The most confusing bit about the current stocks rally is that it is not showing any sectoral trend. One generic theme that has already played out has to do with non-leveraged midcaps and smallcaps. And now it's all about bottom-up evaluations. Analysts say the hunt now should be for structurally good businesses that are facing cyclical headwinds because of one reason of the other. These are the stocks that would make money once these cyclical headwinds go away.
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded nearly 62 points lower at 7 am (IST), signalling weakness ahead on Dalal Street. Asian shares got off to a cautious start on Tuesday lacking any lead from Wall Street and after the IMF shaved its outlook for world growth this year, though it did offer a brighter view on China.
HERE'S WHAT TO WATCH  | MSCI's broadest index of Asia-Pacific shares outside Japan was fractionally down 0.04%. Moves elsewhere were likewise modest, with Japan's Nikkei down 0.1% and South Korea's Kospi 0.04%. |
| US markets were closed on Monday for Martin Luther King, Jr. Day. |
| Oil prices rose on Tuesday after Libya declared force majeure on two major oilfields following a military blockade and protests escalated in Iraq, raising supply concerns. Brent crude traded 11 cents higher at $65.31 a barrel and WTI crude rose 20 cents to $58.74 |
| The rupee slipped 3 paise to close at 71.11 against the US dollar on Monday, tracking a steady rise in crude oil prices and weakness in domestic equities. |
| LOOK WHO'S |  |
FII Protection Law on Anvil… A new legislation aims improve protection for foreign investors in India by offering relief from possible policy changes but will uphold the state's right to tax them. The bill attempts to upgrade India's investment climate and boost foreign investment by setting up new adjudicating authorities to swiftly resolve disputes. It is part of India's efforts to become a $5 trillion economy by 2024. But the draft text of the new law dated Nov. 15 does not cover demands related to enforcement of tax obligations, a critical area of concern for foreign investors.
Read More Telcos Back in SC... Bharti Airtel and Vodafone Idea have moved the Supreme Court in a bid to delay payments that are due Thursday. Tata Teleservices has also done so, said people with knowledge of the matter. The operators want to be allowed to negotiate conditions and schedules for payment of statutory dues with the Department of Telecommunications (DoT), according to their petitions. Vodafone Idea told the court that if no relief is forthcoming, it will have to shut.
Read More No Bitcoin Ban… The Reserve Bank of India has said it had not banned cryptocurrencies such as Bitcoin in India, but only ringfenced regulated entities like banks from risks associated with trading of such virtual instruments. The central bank said this in a response to a petition filed by the Internet and Mobile Association of India, which wanted it to reconsider a 2018 circular directing regulated entities not to deal in cryptocurrencies.
Read More | WHO'S |  |
Debt Investors' Dilemma... The markdown in papers of Vodafone Idea by Franklin Templeton, which has led to markto-market losses of 4-6% for investors in schemes that held the paper, has revived worries about the safety of debt mutual fund products. In the last two years, there have been mark-to-market losses in various debt schemes due to schemes holding paper of IL&FS, DHFL and some ADAG companies. Investors have been hit across categories of mutual funds — be it ultra short term, duration or credit. This has perturbed debt mutual fund investors who are increasingly wary of putting money into these schemes.
Read More Bleak Growth Outlook… IMF has slashed its estimate on India's 2019 economic growth to 4.8% from the 6.1% expansion it projected in October, citing a sharper-than-expected slowdown in local demand and stress in the non-bank financial sector. The steep cut in India's growth rate has weighed on IMF's projection on the world economy, which it now expects to have expanded 2.9% in 2019 compared with the previous forecast of 3.0%. IMF's World Economic Outlook Update revised India's 2020 growth forecast to 5.8%, down 0.9 percentage points from the previous estimate. For 2021, the estimate is 6.5%.
Read More Meanwhile... Double whammy for telcos… The telecom regulator's recent decision to defer implementation of the zero-interconnect usage charges regime appears to have boomeranged on Vodafone Idea and Bharti Airtel, say analysts. Mukesh Ambani-led Reliance Jio now stands to pocket as much as Rs 1,600 crore in interconnect fees from the two older carriers over the next one year, having become a net IUC recipient in the October-December period, analysts said. Vodafone Idea and Airtel, they said, could report lower operating income in the December quarter itself.
Read More 
Buy
No comments:
Post a Comment