A top money manager on Dalal Street captured an interesting historical trend to justify what is otherwise looking like a blind bull run on Dalal Street. "India's economic history of last 40 years suggests the economy booms a year after every US recession. That's because a US recession delivers two things India needs the most: cheap oil and cheap money," says Saurabh Mukherjea of Marcellus. This, he says, has happened four times in last 40 years. And he hopes to see history repeat itself in the fifth US recession in his lifetime. If it, indeed, is going to pan out that way, this market rally surely has legs.
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded 5 points higher at 7 am (IST) this morning, signaling a flat start ahead for Dalal Street. |
| Nifty50 forming a small bearish candle on the daily chart on Tuesday as it closed lower than its opening level. Analysts, however, said the index continued to form higher highs and lows and supports shifted higher. |
| Asian stocks began in mixed fashion despite another record high on Wall Street. Shares fluctuated in Japan and South Korea, and dipped in Australia. In New Zealand, equities were disrupted for a second day after a cyber-attack halted activity Tuesday. |
| The S&P 500 and the Nasdaq hit all-time closing highs overnight, but a drop in Apple stock capped gains. Dow fell 60.02 points, or 0.21%, to 28,248, while the S&P500 rose 12.34 points, or 0.36% and the Nasdaq 86.75 points, or 0.76% |
| Crude oil traded near the highest in five months as Hurricane Laura bore down on key refining facilities on the US Gulf Coast. Brent futures rose 73 cents, or 1.6%, to settle at $45.86 a barrel, while WTI crude rose 73 cents, or 1.7%, to $43.35. |
| The rupee moved in a range of 34 paise against the US dollar on Tuesday before ending flat at 74.32 for the day, amid a mixed trend across Asian currencies |
| The dollar retained losses. Technical model suggests the greenback could see a short-term bounce. The yen dipped. The dollar was down 0.4% against the euro, while the pound was up 0.7 per cent against it. |
| Gold prices continued its decline for the sixth day falling to Rs 51,454 per 10 gm while silver prices eased to Rs 64,594 a kg. On MCX, gold October futures skidded 0.51% to Rs 51,009 on Tuesday, while silver futures for September plunged 2.13% Rs 64,175. Globally, gold was little changed this morning. |
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FM hints at new growth stimulus… The government on Tuesday hinted at fresh measures, including GST review on two-wheelers, and a possible second stimulus once Covid-19 cases decline. Expenditure secretary T V Somanathan said another economic package might be considered in future. At a meeting with industry captains, Finance Minister Nirmala Sitharaman on Tuesday recognised the need for additional measures for stressed sectors such as hospitality, tourism, aviation, real estate and construction.
Read More PAG's first India investment in Edelweiss… Pacific Alliance Group, the world's largest Asia-focused alternative asset management company, is set to take a majority stake in the wealth, investment banking and capital markets businesses of Edelweiss Financial Services, said multiple people aware of the matter. This will mark PAG's maiden private equity investment in India.
Read More RBI's Op Twist to remove kinks in yield curve… RBI on Tuesday said it would buy longer duration bonds worth Rs 20,000 crore and sell an equivalent amount of debt maturing in the next two-three months, helping debt-market yields to soften temporarily through its latest announcement on 'Operation Twist'. The central bank will conduct two auctions on August 27 and September 3 to help remove kinks in the broader yield curves.
Read More MFs deploy cash in full force… After playing safe by holding cash during the early months of Covid-19 pandemic, mutual funds have once again started deploying cash. According to an analysis of mutual fund fact sheets by Motilal Oswal Financial Services, average cash holding at the top 20 funds dropped to 4.3% of the portfolio holdings in July, the lowest since January 2020.
Read More | AND WHO'S |  |
Institutional investors no more rubber stamp… Institutional investors are no longer rubber-stamping reappointment of directors of listed companies, they are actively voting against them over matters of performance. In the past month, at least 20 companies have seen them vote en bloc against such appointments, according to an analysis by ET.
Read More RBI says recovery will be long haul… RBI on Tuesday said Covid-19 had caused a severe shock to consumption, which will take a long time to recover, and it is government spending that will support the economy. "An assessment of aggregate demand during the year so far suggests that the shock to consumption is severe," it said in its annual report. "It will take quite some time to mend and regain the pre-Covid-19 momentum."
Read More Shareholders slam TaMo top brass… Shareholders of Tata Motors lashed out at the company's leadership at the annual general meeting on Tuesday for denying them dividends and questioned the deterioration in investors' wealth. "When will the company be back on the dividend paying list?" asked a shareholder. Tata Motors last paid a dividend of 20 paise in July 2016.
Read More Meanwhile... Tech biggies in a tax mess… It's a taxman versus internet majors standoff — companies such as Google, Facebook, Netflix, LinkedIn haven't paid the April-June quarter's 2% equalisation levy that fell due on July 7. The new levy was announced in the 2020-21 budget. Companies claim this is due to lack of clarification on issues such as whether the tax will be payable on gross or net revenue. Tax department officials say "there's no confusion", and that tax will be calculated on "total money spent by Indians on these platforms".
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