The Sage's sermons from Omaha over the weekend had an unusual ominous tone. Warren Buffett, the man who preaches being greedy when others are fearful and who has always encouraged investors to take advantage of market downturns, now thinks this plunge in stocks is not an opportunity to buy, even in his own stock. He says "the world has changed for airlines and we wish them well." He has sold shares, piled up cash and treasuries and dropped indications that he believed stock markets had not reached the bottom of the current dip. These signals coming from the Oracle are bound to make financial markets sit up and take note.
MARKET CUES: Where we stand >>>  | Nifty futures on the Singapore Exchange traded 84 points higher at 7 am (IST) in signs that Dalal Street may continue its winning spree |
| On Thursday, Nifty topped the 9,850 level and formed a strong bullish candle on the daily, weekly and well as monthly charts and breached key resistance points at 9,400 and 9,835, instilling confidence among traders. |
| Options data indicated Nifty's immediate trading range between 9,400 and 9,700 levels. India VIX eased 4.30% to 33.84 levels, providing more stability to the bulls. A rising Put-Call Ratio and falling volatility suggest a shift in the trading zone to higher levels. |
| Elsewhere in Asia, stocks opened lower, indicating the risk-off move that's hit markets at the start of this month may have further to run. Indices fell in Sydney and Seoul. Trading volumes may be light due to holidays in China and Japan. |
| Wall Street stocks tumbled Friday following disappointing earnings and worries over increased US-China tensions. Stock-index futures slid on Monday, extending Friday's sell-off. S&P500 contracts were down 1.7% in Tokyo; Nasdaq100 futures fell 1.7% and Dow futures 1.4%. |
| Oil prices fell in early trade on Monday, paring last week's gains, on worries the global oil glut. WTI crude futures fell as much as $1.46 a barrel to $18.27, while Brent futures slipped 90 cents, or 3.4%, to $25.54 |
| The rupee surged 57 paise to 75.09 against the US dollar on Thursday, amid higher domestic equity markets and a weak American currency in the overseas market. The currency market as closed on Friday for an official holiday. |
| The safe-haven US dollar rallied to one-week highs against the risk-sensitive Australian and New Zealand dollars. The Japanese yen was steady while the euro was a touch weaker. The pound also slipped. |
| LOOK WHO'S |  |
Retail rush to equity... Local savers are buying into stocks big time. Here's the proof: The number of new demat accounts surged despite the lockdown, NSE internet trading volumes jumped 53% in April, and the indices climbed a third since the March 23 low. Institutional investors were net sellers during this period, however. About 1.2 million new investors opened demat accounts with CDSL alone in March and April. About 6.18 lakh new demat accounts were opened in CDSL in March and another 6 lakh in April. NSDL has not disclosed data since the end of February.
Read More Pay hike in times of pandemic... Large consumer-facing companies including HUL, Nestle, Hindustan Coca-Cola Beverages, Samsung, Whirlpool and LG have given high single-digit increments and bonuses to staff for last 12 months in March-April to keep employee morale intact. This came amid job and pay cuts across companies due to the Covid-19 pandemic and the nationwide lockdown. These companies said they will review decisions about the current year's variable payouts and salary hikes over the coming months as India Inc reels under the economic cost of the outbreak.
Read More Moratorium for NBFCs... Bankers are going back to their boards after RBI conveyed to them that even NBFCs are covered under 'borrowers' to be eligible for moratorium. RBI has also told them that they could use their discretion on the eligibility of firms based on credit and liquidity profile, multiple people familiar with the matter said. The central bank's move followed complaints from the NBFC sector while some are seeking legal remedy for their troubles with banks.
Read More | AND WHO'S |  |
Sell in May & go away?... Investors have not exactly followed the popular Wall Street adage 'Sell in May and Go Away' in last 15 years, but this time they might be inclined to consider it. After the 30% rebound in Sensex and Nifty from the lows in a month, market participants are worried that the market has bounced too fast amid a deterioration in the economic and earnings outlook following the Covid-19-imposed lockout.
Read More Factories plan muted start... India's factories will make a muted start as the government eases lockdown conditions partially starting May 4 and manufacturing looks to get back on track. Carmakers are set to begin production this month with one-fourth output. Leading smartphone, electronics, apparel and shoe manufacturers expect to restart at 15-20% capacity as they expect a big dent in consumer demand thanks to salary cuts and job losses due to the lockdown.
Read More Credit risk funds bleed... In just one week since Franklin Templeton MF's shock decision to close down six of its debt funds late on April 23, all the credit risk funds, the high-risk schemes at the centre of the crisis, together saw a Rs 12,569 crore, or nearly 26%, slide in total assets under management. From managing Rs 48,576 crore on April 30, total AUM of 20 credit risk funds fell to Rs 36,008 crore by April 30, Amfi data showed.
Read More Meanwhile... Banks brace for NPA swell... India expects bad debts at its banks could double after the coronavirus crisis brought the economy to a sudden halt, a senior government official and four top bankers told Reuters. Domestic lenders are already grappling with Rs 9.35 lakh crore ($123 billion) of soured loans, which was equivalent to about 9.1% of their total assets at the end of September 2019. There is a considered view in the government that bank NPAs could double to 18-20% by the end of the financal year, as 20-25% of outstanding loans face default risks an official said.
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