This is experience speaking. Dalal Street veteran Raamdeo Agrawal says 99% of energy in the stock market is wasted in timing the market. That's when nobody ever gets it right. Still nobody believes s/he cannot get it right. "Time and again they do not get it right and yet they try to. Even small and unknown investors try to buy at the bottom and sell at top. Then, of course, traders and all sorts of investors would try to refine entry price and exit price, knowing well that it is not possible to time the market." He admits he learnt it the hard way that he can't do it and gave up much earlier in the game. There is learning here.
MARKET CUES: Where do we stand >>>  | Nifty futures on Singapore Exchange traded 73 points lower at 7 am (IST) signalling a negative start ahead on Dalal Street on Monday, Nifty formed higher highs and lows, but also created an indecisive Doji on technical charts. Analysts said one cannot rule out profit booking at higher levels and 'buy on dips' would be the right strategy in this market. |
| Asian stocks and US futures slid along with the yuan after a Trump administration official described the Sino-American trade deal as "over." Hang Seng fell 1.1%, Shanghai Composite 0.3% and the South Korean Kospi 0.6%. |
| Wall Street's three major indices closed higher overnight with the biggest gains in technology stocks. Dow rose 153.5 points, or 0.59%, to 26,024, while the S&P500 gained 20.12 points, or 0.65%, and the Nasdaq 110.35 points, or 1.11% |
| The rupee appreciated 17 paise on Monday to close at 76.03 against the US dollar in line with positive equity markets amid sustained foreign fund inflows. |
| The US dollar weakened and higher-risk currencies including the Australian dollar jumped. The Japanese yen edged up 0.1% while the offshore yuan fell 0.3% and the euro 0.2% |
| Oil prices were steady on Tuesday, holding on to the previous session's gains, amid more signs of fuel demand picking up. Brent crude gained 6 cents to $43.14 a barrel after rising 2.1% on Monday, while WTI crude rose 8 cents to $40.81. |
| Gold in rupees hit a record high on Monday to trade just Rs 251 below the psychological Rs 50,000 per 10 gm mark. The Indian rate for 24 carat rose to a record Rs 49,749 per 10 gm. Globally, yellow metal prices rose 0.1% to $1,756 an ounce, hitting a more than 7.5-year high as investors continued to buy the precious metal amid concerns over the strength of the economic recovery |
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Local EPC players smile on China curbs… The sun appears to be shining on domestic infrastructure and construction companies. Despite the gloom surrounding plummeting capex spends, the government's decision to relook at contracts for Chinese firms following the ongoing border face-off between India and China is making investors in this space smile. Some heavyweight EPC players could benefit from India's focus on local companies for key infra and construction work and the difficulties that Chinese companies would face in securing meaningful contracts.
Read More Trade deficit with China narrows… India's trade deficit with China is estimated to have narrowed to $48.7 billion last financial year — the lowest in five years — compared with $53.6 billion a year ago, as imports from across the border dropped over 7% to $65 billion in 2019-20. Last year's trade deficit was roughly the same as the level seen in 2014-15, when the Narendra Modi administration first took office, but 34% higher than 2013-14, prompting the government to suggest that the steps taken by it in recent months have yielded results.
Read More Checks on Chinese goods in the works… India is eyeing about 5,000 technical regulations to rein in cheap imports and provide a quality boost to domestically-made industrial goods, telecom products, electronics, steel and chemicals. The commerce and industry ministry has identified the top user ministries that deal with most imported products. These are telecom, chemicals, industry and heavy industry departments and the ministries of steel, and electronics and IT.
Read More Sebi board may ease fund raising rules… Sebi board is likely to discuss the issue of relaxing pricing norms and making it easier for stressed companies to raise capital through preferential equity sale to financial and strategic investors. The board meeting — scheduled for June 25 — will also discuss whether rules on pricing should be relaxed for all companies as per the demands of the industry.
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Trump suspends H-1B, H4 visas… The Trump administration on Monday suspended a range of work visas for foreigners, including all H-1B and H4 (for H-1B spouses) till the end of this calendar year. Also suspended are L1 visas (for intra-company transfer) and J1 visas (used by doctors and researchers). A senior administration official said the measures, decreed through an executive order by the President, would be temporary, and would free up 525,000 jobs for US workers.
Read More Moody's expects India to contract 3.1%… Moody's Investors Service expects India's economy to contract 3.1% in 2020 compared with 0.2% growth it projected in April. The rating company expects a stronger economic rebound for India at 6.9 per cent in 2021, as opposed to 6.2 per cent estimated in April, according to the June update of its Global Macro Outlook released Monday. China is among the few G20 countries expected to register growth in 2020, according to Moody's, which maintained its earlier forecast of 1 per cent for the country.
Read More Select cos find themselves in FDI soup… A few listed companies are finding themselves in the mire of regulations after foreign investment limits in these firms were automatically increased to 100 per cent of their total equity. New rules allow full foreign ownership in listed companies unless the firm is part of the sector that has a cap on investments by overseas investors. Companies were required to pass a resolution before March 31 to decide on the foreign investment limit. Lawyers said some companies missed out on the deadline to bring in the cap because of the lockdown-related disruptions.
Read More Meanwhile... Life, health insurance premiums to rise… Covid may have brought home the importance of insurance, but it is also likely to make insurance more expensive. While term insurance products may become as much as 30% dearer, medical insurance premiums may rise by 20-25%. Insurers' pricing calls will be influenced by their view that morbidity risks have gone up post-Covid and also by higher regulatory compliance costs, especially in medical insurance where regulator Irda has issued new coverage norms.
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