April-June period went down as a disrupted quarter for industry, as lockdown weighed on revenues and earnings in India as well as globally. While IT, telecom, financial services and pharma were least hurt — posting positive top-line and profit growth — auto and commodity sectors were worst hit. And now, the projections are that global-oriented sectors like auto, metals, chemicals and IT will lead earnings recovery from here on, while discretionary consumption sectors are likely to lag, as household incomes are likely to be cut aggressively. Edelweiss Research says Nifty EPS were not downgraded this earnings season, while some of the global-oriented names saw upgrades. Accordingly, consensus Nifty EPS is now projected at Rs 445 for FY21 and Rs 630 for FY22E. Peg your P/E estimate, and you get your Nifty level.
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded 44 points lower at 7 am (IST) this morning, signaling a weak start ahead for Dalal Street. |
| On Thursday, Nifty50 took out its immediate resistance at 11,300 at the very start, paving the way for a strong rally towards the 11,450 level. It formed a bullish candle on the daily chart and negated the formation of lower highs and lows of previous session. But analysts said a profit booking move can't be ruled out. |
| Stocks headed for a second week of losses as a fresh selloff in U.S. megacap technology shares highlighted the lingering concern over valuations in certain pockets of the market. Japanese shares reversed early losses on Friday to trade modestly higher with those in Hong Kong, while Shanghai Composite fell 0.1%, South Korea's Kospi index 0.5% and Australia's S&P 200 0.9%. |
| US stocks closed lower after a choppy trading session on Thursday. Dow fell 405.89 points, or 1.45%, to 27,534, while S&P500 lost 59.77 points, or 1.76%, to 3,339 and the Nasdaq 221.97 points, or 1.99%, to 10,919. |
| Oil prices extended declines on Friday under pressure from a surprise rise in US stockpiles. Brent slipped 8 cents, or 0.2 per cent, to $39.98 a barrel while WTI crude fell by 2 cents to $37.28. |
| The rupee strengthened by 9 paise and settled at 73.46 against the US dollar on Thursday supported by weak American currency and positive domestic equities. |
| The dollar clung to gains on Friday after a rout in stocks sent nervous investors to its safety. The euro rose 0.2 per cent and the offshore yuan 0.1 per cent. The yen traded at 106.17 to the greenback. |
| Gold prices in India continued to remain in a narrow range. Despite positive global cues, prices on MCX fell 0.02% to Rs 51,390 per 10 gm amid a stronger rupee, but silver gained 0.25% to Rs 68,619 a kg. In global markets, gold rose 0.7 per cent to $1,945 an ounce. |
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Shareholders get bigger say on CEO pay… From promoter executives of companies to professional CEOs, salaries of senior management at India Inc are undergoing changes to better reflect the performance of the companies and their business environment. Increased regulatory guidelines, shareholder activism and plain economics have been driving this change for some years now. In the latest development, the new CEO of loss-making Vodafone Idea will not be paid any remuneration during his current tenure of three years, as per the company's AMG notice to its shareholders seeking approval for his appointment. In the wake of Covid-19, senior management of several companies took a sharper pay cut than the rest of the staff.
Read More Investors add more gold to portfolios… Investors have been adding safe-haven gold to their portfolios this year as they remain on guard amid the uncertainty due to the pandemic, high US debt, dollar weakness and geopolitical tensions. Data from RBI and AMFI shows investors bought gold worth ₹10,130 crore in the first six series of sovereign gold bonds in the first five months of the current financial year, and pumped ₹3,900 crore into gold ETFs, totalling ₹14,000 crore. In the same period last year, they had bought ETFs worth ₹75 crore and ₹5,741 crore of sovereign gold bonds.
Read More Zomato plans IPO by mid-2021… Zomato has roped in New York-based investment fund Tiger Global as part of its current fundraising round, co-founder and CEO Deepinder Goyal said in an email to employees on Thursday. The firm is on course to tap the public markets by mid-2021, Goyal added in the email, which ET has seen. Goyal also said that the company had facilitated the sale of Esops for ex-employees worth $30 million (₹225 crore) to investors.
Read More Moratorium extension won't hurt bank profit… A virtual extension of the interest payments standstill on loans is unlikely to immediately hit the profits at banks as the affected lenders might still continue to accrue some interest on these advances. But bankers want the apex court to take a considered final view that would address the concerns of depositors as well. A complete waiver of interest will hit banks' profits the hardest as they will not only have to reverse the interest due on these loans, but also provide for losses arising out of them.
Read More Good start to festive season for Motown… The festive season of FY21 has got off to a good start with the 15 days of Ganesh Chaturthi and Onam recording strong double-digit growth of 15-20% over previous season. Carmakers have sold close to 50,000 units in the states of Maharashtra and Kerala during the key festivities in August, which usually attracts higher numbers of bookings and deliveries. This is for the first time in 3 years that carmakers have notched double-digit growth in sales during the key festive season.
Read More | AND WHO'S |  |
PSUs losing clout in overall m-cap…The insipid stock returns and unabated disinvestments are waning the Union government's clout in Indian equities. The proportion of the PSUs in India's total market capitalisation fell to a decade low of 4.6% in June 2020, according to an analysis by the ET Intelligence Group. There are 76 companies on the stock exchanges where the government holding is more than 50%. Their total market cap is Rs 12.5 lakh crore. Of this, 42% is spread among the top five PSUs by market cap including SBI, ONGC, Power Grid Corporation, NTPC, and BPCL.
Read More Crisil sees deeper contraction in FY21… Ratings agency Crisil forecast a deeper contraction of 9% in this financial year, against 5% projected in May, and called for reforms to get the economy on a faster recovery path as well as fiscal support to vulnerable households and small businesses hit hard by the Covid-19 pandemic. Another rating agency, Icra, kept its forecast of 9.5% contraction in 2020-21 unchanged, while maintaining that the economy was "undoubtedly recovering" from the lows of first quarter.
Read More Top banks report suspicious transactions… Banks including SBI, Bank of Baroda, ICICI Bank and HDFC Bank have started red-flagging transactions that defy traditional company patterns after witnessing a substantial spike in suspicious bank, cash and overseas transfers since the start of the Covid-19 pandemic. Especially under the scanner are companies where banks have noticed a sudden spurt in trading or increased dealing in unrelated goods and services or there's a sudden outflow of money to other countries, people familiar with the development said.
Read More Sebi probes tricky issues at Franklin… Sebi is examining a raft of tricky issues that have cropped up in a forensic audit carried out after Franklin Templeton (FT) shut down six mutual fund schemes on April 23. These pertain to redemptions in the six schemes in the months before FT announced their winding up, accommodation of long-term securities in short-term funds, delayed reaction to downgrades of papers, and the role of the trustees and board members of the asset management company in addressing risks, among other things.
Read More Meanwhile... Mehrishi panel to study interest waiver… The government has set up an expert committee headed by former comptroller and auditor general Rajiv Mehrishi to assess the impact of waiving interest and interest on interest on loans during the moratorium offered to Covid-hit borrowers that ended August 31. The panel, which was announced late on Thursday, has been asked to submit its report within a week. This followed the Supreme Court giving the government until September 28, when the next hearing will take place on petitions related to the moratorium, to clarify its view on waiving interest during the six-month period.
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