Skip to main content

The World This Week – 7th August 2020 to 14th August 2020

Indian Equity Summary- 

·        The domestic equity market benchmark indices ended mildly in red on the back of weak global cues. The small cap and the midcap indices bucked the trend and managed to close in green ~1.5% thus exhibiting an overall strength of the market and broad based buying. The uncertainty surrounding the additional stimulus package and the caution ahead of the weekend meeting between the US and China added to the cautious market sentiment. Upbeat economic data from the US and China, and positive reports from Russia on registering Covid-19 vaccine will act as tailwinds for the markets going forward. 

·        Going forward, global factors like development on the US -China relationship front , and domestic factors like the monsoon trajectory and 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 as the yield of the 10-year benchmark 5.79% 2030 paper settled at 5.97% on August 14 compared with 5.89% on August 7 , while the yield of the 10-year 5.77% 2030 paper settled at 5.95% on August 14 compared with 5.84% on August 7.

·        India’s industrial production (IIP) contracted 16.6% in June as against 33.9% contraction in May while India’s retail inflation spiked to 6.93% in July on account of higher food prices; retail inflation for June was also revised to 6.23%.

·        We expect the 10 year benchmark yield to trade between 5.80-6.05% in near term.

 

Domestic News

·        Prime Minister Narendra Modi launched a financing facility of Rs 1 lakh crore under the Agriculture Infrastructure Fund. He also unveiled the Transparent Taxation platform to benefit honest taxpayers. Further, he released Rs 17,000 crore directly into bank accounts of 85 million farmers under the PM Kisan scheme.

·        India’s Consumer price inflation rose unexpectedly to 6.93 percent in July from 6.23 percent in June. Economists had forecast the rate to ease to 6.15 percent. Foodpriceinflationacceleratedto9.62percentfrom8.72percentamonthago.

·        Prime Minister Narendra Modi’s assurance on mass production of COVID-19 vaccines and more infrastructure spending by the government boosted market sentiment.

 

International News 

·        China’s Industrial production grew 4.8 percent on a yearly basis in July, the same rate of growth as seen in June .

·        The US non-farm payrolls jumped by 1.8 million jobs in July after surging by 4.8 million jobs in the previous month; the unemployment rate dropped to 10.2% in July from 11.1% in June.

·        Producer prices in Japan were up 0.6 percent on month in July. That exceeded expectations for an increase of 0.3 percent following the 0.6 percent increase in June.

·        The UK gross domestic product (GDP) contracted by 20.4% sequentially in the second quarter, following a 2.2% drop in the first quarter.

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.

 

Link- http://www.karvywealth.com/data/sites/1/skins/karvywealth/Download_media_report.aspx?FileName=983DB368-FF3C-4E69-80BD-75BF3A5379FE|5259324   

Comments

Post a Comment

Popular posts from this blog

MUTUAL FUND SNAPSHOT - OCTOBER 2020

  ·      The mutual fund industry witnessed net outflows to the tune of ~52,091 cr in September 2020 as against net outflows of ~INR 14,553 cr in August 2020. The equity category witnessed net outflow of Rs ~1009 cr in September 2020 as against net outflow of Rs ~ INR 4028 cr in the previous month. ·          AUMs of debt, equity and hybrid schemes in August 2020 accounted for 49.9%, 29.5% and 11.0% respectively of the overall AUMs; the balance ~9.6% was contributed by solution oriented and other schemes. ·          AUM of the mutual fund industry declined by 2.3% MoM (INR63,407 Cr) to INR26.86 Lakh Cr in Sept 2020. On QoQ basis, the total AUM of Mutual Fund increased by 5.4% and 9.6% YoY.   ·          Domestic mutual funds were net equity sellers in last 4 months. Mutual Funds v were net equity sellers to an amount of INR 904.69 Cr...
Post a Comment
Read more

The World This Week – 7th – 15th Nov 2020.

Indian Equity Summary- ·          Optimism had rubbed its positive impact on the domestic market over the initial performance of Pfizer's Covid vaccine and the outcome of the US presidential election. Nifty and Sensex ended on a WoW basis in green and increased by ~4 percent. The government announced a series of stimulus initiatives, including credit support for stressed sectors, employment creation incentives and multiple measures for construction and housing, as boosters for the Covid hit economy under Aatmanirbhar Bharat 3.0, which boosted the market sentiment. ·          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, and FII/DII inflows and USD/INR rates ; will continue to dictate the trend of the domestic equity market. We...
Post a Comment
Read more

Punjab investors prefer to invest in equity: Karvy wealth

Individual investors in Punjab have placed their trust in equity the most, Karvy Private Wealth said on Wednesday. "Individual investors in Punjab have opted for a higher allocation to equity products in their mutual fund portfolio at 68.11 percent, as compared to the national average of 64 percent," the wealth management arm of Karvy Group said in a statement while quoting its India wealth report 2019. Chandigarh, Ludhiana, Amritsar and Jalandhar have all recorded a higher equity share in total assets under management than the national average, the statement said. "Keeping in mind the volatility in the markets, term deposits continue to remain a safe bet for investors. The overall growth rate in deposits is close to the national growth rate. Amongst the cities in Punjab, Chandigarh recorded the highest year on year growth at 12.12 percent, followed by Amritsar at 11.39 percent," it further said. Karvy Private Wealth CEO Abhijit Bhave said direct equ...
Post a Comment
Read more