ETMarkets Morning Podcast: Market rally getting broad based, killing concentration risk | The Economic Times Markets Podcast

ETMarkets Morning Podcast: Market rally getting broad based, killing concentration risk | The Economic Times Markets Podcast

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

>> Trump clears Covid stimulus package
>> Who’s who laps up cheaper Mumbai realty
>> Market rally broadens to kill concentration risk
>> Promoter holdings rise in many second-rung stocks

And there is more. But first, a quick glance at the state of the markets..

>> Nifty futures on the Singapore Exchange traded 50 points higher at 7:45 am (IST), signalling a bounce ahead on Dalal Street.

>> Asian stocks climbed this morning amid reports that US President Donald Trump has approved a coronavirus stimulus package. Japan’s Topix rose 0.1%, South Korea’s Kospi 0.2% but Hang Seng fell 0.4%.

>> Wall Street indices ended higher at the close of a shortened session on Thursday. Dow rose 0.23%, the S&P500 0.35% and the Nasdaq 0.26%

>> The dollar ticked lower, while the euro rose 0.1%. The yen slid 0.2%, the pound 0.1% and the offshore yuan 0.2%. The Aussie dollar was little changed at 76 US cents.

>> Crude oil pared losses and the West Texas Intermediate crude fell 0.4% to $48.03 a barrel.

>> Gold prices rose in international markets, advancing 0.6% to $1,894 an ounce.

All in all, the trade setup on Dalal Street looked strong this morning. On Friday, Nifty formed a bullish candle on the daily chart and a long-legged Doji on the weekly chart, indicating indecision about future market direction.

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

… US President Donald Trump on Sunday signed into law a $2.3 trillion pandemic aid and spending package, officials said, restoring unemployment benefits to millions of Americans and averting a partial federal government shutdown. Trump backed down from his threat to block the bill, after he came under intense pressure from lawmakers on both sides.

… Captains of industry, corporate bosses, cricketers and actors are among those setting Mumbai’s luxury real estate abuzz again. Thanks to the pandemic-led price correction and stamp duty reduction, the last couple of months have seen closure of several big-ticket realty deals. Buyers include HDFC’s Keki Mistry, actors Hrithik Roshan, Alia Bhatt and Amrita Puri, stockbroker Motilal Oswal, cricketer Shreyas Iyer, Jatia Hotels’ Vinod Kumar Jatia, Modison Metals’ Kumar Jay Modi and Harpreet Singh Minhas of Harman Finochem.

… The concentration risk — reflecting stellar returns of just a handful of stocks — is easing for Indian equities. This is reflected in the change in the structure of the market rally — from narrow to broad — resulting in a greater number of stocks outperforming benchmark indices. Analysts said the broadbased rally augurs well not only for providing a strong base for sustainability of the current momentum, but also to increase market depth and invite higher institutional interest

… If a promoter raising stake in his companies is a strong signal for investors to consider betting on it, several mid- and small-cap stocks might be flashing the buy indicator. Promoters of nearly 80 mid and small-cap firms have increased their stakes through market purchases in the last two months amid the broader market rebound.

… Ahead of the three-week long voting starting Monday to decide on the new owner of DHFL, Oaktree Capital Management fired yet another salvo by attacking the bid of its nearest competitor, Piramal Enterprises. In a letter sent on Sunday evening to members of the committee of creditors, the RBI-appointed administrator, Oaktree said it was concerned that despite its bid offering maximum value for all stakeholders, it appeared there was “a consistent campaign to misrepresent information” on its bid.

… The bankruptcy resolution process for Reliance Communications may hit another hurdle with State Bank of India, Union Bank of India and Indian Overseas Bank classifying the accounts of the telco and its units — Reliance Telecom and Reliance Infratel — as fraudulent last week


>> Welspun bagged orders worth more than Rs 6,000 crore across water and oil and gas pipe segments in the second quarter, which will be executed through the rest of the year and the next.

>> DLF said commercial leasing is expected to reach pre-Covid level in the next two-three quarters after the slowdown caused a delay in decision-making by corporates.

>> L&T is looking to recruit close to 1,100 graduate and post graduate engineer trainees in 2021 and deploy them across various business verticals

>> PNB has put up for sale three stressed accounts, including Birsa Institute of Technology (Trust), with total outstanding dues of nearly Rs 34.50 crore.

>> Bharat Forge on Friday said it has made an additional investment of Rs 2.87 crore to use the remaining 8.20 MW solar power from Avaada Satara

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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