Stop loss! The first sign of a halt to the market rally and a likely correction ahead should send out a warning signal to the over-enthusiastic retail investors, who may have picked up low-priced smallcaps and penny stocks sitting at home during the lockdown. Market watchers say the way some of these stocks outperformed the broadbased indices suggests there is a lot of retail money there. As one market veteran put it, any good market correction would be the real test of how this trade plays out. He said the only way these adventurous retail investors can save themselves is by using the discipline of a stop loss, which they usually never think of.
MARKET CUES: Where do we stand >>>  | Nifty futures on Singapore Exchange traded 100 points higher at 7 am (IST) signalling a likely positive start ahead for Dalal Street. |
| On Tuesday, India VIX moved up 5.50 per cent to 26.63 level on Tuesday. A recovery in volatility from lower levels suggested some profit booking decline with restricted upside in the market. Options data suggested an immediate trading range between 10,500 and 10,800 levels. |
| Asian stocks climbed along with US and European equity futures on Wednesday amid optimism that progress is being made in developing a defense against the coronavirus. Shares in Japan, Hong Kong, South Korea and Australia gained as Moderna Inc.'s Covid-19 vaccine produced antibodies in all patients tested in an initial safety trial. Chinese shares underperformed. |
| US shares closed higher overnight in a volatile session as investors weighed earnings reports against a continued rise in virus cases. The S&P500 gained 1.3 per cent, Dow 2.1 per cent and the Nasdaq 0.9 per cent. |
| The rupee on Tuesday tumbled 23 paise to settle at 75.42 against the US dollar as risk appetite remained weak amid heavy selling in domestic equities and a strengthening US dollar. |
| The dollar retreated. The offshore yuan traded 0.2 per cent higher and the euro was higher by 0.1%. The yen sold at 107.28 per dollar. |
| Oil prices rose on Wednesday after a sharp drop in US crude inventories. Brent crude futures rose 10 cents, or 0.2%, to $43 a barrel while WTI crude futures gained 14 cents, or 0.4%, to $40.43. |
| Gold prices dropped to Rs 49,117 per 10 gm while silver prices fell Rs 438 to Rs 51,355 per kg. On MCX, gold prices climbed 0.21% on Tuesday to Rs 49,252 per 10 gm while silver futures edhed lower by 0.75% to Rs 52,650 per kg. In global markets, gold prices inched up above the $1,800 level, underpinned by concerns over mounting coronavirus cases. |
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Trump scraps visa order on students… Facing eight federal lawsuits and opposition from hundreds of universities, the Trump administration on Tuesday rescinded a rule that would have required international students to transfer or leave the country if their schools held classes entirely online because of the pandemic. The decision was announced at the start of a hearing in a federal lawsuit in Boston brought by Harvard University and the Massachusetts Institute of Technology. The US district judge said federal immigration authorities agreed to pull the July 6 directive and "return to status quo".
Read More Google may pump Rs 30,000 cr in Jio… Google is in advanced talks to buy a stake in Reliance Industries' telecom and digital unit Jio Platforms, people aware of the discussions said. If a deal is finalised, this would be a rare instance of two FANG — Facebook, Apple, Netflix, Google — companies investing in one firm, they said. Facebook had kicked off a series of investments in Jio in April. "Google could be the next investor in Jio Platforms. A deal could be announced shortly," a person familiar with the matter told ET. According to a Bloomberg report, Google has been discussing an investment of about $4 billion (Rs 30,000 crore) in Jio.
Read More Perpetual bonds back in favour… The market for perpetual bonds from banks is clawing back to life as yield-hungry investors begin to take higher risk and banks open up for such sales after yields come back to affordable levels. Some top private banks such as HDFC Bank and state-run banks such as Bank of Baroda may be among those who sell these bonds now, said bankers. While investors may be willing to buy, that may come at a premium as these bonds known as Additional Tier-1 or AT1 bonds have lost their nextto-sovereign safety tag.
Read More Cabinet set to take up strategic PSU sale… The Union cabinet is likely to soon consider a policy to start big-bang privatisation of public sector enterprises, with the government making a complete exit from non-strategic sectors and limiting its presence in strategic areas, officials said. The Department of Investment and Public Asset Management (Dipam) is expected to shortly finalise a draft that will designate various sectors as strategic or non-strategic, they told ET. Banking, petroleum, atomic energy, defence, space, and ports are likely to be part of the strategic list.
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Demand revival stalls… The revival that accompanied the easing of restrictions last month seems to have lost steam with localised lockdowns being re-imposed across several cities due to the resurgence in Covid-19 cases. That's disrupted economic activity, cut off supply chains and dampened sentiment, said experts. Key economic indicators such as e-way bills, mobility indices, labour participation rates and electricity consumption are down in July so far compared with their levels over the same period in June.
Read More Trump shuts door on new China trade talks… US President Donald Trump on Tuesday shut the door on "Phase 2" trade negotiations with China, saying he does not want to talk to Beijing about trade because of the coronavirus pandemic. "I'm not interested right now in talking to China," Trump replied when asked in an interview with CBS News whether Phase 2 trade talks were dead. For months, Trump has blamed China for sending the coronavirus to the US, saying that China must be "held accountable" for failing to contain the disease.
Read More SBI writes off Rs 1.23 lakh cr bad loans… SBI's technical writeoff of bad loans in the last eight years amounted to Rs 1.23 lakh crore, while recovery from bad debts during the same period was less than Rs 9,000 crore. The country's largest bank shared data on its technical write-off and recoveries over the past decade with a shareholder Vivek Velankar. According to the data, more than a third of the total writeoffs made since FY13 were in FY20 at Rs 46,348 crore.
Read More Meanwhile... RIL is world's costliest energy firm now… RIL has become the most expensive energy company among the top global peers following a sharp rise in the market capitalisation over the past few weeks as investors handsomely rewarded its efforts to reduce debt to nil before schedule. The stock now trades at 24.4 times oneyear forward earnings, nearly double of the long-term average. Its trailing price-earnings multiple of 30.7 compares with the average P/E of 13 for the world's oil giants.
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