Participation of retail investors is always a good sign for stock markets. But as hordes of new investors enter the markets from India to China to Thailand to the US, they have been showing a strange preference for low-dollar or penny stocks. Market veterans warn buying into Z-group shares or single-digit share has always led to bad results in the past. Betting on low-quality stocks because they are available at 20 paise and Rs 2 or Rs 20 has never worked in the equity market over a longer period of time, says Nilesh Shah, a Dalal Street veteran. Time to pay heed!
MARKET CUES: Where do we stand >>>  | Nifty futures on Singapore Exchange traded 54 points lower at 7 am (IST) signalling a likely negative start for Dalal Street |
| On Thursday, Nifty formed an Inside Bar on the daily chart. The index faces the next resistance in the 10,847-10,884 zone. The immediate support stands in the 10,690-70 range, analysts said |
| Asian stocks slipped this morning after a surge in new coronavirus cases in the US further undermined the case for a quick economic recovery. Shares in China opened about 1% lower. Japanese shares slipped along with those in Hong Kong, South Korea and Australia. |
| Contracts on the S&P 500 Index edged down after the gauge fell 0.6% overnight. The Dow fell 289 points, or 1.11%, the S&P500 11.05 points, or 0.35% while the Nasdaq added 68.25 points, or 0.65% |
| The rupee gained as much as 0.15 per cent or 11 paise to touch the 74.91 mark against the dollar on Thursday, but failed to sustain intraday gains and shut shop at 74.99 against the greenback. |
| The dollar and other safe-haven currencies were well bid on Friday. The caution lifted the dollar index from near one-month low, the euro slipped from a one-month high, while the Swiss franc strengthened. |
| Oil prices dipped on Friday after steep falls in the previous session. Brent crude was down by 7 cents, or 0.2%, at $42.28 a barrel while WTI cride fell 13 cents, or 0.3%, to $39.49. |
| Gold prices jumped to Rs 49,100 per 10 gram, while silver climbed to Rs 51,900 from Rs 50,020 per kg. On MCX, August gold futures fell 0.75 per cent to Rs 48,878 while silver July futures slumped to Rs 51,091. In global markets, gold held above $1,800 after reaching that threshold for the first time since 2011. |
| LOOK WHO'S |  |
Long queue for YES Bank share sale… A clutch of top-rated insurers and asset managers is set to invest in the Rs 15,000 crore YES Bank share sale that opens next week. US-based asset manager Tilden Park, LIC, HDFC AMC and HDFC Life are among the companies set to invest in the issue. ICICI Prudential Life Insurance and Max Life Insurance are also in talks to subscribe.
Read More MF investors turn to passive funds… Passive funds are fast gaining popularity among institutional and high networth investors. Funds with no active role of a manager such as index and ETFs formed 47% of the total equity funds inflow in the 12 months to June 2020 compared with a share of just around 15.2% two years ago, according to the data from Amfi. The passive funds reported Rs 67,419 crore of inflow while the total equity fund flow including active and passive funds was Rs 1.4 lakh crore during the year ended June 2020.
Read More Auto firms seeking uptick on bookings… When showrooms reopened after 50 days of lockdown, auto makers wondered whether anyone would want to buy cars in the post-Covid age. But now they are concerned about getting enough supplies to meet demand and using this opportunity to recover from one of the worst years for auto sales. The uptick in personal mobility has been strong seven weeks into the reopening of dealerships. Stock has been slashed by 100,000 units and auto makers have generated bookings for more than 200,000 vehicles.
Read More | AND WHO'S |  |
Rana Kapoor's assets attached… The ED has provisionally attached Rs 2,203 crore worth of assets of Yes Bank founder Rana Kapoor, his family and DHFL promoters Kapil and Dheeraj Wadhawan in a money-laundering case linked to defrauding the bank. Their market value is over Rs 2,800 crore. The attached properties of the Kapoors— valued at Rs 792 crore, but with a market value of Rs 1,400 crore include a building at Cumbala Hill, three flats on Napeansea Road, a flat near NCPA, eight flats in IndiaBulls Blue, Worli, and a Rs 685 crore bungalow on Amrita Shergill Marg in Delhi.
Read More TCS Q1 bad, but commentary offers hope… TCS saw perhaps its worst performance ever in the first quarter of this fiscal year. Revenue dropped 7.8% to $5.1 billion, compared with the same period last year. Prior to this, the biggest decline was during the financial crisis But the company highlighted a more resilient and adaptive response form clients in the US, its biggest market contributing a half to the revenue and also the most affected by the pandemic, which analysts said promises a better Q2.
Read More PPF, bank FDs beat MF SIP returns…Investments in equity schemes in the past five years have fetched lesser average returns than fixed deposits of the best banks or the popular PPF. SIPs — a regular investment route in mutual funds similar to banks' recurring deposits — in various equity scheme categories returned 3-5% annually on an average in the past five years as majority of the fund managers have struggled to beat the indices.
Read More PolicyBazaar speaks out against the Chinese… PolicyBazaar CEO Yashish Dahiya has become the first CEO among India's most valued internet companies to speak out openly against China. Dahiya said the neighbouring country has "not played by the rules" as its economy is not open to companies across the world, while it has business opportunities globally. He added that if China's Tencent, which owns a 10% stake in PolicyBazaar's parent co EtechAces, so wants, the company is willing to buy back its shares.
Read More Meanwhile... Tatas reject Mistry quasi-partnership claim… Tata Sons, in its response to the Supreme Court petition filed by Cyrus Investments, a firm controlled by the Cyrus Mistry family, has rejected the latter's contention that it is a quasi-partnership. The Tata Sons affidavit also rejected the claim that members of the Mistry group are entitled proportionate representation on the board of Tata Group's holding company.
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