There is no dearth of doomsayers in this market, and the dichotomy between stocks and a disrupted economy is fuelling such calls. At 29, Nifty's PE multiple is today higher than where it was at 12,000-plus levels. But some analysts also point to signs of hope: One, fund managers at home and globally are sitting on large cash piles. And EU has just delivered another mega stimulus package. Two, the market is seeing a sectoral rotation; out-of-favour stocks are coming to fore now. Three, on some valuation matrix like price-to-book value, Nifty is still below long-term average. Four, first batch of Q1 earnings is delivering more positive surprises. Maybe, it's too early to leave the party!
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded 14 points lower at 7 am (IST) this morning, in signs that the bulls may have developed fatigue on Dalal Street. |
| On Tuesday, Nifty50 formed a strong bullish candle on the daily chart amid a healthy advance-to-decline ratio. Analysts, however, said there are ample signals suggesting that the index is gearing up for a pause. |
| Asian stocks saw a muted start to trading Wednesday, after a mixed US session on doubts over the timing of a fresh stimulus program. Shares were little changed in Japan, ticked higher in South Korea and slipped in Hong Kong and Australia. |
| US stocks edged higher on Tuesday, as investors rotated into economically sensitive cyclical stocks, optimistic that Washington will deliver a new round of stimulus. Dow rose 159.53 points, or 0.6%, while S&P 500 gained 5.46 points, or 0.17%, but the Nasdaq fell 86.73 points, or 0.81%. The S&P500 is now positive for the year, yet most of its components have sat out the rally. |
| The rupee rose by 17 paise to close at a two-week high of 74.74 against the US dollar on Tuesday, tracking positive domestic equities and hopes of a Covid-19 vaccine. |
| The dollar extended losses in signs that it may have breahced nearly decade-long uptrend. The yen was little changed against the greenback while the offshore yuan was flat. The euro rose 0.1 per cent. |
| Oil prices fell as industry data showed a bigger-than-expected inventory build in the US. Brent crude fell 32 cents, or 0.7%, to $44 a barrel while WTI crude dropped 33 cents, or 0.8%, to $41.59. |
| Gold prices rose to Rs 49,440 per 10 gm to hit a fresh high on Tuesday on weakness in dollar. Silver prices rose by Rs 2,505 to Rs 54,850 a kg. In global markets, the yellow metal surged above $1,850 an ounce |
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Smaller VCs pick up the rewards in India… WaterBridge Ventures, Omidyar Network and Whiteboard Capital are among a clutch of smaller venture capital firms that are set to either clock profitable cash exits or witness significant up-rounds, or uptick in valuations, across some of their portfolio companies, multiple people in the know of developments have said. This comes at a time when the broader venture capital industry has sharply trimmed investments amid the economic crisis induced by the Covid-19 pandemic.
Read More Business as usual for 29% biz… Despite the Covid-19 impact, 29% of Indian businesses are operating as normal. This is the second-highest level seen across all markets, just behind mainland China. According to a report by HSBC, 54% of the surveyed Indian businesses felt that they were as well prepared as they possibly could be — again the second-highest among all countries surveyed and higher than the average 45% across all markets.
Read More Retail auto sales jump 5-fold in June… Retail sales of automobiles continued to improve since the easing of lockdown restrictions, with transport authorities reporting a nearly five-fold increase in vehicle registrations in June compared with the previous month. As many as 984,395 vehicles, including passenger and commercial vehicles and two-wheelers, were retailed last month, a 42% fall from a year earlier, but significantly better than May's 200,000. June retail sales were almost 58% of the February numbers, the last full month of sales before the late March lockdown. There were practically no sales in April.
Read More Hiring sentiment improves… The country's recruiting sentiment has improved a little after the lockdown with an increased hiring intent for the first half of this fiscal, according to a report by staffing firm TeamLease, which covered over 800 firms across 21 sectors. Hiring intent, which is the percentage of employers that is likely to recruit employees during this period, has now jumped to 18% for the period up to September 2020, compared with 11% during the lockdown (March 25-June 7).
Read More | AND WHO'S |  |
Non-AAA firms avail govt aid… A clutch of non-AAA rated firms has applied for nearly half the amount set aside for nonbank lenders under the government's special liquidity programme, raising hopes that the crisisridden NBFC industry may see cost of funds coming down. Piramal Capital, KKR India, Indiabulls Consumer Finance, IIFL Home Finance and Tata Motors Finance are among the nonbank lenders that have applied for loans worth nearly Rs 15,000 crore under the government's Special Liquidity Scheme (SLS), said people aware of the developments.
Read More Voda Idea faces Rs 6,000 cr outgo a year… Vodafone Idea is estimated to face an annual outflow in the ₹5,900-6,253 crore range, depending on 8% or 9% interest rate, if the nation's top court allows it to clear its balance adjusted gross revenue (AGR) dues of around ₹50,400 crore over 15 years, say analysts. Shares of the telco plunged nearly 9% in intraday trade, underlining the uphill task before the cash-strapped carrier even in the case of relief from the top court, which may stave off immediate bankruptcy.
Read More Bourses let off non-compliant PSUs… Listed PSU firms have been let off with lighter penalties by stock exchanges for failure to comply with corporate governance norms, a violation that usually leads to suspension of trading in company's shares. A study of companies' secretarial compliance reports shows at least a dozen PSUs such as Power Grid Corp, NMDC, Oil India and HPCL have not complied with the corporate governance requirements. Exchanges have, however, let off the PSUs with minor cash penalties and even waived it off on the request of the PSU.
Read More Meanwhile... India redraws FTA strategy… The government is recalibrating its strategy on entering into free trade agreements in a bid to ensure that the treaties provide economic and strategic benefits. Separately, the focus is on alliances with "peaceful" countries, especially those with which India does not have a significant trade deficit. Discussions have begun at the highest level with finance minister Nirmala Sitharaman, commerce and industry minister Piyush Goyal and chairman of the Economic Advisory Council to Prime Minister Bibek Debroy leading the deliberations on a revamped strategy.
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