The gold-silver ratio, which measures relative strength of the yellow metal versus the white metal, had for some time been signalling an imminent silver rally. Traditionally, gold is the first refuge for investors in times of risk. Silver is tier II hedge, and tends to follow gold with a 4-6 months lag. While most predictable explanation for the silver rally is that investors are expecting a demand spike amid signs industrial recovery and revival in the Chinese economy, a trend already reflecting in the base metals; one analyst put out a more interesting observation. He says the world is aiming for a 'green' recovery from this disruption, with a significant part of stimulus assigned to environment-friendly measures. Thus, he says, silver is seen as a big beneficiary of the expected boom in its industrial use for electronics and solar panels.
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded 44 points higher at 7 am (IST) this morning, in signs of a positive opening ahead for Dalal Street. |
| Nifty50 took a breather on Wednesday and formed a bearish candle that resembled a 'Hanging Man' pattern on the daily chart. It also negated the higher low formations after four straight sessions, indicating supports were shifting lower. |
| Asian stocks were mixed along with US and European equity futures Thursday. Shares slipped in China and South Korea, while Australia saw gains, with Japan closed Thursday and Friday for holidays. Shares rebounded modestly in Hong Kong. |
| US stocks staged a late rally on Wednesday as investors took heart from better than expected domestic corporate earnings, shaking off rising diplomatic tensions between America and China. S&P500 moved up 0.6 per cent to hit its highest point since mid-February. The Nasdaq rose 0.3 per cent. |
| The rupee pared initial gains and settled flat at 74.75 against the US dollar on Wednesday amid muted domestic equities and a strengthening US currency. |
| The dollar crept off milestone lows against other majors on Thursday, and held on to gains against the yuan, as heightened Sino-U.S. tension put a bit of caution into currency markets. The euro sat about 0.3% below a 21-month high, while the Chinese yuan fell to a one-week low. The Australian dollar pulled back from a 15-month peak. |
| Oil prices lost more ground on Thursday, with the market weighed down by a surprise increase in US crude reserves. Brent crude fell 4 cents, or 0.1%, to $44.25 a barrel while WTI crude slid 6 cents, or 0.1%, to $41.84. |
| Spot gold prices jumped to Rs 49,950 per 10 gm, while silver climbed to Rs 58,950 per kg. On MCX, August gold futures climbed 1.11% to Rs 50,078 while silver September futures rose to Rs 61,115. In the international market, gold traded higher at $1,855 an ounce and silver at $21.80. |
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New fiscal stimulus in the works… The government plans a fiscal stimulus programme to revive growth but hasn't decided on its timing, said chief economic adviser KV Subramanian. "The question is not about if — the question is about when," he said during a webinar on Wednesday, revealing the government's intention to pump-prime the economy, which is widely expected to contract this fiscal year. "I think the right point would be, if some of these, what we are seeing, the vaccines, really come through in the next few months," he said.
Read More Fund managers turn to IT stocks… Fund managers have further increased their allocations to IT stocks and more analysts are recommending a buy, despite the NSE IT index outperforming Nifty by 20% year-to-date. IT companies offer relative earnings comfort coupled with solid balance sheets, cash flow, return on equity and pay-out metrics in the current volatile and disruptive times, according to analysts. Infosys, HCL Technologies, L&T Infotech, Mindtree, Persistent Systems and Mphasis are some of the stocks that analysts are strongly recommending.
Read More Strategic disinvestment govt priority... The government will "persist and persevere" with strategic disinvestment despite the Covid-19-imposed delay, Dipam secretary Tuhin Kanta Pandey said on Wednesday and asserted that the sale of staterun companies such as Air India remains a priority. He said the government had been successful in reviving the strategic disinvestment policy and completed eight transactions in last few years in public sector space, and has now shifted gears to the "new and important territory" of privatisation.
Read More RIL goes past Abbott, Oracle… RIL hit another milestone on the bourses on Wednesday with the stock price crossing Rs 2,000 while its market capitalisation hit Rs 13 lakh crore making it the world's 48th largest company ahead of Abbott Labs, Oracle, Chevron and Unilever. The company has added $15 billion to its market-cap in the last 15 days.
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CCD probe may flag Rs 4,000 cr irregularity… A probe into Coffee Day Enterprises is expected to reveal details of suspicious circular transactions between Mysore Amalgamated Coffee Estates, group owner late VG Siddhartha's a private firm, and various group companies. As much as Rs 3,500-4,000 crore was missing from the books of the listed firm due to these transactions, the probe is likely to report. The investigation, ordered by the CDEL board after Siddhartha's suicide last July, is expected to show that several of these financial dealings were conducted without maintaining an arm's length, are culpable under Indian laws, and were not followed up with proper disclosures.
Read More Future Retail misses FCCB repayment … Rating agency S&P has said that Future Retail has missed a Rs 100 crore ($14-million) repayment on its $500 million foreign currency bonds. The agency has warned that it could downgrade it to 'D' if it feels that the company is unlikely to repay in the 30-day grace period. Future Retail is currently rated 'CCC-', which is a speculative-grade rating.
Read More Auto firms stare at Rs 10,000 cr loss... Listed Indian automobile companies could post a cumulative loss of Rs 10,000 crore for the June quarter. As much as Rs 7,000 crore of this is expected to be the consolidated loss of Tata Motors, according to brokerage estimates compiled by ETIG. Maruti Suzuki is projected to post its first loss as a listed company, while Eicher Motors, TVS Motor and Ashok Leyland too are expected to post losses in the quarter disrupted by the Covid-19 pandemic.
Read More MSME NPAs may swell when moratorium goes… Non-performing assets in the MSME sector are likely to increase as the moratorium on the repayment of term loans ends in August and these businesses are expected to cut more jobs over the next month, an industry body has said. Citing the findings of a survey, it said job losses in the sector, one of the worst hit by the Covid-19 pandemic and the lockdown, could reach as much as 45 million by end of August.
Read More Meanwhile... Unprecedented escalation in US-China tension… In an unprecedented escalation of tensions with China, the Trump administration has ordered the closure of the Chinese consulate in Houston within 72 hours, with the consequent threat of retaliation from Beijing, possibly with the closure of the US consulate in Wuhan. The state department said the closure was in response to repeated Chinese violations of American sovereignty, including "massive illegal spying".
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