Stock Market News Briefing: ETMarkets Morning Podcast: Indian economy stares at massive contraction & other top news this morning


Hi there! Welcome to ETMarkets Morning, the show about money, business and markets. I am Saloni Goel, and here is what we have to start your day.

>> Analysts say Bharat Dynamics OFS offers good deal
>> Indian economy stares at massive contraction this year
>> RIL closer to unlocking value in O2C biz
>> ED says Kochhar home ‘proceeds of crime’

And there is more.

But first, a quick glance at the state of the markets…

>> Nifty futures on the Singapore Exchange traded 30 points lower at 7 am (IST), signaling a weak start for Dalal Street.


>> Asian stocks fell this morning amid worries that a Covid-19 vaccine could be delayed. Japan’s Topix index declined 1.4%, Hong Kong’s Hang Seng fell 1.3%, Shanghai Composite 1%, South Korea’s Kospi 1% and Australia’s S&P/ASX 200 retreated 2.3%.

>> Wall Street sank for the third consecutive session overnight, led by declines in heavyweight technology stocks. Dow fell 632 points, or 2.25 per cent, while S&P500 lost 95 points, or 2.78 per cent, and the Nasdaq 465 points, or 4.11 per cent.

>> Crude prices steadied after its biggest one-day loss in more than two months on worsening US-China relations and a retreat in global stocks. WTI crude retreated 0.7% to $36.52 a barrel.

>> The rupee depreciated by 25 paise to settle at more than one-week low of 73.60 against the US dollar on Tuesday amid growth concerns and fresh border tensions between India and China.

>> The dollar extended gains while the yen rose 0.1%. The euro was down 0.1% and the offshore yuan traded at 6.8533 to the greenback.

>> Gold and silver prices fell on Tuesday in Indian markets, tracking declines in global rates. On MCX, gold futures fell 0.5% to Rs 50,803 per 10 gm and silver futures 0.6% to Rs 67,850 a kg. In international market, gold slipped 0.3 per cent to $1,925.25 an ounce

All in all, Dalal Street looked set for some further correction. On Tuesday, Nifty50 failed to capitalise on intraday gains and faced selling pressure near the 11,450 level. It formed a small bearish candle and analysts said it may now pose a hurdle for the index

LET ME NOW GIVE YOU A HEADS-UP on some of the top news we are tracking at this hour.

… RIL has moved a step closer to its goal of value unlocking its oil-to-chemicals business with the release of a detailed plan to hive off the business into a separate entity, Reliance O2C. The move may help the conglomerate attract global investments in the business, after receiving big-ticket investment in its digital arm Jio.

…. Retail investors can subscribe to the OFS of Bharat Dynamics on Wednesday for a possible return of 20% in one year as the government is offering a Rs 20 per share discount over the cut-off price, analysts said. Based on a burgeoning orderbook, which is expected to be at Rs 22,500 crore in FY22, analysts estimate an EPS of Rs 24.9 for the year. At a PE multiple of 16, the stock is valued at Rs 400 per share, a 20% upside from the OFS level.

… With aluminium prices once again on the rise after a declining trend over the past two years, investors may prefer state-owned Nalco given its pure-play aluminium focus compared with the more diversified operations of its peers. Nalco’s cheaper valuation will be another favourable factor.

…. Goldman Sachs forecast a 14.8% contraction in India’s economy in FY21, possibly the deepest cut estimated thus far and steeper than the 10.5% fall estimated by Fitch Ratings. India Ratings said it expects an 11.8% contraction against a forecast of 5.3% shrinkage projected earlier, following a deeper-than-expected 23.9% decline in June quarter GDP. All three estimates were issued on Tuesday.

… Shots were fired for the first time in 45 years on the LAC as tensions rose when Chinese troops tried to approach a newly established forward position of the Indian Army at Mukhpari heights in the Chushul sub-sector. Army officials told ET that troops from PLA fired a few rounds in the air on Monday evening in an attempt to intimidate Indian soldiers. The officials said the Indian Army exercised restraint in the face of grave provocation.


… ED told a PMLA court on Tuesday that the CCI Chambers residence of former ICICI Bank CEO Chanda Kochhar and her businessman husband Deepak Kochhar was bought at a “nominal consideration” and is being treated as “proceeds of crime”. The agency was seeking the custody of Deepak Kochhar, who was arrested on Monday


Kotak Institutional Equities has upgraded low-cost carrier IndiGo to ‘buy’ from ‘sell’ as it expects pressures on costs and yields to recede for the airline sector beyond a tough FY21

Motherson Sumi board approved the issue of 15,000 NCDs with a face value of Rs 10 lakh each and three-year tenure to be listed on BSE

Cloud Communication Service Provider Route Mobile has raised Rs 180 crore ahead of its IPO by allotting 51.43 lakh shares to 15 anchor investors including 7 domestic mutual funds.

The government has allowed Power-Grid to monetise projects won through tariff-based bidding through the InvIT route, charting a new course for disinvestment amid the slowdown

Fitch says Vodafone Idea’s ability to hold on to its subscribers could be compromised by its weak financials despite the company’s latest proposal to raise funds

That’s it for now. For all the market news through the day, do track Have a great day ahead! Bye-bye

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