Skip to main content

The World This Week – 23rd October – 30th October 2020.

Indian Equity Summary-

Ø In the past week, Indian Markets encountered highly volatile movements and settled in a negative territory with losses of more than 2 percent week on week, taking cues from global stock market which remained cautious as rising coronavirus virus in America and Europe, the delay in the second US stimulus package has made investors wary of the situation. As the Tug of War between bulls and bears kept the markets shaky on the basis of mixed signals from the global front, Nifty indices saw trade in a wider range from 11550-11950. We expect uncertainty to grip the market in the coming sessions, as well as in the aftermath of the U.S. election.

Ø Going forward, global factors like development on the US elections front, US /China relations , and 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 for Nifty between 11600-12,200 in the near term. However, the index may resume its bearish bias if it breaches and sustains below 11600-11650 levels in future sessions.

Indian Debt Market

Ø The Government bond prices ended lower on a WoW basis. The yield on the 10-year benchmark 5.77% 2030 paper settled at 5.88% on October 29 compared with 5.84% on October 23.

Ø Reserve Bank of India announces the auction of Government of India Treasury Bills for INR16,000cr on Wednesday, November 04, 2020

Ø The Government of India has announced the Scheme for grant of ex-gratia payment of difference between compound interest and simple interest for six months to borrowers in specified loan accounts (1.3.2020 to 31.8.2020) (the ‘Scheme’) on October 23, 2020, which mandates ex-gratia payment to certain categories of borrowers by way of crediting the difference between simple interest and compound interest for the period between March 1, 2020 to August 31, 2020 by respective lending institutions.

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

 

Domestic News

Ø India’s eight infrastructure sectors drifted closer to expansionary territory in September as contraction narrowed to 0.8 per cent. The production of eight core sectors had contracted 5.1% in September 2019. The decline in output during the month under review was the lowest since March.

Ø India's fiscal deficit widened to INR 9.139 trillion in April-September 2020-21 from INR 6.515 trillion in the corresponding period of the previous fiscal year. That was equivalent to 114.8 percent of the government’s budget estimate for this financial year, much higher than 92.6 percent a year earlier

Ø The Indian rupee touched 74.5 against the US dollar, the weakest level since August 25th, as rising coronavirus cases across the globe, fresh lockdowns in Europe and uncertainty surrounding the US November election spooked investor appetite for risk assets.

 

International News

Ø France’s economy rebounds 18.2% in the third quarter: Statistics office. Nevertheless, economic output was “sharply lower than it had been before the crisis,” with GDP down by 4.3 percent on a year-on-year basis, the statisticians calculated in preliminary data.

Ø Coronavirus second wave douses hopes of German economic recovery. Analysts from financial information service Factset have predicted a rebound of 7.4 percent in July to September after a plunge of almost 10 percent during the second quarter

Ø British Prime Minister Boris Johnson announced a second national lockdown in England starting Thursday as coronavirus cases surge.

Ø US real Gross Domestic Product (GDP) increased at an annual rate of 33.1 percent in the third quarter of 2020.In the second quarter, realGDP decreased 31.4 percent. Economists had expected GDPto soar by 31.0 percent

Ø European Central Bank left its key interest rates and massive stimulus unchanged citing a highly uncertain outlook amid a resurgence in the Covid19 pandemic, and hinted at a move in December .when the latest set of macroeconomic projections will be available.

 

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 

http://www.karvywealth.com/data/sites/1/skins/karvywealth/Download_media_report.aspx?FileName=F36E0847-E126-4855-9810-5B46891C7A7B|5330767  

Comments

Post a Comment

Popular posts from this blog

ADVICE FOR THE WISE - MAY 2020

From the CEO’s Desk Dear Investors, “The trick is not to learn to trust your gut feelings, but rather to discipline yourself to ignore them. Stand by your stocks as long as the fundamental story of the company hasn’t changed.”- Peter Lynch. In the past three decades, the capital markets have faced many adversities and, from all events, the markets have emerged stronger than ever, and it will do so this time too. The silver lining of the Covid-19 crisis is the dramatic fall in equity  valuations, which enables investor to buy quality stocks at rates that, have traditionally contributed to long-term sustained rebounds. For equities, April was a bounce-back month; global markets recovered sharply from the lows of March, as the central banks and governments around the world have come out with a slew of monetary and fiscal measures to curb economic downturns. FY21 started on a volatile note for the equities and other risky asset classes, with India and many world economies remaining...
Post a Comment
Read more

ADVICE FOR THE WISE - AUGUST 2020

  FROM THE CEO’s DESK Dear Investors, “Behind every dark cloud there is an every-shining sun. Just wait. In time, the cloud will pass.” Marianne Williamson. All inclusive, economies are seeing recuperation with pointers, for example, PMI showing an improvement in spite of infection resurgence in a couple of nations. U.S., Euro, and China manufacturing activities have picked up pace, with July numbers in these three regions crossing 50 mark, indicating expansion. Financial and monetary policies remain exceptionally accommodative, and liquidity remains buoyant, which should provide continued support for further economic recovery. Equity market declines provide opportunities to buy better stocks at lower valuations. We foresee this slowdown and the year 2020 from an investment opportunity viewpoint rather than worrying, as the risk-reward ratio in the current scenario is in favour of equity investments. The current positive outlook on the global markets is well backed by negative r...
Post a Comment
Read more

No of ultra rich falls to 2.56 L in 2018 from 2.63L: Report

High networth individuals have seen their wealth growth slowing down in 2018 to 9.62 percent from 13.45 percent a year ago, while their number has de- grown, says a report. High networht individuals are those with an investible surplus of over USD 1 million, and their number has crimped to 2.56 lakh in 2018 from 2.63 lakh in 2017, according to the data collated by Karvy Wealth Management. According to the Karvy report, these 2.63 lakh ultr  rich  are worth Rs 430 lakh crore in 2018, up from Rs 392 lakh crore in 2017. The report comes even as more eye brows are being raised repeatedly over the rising inequality in the country, where the  rich  are getting richer and the poor, becoming poorer and at a faster clip. As much as Rs 262 lakh crore of the wealth possessed by the high networth individuals are in the form of financial assets, while the rest are parked in physical assets, it said, adding the ratio has remained broadly the same at 60:40. Among financial a...
Post a Comment
Read more