While gold continues to rule at eye-popping prices, Dalal Street veteran Raamdeo Agrawal has a contrarian view. Gold is a hedge against inflation, but the world is suffering from deflation right now, and not inflation, says he. " The world is becoming like Japan. Europe and America are trying to keep the prices in the positive territory. I see more of deflation everywhere, except in India. But there's a lot of fear of inflation, and that is driving gold prices higher." There is speculation that gold price can triple. Agrawal does not dispute that as there's a massive liquidity. "But if gold can triple, stocks can go up 10 times," says he.
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded 40 points higher at 7 am (IST) this morning, signaling a positive start ahead for Dalal Street. |
| On Monday, Nifty50 topped the 11,450 mark and formed a bullish candle on the daily chart. Analysts said the NSE barometer needs to hold above 11,350 to keep the positive momentum going. |
| Asian stocks climbed this morning after US equities rose to a record on optimism about treatments for the coronavirus. Stocks rose in Japan, Australia and South Korea. Nikkei opened 1% higher, as did the Kospi. |
| The S&P500 and Nasdaq reached new record closing highs on Monday amid optimism over potential medical advances in the war against Covid. Dow rose 378 points to 28,308, the S&P500 gained 34.12 points, or 1.00%, and the Nasdaq 67.92 points, or 0.6% |
| Oil prices pulled back as traders eyed Tropical Storm Laura, which is expected to strengthen into a hurricane before making landfall later this week. WTI crude fell 0.3% to $42.51 a barrel. |
| The rupee gained 0.70% on Monday to close at 74.32 to the dollar, marking its strongest level since March 18, before the Covid lockdown was imposed. |
| The dollar found support from an overnight rise in yields. The offshore yuan strengthened after Washington said both China and the US see progress on their trade pact. The euro traded little changed. |
| Gold prices fell to Rs 55,310 per 10 gm on Tuesday, while silver declined to Rs 66,700 a kg. On MCX, Oct gold futures fell 1.44 per cent to Rs 51,269 while September silver futures closed at Rs 65,569. In international markets, the yellow metal rose 0.1% to $1,930 an ounce. |
| LOOK WHO'S |  |
FIIs driving stocks rally now… August has seen the highest FII inflows into Indian shares in 118 months, or since October 2010, underpinning the global and domestic liquidity-induced rally amid the Covid pandemic. Foreign investors net purchased shares worth $5.43 billion in the month through August 21, the highest monthly purchase since October 2010 when they bought $6.42 billion worth of shares.
Read More Nifty Golden Cross signals further gains… India's benchmark stock indices are likely to log further gains as the Nifty formed the Golden Crossover pattern, which is seen as a bullish sign. Analysts said the market tends to go up by another 5-10% in the weeks after this occurs on the charts. A Golden Cross is formed when a stock or an index's 50-Day Moving Average crosses above its 200-DMA — a crucial long-term trend indicator.
Read More Aramco may junk refinery project for RIL deal… Saudi Aramco Managing Director Iman Nasseri on Monday said the company may pull out of a planned refinery in India in favour of a separate $15 billion downstream project with Reliance Industries. The company is adjusting to weaker energy prices as the coronavirus pandemic hammers the global economy, and is slashing investment so it can fulfil its pledge to pay a dividend of $75 billion in 2020.
Read More | AND WHO'S |  |
Govt told to cancel spectrum to bankrupt telcos… The Supreme Court said the government must cancel licences and spectrum of telcos that refuse to pay pending AGR dues of insolvent operators after using their airwaves. Reserving its judgement, the top court also pulled up the Department of Telecommunications for not raising AGR demands from telcos that have used the spectrum of ailing operators even 10 months after its October 2019 ruling.
Read More Average India increments drop to 3.6%... Average increments in India narrowed to 3.6% from 8.6% last year, with only 40% of companies raising pay, according to the 2020 Workforce and Increments Trends Survey by Deloitte Touche Tohmatsu India LLP. Almost a third of the companies surveyed decided they wouldn't give increments this year, while 27% are yet to take a call; 30% have cut salaries for some staff at least.
Read More RBI asks banks, NBFCs to raise for fund… RBI is pushing banks and NBFCs to raise capital to brace for a possible pile-up in bad debt in the coming months. Private sector lenders such as ICICI Bank, HDFC Bank and Axis Bank have responded by raising over Rs 50,000 crore among them, but their public sector rivals are seen to be slow to enter the market, despite abundant liquidity in the system due to stimulus packages announced by governments across the world.
Read More Meanwhile... Builders to pay interest for delivery delay... The Supreme Court said on Monday builders must pay homebuyers annual interest on the cost of the flat for the period of delay in delivery, besides the meagre monthly per square foot penalty mentioned in the apartment buyers agreement. An SC bench asked DLF Southern Homes and Annabel Builders & Developers, which were constructing 1,980 units in Bengaluru, to pay 6% interest per annum on the cost of the flats to those buyers who were given possession after a delay of two to four years.
Read More 
Buy
No comments:
Post a Comment