Market veteran Mark Mobius is puzzled by recent market behaviour. "Price to earnings ratios do not mean anything anymore. Of course this has been a situation for some time now, which is why the emphasis these days has been more on return on equity, return on capital employed, margins and that sort of things," says he. Markets have thrown traditional valuation matrices out of the window. This, he says, is happening because a lot of people are at home gaming the markets. The octogenarian investor compared the rally in concept stocks like Tesla to the dotcom bubble.
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded 15 points lower at 7 am (IST) this morning, signaling a tepid start ahead on Dalal Street. |
| On Wednesday, Nifty50 formed a small bullish candle on the daily chart following Tuesday's indecisive long-legged Doji, which suggests it may have entered a consolidation phase |
| Most Asia-Pacific stock markets rose this morning after US equities set a fresh all-time high. Japan's Topix pared initial gains and South Korean Kospi rose 1 per cent, Hong Kong's Hang Seng slipped 0.4%, Shanghai Composite was little changed and Australia's S&P/ASX 200 added 0.6%. |
| On Wall Street, the three major indices moved higher, but gains were led by defensive sectors, as the high-flying tech sector paused. Dow rose 454 points, or 1.59 per cent, S&P500 54 points of 1.54 per cent and the Nasdaq 116 points or 0.98 per cent. |
| Oil prices were little changed early Thursday, sitting near multi-week lows. WTI crude futures inched up 3 cents, or 0.1 pe cent, to $41.54 a barrel, while Brent futures slipped 7 cents, or 0.2 per cent, to $44.36 |
| The rupee depreciated 16 paise and settled at 73.03 (provisional) against the US dollar on Wednesday tracking muted domestic equities and strengthening American currency. |
| The Dollar clung on to overnight gains and sat about 1% above the 28-month low hit on Tuesday. The yen was little changed against the greenback. The offshore yuan traded at 6.8327 per dollar. The euro was down 0.2%. |
| Gold and silver edged lower on Wednesday in Indian markets amid muted global cues and a strong rupee. On MCX, October gold futures fell 0.12 per cent to Rs 51,438 per 10 gm while silver futures slumped 1.6% or Rs 1,150 to Rs 69,732 a kg. In global markets, Spot gold fell 0.7% to $1,957.15 per ounce as the US dollar rebounded from two-year lows. |
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Realtors want moratorium interest at deposit rates… Finding that it would be difficult to get waiver of interest, or even interest on interest, on loans during the six-month moratorium period, various industries on Wednesday requested the Supreme Court to direct the Centre and the RBI to substantially lower the rate of interest on loans for the period of freeze. "Even if the interest is not waived, then it must be reduced to the rate at which banks are paying interest on deposits. The industry is in dire straits and loans taken by it would soon turn into NPAs (nonperforming assets)," the counsel for the real estate sector said.
Read More Motown plans surge in output… Maruti Suzuki, Hero MotoCorp and M&M — No. 1 in cars, two-wheelers and tractors, respectively — are planning a surge in production over the next few months, marking a revival from the lockdown months and a poor FY20, said people with knowledge of the matter. Experts said demand is rising for personal transport because of Covid distancing norms while a good harvest thanks to a normal monsoon has boosted farm incomes.
Read More Big rebound in factory output… Activity in the country's manufacturing sector rebounded in August after four months of contraction, led by an increase in new orders, a survey showed on Tuesday. The data provided some relief from the grim economic numbers in recent months that showed the economy contracting by a record 23.9% in the June quarter. The survey showed that output and new orders expanded at the fastest pace since February. But job cuts continued into August, extending the current sequence of decline to five months.
Read More India ranks 48th in innovation index… India has been ranked 48th on the Global Innovation Index 2020 among 131 economies, breaking into the top 50 countries for the first time. Moving up four positions from last year, three 'clusters' — Bengaluru, Delhi and Mumbai — feature in the top 100 science & technology hotspots, further endorsing India's presence in the global innovation economy.
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New margin rule triggers chaos… Sebi's new margin and share pledging norms sent market participants into a tizzy as brokers and traders alleged that the modified system was faulty and could not handle the trade traffic. Chaos reigned in the market on Wednesday as brokers said share pledges of clients for the purpose of margins were not being reflected in the systems, denying them the opportunity to trade.
Read More Smartphone prices set to rise… Smartphones may soon cost more in India, with Chinese suppliers of key components such as display panels and battery packs hiking prices by about 15%. The higher cost of these components — which make up some 25% of a smartphone's value — may lead to higher prices or lower discounts during the key festival season.
Read More Corporate insolvency cases drop 83%... The number of corporate insolvency resolution processes (CIRPs) admitted by the National Company Law Tribunal (NCLT) dropped by 83% in the June quarter on a sequential basis. The drop was largely due to the notifications issued by the government to protect companies from the impact of the pandemic and the ensuing lockdown.
Read More 118 new apps banned in India… As border tensions between India and China escalated yet again, the government on Wednesday mounted a fresh strike on Chinese and Chinese-controlled apps, banning as many as 118 new apps for engaging in activities "prejudicial to the sovereignty and integrity of India, defence of India, security of state and public order". The biggest casualty in the fresh round of bans is PUBG, the world's most lucrative mobile game whose largest subscriber base is in India.
Read More Meanwhile... Biden gets big backing… 81 Nobel laureates endorsed Democrat Joe Biden for president in an open letter on Wednesday, citing the former vice-president's "willingness to listen to experts" and his "deep appreciation for using science to find solutions", even as incumbent Donald Trump continued to denigrate his opponent as a "low energy candidate" who would be a disaster for the US. The Nobel laureates, all winners of the prize in chemistry, medicine and physics, stressed the importance of elected leaders making decisions based on science, particularly during a pandemic.
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