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Apple went for a four-for-one stock split on Friday and Tesla five-for-one, trying to make their pricey shares accessible to more investors. The move even triggered changes in Dow. While share splits do make them more accessible to retail investors in theory, but fractional share offerings from new-age brokerages are increasingly making this action meaningless. Today, brokerages like Robinhood, Charles Schwab and even Fidelity, offer slices of individual shares for sale. It existed before in the form of mutual funds, now it's possible even in direct equity investing. The times they are a changing!
MARKET CUES: Where do we stand >>>
It's pouring FII money on D-Street… Foreign investors are pumping money into Indian equities with renewed vigour, as the weakening dollar — weighed down by near-zero interest rates in developed economies — has led to a wall of liquidity chasing risky emerging market (EM) assets. Since July 1, overseas investors have net bought Indian shares worth $7.5 billion — among the highest across EMs in this period. In August alone so far, these investors have purchased $6.35 billion — driving the Nifty and Sensex to sixmonth highs on Friday. Read More
Bank Nifty on a high… Bank Nifty, which has risen 9.5% in four sessions through 24,524 on Friday, could next test the 26,311.30 level, the 61.8% retracement of the correction from the record high of 32,613 in December through the low of 16,116 in March. Any dips will be a buying opportunity, said analysts. Consistently lagging the Nifty, which has bounced back over 50% from its March low of 7,511, the banking index is now trying to "catch up", the say. Read More
What's behind rupee rally?… The rupee stood out among its Asian peers last week, and it owes its sterling rise in part to the $2 billion L&T-Schneider deal. The central bank, too, didn't surprisingly intervene, underscoring its intent to allow the local unit to find its value in the face of recent inflows of dollars. The rupee gained about 2% in the past five trading sessions, and that has definitely lessened the damage previously done. In the calendar year to date, the rupee ranks third from the bottom in the continent, having lost 2.76%. Read More
Asean agrees to rejig India CECA… After months of inaction and the government's threat to pull out of the Comprehensive Economic Cooperation Agreement with Asean, members of the trading block have agreed to review the trade pact amid concerns that China is using the treaty to ship goods to India, which is unable to take full advantage of the 10-year-old arrangement. While the scope of the review will be finalised at the official level, New Delhi is keen that some of the anomalies be removed at the earliest. Chief among them is the inability of Indian exporters to get a level-playing field. Read More
Future lenders keep fingers crossed… Lenders to the Future Group are keeping their fingers crossed on what is in store for them in the Reliance-Future Group deal and are hoping that their debts would be paid in full. Bankers said the details given so far in regulatory disclosures and public statements do not detail how the debt would be split. ET reported that Reliance Retail Ventures will take over more than Rs 19,000 crore debt and liabilities owed by Future Group's retail, wholesale, logistics and warehousing units until March 31, 2020, while Future Group founder and chief executive Kishore Biyani will have to pay the remaining dues from April 1 until the assets are transferred following regulatory approvals. Read More
Yes Bank goes after Goyal, wife… Yes Bank, under a new management, has turned up the heat on Jet Airways founder Naresh Goyal. The private lender has initiated the process to categorise Goyal and his wife Anita as 'wilful defaulters', which may stain the reputation of persons and restrict their ability to borrow and hold board positions in companies. Yes Bank recently communicated this to the members of the promoter family of Jet Airways. The Goyals, it's believed, have responded, indicating they were not involved in the borrowings by the airline. Read More
States may oppose borrowing plan… A number of states, particularly Opposition-ruled ones, are set to reject the two borrowing options proposed by the Centre to meet the deficit in the GST compensation fund. State finance ministers will meet on Monday to finalise their joint strategy to approach the Centre again. But government officials sais the Centre is unlikely to give in to demands for changing the compensation formula for GST despite opposition-ruled states demanding that it borrow from the market and transfer funds to meet the shortfall between actual collections and the promised growth of 14%. Read More
Meanwhile...
No fee on UPI payment… CBDT has asked banks to return to customers and merchants any fees levied for making Unified Payment Interface (UPI) transactions in 2020, adding that such charges violate the law. The lenders were asked to stop all such impositions or face "penal actions" in a circular issued on Sunday. Read More
MARKET CUES: Where do we stand >>>
 | Nifty futures on the Singapore Exchange traded 66 points higher at 7 am (IST) this morning, signaling a solid start ahead for Dalal Street. |
| On Friday, Nifty50 climbed for the sixth straight session and formed a bullish candle on the daily chart, suggesting supports have shifted higher. |
| Asian shares notched a 29-month high on Monday as investors wagered monetary and fiscal policies globally would stay super stimulatory. Chinese blue chips firmed 0.7% to reach levels not seen since mid-2015. Tokyo's Nikkei rallied 1.9%. Shares also opened stronger in Hong Kong, but gains were modest in Australia and South Korea. |
| S&P 500 closed up 0.67% for its seventh straight positive day on Friday to hit a new record close, its 20th of the year and the first ever above 3,500. For the week, S&P500 closed up 3.26%, marking its best week since July 2. Nasdaq closed up 0.6% for its sixth positive day in seven at a new record close, its 40th of the year. The Dow closed up 0.57% for its sixth positive day in seven. |
| Crude oil was little changed around $43 a barrel as Hurricane Laura weakened. Brent crude futures rose 26 cents to $46.07 a barrel, while WTI crude gained 13 cents to $43.10. |
| The rupee rose to its highest level in nearly six months on Friday, gaining for a third straight session. It ended Friday at 73.3850 per dollar, up 0.6 per cent on day. |
| The Dollar Index was off at 92.341 and just a whisker above the recent two-year low of 92.127. The euro stood at $1.1902, having climbed 0.9% last week. The yen pared some of Friday's climb, and traded 0.2% lower. The offshore yuan was at 6.8561 per dollar. The euro was at $1.1902. |
| Gold prices rose on Monday to their highest level in nearly two weeks, as demand was boosted by a weaker dollar and the U.S. Federal Reserve's new policy framework suggested that interest rates would remain low for some time. Spot gold rose 0.4% to $1,971.68 per ounce. Indian gold and silver prices rose sharply on Friday, in tandem with a rally in global rates. On MCX, October gold futures rose 1% to Rs 51,399 per 10 gm. Spot prices quoted at Rs 50,000 against August 7 high of Rs 56,200. |
| LOOK WHO'S |  |
It's pouring FII money on D-Street… Foreign investors are pumping money into Indian equities with renewed vigour, as the weakening dollar — weighed down by near-zero interest rates in developed economies — has led to a wall of liquidity chasing risky emerging market (EM) assets. Since July 1, overseas investors have net bought Indian shares worth $7.5 billion — among the highest across EMs in this period. In August alone so far, these investors have purchased $6.35 billion — driving the Nifty and Sensex to sixmonth highs on Friday. Read More
Bank Nifty on a high… Bank Nifty, which has risen 9.5% in four sessions through 24,524 on Friday, could next test the 26,311.30 level, the 61.8% retracement of the correction from the record high of 32,613 in December through the low of 16,116 in March. Any dips will be a buying opportunity, said analysts. Consistently lagging the Nifty, which has bounced back over 50% from its March low of 7,511, the banking index is now trying to "catch up", the say. Read More
What's behind rupee rally?… The rupee stood out among its Asian peers last week, and it owes its sterling rise in part to the $2 billion L&T-Schneider deal. The central bank, too, didn't surprisingly intervene, underscoring its intent to allow the local unit to find its value in the face of recent inflows of dollars. The rupee gained about 2% in the past five trading sessions, and that has definitely lessened the damage previously done. In the calendar year to date, the rupee ranks third from the bottom in the continent, having lost 2.76%. Read More
Asean agrees to rejig India CECA… After months of inaction and the government's threat to pull out of the Comprehensive Economic Cooperation Agreement with Asean, members of the trading block have agreed to review the trade pact amid concerns that China is using the treaty to ship goods to India, which is unable to take full advantage of the 10-year-old arrangement. While the scope of the review will be finalised at the official level, New Delhi is keen that some of the anomalies be removed at the earliest. Chief among them is the inability of Indian exporters to get a level-playing field. Read More
| AND WHO'S |  |
Future lenders keep fingers crossed… Lenders to the Future Group are keeping their fingers crossed on what is in store for them in the Reliance-Future Group deal and are hoping that their debts would be paid in full. Bankers said the details given so far in regulatory disclosures and public statements do not detail how the debt would be split. ET reported that Reliance Retail Ventures will take over more than Rs 19,000 crore debt and liabilities owed by Future Group's retail, wholesale, logistics and warehousing units until March 31, 2020, while Future Group founder and chief executive Kishore Biyani will have to pay the remaining dues from April 1 until the assets are transferred following regulatory approvals. Read More
Yes Bank goes after Goyal, wife… Yes Bank, under a new management, has turned up the heat on Jet Airways founder Naresh Goyal. The private lender has initiated the process to categorise Goyal and his wife Anita as 'wilful defaulters', which may stain the reputation of persons and restrict their ability to borrow and hold board positions in companies. Yes Bank recently communicated this to the members of the promoter family of Jet Airways. The Goyals, it's believed, have responded, indicating they were not involved in the borrowings by the airline. Read More
States may oppose borrowing plan… A number of states, particularly Opposition-ruled ones, are set to reject the two borrowing options proposed by the Centre to meet the deficit in the GST compensation fund. State finance ministers will meet on Monday to finalise their joint strategy to approach the Centre again. But government officials sais the Centre is unlikely to give in to demands for changing the compensation formula for GST despite opposition-ruled states demanding that it borrow from the market and transfer funds to meet the shortfall between actual collections and the promised growth of 14%. Read More
Meanwhile...
No fee on UPI payment… CBDT has asked banks to return to customers and merchants any fees levied for making Unified Payment Interface (UPI) transactions in 2020, adding that such charges violate the law. The lenders were asked to stop all such impositions or face "penal actions" in a circular issued on Sunday. Read More
Buy
