Skip to main content

The World This Week – 12th June 2020 to 19th June 2020

Indian Equity Summary-
· Tracking positive cues from global markets, domestic benchmark indices Nifty 50 and Sensex closed in green and rose by 2.72% and 2.81% onØ a WoW basis, albeit, the concerns of rising coronavirus cases in India and geopolitical tensions between India and China.  
· The top performing sectoral indices on WoW basis were BSE Realty and BSE Bankex that rose by 3.70% and 3.17% WoW while the worstØ performing index was BSE FMCG that fell by 1.22% WoW.  
· Going forward, global factors like development on the US -China relationship front , any resurgence of Covid-19 cases globally, as economiesØ have started opening up will continue to dictate the trend of the domestic equity market. We expect the trading range for Nifty between 10,000-10,500 in the near term.

Indian Debt Market-  
· Government bond prices fell as the yield on the latest 10-year benchmark 5.79% 2030 paper settled at 5.85% on Jun 19 compared with 5.80% onØ Jun 12.  
· State Governments have announced the sale of their securities by way of an auction, for an aggregate face value of ₹ 6,100 Cr.Ø  
· Fitch Ratings has revised the Outlook on India's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Negative from Stable and affirmed theØ rating at 'BBB-‘.  
· We expect the 10 year benchmark yield to trade between 5.80-6.05% in near termØ.
Domestic News  
· According to a Reuters poll of 13 analysts , average house prices in India will slump 5.0% in 2020 and 3.0% in 2021 as against an expected rise ofØ 2.0% and 2.5% in 2020 and 2021 respectively in the similar poll made in March.
· India’s Crude oil imports fell 22.6% YoY to 14.61 million tonnes in May as per the data released by Petroleum Planning and Analysis Cell,being theØ lowest since 2015.  
· Major port volumes in India came in at 45.4 mnt (-23% y-o-y) in May, sequentially the lowest since February 2015.Ø  
· Foreign portfolio investors (FPI) have infused a net Rs 17,985 crore into the Indian capital markets in June till now amid increasing liquidity andØ higher risk appetite.  
· The demand slump has taken its toll on India Inc’s earnings during the January-March quarter with net profit of a sample of 633 companiesØ (excluding banks and financials) declining by 75.22% on a year-on-year basis.

International News
· The U.S. current account deficit slipped by 0.1% to $104.2 billion, dipping to a near two-year low in the first quarter as the COVID-19 pandemicØ restricted the flow of goods and services.
· The UK’s Tax revenues in May were 43% lower than a year earlier in cash terms as a result of the government’s deferral of value-added tax billsØ to help companies preserve cash flow.  
· The total number of bankruptcy filings in HongKong in the first five months stood at 3,605, 12.4% higher than 3,207 a year earlier.Ø 
· Japan’s core consumer price index (CPI), which includes oil but excludes volatile fresh food prices, fell 0.2% in May YoY.Ø  
· U.S. Fed's balance sheet shrinks for first time since February as the Assets ranging from U.S. Treasury bonds and mortgage-backed securities toØ loans to banks and state governments - fell to $7.14 trillion on June 17 from $7.22 trillion on a WoW basis.

Link - http://www.karvywealth.com/data/sites/1/skins/karvywealth/Download_media_report.aspx?FileName=4437C081-70BA-4265-860C-C0A7AD744C9E|5209536
Labels:

Comments

Post a Comment

Popular posts from this blog

Private wealth soars by 10% in FY19

The individual wealth in India has swelled by 10% in the last fiscal backed by strong growth in financial assets. The individual wealth in India has swelled by 10% in the last fiscal backed by strong growth in financial assets, a report said on Wednesday. However, compared to financial assets which grew by 10.96%, physical assets growth was at a slower pace of 7.59% and individual investors are making more investments in financial assets, Karvy Private Wealth, the wealth management arm of financial-services conglomerate Karvy Group said. Direct Equity, mutual funds, pension funds, alternative investments and international assets saw the most favorable return rate. “Direct Equity continues to hold the fort in terms of investment preference in India. This shows the belief of investors in the Indian equity markets notwithstanding the volatility it has been through,” Abhijit Bhave, Chief Executive Officer, Karvy Private Wealth, said in a statement.  Further, Prime Minister ...
Post a Comment
Read more

The World This Week – 31st Oct – 6th Nov 2020

Indian Equity Summary- ·         On the back of improving the country 's macro scenario and strengthening of the rupee, the domestic stock market rallied in line with returns from major global peers. With the midcap stock also having stellar rise; whopping gains over five percent for the Nifty and more than twelve percent for the Bank Nifty on a weekly basis and a broad-based rally, shows that the market feels that the uncertainty is behind us and in the foreseeable future we are likely to see some powerful rally. ·         Going forward, with the uncertainty due to US elections moving out of the way volatility will reduce substantially leading to money moving towards the riskier assets; domestic factors like ongoing Q2 corporate earnings season, supreme court moratorium decisions and FII/DII inflows and USD/INR rates ; will continue to dictate the trend of the domestic equity market. We expect the trading range f...
Post a Comment
Read more

Debt Advisory Services

Here at  Karvy Private Wealth,  we offer comprehensive solutions in the fixed income segment. We suggest debt investment options of various tenures and risk-reward profiles suitable to your portfolio. DEBT MUTUAL FUNDS ·  Gilt Funds:  Gilt Funds invest in government securities of medium to long-term maturities. There is no risk of default and liquidity is considerably higher in case of government securities. ·  Income Funds:  Income funds are total return products, which means, the return is made up of both interest income and capital appreciation or depreciation, depending upon profits or losses. The value of bond held in a long term portfolio, changes with changes in interest rates. ·  Monthly Income Plans:  Monthly Income Plans are debt oriented hybrid funds which has around 70%-85% of the portfolio in debt and rest in equity ·  Liquid Funds:  Liquid funds invest in safer short-term instruments such as Treasury Bills, Cert...
Post a Comment
Read more