Financial markets want more retail participation. But now that it has come flooding, it's causing worries. The US SEC chief is worried about the risks to retail investors, who are increasingly making short-term bets via low-cost trading platforms. Sebi chief has pleaded with this class of investors to start their investing journey with risk-free govt securities. What's contributing to this frenzy are low-cost, easy-to-use trading apps. In May-June, retail volumes on Dalal Street hit a decade high of 70% and daily trading volumes rose from Rs 41,000-42,000 crore to Rs 60,000 crore. This money has gone mostly into risky trades, and can cause more damage than just financial loss if stocks were to crash now.
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded 48 points lower at 7 am (IST) this morning, in signs of a weak opening ahead for Dalal Street. |
| On Thursday, Nifty negated the previous day's 'Hanging Man' candle and made higher highs and lows. Analysts said supports are moving higher gradually, but Nifty is facing hurdles at higher levels. |
| Stocks in Asia retreated after an unexpected rise in US jobless claims rekindled concern a recovery in the world's largest economy has stalled. Shares in China, Hong Kong and Australia opened lower. Kospi was little changed. Japanese markets remain closed for a holiday. |
| US stocks fell overnight as the lawmakers struggled to agree on a new round of stimulus measures ahead of the expiry of desperately needed unemployment benefits. Dow ended 1.31% lower, while the S&P500 shed 1.23% and the Nasdaq 2.29%. |
| The rupee pared its initial gains and settled on a flat note at 74.75 against the US dollar on Thursday as escalating tensions between the US and China weighed on investor sentiment. |
| The dollar slumped to its lowest in nearly two years on Thursday, as investors continued to sell the greenback on fears that the US economy will struggle to outperform its peers. The euro celebrated a 21-month peak against the greenback. The Australian dollar retreated from a 15-month peak. |
| Oil edged up on Friday as the dollar fell to an almost two-year low. Brent crude prices rose 15 cents, or 0.4%, to $43.46 a barrel while WTI crude rose by 12 cents, or 0.3%, to $41.19. |
| Domestic gold prices surged to a new high of Rs 50,703 per 10 gm while silver prices climbed to Rs 60,785 a kg. On MCX, gold prices rose over 1% to Rs 50,703 on Thursday while silver climbed marginally to Rs 61,120. In global markets, the precious metal last traded at $1,1886 an ounce having climbed 4.2% so far this week. |
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Home loan rates fall to multi-decade lows… A clutch of public sector banks and lending institutions has slashed home loan rates to multi-decadal lows raising the prospect of a full-blown rate war when other banks jump into the fray. LIC Housing Finance on Thursday marginally pipped SBI by pegging its home loan rate at a record low of 6.90%. SBI is offering home loans starting from 6.95%. The rates offered by some large PSBs are now close to multi-decade lows of 6.7% to 7.10%.
Read More FPIs turn focus on Covid beneficiaries… FPIs are giving preference to the companies benefiting from the pandemic-led demand, show data from NSDL. Sectors such as consumer, insurance and white goods accounted for 96 per cent of the Rs 24,330 crore net investments by FPIs in Indian equities between April and the first fortnight of July. These sectors together accounted for 10 per cent of the total assets under management of FPIs in India, a gain of 211 basis points since the beginning of the year.
Read More Urban employment shoots up to 35%… Despite intermittent lockdown in most towns, urban employment for the week ended July 19 shot up to 35.1% after its great fall in April. The overall employment rate jumped, suggesting that an equilibrium is setting in the labour market, the Centre for Monitoring Indian Economy said. The marginal dip in overall employment rate in July, after sharp pickup in June, has reversed with an employment rate at 38.41% for the week ended July 19, almost at par with June 21 level of 38.42 per cent, it said.
Read More Rs 8,800 cr aid to stuck housing projects… The special financing window for held-up housing projects has provided assistance of nearly Rs 8,800 crore to 81 projects — with 27 in Mumbai and 26 in Delhi NCR — and another 353 stressed facilities in the line. Under the scheme, the government is hoping that around 60,000 residential units will be completed across the country, including in cities such as Bengaluru, Chennai, Pune, Chandigarh, Jaipur and Vizag.
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Govt to miss Budget estimates… The government may be unable to meet its Budget estimates for the current financial year (2020-21) due to the Covid-19 crisis, but expects a V-shaped recovery and the contraction in economic growth may not be as sharp as estimated, Economic Affairs Secretary Tarun Bajaj said on Thursday. "We will not be able to achieve our Budget Estimate figures, but the kind of contraction some of the people are mentioning may also not turn out," he said.
Read More Centre slaps curbs on Chinese bidders… In a significant escalation of tension with China, the Centre late Thursday changed rules to enable curbs on bidders from countries that share a land border with India "on the grounds of defence and national security". Though the order does not name any country , it is clearly aimed at scrutinising and imposing curbs on Chinese investments and partnerships in Indian projects. The new rules seek to block supply of stationery, turbines and telecom equipment and award of road and power contracts to companies that have a link with China.
Read More Banks push for one-time loan rejig… Banks and corporates are coming together to make a last-ditch effort to convince the government and RBI to allow a one-time restructuring of loans to tide over the stress caused by Covid-19 pandemic. In the past few days, banks and industry bodies have explored ways to strike a balance between New Delhi's fear that it could let undeserving companies have a free ride and the actual ability of most borrowers to service and repay loans amid diminished cash flow and demand.
Read More Meanwhile... Chinese bulk drug supply resumes… Supplies of bulk drugs from China are back to normal, easing concerns of India's pharmaceutical industry that has been facing a shortage and rising cost of the raw material since the start of the coronavirus outbreak. Resumption of normal supplies has also calmed worries, at least for now, about the Sino-Indian border standoff affecting imports from China and disrupting India's pharma industry.
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