In last 12 years, Nifty has corrected more than 25% three times, and on each occasion, it has retraced the entire decline completely within the following year. ICICIdirect cites that historical anecdote to project Nifty's return to its all-time high of 12,400 by March, 2021. That looks possible if the current momentum continues. The brokerage says in the next leg of market rally to that pinnacle height, IT, pharma, insurance, auto and chemicals stocks should extend their outperformance while consumption and banking stocks are going to do catch-up. People who are buying the dips in the current round to help the 50-pack rebound from every decline seem to be firm believers of this theory.
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded 25 points higher at 7 am (IST) this morning, signaling a positive start ahead for Dalal Street. |
| On Wednesday, Nifty formed a bullish candle on the daily chart. However, chartists have turned cautious on further movement of the 50-pack. |
| Asian stocks began Thursday's session mixed as a rally that pushed global equities to a record high showed signs of stalling ahead of a speech from Fed Chair Jerome Powell. Japanese shares slipped, while those in South Korea and Australia traded flat. |
| S&P 500 and Nasdaq rallied to fresh records on upbeat corporate results in overnigth trade. Dow rose 83.48 points, or 0.3%, while the S&P500 gained 35.11 points, or 1.02%, and the Nasdaq 198 points, or 1.73%. |
| Oil prices were mixed in early trade on Thursday even as oil rigs and refineries shut ahead of a massive storm in the Gulf of Mexico. WTI crude futures fell 5 cents, or 0.1%, to $43.34 a barrel while Brent futures inched up 2 cents to $45.66 |
| The rupee pared some of its early gains and settled 3 paise higher at 74.30 against the US dollar on Wednesday |
| The dollar edged lower. The offshore yuan traded at the highest since January amid signs of tight liquidity. The yen rose 0.2% and the euro 0.1 per cent |
| Gold prices fell to Rs 54,380 per 10 gm on Thursday, while silver climbed to Rs 65,550 a kg. On MCX, October gold futures jumped 1.68 per cent to Rs 51,779 on Wednesday, while silver September futures closed at Rs 67,529. In international markets, gold lost 0.5 per cent to $1,945.98 an ounce. |
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MS says India to outperform EM peers… Morgan Stanley said Indian equities will likely outperform emerging markets and perform less idiosyncratically if the dollar index enters a prolonged decline. The brokerage said returns from Indian stocks have a 'positive connection' with changes in foreign exchange reserves, which in turn rise with a falling dollar index as the RBI tends to intervene more to stem the rupee's appreciation.
Read More Maharashtra cuts stamp duty to boost realty… In a major decision to revive the stagnant property market, the Maharashtra cabinet on Wednesday decided to reduce stamp duty on flats for seven months, starting September. The duty will be lowered from the existing 5% to 2% starting September 1 till December 31 and will be pegged at 3% from January 1 till March 31, 2021. The reduction in stamp duty, though temporary, could be substantial for a prospective home buyer. A flat costing Rs 1 crore attracts a duty of Rs 5 lakh. It will now be Rs 2 lakh from September to December end, and Rs 3 lakh from January 1 to March 31, 2021.
Read More Govt allows IOC ex-chief to join RIL in 2 months… Nearly two months after retiring as chairman of India's largest oil refiner and fuel retailer IndianOil, Sanjiv Singh has moved to the state-run entity's arch-rival RIL as group president and member of its O2C (oil-to-chemicals) business leadership team. Singh is the second head of a public sector oil & gas company allowed by the government to move to a private competitor before the mandatory one-year cooling-off period. In 2001, C R Prasad had moved to British Gas after retiring as CMD of state-run gas utility GAIL.
Read More Kamath goes to raters to get loan recast formula vetted… The KV Kamath Committee, tasked with creating a framework that would govern debt restructuring, has approached credit rating companies to help assess the cash-flow needs of the potentially stressed accounts and the parameters the agencies would use to rate the borrowers once the payments standstill ends. The five-member panel has approached Crisil, Icra and CARE on different parameters for loan restructuring plans.
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US-China tensions flare up… US-China tensions over the South China Sea escalated on Wednesday with Beijing firing four missiles into the disputed waterway. The Trump administration strengthened action against companies that helped set up outposts in the region. The move came a day after Beijing protested a flyover by a US spy plane.
Read More Alibaba stalls India investments for six months… China's Alibaba Group has put on hold plans to invest in Indian companies, two sources aware of the plans told Reuters. The group will not put in fresh funds to expand its investments in the country for at least six months amid souring business relations and rising political tension between the two nations.
Read More Shareholders veto JSW related-party transaction… A Rs 9,000 crore related party transaction proposed by JSW Energy was blocked by minority shareholders at the company's AGM this month because the deal reportedly benefited JSW Group companies and the promoters, but not minority owners. The company wanted to procure coal from JSW International Trade Corp, a Singapore-based trading company that routes coal imports for JSW Group companies from Indonesia, South Africa, Australia and Mozambique. Over 70% of minority investors, led by institutions, voted against it.
Read More India may have seen lowest growth in Q1… India is likely to have seen its lowest point of growth this year during the April-June quarter at -15.2%, said Nomura. The Japanese brokerage said in a report on Wednesday that no quarter would see positive growth in this financial year, resulting in -6.1% gross domestic product (GDP) growth rate. Further, the Nomura India Business Resumption Index flatlined at 73.4 for the week ended August 23, suggesting slower pickup as the post-lockdown euphoria eased, the report said.
Read More Meanwhile... Stormy meet ahead at GST Council… The GST Council meeting on Thursday is expected to be a stormy one, as states are set to clash with the Centre on the issue of delayed compensation payments. Those ruled by the opposition have opposed the idea that states should themselves borrow from the market if the Centre is unable to pay GST compensation because of revenue constraints.
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