A stock split theoretically means nothing for investors; it's just like instead of holding one Rs 1,000 denomination note, one is getting to hold two of Rs 500 or 10 of Rs 100. As one analyst puts it, it's nothing but a corporate play on the emotions of investors, the same emotions that make us prefer five units of a Rs 10 NAV mutual fund scheme over one unit of a Rs 50 NAV one. A stock split does not change anything financially or in terms of valuation, yet even in mature markets like Wall Street when an Apple or a Tesla go for such an action, the investor enthusiasm can only leave you dazed.
MARKET CUES: Where do we stand >>>  | Nifty futures on the Singapore Exchange traded 29 points down at 7 am (IST) this morning, signaling likely weakness ahead on Dalal Street. |
| Nifty50 closed near its opening level on Tuesday after trading in a wide range and formed a 'Long-Legged Doji' on the daily chart, suggesting indecisiveness among the traders. |
| Asian stocks climbed on Wednesday. Australian stocks outperformed, while Japan and South Korea posted more modest increases and China and Hong Kong fluctuated. |
| Major US stock indices closed higher on Tuesday, ending near or above prior all-time records. Dow rose 215 points or 0.8% to 28,645; the S&P500 gained 26.34 points or 0.8% to close at a record 3,526 while the Nasdaq advanced 165.21 points or 1.1% to a record 11,939. |
| Crude oil climbed above $43 a barrel as the pickup in economic activity in the U.S. and China signaled a pronounced recovery in crude consumption. Brent crude futures rose 33 cents to $45.91 a barrel while WTI crude rose by a similar measure to $43.09. |
| The rupee rallied 73 paise to breach the 73-mark against the US dollar on Tuesday, supported by liquidity-boosting measures announced by the RBI. After shuttling between 72.75 and 73.19, it finally finished at 72.87, up 73 paise. |
| The dollar was steady, having erased overnight losses as data showed U.S. manufacturing expanded last month at the fastest pace since 2018. The euro edged further down from $1.20, a level it breached for the first time in over two years. Analysts said the dollar's slide has reached a level of technical correction. The yen was flat |
| Gold prices rose to Rs 55,000 per 10 gm, while silver jumped to Rs 68,700 per kg. On MCX, October gold futures fell 0.38 per cent to Rs 51,502 while silver September futures stood at Rs 68,349. In the global markets, gold rose to $1,988 per ounce and silver to $28.77 an ounce |
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Govt opposes blanket waiver of interest… The government told the Supreme Court that it opposed an across-the-board waiver of interest on bank loans for the six-month moratorium period ended August, whether by individual borrowers or businesses, given that the Covid-19 pandemic has led to a 24% contraction in June quarter GDP. Instead it suggested long-term debt rescheduling as the way ahead in an affidavit that detailed the government's stand on the matter as sought by SC.
Read More Aug macro data bring cheer… The first set of August economic data has brought some cheer, with indicators such as the Purchasing Managers' Index for manufacturing and Nomura's business resumption index hitting a post-lockdown high. Other indicators such as power and fuel demand, railway freight and mobility indices showed improvement while passenger car sales rebounded. Goods and services tax (GST) collections were however tepid. They came a day after the Indian economy posted a sharper-than-expected 23.9% contraction in the June quarter from a year ago.
Read More Voda Idea needs to raise $3-4b… Vodafone Idea needs to quickly raise at least $3-4 billion through a combination of capital infusion by promoters, rights issue and potential sale of fibre and data-centre assets to be able to compete effectively in the market, according to analysts. The struggling telco is close to tying up funding, now that it has clarity on its AGR payment timelines, said people with knowledge of the matter.
Read More Op Twist brings down yields… Bond yields Tuesday plunged the most since May 13, with the central bank using the so-called Operation Twist to stem the recent decline in bond values. The rupee, too, logged its steepest gains since late March to become the best emerging markets currency in a month. The benchmark bond closed at 5.94% Tuesday versus 6.12% a day earlier, the steepest single-day decline since May 13.
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China border tense amid PLA land grab bid… The operational situation in the larger Chushul-Pangong Tso area of eastern Ladakh is on a knife's edge, with Chinese troops once again indulging in provocative actions on Monday after Indian soldiers had earlier occupied the heights there to thwart a People's Liberation Army land-grabbing bid over the weekend. The aggressive designs of the PLA to unilaterally alter the status quo of the LAC were, however, foiled this time too by "defensive actions" of the Indian soldiers, said officials.
Read More NAVs of shut Templeton schemes hit… The net asset value of four out of the six schemes of Franklin Templeton MF that have been shut fell by up to 6.32% after Rivaaz Trade Ventures, a Future Group firm, defaulted on its scheduled debt obligations due on August 31. Franklin Templeton will value these securities at zero, on the basis of AMFI's standard haircut matrix.
Read More Banks seek clarity on moratorium extension… Lenders have sought clarification from RBI on whether the maximum two-year extension of loan tenure that has been allowed is inclusive of the time for repayment of dues during the moratorium. Bankers say those with 20-year loans, who have availed the moratorium, will see their home loans term extended by 24 months if the dues for the last six months are amortised. This would not leave them with any scope for further restructuring.
Read More Meanwhile... GST collections drop further… GST collections dropped by under Rs 1,000 crore month-on-month to Rs 86,449 crore in August. Although the mop-up in August was 12% lower than a year ago, the pace of decline was a little slower from the 14% registered in July, indicating that economic activity is stabilising.
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