The rally from March lows has left Dalal Street at pricey valuations, but vastly narrowed the polarisation in the Nifty50 pack, enlivened the midcaps and diluted the dominance of BFSI in the benchmark index. Motilal Oswal's latest India Strategy report says the polarization, which prevailed between Nifty Top-15 and the Other-35 since December 2017, has narrowed and the latter group has now outperformed the former in last three months. NSE Midcap100 index has marginally outperformed Nifty on a YTD basis for the first time since 2017, defying the prevailing narrative that midcaps suffer higher damage in a disruptive market. Valuation wise, Nifty's 12-month forward P/E at 20.6 times is now at a 17 per cent premium to the long-term average of 17.6 times.
MARKET CUES: Where do we stand >>>  | Nifty futures on Singapore Exchange traded 42 points higher at 7 am (IST) signalling a positive start ahead for Dalal Street |
| Nifty50 saw follow-up buying on Thursday and formed a bullish candle on the daily chart for the second session in a row. The NSE barometer made a higher high and low for the third straight session. Analysts said the sentiment remains positive, but further buying is needed to instill confidence among traders. |
| Asian stocks followed Wall Street modestly higher after a better-than-expected US jobs report overshadowed concerns over economic recovery. Japanese shares edged up, with about 30% lower volume. Australia outperformed, while Hong Kong, China and South Korea also saw gains. |
| US stocks jumped overnight after a bigger-than-expected increase in jobs in June. Dow was up 0.4%, over 100 points, while the S&P500 rose 0.4% and the tech-heavy Nasdaq 0.5%. |
| The rupee surged by 56 paise to close at more than three-month high of 75.04 against the US currency on Thursday, tracking weakness in the greenback and gains in domestic equities. |
| The dollar was hemmed into a narrow range on Friday, supported by safe-haven flows amid a resurgence of the coronavirus cases in the US. The yuan was stable in offshore trade. The dollar held steady against the Swiss franc and was little changed against the yen. The British pound traded at $1.2471. |
| Crude prices fell on Friday as the resurgence of the coronavirus globally and in the US dimmed the prospects of fuel demand recovery. Brent crude futures slipped 37 cents, or 0.9%, to $42.77 a barrel while WTI crude futures fell 34 cents, or 0.8%, to $40.31 |
| Gold prices edged lower for the second day on Thursday after hitting a record high in the previous session. On MCX, gold futures slipped by about Rs 500 to Rs 47,785 per 10 gm, after sliding Rs 500 in the previous session. Silver futures fell by Rs 700 to Rs 48,750 per kg after slumping Rs 900 in the previous session. In global markets, gold prices came off recent highs after positive coronavirus vaccine developments. Spot gold fell 0.2% to $1,767.11 per ounce. |
| LOOK WHO'S |  |
RBI stimulus likely for services sectors… RBI may unveil more relief measures for some of the stressed sectors of the economy, especially in the services segment such as hospitality, tourism and others, as efforts are stepped up to help them emerge from the bruising impact of the lockdown. Government sources said such measures will likely be aimed mostly through the monetary policy side.
Read More Parekh calls for realty loan rejig… HDFC chairman Deepak Parekh has called for a one-time restructuring of real estate loans to help developers find last-mile funding for their projects. He strongly backed RBI on allowing interest to be charged on loans under moratorium. In a letter to shareholders in the mortgage financier's annual report for fiscal 2019-20, Parekh called for easier financing, loan restructuring and also end-to-end approval and disbursement of mortgage loans.
Read More Ecommerce policy set to change…Amazon, Flipkart, Facebook, YouTube and other companies that store or mirror Indian users' data overseas will be subject to periodic audit, according to a draft ecommerce policy that will soon be made public. Ecommerce companies will have to make available any data the government seeks within 72 hours or pay a penalty. That's a comedown from last year's draft that sought to impose tight controls on user information being stored overseas.
Read More HUL bid to glow draws Emami ire… HUL has replaced the word 'Fair' with 'Glow' on its iconic skin-care brand Fair & Lovely, and renamed the men's variant as Glow & Handsome. Rival Emami said it had already launched a men's product with a similar brand name and accused HUL of violating its trademark rights.
Read More | AND WHO'S |  |
Top firms suspend guidance for first time… For the first time in over two decades, several top corporates have suspended revenue guidance issued to investors and business partners, saying they cannot reliably estimate the economic implications of the Covid-19 health crisis. Infosys, L&T, HUL, InterGlobe Aviation, Cummins India, Wipro, HCL Technologies, Diageo, Sun Pharma and Ajanta Pharma among several others skipped disclosing growth estimates this year, citing an unpredictable business climate in terms of demand and future outlook.
Read More Chinese smartphone production hit… Smartphone production worth thousands of crores of rupees at units of Chinese companies such as Oppo, Vivo, Realme and Xiaomi has been badly impacted as disruption in component imports from China — due to strict checks at ports — has squeezed supplies. The shortage of labour due to the Covid-19 safety protocols has only made matters worse, reducing production to nearly 30-40% of pre-pandemic days.
Read More One-fifth of India aircraft on Chinese lease… More than one-fifth of leased passenger aircraft in the country belong to leasing firms owned or controlled by Chinese entities or those based in Hong Kong. Thirteen aircraft lessors — eight based in China and Hong Kong, two headquartered in Singapore and Dublin controlled by Chinese banks, and three Dublin-based joint ventures entirely or majority owned by Chinese or Hong Kong entities — have leasing contracts for about 130 aircraft with India's major airlines.
Read More Meanwhile... Half of India is now 25 or older… For the first time, more than half of India's population, irrespective of gender or whether it's in urban or rural areas, is now 25 years or older. This was revealed in the Sample Registration System 2018 report released recently by the registrar general and census commissioner of India. As India's fertility rate goes down steadily along with a rise in life expectancy, the proportion of its young population is shrinking and the median age has been increasing.
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