Chasing returns and investing by looking at the rear-view mirror is a popular trend. And the latest rush to invest in gold and discussions & advisories about why every investor should look at the yellow metal now smack of similar behaviour. Gold is indeed a good hedge against inflation and economic uncertainty, but the question is, has that phase passed as the metal has already gone up quite a bit. Also, while there is still a fair bit of uncertainty and easy money is behind us, very few would disagree that economic numbers will be positive this point onward, which is what may stall the dream run in gold, or may even reverse it some bit.
MARKET CUES: Where do we stand >>>  | Nifty futures on Singapore Exchange traded 55 points higher at 7 am (IST) signalling a likely positive start ahead for Dalal Street. |
| On Friday, India VIX fell 4.55 per cent to 24.91 level. Lower volatility suggests an overall bullish stance, and the buy on decline strategy can continue. |
| Asian stocks climbed on Monday together with US and European equity futures. Japanese shares outperformed, rising about 1.5%. Gains were more modest in Hong Kong, South Korea and Australia, while Chinese shares opened flat. |
| S&P 500 futures nudged up this morning. On Friday Wall Street continued to cling to optimism and Dow gained another 369 points, or 1.4 per cent, to 26,075, while S&P500 gained just over 1 per cent. Nasdaq jumped 69.69 points to another record close at 10,617. |
| The rupee weakened by 21 paise to close at 75.20 against the US dollar on Friday tracking lower equities. |
| The dollar fell in Monday's Asian trade. The yen gained 0.1% against the greenback, while the offshore yuan rose by a similar measure. The euro gained 0.2% against the US currency. |
| Oil slipped in Asian trade on Monday as traders eyed an OPEC technical meeting this week which may recommend an easing in supply cuts. Brent crude fell 27 cents to $42.97 a barrel while WTI crude slipped 28 cents to $40.27. |
| Gold prices edged higher on Monday, holding above the key $1,800-per-ounce level, as worries over surging coronavirus cases around the world kept the safe-haven metal underpinned. In India, prices of the yellow metal rose to Rs 45,177 from Rs 44,977 per 10 gm on Monday while silver climbed by nearly Rs 500 to Rs 50,975 per kg. On MCX, gold prices dropped 0.01% to Rs 48,872 on Friday, while silver edged higher to Rs 51,217. |
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FPI bullish bets highest in a year... The extent of bullish bets held by foreign investors in the futures segment touched the highest level in over a year last week. The long-short ratio — a measure of bullish positions compared to bearish ones — on futures positions of FPIs touched 65.6% on Thursday before seeing a dip to 57% on Friday, said derivative analysts. When the ratio is high, it means sentiment is bullish and vice versa.
Read More India Inc busy hiring CXOs in times of Covid … The last three months have been tumultuous for businesses, but leadership hiring has remained relatively unaffected. Industry estimates reveal that more than 200 executives have been placed in the last three months, a period which witnessed industries virtually shutting factories in the early part, with demand coming down to zero. Given the anecdotal evidence of large companies announcing appointments of CXOs/CEOs, substantiated with what executive search firms have told TOI, leadership hiring hasn't stopped at all.
Read More RIL wants Future lenders to take hair cut… RIL is in talks with lenders to Kishore Biyani's Future Group for a haircut on loans and easier terms of repayment, said three people aware of the development. RIL is said to be looking to buy the retail venture. The negotiations involve a haircut of nearly 30% on outstanding loans of more than Rs 6,000 crore and refinancing part of the borrowings for a further period of 5-7 years, said one of the persons.
Read More TCS gung ho on FY21 hiring plans… TCS plans to keep its India campus hiring this year at about the same level as last year at 40,000, despite the sharp drop in revenue in the quarter ended June on account of the Covid-19 fallout. It also plans to double its US campus hires to nearly 2,000 this financial year, as part of an effort to reduce dependence on H-1B and L-1 work visas, which are becoming increasingly difficult to get.
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Sebi boss perplexed by retail surge… Sebi is 'perplexed' by the record high retail participation in Indian equities since the lockdown, said chairman Ajay Tyagi. In an interview — his first since he took charge as Sebi chief in March 2017 — the reticent former bureaucrat, whose term as the ninth chairman of the capital markets regulator ends next month, expressed concern over the sharp surge in retail activity in the stock market at a time when many have lost jobs or suffered salary cuts. Tyagi said Sebi is not in favour of allowing companies to combine their first and second-quarter results despite the economic disruptions on account of the Covid-19 pandemic.
Read More Equalisation levy haunts MNCs… Thousands of intergroup transactions, involving MNCs and their overseas subsidiaries or parent entities, are set to attract an additional 2% tax if these have happened online — either through emails or any internal systems. This means any online transaction — from auto imported to India through an ERP system to a project work where Indian employees are adding value through an email — could attract a 2% equalisation levy, tax experts said. MNCs would be required to pay up as India has not postponed or shelved the levy.
Read More Economy to contract 4.5% in FY21… The Indian economy is likely to see a deep contraction of 4.5% in this financial year, according to the July edition of the Ficci Economic Outlook Survey released on Sunday. The survey pegged the median growth forecast for the first quarter of FY21 at -14.2% and said the contraction should bottom out by the end of the second quarter. The survey found the median expectation of fiscal deficit at 6.9% of GDP against a target of 3.5%.
Read More Banks set to report sharp margin squeeze… A sharp fall in lending rates due to aggressive benchmark rate cuts by RBI and faster deposit growth during the lockdown could lead to a 10-15 basis point contraction in bank margins, impacting profitability in the first quarter ended June 2020. One basis point is 0.01percentage point. Loan growth is likely to be slower as the quarter was entirely washed out due to the nationwide lockdown.
Read More Meanwhile... Dozens of Delhi bungalows on distress sale… More than two dozen houses in the heart of the national capital – New Delhi's most exclusive address – are in the market as stressed owners and investors seek to raise funds and rebalance their real estate portfolios in the wake of Covid-19. Bungalows with price tags ranging from Rs 75 crore to Rs 160 crore have been listed on platforms such as Sotheby's and local brokers, said realtors. The more expensive homes – valued at up to Rs 600 crore – are expected to make their way to the list soon. These prime properties are located in the posh areas such as Lutyens Bungalow Zone, Hailey Road, Jor Bagh and Golf Links.
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