A joke doing the rounds on social media says markets have gone up because companies beat Street with Q1 earnings, and that happened because analysts lowered their estimates. A Motilal Oswal report substantiates that, saying June quarter earnings turned out to be better than expectations because of extremely muted outlook. Another factor behind the good numbers was sharp cost cuts across sectors. On the PAT front, of the 33 Nifty companies, 17 surpassed, 8 missed and 8 met expectations, says Motilal. Earnings upgrade-downgrade ratio for FY21 is now skewed in favour of upgrades. Remember, those upgrades are on extremely gloomy estimates in the first place.
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded 15 points higher at 7 am (IST) this morning, signaling a positive start ahead for Dalal Street. |
| On Wednesday, Nifty50 could not stage follow-up buying after Tuesday's gains, and ended flat. Selling pressure emerged as the index entered the resistance area in the 11,200-240 zone. Analysts said a decisive close above this range is a must for the index to resume the uptrend. |
| Asian stocks extended this week's advance amid encouraging news on the vaccine front and speculation over progress on a US stimulus package. Shares edged up in Hong Kong and Japan, while those in South Korea outperformed. |
| Overnight, the Nasdaq rose 0.52% to register a new record close, while Dow closed up 1.39% for its fourth straight positive day. The S&P500 gained 0.64% |
| The rupee gained 10 paise to 74.94 against the US dollar on Wednesday tracking positive domestic equities and weak American currency. |
| The dollar slipped towards its lowest in almost two years. The yen rose 0.1%, the offshore yuan gained 0.1% and the euro gained 0.2%. |
| Oil prices were unchanged on Thursday, struggling to hold onto five-month highs reached in the previous session. WTI crude futures slipped 3 cents, or 0.1%, to $42.16 a barrel, while Brent futures rose 6 cents to $45.23. |
| Gold prices jumped to Rs 54,700 per 10 gm, while silver climbed to Rs 71,500 per kg on Thursday. On MCX, August gold futures jumped 1 per cent to Rs 55,098 while silver September futures hit Rs 71,893. In global market, the yellow metal remained above $2,000 an ounce. |
| LOOK WHO'S |  |
Axis Bank QIP draws global biggies… The biggest in global finance want to be allied with Axis Bank. A share-sale offer by India's fourth-biggest private lender has drawn the $1 trillion Norges Bank Investment Management and the $800 billion Abu Dhabi Investment Authority (ADIA), besides international funds such as Fidelity Investments and Nomura Asset Management. Bids were nearly three times the Rs 10,000 crore in QIP of stock on offer.
Read More Liquidity glut fuels bullion surge… As central banks across the world continue to infuse money into the system to insulate their economies from the impact of a Covid-induced slowdown, investors globally have stepped up their safe-haven play by betting increasingly on the yellow metal. The sharp decline in demand for jewellery in the world's two largest markets — China and India — was more than offset by the jump in demand by gold exchange-traded funds. Along with gold, the demand for silver as an investment avenue is also on the ascent and prices are nearing record levels globally.
Read More NHAI eyes InvIT to monetise assets… The National Highways Authority of India is eyeing monetisation of its operating assets through the infrastructure investment trust (InvIT) and special purpose vehicle routes, after the toll operate transfer (TOT) model has seen a setback amid uncertainty around traffic visibility. "TOT as a model may not find takers going ahead, given the uncertainty of traffic," a senior government official told ET.
Read More Tyagi term extended as Sebi chief… The government on Wednesday extended the tenure of Ajay Tyagi as Sebi chairman by 18 months till February 2022. The extension comes at a time when the economy and the markets are passing through a tough phase, mainly induced by the coronavirus pandemic. This is the second extension for the Sebi chief. Earlier this year, Tyagi was given a six-month extension.
Read More | AND WHO'S |  |
RBI probes bank-brokerage loan deals… RBI has initiated a probe into funding arrangements between some private banks and stock brokers after a lender's refusal to pay up as part of a share-settlement process led to a legal dispute. The central bank has written to Sebi, seeking details about socalled fixed deposit receipts, an instrument that brokers place with the clearing members of trades as collateral.
Read More ED set to chargesheet Kochhars… The Enforcement Directorate is likely to soon file its first chargesheet in a case of alleged money laundering involving former ICICI Bank chief Chanda Kochhar and her businessman husband Deepak. The agency had registered the case in February, days after CBI booked the Kochhars and Videocon Group managing director Venugopal Dhoot over alleged quid pro quo in loan transactions between ICICI Bank and the conglomerate when Kochhar was the bank's chief executive. CBI had accused her of allegedly receiving "illegal gratification" through her husband from Videocon for sanctioning a term loan of Rs 300 crore.
Read More Services activity shrinks in July… India's services sector activity shrank for the fifth consecutive month in July even though the pace of contraction slowed compared to June, a clear indication of the Covid-19 pandemic and lockdowns taking a toll on the services sector. July witnessed drops in new business and job cuts, according to a private survey on Wednesday. The IHS Markit Services Business Activity Index was 34.2 in July against 33.7 in June. A reading above 50 indicates expansion and below that shows contraction in activity.
Read More Meanwhile... Tata ridicules Mistry 'oppression' charge… Tata Trusts chairman Ratan Tata contended that it was an 'unfathomable irony' when shareholders bemoaned their situation and regarded themselves as 'oppressed,' despite the value of the holding having increased 2,100 times. This was in response to an affidavit filed by Cyrus Investments in the Supreme Court. On Tuesday, the Tata group challenged the NCLAT order, arguing that it has granted relief not sought by the petitioner.
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