When the US Fed last month signalled low interest rates will continue for long, markets cheered. A fresh US Covid package was expected to emerge as another asset price inflator. But deflators are surfacing fast now. Central banks are running out of ammunition; many, including RBI, have stopped easing rates. Economies are reporting harsh contractions and rapid fiscal deterioration and governments are readying to pare some stimulus measures even though growth pickup remains patchy at best -- bar China. Potentially unnerving US elections are around the corner. If September first week is any indication, the August euphoria among FPIs for Indian equities is gone now. That's why the latest slippage on Dalal Street is being seen as an ominous sign.
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded 55 points lower at 7 am (IST) this morning, signaling a weak start for Dalal Street. |
| On Friday Nifty50 formed an indecisive candle on the daily scale with long upper wick, and a 'Bearish Engulfing' candle on the weekly scale. Analysts said Nifty needs to stay above the 11,300 level to avoid a steep fall. |
| The stock market selloff showed signs of easing on Monday. Shares were little changed in Japan and Australia, climbed in South Korea and fluctuated in Shanghai. Stocks slipped in Hong Kong, where protests again flared up on Sunday. |
| On Friday, the Nasdaq closed lower though well above its session low after investors dumped heavyweight tech stocks amid valuations concerns. Dow slipped 159 points, or 0.56% and the S&P500 28.1 points, or 0.81%, to 3,426. |
| Crude oil prices fell by more than $1 to hit their lowest since July after Saudi Arabia made the deepest monthly price cuts to supply to Asia in five months. WTI crude declined 1.3% to $39.27 a barrel and Brent 1.9% to $41.85. |
| Snapping a two-day losing streak, the rupee rebounded by 33 paise and settled at 73.14 against the US dollar on Friday. |
| The dollar edged higher this morning. The yen slipped 0.1% and the pound 0.2%. But the euro held at $1.1839 and the offshore yuan at 6.8333 per dollar. |
| Gold prices in India fell for the third day in a row on Friday as better-than-expected US jobs data strengthened the US dollar. On MCX, gold futures settled slightly lower at Rs 50,690 per 10 gm, while silver futures rose 8 per cent to Rs 67,481 a kg. In international markets, gold was steady at $1,937.40 an ounce. |
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Voda offers extra toppings to investors… Vodafone Idea is considering credit enhancement to provide additional comfort to global investors as plain vanilla offerings may not attract interest in a company with debt of almost ₹1.7 lakh crore, people familiar with the matter said. This could be part of the debt-structuring options that the company chooses from, they said.
Read More Maruti seeing major earnings upgrades… Maruti Suzuki is witnessing earnings upgrades driven by improving volume visibility after a gap of almost two years. The beginning of the earnings upgrade is an endorsement of the consensus opinion that overhang on earnings — on production as well as margins — has faded substantially. The stock has gained 26% in the past three months thanks to a massive rerating and investors' increasing allocation to discretionary over staples.
Read More Analysts say Q2 to show recovery signs… India Inc's June quarter performance was along anticipated lines with revenue and net profit falling at the steepest rates in at least nine quarters. Analysts expect to see signs of a recovery from the September quarter as factories and business establishments gradually reach their pre-pandemic operating levels.
Read More Happiest Minds IPO opens today... The Rs 702 crore IPO of Happiest Minds will hit Dalal Street on Monday. With services such as cloud and security and analytics accounting for 97 per cent of its revenues, the Bengaluru-headquartered company is being touted more as a digital services firm than legacy IT players, which have 35-50 per cent of revenues coming in from the segment.
Read More RIL draws plan to carve out O2C biz... Reliance Industries released a detailed plan to carve out its oil-to-chemicals business Sunday, following through on a proposal announced in April and readying the unit for a potential stake sale. The so-called scheme of arrangement lays out the details of the proposed move to spin off its entire oil-to-chemicals assets into a separate unit, by transferring some of the conglomerate's key oil and petrochemicals assets including those in refining, fuel retail and aviation fuel, according to a filing on Sunday.
Read More EPFO to open up for individuals…. India could throw open its key social security scheme — the Employees' Provident Fund to individuals, a top government official told ET. The move is expected to help the government expand social security coverage to more than 90% of workers not falling under any social security scheme at present.
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Ind directors leave in droves… The exodus of independent directors from listed companies is swelling. As many as 1,344 independent directors resigned from companies listed on NSE in FY20 – that's 45% more than a year earlier and an 80% increase from FY18, according to data from primeinfobase.com. 'Personal reasons' was the most common explanation for resigning. As many as 296 independent directors resigned, citing personal or health reasons, pre-occupations, conflict of interest, change of role, or disagreement. Another 184 independent directors did not offer themselves up for re-appointment after they retired or their term ended.
Read More Delhi farmhouses on sale… The sprawling farmhouses in and around the National Capital are once again beckoning businessmen and executives looking for open spaces, tired of being confined to their high-rise penthouses during the lockdown. About two dozen transactions for such properties were closed in the past two months, compared with an average two to three deals a month before the Covid-19 outbreak. About 500 farmhouses are on sale — ranging from Rs 10 crore to Rs 150 crore — in areas such as Westend Greens, Sultanpur, Pushpanjali, Vasant Kunj, DLF Chhattarpur, Radhey Mohan Drive and Ansal Satbari, brokers and industry watchers said.
Read More CLSA has a bleak view for India GDP… CLSA believes Covid-19 is likely to cost more than $600 billion to India's gross domestic product (GDP) and over $135 billion on government finances. The estimate of a 15% YoY fall in India's real GDP implies a more than $600 billion miss in FY21 nominal GDP. Loss of revenue plus Covid-19 economic package cost may impact combined state/central government FY21 finances by more than $135 billion, taking the FY21 fiscal deficit to 8% of GDP – about 12% including state deficits," the brokerage said.
Read More Raters in a soup over loan recast… As Corporate India and banks prepare to rejig loans and stay afloat, credit rating agencies are caught in a Catch-22 situation. In the absence of any regulatory direction, rating agencies are in a dilemma over downgrading a company which defaults before multiple banks finally agree on a one-time loan restructuring plan. It will take a few months before all banks in a lending consortium sign on the restructuring proposal — which could include a lower interest rate, longer repayment tenor, an initial moratorium period, and the extent of haircut banks have to take following the changed terms.
Read More Meanwhile... 30% bars go out of business… More than 30% of restaurants and bars in India have shut permanently in the April-August period because of the lockdown, the National Restaurants Association of India said. On Thursday, Jubilant FoodWorks said it is shutting down 105 unprofitable dine-in stores.
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