Skip to main content

The World This Week – 14th August 2020 to 21st August 2020

Indian Equity Summary -  

·        The domestic equities outperformed global peers, as the broader (small cap) markets outperformed the benchmark indices for the secondØ week in a row. The Sensex / Nifty benchmark index grew by ~1.5 percent/1.7 percent(wow) whereas the BSE small grew by ~5.5(wow) percent in green on the back of broad based buying, though volatility continued to decrease. Positive global signals in the form of stimulus measures announced by China's central bank and excitement about the GOIs additional spending plans boosted sentiment among investors. A rally in power, realty, metal and consumer durables counters buoyed the market.  

·        Going forward, global factors like development on the US -China relationship front , and domestic factors like the monsoon trajectory andØ remaining earnings season ; will continue to dictate the trend of the domestic equity market. We expect the trading range for Nifty between 10900-11,400 in the near term

Indian Debt Market -  

·        Government bond prices fell sharply as the yield of the 10-year benchmark 5.79% 2030 paper settled at 6.14% on August 21 compared withØ 5.97% on August 14.  

·        The yield of the new 10-year 5.77% 2030 paper settled at 6.09% on August 21 compared with 5.95% on August 14Ø  

·        Expectations of interest rate cuts from the RBI in the near future faded , as the MPC's minutes revealed concerns about retail inflation, which inØ recent months remained persistently high.

·        We expect the 10 year benchmark yield to trade between 5.90-6.20% in near term.Ø

 

Domestic News -

·        The World Bank said it is likely to project a steeper contraction of India's economy than its previous forecast of 3.2% for the current financial yearØ due to the increasing number of Covid-19 cases and the resultant regional lockdowns .  

·        India’s trade deficit stood at $4.83 billion in July, compared with $0.8 billion surplus in June and a shortfall of $13.43 billion in July 2019. In July,Ø exports stood at $23.64 billion, while imports reached $28.47 billion.  

·        Prime Minister (PM) Narendra Modi said that Rs 100 lakh crore will be spent on the National Infrastructure Pipeline project and also launchedØ the National Digital Health Mission, under which every Indian will get a health ID

International News -

·        US initial jobless claims climbed to 1.106 million, an increase of 135,000 from the previous week's revised level of 971,000Ø  

·        The euro area private sector composite output index fell unexpectedly to 51.6 in August, while the score was expected to remainØ unchanged at 54.9  UK retail sales rose more-than-expected in July driven by non-food store turnover.

·        Retail sales grew 3.6 percent month-on-month inØ July, but slower than the sharp 13.9 percent rise in June and 12.2 percent increase in May. Economists had forecast sales to rise 2 percent.

 

Link - http://www.karvywealth.com/data/sites/1/skins/karvywealth/Download_media_report.aspx?FileName=3F431215-59A6-4DBC-8004-6F1AF3061B8A|5266549

 

Disclaimer –

The information and views presented here are prepared by Karvy Private Wealth (a division of Karvy Stock Broking Limited) or other Karvy Group companies. The information contained herein is based upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. Karvy Private Wealth is only a distributor of securities and financial market products.

Labels:
Location: Mumbai, Maharashtra, India

Comments

Post a Comment

Popular posts from this blog

ADVICE FOR THE WISE – JULY 2020

  FROM THE CEO’s DESK Dear Investors, “More money has been lost trying to anticipate and protect from corrections than actually in them.” Peter Lynch. The BSE Sensex had the best quarter since June 2009 and had risen more than 35 percent from lows in March, despite Covid-19 lockdown having seriously hampered economic activity. Backed by better-than - expected economic data in recent months, along with a proactive government stance and central bank policy intervention coupled with the resurgence of FPI flows into the domestic equity market, indicates towards a "V-shaped" recovery. Corrections in the equity market offer incentives for buying quality stocks at lower valuations. Instead of worrying, we expect this downturn and the year 2020 from an investment opportunity perspective as the risk-reward ratio in the current scenario is in favour of equity investments. In regards to the domestic market, while we expect second half of FY21 to see a turnaround in production, diffic...
Post a Comment
Read more

The World This Week : 29th May 2020 – 5th June 2020

Indian Equity Summary-   ·  The Global and the domestic equity market witnessed a broad based rally on the backdrop of gradual reopening of the global economy and Ø  unprecedented stimulus package implemented worldwide by the central banks and government. The domestic equity market, in line with the global markets closed in green for the second consecutive week with Nifty 50 and Sensex up by 5.86% and 5.75% respectively.   ·  Majority of the sectoral indices closed in green on a W-o-W basis with the top performing sectoral indices being BSE Realty, BSE Consumer,Durable, BSE Metals that rose by 11.12%, 10.03% and 9.27% respectively.   ·  Going forward, global factors like development on the US -China relationship front , Covid-19 situations as globally economies have started, opening up and as the remaining results of the earnings seasons unfold will continue to dictate the trend of the domestic equity market. We expect the trading range for Nif...
Post a Comment
Read more

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