"You can disagree with the market, but you have to respect it." Those words of wisdom came from none else but Aswath Damodaran, the Dean of Valuation. He says that's what he has learnt in 35 years of investing. "Markets are a consensus between optimists and pessimists. If the optimistic side is winning now, that does not mean it is over. Two weeks from now or four weeks from now, it could shift," says he. And his advice? "Do not fight the market. It is seeing what a million investors are seeing. That is the market's job. Do not convince yourself you are right and the rest of the world is wrong."
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded some 170 points higher at 7 am (IST) in signs that Dalal Street is poised to build on Friday's rally. |
| On Friday, Nifty50 closed around its intraday high, forming a bullish candle on both daily and weekly charts. The MACD also generated a fresh 'buy' signal on the daily chart. |
| Many sectoral indices broke out of their consolidation ranges last week, indicating broadbased buying interest. Options data suggested a wider trading range for Nifty between 9,000 and 10,000 levels. |
| Elsewhere in Asia, share markets started on a cautious note. Hong Kong's Hang Seng saw early gains of over 3%, while Tokyo, Seoul, Sydney and Shanghai saw more modest moves. MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2%. |
| US stock futures erased earlier declines as investors weighed the violent protests in some US cities that have stoked concerns about a reacceleration in infection rates and a damper on the economic recovery. On Friday, the Dow booked a weekly gain of 3.8%, while the S&P500 finished 3% higher and the Nasdaq gained 1.8%. |
| Oil prices started soft on worries about US demand, but found some support from reports Russia had no objection to the next meeting of Opec and its allies being brought forward to June 4. Brent crude futures were off 8 cents at $37.76 a barrel, while US crude dipped 13 cents to $35.36. |
| The rupee appreciated 14 paise to provisionally close at 75.62 against the US dollar on Friday as foreign fund inflows and weak American currency boosted investor confidence. |
| The dollar slipped on Monday as investors looked past unrest in the United States to the global economic recovery from the coronavirus and hoped for an easing in Sino-US tensions. The risk-sensitive Australian dollar shrugged off early pressure, the euro remained firm and the yuan remained steady. |
| LOOK WHO'S |  |
One-time listing window for unlisted NCDs… Sebi is considering an unprecedented one-time listing window for existing unlisted NCDs to ease stress at various mutual funds. ET quoted people familiar with the matter to report that mutual funds holding illiquid, lower-rated securities would be able to use this opportunity to offload them to buyers. The rise in risk aversion after the Covid-19 lockdown has made it difficult for funds to sell these securities without incurring huge losses. The markets regulator told the mutual fund industry to ask issuing companies whether they are interested in listing these NCDs.
Read More Rules of the game change in F&O mart… Risk-takers will have to pay a steeper price to participate in India's equity derivatives market now. Traders betting on the direction of the index or a stock without insurance will have to pay higher upfront money from June 1 when the NSE's new margin norms kick in. The rules, however, encourage safer strategies like hedged trades, in which the initial margins are set to drop. From Monday, traders who buy or sell a futures contract or only sell options without any hedge, popularly known as naked positions, will end up paying 20-25% more as upfront margins.
Read More New era begins in rupee derivatives... The rupee is set to enter a new era on Monday as local lenders Axis Bank, ICICI Bank, HDFC Bank and IndusInd Bank will likely start trade in the overseas derivative market, known as non-deliverable forwards. The move will help curb wild rupee swings and paves way for much-needed RBI intervention in the offshore market. Multinational companies, too, are likely to save hedging cost amid limited speculative bets. In March, RBI permitted Indian banks with licence to operate in GIFT City's IFSC to participate in the NDF market from June 1.
Read More | AND WHO'S |  |
Investors want Templeton schemes reopened… Investors in Franklin Templeton's debt schemes that are in the process of being wound up have sent a legal notice to market regulator Sebi, demanding necessary directions to Franklin Templeton Trustee Services to re-open the schemes until the regulatory framework has been put in place. Investors have also demanded that Sebi should appoint an administrator to take over Franklin Templeton Asset Management Company and FTTS and evolve a mechanism for ensuring timely payment of the dues of unit holders.
Read More India Inc struggles to ramp up output… With a majority of manufacturing facilities across sectors still operating below optimum levels, India Inc awaits a pick-up in demand to ramp up production capacities as Lockdown 4.0 ends and Unlock 1.0 begins. Several manufacturers across sectors said their operations are running below 100% capacity. While those operating in essential services, such as pharma and FMCG, are better off but still not utilising full capacity, others in consumer durables, auto, auto components, tyres, jute and textiles find their factories stunted way below capacity. Manpower shortage and demand-related issues continue to plague companies.
Read More Retail chains in rent standoff with malls… The battle between mall owners in India and their tenants, retailers across 350 brands, is set to take an ugly turn, with most threatening to shutter outlets in these shopping centres if their demands for rent-waivers and new rental agreements are not met. The move, which comes against the backdrop of the Centre allowing malls to reopen, is expected to help retailers — from Future Group and Arvind Brands to Lenskart and Bata — tide over nine to 12 months of less-than-usual footfalls. "We cannot survive without collaboration," Rakesh Biyani, MD of Future Retail told TOI. "If not, there will be further job losses in the sector."
Read More Meanwhile... Tata rejects Mistry quasi-partnership claim... Ratan Tata rejected claims that his "personal letters of appreciation" to Pallonji Mistry, father of Cyrus Mistry, can be regarded as evidence of a quasi-partnership or any vested legal right in Tata Sons. The move by Cyrus Mistry, ousted as Tata Sons chairman in 2016, to seek "proportionate representation" on the Tata Sons board in the Supreme Court, based on these letters, is an afterthought since he had not done so in the original appeal filed in the NCLT in 2016. The Supreme Court on Friday decided to hear the cross-appeal filed by Cyrus Mistry over the NCLAT ruling along with the plea filed by Tata Sons challenging the tribunal's December 2019 order.
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