Market Watch: Gurmeet Chadha, Co-Founder and CEO of Complete Circle Consultants
At Bharti Airtel
“I’ve been constructive with Bharti and obviously over 20 percent correction has caught everyone a bit off guard. The initial triggers were the weight of MSCI and the possibility that Vodafone will now survive a bit longer, but I still maintain that it will eventually be a duopoly after some time. So my feeling is that it offers a good price opportunity, a gradual build-up should help. ”
Industries on page
“You have to have a slightly tiered approach. So there are a few pockets where you can shop, where you get good value for money. For example, in low-cost discretionary, something like Bata or Page Industries they have fixed, they look good. Page Industries, if you look at men’s underwear, it’s a $ 5 billion market; Page’s share remains in the single digits: women’s underwear is about $ 3.5 billion and men’s underwear is about $ 1.5 billion. This huge discount, after COVID, the ability of US Polo and others to spend cash has been reduced. MBO discounts almost touch 50 percent, which I think would not be the case. They have also gotten into lifestyle stuff now with lacing up with Speedo, the sports swimwear category, terry towels. So there are new categories that they are expanding into and they have taken good care of the middlemen in this crisis. So these are some ideas to consider. ”
Opening bell: Sensex down nearly 500 points, Nifty over 11,000; all sectors in red
Indian indices opened 1 percent lower on Thursday after steep losses in their Asian peers amid weak global signals. Asian stocks fell after a Wall Street slide overnight as a series of warnings from US Federal Reserve officials underscored investors’ concerns about the resilience of the economic recovery. At 9:18 a.m., the Sensex was trading 491 points lower at 37,177 while the Nifty fell 135 points to 10,996. All sectors are witnessing big sales weighing on benchmarks led by the metals index, a drop of 1.8 percent. Nifty Bank, Nifty Auto, and Nifty Fin Servcies also fell more than 1 pecrant each. No Nifty50 index stocks were positive at the open, while Zee, Tata Motors, IndusInd Bank, Hindalco and Bharti Airtel led the losses. Broaser markets also traded lower, with the Nifty Midcap Index down 1.3 percent and the Nifty Smallcap Index down 2 percent.
This asset class has made the most profit this year and it’s not gold!
Cryptocurrency is considered the best asset class for income generation compared to traditional investments. The Bloomberg Galaxy Crypto index of digital currencies is up 66 percent in 2020, outpacing gold’s 20 percent rally. In fact, gold and bitcoin were up about 25 percent and 45 percent, respectively, in 2020 versus the unchanged S&P 500 index. Additionally, Ethereum contributed the most gains this year, accounting for more than a third of the crypto meter’s weight, Bloomberg data indicated. In recent months, gold hit a new all-time high of $ 2,072, an increase of 42.6 percent over the past decade, but bitcoin gained about 8.9 million percent during the same time, said Buffalo Chase, a crypto asset trading company. He explained the reason behind the rise of bitcoin, saying: “Security and scarcity are the main reasons traders rely on safe-haven assets like gold and bitcoin. Bitcoin would outperform gold for the foreseeable future because it is easily accessible. for anyone with the Internet and of course, a more profitable asset than gold. ” More here
Market update | Some global signals overnight and this morning
CAMS IPO issue subscribed 47 times on day 3:
The Rs 2,244 crore IPO of Computer Age Management Services (CAMS) was signed 46.98 times on the last day of the bidding process. It received offers for 60.27 million equity shares compared to the reduced size of the IPO of more than 1.28 million equity shares, data available on the exchanges showed.
Asian stocks tumble as hopes of global recovery falter
Asian stocks fell Thursday after an overnight slide on Wall Street as a series of warnings from US Federal Reserve officials underscored investors’ concerns about the resilience of the economic recovery. US Federal Reserve Vice Chairman Richard Clarida said Wednesday that the US economy remains in a “deep hole” of unemployment and weak demand, calling for more fiscal stimulus, noting that policymakers are “not even going to start thinking” about raising interest rates. until inflation hits 2 percent.
MSCI’s broader Asia-Pacific stock index outside of Japan fell 1.35 percent in the morning session on overall losses in the region. Chinese stocks fell 1.09 percent, Hong Kong’s Hang Seng fell 1.72 percent, Seoul’s KOSPI plunged 1.73 percent and Australian stocks were down 1.18 percent. Japan’s Nikkei fell 0.74 percent. Read more.
Nifty Rejig: The Nifty will see a shakeup on September 25 with Bharti Infratel and Zee Entertainment exiting Nifty and Divis Laboratories and SBI Life entering the index.
SBI Life will be the second life insurance company to join Nifty after HDFC Life. The inclusion of Divis Laboratories will increase Nifty’s pharmaceutical weight to 4.1 percent. There will be no media stocks on the index after Zee exits. Read more here
Welcome to the Market Live blog!
This is the market desk and we will give you all the updates on the stock market front. For starters, markets ended Wednesday’s volatile session lower, their fifth straight day of losses, dragged down by sales in bank, pharmaceuticals and media stocks amid mixed global signals. The Sensex closed 65.66 points or 0.17 percent lower at 37,668.42 while the Nifty lost 21.80 points or 0.20 percent to settle at 11,131.85. The broader indices ended mixed with Nifty Smallcap100 closing flat while Nifty Midcap100 slipping 0.33 percent. Among the sectors, Nifty Media fell the most, above 2 percent, followed by Nifty Pharma and Nifty PSU Bank, which each fell more than 1 percent. Nifty Private Bank, Nifty Realty and Nifty Financial Services all finished in the green. Nifty Bank gained more than 350 points to close in the green.
