When the market is clearly riding piggyback on a gush of liquidity and trending, oblivious of what's going on in the economy, investors know it's safe to stay out, but then one also tends to get Fomo, fear of missing out. So what do you do? Here is what Kotak PMS manager Anshul Saigal recommends: One, do not lose sight of valuations. If you are looking at companies where valuations are building in hope, it is better to stay away. Two, have clarity on your time horizon. If it is three to six months, it's not the time to invest. If it's one-and-a-half or longer, there is an opportunity, because valuations are building in near-term weakness. Three, risk appetite is everyone's own. Understand yours and take a call!
MARKET CUES: Where do we stand >>>  | Nifty futures on Singapore Exchange traded 37 points lower at 7 am (IST) signalling a likely negative start ahead for Dalal Street |
| On Monday, Nifty50 formed higher high and low for a fifth session, suggesting that supports have shifted higher. But Monday's was the third straight session when the index formed an indecisive candle |
| Asian stocks traded mixed Tuesday after strong global gains Monday. Shares dipped in Japan and South Korea, and saw modest gains in Australia. Chinese stocks continued to outperform and Hong Kong shares climbed. |
| US stocks rallied overnight, propelling the Nasdaq to an all-time closing high. Dow finished 1.8%, or 460 points, while S&P500 climbed 1.6% and the Nasdaq jumped 2.2% to top its previous record high from last week. |
| The rupee pared initial gains and settled 2 paise down at 74.68 against the US dollar on Monday even as the domestic equity market traded in the positive territory. |
| The yuan on Monday recorded its best day against the dollar since December. The Bloomberg Dollar Spot index was flat, the euro rose less than 0.1% and the British pound 0.1%, while the Japanese yen was flat |
| Oil prices rose cautiously in early trade on Tuesday as major producers stuck to supply cuts. WTI crude futures climbed 13 cents, or 0.3%, to $40.76 a barrel while Brent futures rose 7 cents, or 0.2%, to $43.17 |
| Gold prices on Tuesday fell to Rs 48,100 from Rs 48, 320 per 10 gm, while silver climbed to Rs 49,600 from Rs 48,510 per kg. On MCX, August gold futures jumped 0.37 per cent to Rs 48,225 per 10 gm, while Silver July futures climbed to Rs 49,790 per kg. In international markets, gold traded higher at $1,776 per ounce, and silver at $18.10 per ounce. |
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EMI moratorium users down to 30%... Borrowers availing of the repayment holiday dropped to less than 30% at banks and non-bank lenders after financiers advised them not to use the moratorium for a period longer than absolutely necessary. This is aimed at ensuring that the financial position of the borrowers and internal ratings used for deciding future loans don't worsen. Lenders said they were more stringent in extending the second phase of the moratorium, from June to August, and were reviewing cash flows of borrowers before doing so.
Read More Midcap, smallcaps outpace blue chips… Midcap and smallcap shares have outperformed blue chips since June 1 driven by a revival in retail investor participation in the stock market since the start of the lockdown. Brokers said home-bound investors are lapping up these battered shares. Stocks of smaller companies have been laggards since January 2018 — when the sell-off started. The Midcap and Smallcap indices are still 36% and 58% away, respectively, from their January 2018 peaks, while the Sensex is 16% away from its record high hit in January this year.
Read More 30% of India Inc operates at 70% capacity... Close to 30% of India Inc reported 70% or higher capacity utilisation in June as industrial activities started picking up after the lockdown, but still only half the units expect operations to reach this level in the near future, a Ficci survey showed. The survey to capture improvements in business operations and expectations since the unlock phase began in June, also found companies reporting growth in exports, cash flows and improved supply chains.
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RBI intervenes to arrest rupee rise… RBI is believed to have intervened in the forex market on Monday to buy nearly a billion dollars and arrest the surging rupee's new found strength on the back of inflows into Jio Platforms, a subsidiary of Reliance Industries, India's biggest conglomerate. The RBI intervention in the forward markets is believed to have been responsible for pulling the rupee from its day-high of Rs 74.51 to the dollar, multiple traders said.
Read More IT firms seek clarity on WFH… India's top IT services companies are seeking permanence for relaxations in certain key norms, which allowed the industry to move lakhs of employees to a remote working model in March, when the government imposed a lockdown to stem the spread of Covid-19. Companies like TCS, HCL Technologies, Wipro, Cognizant, WNS, Genpact and Infosys, with units operating from SEZs and STPI are seeking regulatory clarity in order to optimise their operations and quickly move to a blended model.
Read More Labour shortage dogs Tata Consumers… Scarcity of labour due to large-scale migration, restrictions on movement and transport and time taken to streamline retail operations will persist in the short term, though the situation has progressively improved, Tata Consumer Products chairman N Chandrasekaran said at the company's first AGM after the merger of the consumer business of Tata Chemicals with Tata Global Beverages.
Read More Covid may stall Bajaj, Skoda plants… Production is likely to be impacted temporarily at Bajaj Auto and Skoda Auto Volkswagen India's factories in Aurangabad, with the district administration announcing a weeklong lockdown from July 10 to check the spread of Covid-19 in the region. The decision to re-impose the lockdown in the central Maharashtra district was taken on Monday after a meeting between government authorities and public representatives.
Read More Meanwhile... China starts pullback from Galwan… China began a gradual withdrawal of troops from Galwan Valley and other places in eastern Ladakh after a twomonth standoff. The process is the result of an understanding reached between corps commanders to prevent a clash like the one last month in which both sides suffered casualties. Soldiers from the PLA were observed removing tents and structures at Patrol Point-14 — the site of the June 15 clash — and has thinned down troops from other friction points as well, a fact verified by the Indian Army. However, India remains cautious as the changes are eminently reversible and need to be monitored.
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