As Covid-immune Nasdaq rules at record highs, it trades at a P/E multiple of 60, and Dow at about 23-24. For Nifty, Dalal Street veteran Raamdeo Agrawal estimates current P/E at roughly 20-22 times on an EPS of about Rs 500. That, he says, clearly limits the scope for P/E multiple expansion in domestic stocks. But India being a growth economy, if we can quickly go back to the potential of 7-8-9 per cent growth, then the P/E multiple can go to even 28-30 levels for some time, before reverting to the 18-20 range, says he. Now you know why it's hard not to see the silver lining.
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded 22 point higher at 7 am (IST) this morning, signaling a positive start for Dalal Street. |
| On Tuesday, Nifty50 broke above its crucial resistant zone at 11,350-70 and analysts said the index now looked headed towards the 11,450 level. |
| Asia shares traded mixed this morning. South Korean shares rebounded from Tuesday's slide, while Japan traded flat and Australia edged higher. Chinese shares slipped after the Trump administration warned US colleges to divest them. The morning session for Hong Kong's equity market was cancelled due to a typhoon. |
| The S&P 500 rose to an all-time high on Tuesday, capping off its incredible recovery from the coronavirus-induced sell-off. The index climbed 0.2% to a record close at 3,389. Nasdaq also hit a record, climbing 0.7% to 11,210. The Dow lagged, falling 66.84 points, or 0.2%, to 27,778 |
| The rupee settled 12 paise higher at 74.76 against the US dollar on Tuesday as heavy buying in domestic equities and weak US currency strengthened investor sentiments |
| The dollar struggled to recoup heavy overnight losses on Wednesday after it slipped to 27-month low the previous session. The greenback hit fresh lows against most major currencies overnight |
| Oil prices slid on Wednesday as concerns grew that U.S. fuel demand may not recover quickly amid stalled talks on a post-coronavirus economic stimulus package. Brent futures fell 38 cents, or 0.8%, to $45.08 a barrel, while WTI futures fell 25 cents, or 0.6%, to $42.64 |
| Gold prices edged lower on Tuesday, tracking a drop in global rates. On MCX, October gold futures fell 0.04% to Rs 52,207 per 10 gm. Silver futures, however, edged 0.35% higher to Rs 67,403 a kg. In global markets, spot gold prices fell 0.2% to $1,941 an ounce. |
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T Rowe Price to hike stake in UTI… US asset manager T Rowe Price is set to increase its stake in UTI Trustee Company to 51% from 26%, a move that will put the firm in the driver's seat at the country's eighth-largest mutual fund, two people with direct knowledge of the development said. T Rowe Price, already the biggest shareholder in UTI Mutual Fund, will acquire a portion of the shareholding of LIC, SBI and BoB in the trustee company.
Read More Max Healthcare set for D-Street debut… Max Healthcare, India's second-largest private hospital chain by revenues, is getting listed this week. But that's not the only reason why the Street should take note of it. It is the first healthcare company to get listed in India with a private equity player (KKR) as its largest promoter with a 52% stake. It is also the only leading hospital chain to not have a medical doctor at the helm or among its seven-member board of directors.
Read MOre Top retail brands seal rental discounts… Several top retailers, including Aditya Birla Fashion, Shoppers Stop, Reliance Retail and Tata Trent, successfully negotiated sizable rental discounts in the April-June quarter from malls across major metros. Malls were either shut or operated under multiple restrictions in this period dominated by lockdowns. The rent discounts indicate increased pressure on mall operators and landlords. A big portion of consumers continue to stay away from high streets and shopping malls amid the pandemic.
Read More Indiabulls set to exit real estate… Indiabulls group is close to a deal that will see its exit from the real estate development space, one of the areas its name has been associated with for years. This would be a three-way deal involving Indiabulls group, Bangalore-based real estate major Embassy group and global private equity giant Blackstone. It will result in the unlisted Nam Estates merging into the listed Indiabulls Real Estate through a share-swap deal. This would create the second-largest listed real estate entity in India, after DLF.
Read More Fund managers turn bullish on equity… The bullish sentiment among global fund managers has returned to levels seen before the pandemic and they are no longer seeing the rally in financial markets as a bear market rally, showed the Bank of America fund manager survey of August. Investors are expecting higher growth and announcement of a Covid-19 vaccine early in the first quarter of 2021.
Read More | AND WHO'S |  |
5 million salaried employees lose jobs… Nearly 5 million salaried employees lost their jobs in July, taking the total number to 18.9 million due to the Covid-19 pandemic and the lockdown that followed, said CMIE. That marks a reversal from a brief recovery in salaried jobs in June and likely reflects a slump due to the imposition of mini shutdowns in containment zones. However, counting the informal sector, overall job losses narrowed in the month sequentially from April, it said in a report released on Tuesday.
Read More Jio tells SC RCom AGR dues not its liability… Reliance Jio told the Supreme Court on Tuesday that it cannot be asked to pay entire AGR dues of RCom for sharing its spectrum and can be made liable to pay for only the portion of spectrum used by it, which is 23.5 per cent. Senior advocate Harish Salve said Jio had cleared all AGR dues by depositing Rs 195 crore with the government, including the AGR dues arising out of using RCom spectrum.
Read More Airtel to replace Huiwei, ZTE in 5G trials… Bharti Airtel is preparing to replace Huawei and ZTE with European vendors for 5G trials. People familiar with the matter said Airtel will soon submit fresh applications for the trials in Kolkata and Bengaluru with Finland's Nokia and Sweden's Ericsson, instead of the Chinese companies with which it had previously tied up.
Read More Bankruptcy fears help settle 9,650 cases… The fear of the bankruptcy action has helped settle over 9,650 cases involving claims of around Rs 3.7 lakh crore, with companies and their promoters settling the dues before the case was admitted in the NCLT. Up to December 2019, this debt had been settled as operational creditors, such as suppliers, or financial creditors, like banks, threatened to initiate action, data with the Insolvency & Bankruptcy Board of India (IBBI) showed.
Read More Meanwhile... Now, Templeton puts curbs on FOFs… Franklin Templeton has imposed investment curbs on three of its asset allocation fund of fund schemes, which invested a part of their debt allocation in two plans that are part of the six the fund house decided to wind up late April. "In limiting inflows into the FoFs, our attempt is to gate any arbitrage opportunities available to new investors while protecting the interest of existing investors," said a spokesperson for the fund house said.
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