrategic standoff between the US and China; and a new Cold War between the US and its rivals. These risks, he says, loomed large before Covid-19, but now threaten to fuel a perfect storm. The recovery from this disruption is not going to be V-shaped, or W-shaped; but will be more anemic than the one that followed the Great Recession a decade ago, he warns.
MARKET CUES: Where we stand >>>  | Nifty futures on the Singapore Exchange traded 29 points higher at 7 am (IST) in signs that Dalal Street may start from where it left on Tuesday |
| On Tuesday, Nifty saw selling pressure between 9,350 and 9,400 levels and closed inside this crucial range and formed a Dragonfly Doji on the daily chart, which reflected indecisiveness in the market. |
| Options data indicated an immediate shift in higher trading range to 9,200-9,600 zone. A rising Put-Call Ratio with falling volatility suggests Nifty may head towards the 9,500 level. |
| Elsewhere in Asia, shares traded cautiously higher as investors paused ahead of the US Federal Reserve's policy decision later in the day. Shares rose in Hong Kong, Sydney and Seoul, but dipped in China. |
| Wall Street's rally faded in the final minutes of trading Tuesday as losses in healthcare companies and big tech titans offset gains elsewhere. The Dow edged 0.1% lower, the S&P500 gave up 0.5% and the Nasdaq shed 1.4% |
| Oil prices climbed on Wednesday, trimming some of this week's steep losses after U.S. stockpiles rose less than expected. WTI crude futures jumped to a high of $13.85 and were up 8.8%, or $1.09, at $13.43, paring a 27% plunge over the first two days of this week. Brent crude futures rose 1.8%, or 36 cents, to $20.82 |
| The rupee rose by 7 paise to close at 76.18 against the US on Tuesday, tracking positive domestic equities and a weak American currency in the overseas market. |
| LOOK WHO'S |  |
Manna from heaven... Banks are making money out of arbitrage between the market and their access to RBI's reverse repo window, as they borrow at a lower rate in the market to earn higher returns from RBI. Mutual funds sitting on liquid cash to meet redemptions but are not seeing redemption demand are lending in the overnight collateralised market, where rates have plunged as low as 2.08% on Monday against 3.47% mid-April. This compares with 3.75% that RBI offers banks for surplus funds, opening up an arbitrage opportunity of 165 basis points.
Read More Consumer firms sell directly... A dozen consumer goods companies including HUL, ITC, Mondelez, P&G, Dabur and Colgate have started selling products directly to consumers, circumventing traditional trade and distributor networks in areas where last-mile delivery has been disrupted due to Covid-19 restrictions. Their latest direct-to-home initiatives involve partnering startups such as Dunzo, Scootsy and Swiggy by listing brand stores on their portals and even reaching out to resident welfare associations through their sales staff.
Read More India will still grow… India's economy is forecast to grow 0.2% in calendar 2020 and along with China will be the only two countries to display some signs of growth among the G20 economies, which are estimated to contract sharply, global ratings agency Moody's Investors Service said on Tuesday. The latest forecast from Moody's for India is pretty grim and it has cut the estimate from the previous forecasts of 5.2% to 2.5% and now 0.2% for Calendar 2020.
Read More ADB aid for India… The Asian Development Bank on Tuesday unveiled a $1.5 billion Covid-19 package for India and is in discussions with the government on further aid for specific sectors. It's also in talks with the country's private sector to provide support where needed. The multilateral lender has begun consultations with India on providing support for the MSMEs and infrastructure projects through credit guarantees.
Read More | AND WHO'S |  |
No bonding with top NBFCs... Bond market nervousness hampered fund-raising by top-notch non-bank lenders with most of the big firms stepping back from raising the full amounts as investors demanded higher rates. Seven companies including Aditya Birla Financial Services, Mahindra Financial Services, Bajaj Finance, Tata Capital and L&T Finance collectively raised Rs 3,544 crore out of the targeted Rs 10,400 crore on Monday and Tuesday.
Read More Equity MF SIPs fail to impress... Majority of the systematic investment plans or SIPs in equity mutual funds have generated less than 8% returns in last 10 years. According to an ET study based on products that have existed for over a decade, 174 out of the 241 equity schemes have returned less than 8% a year in this period, while 42 have generated 8-10% and 25 have given over 10% returns annually. While midcap and smallcap schemes had taken a beating because of the tumble in these shares since January 2018, largecaps funds have managed to stay afloat.
Read More Tata Steel UK, Europe in distress... Tata Sons, the holding company of salt-to-software Tata Group, has refused to commit any further funds to support Tata Steel's loss-making UK and Europe subsidiaries. As a result, a bailout by the UK government seems to be the only chance of survival for these businesses. However, the UK government is unlikely to offer more than one fifth of the funds required by these businesses.
Read More Meanwhile... Companies Act rules to be eased... The government is considering a fresh ordinance to amend the Companies Act to decriminalise several offences, apart from allowing Indian companies to directly list overseas. The ministry of corporate affairs has begun discussions on fast-tracking the amendments and may approach the Union Cabinet shortly. The government had introduced a Bill to amend the law during the last session of Parliament, but it could not be cleared.
Read More 
Sell
Buy
No comments:
Post a Comment