Markets

THE introduction in China of a Nasdaq-style index pulled investment away from existing indices (Photo: Bloomberg)
More than 1,976 stocks traded on BSE have dropped since January—that’s 86% of all traded stocks. (HT)
More than 1,976 stocks traded on BSE have dropped since January—that’s 86% of all traded stocks. (HT)

Mid-cap mayhem: Long road to recovery

  • Mid- and small-cap stocks have gone through a free fall. To make matters worse, large-caps are now in trouble
  • The large-cap-based BSE Sensex has been masking the pain. The bellwether gained 12% since Jan 2018, but within the large-cap universe, only a handful are driving the surge

A sharp drop in moped volumes dragged sales, mirroring the weak rural sentiment (Mint file)
A sharp drop in moped volumes dragged sales, mirroring the weak rural sentiment (Mint file)

TVS Motors braves slowdown in Q1, but uncertainty in sales loom ahead

  • TVS Motor’s 7.2% year-on-year growth in Q1FY20 net sales to 4,468.6 crore is impressive
  • While the management is confident of some revival in the festive season, it is also said that the second half FY20 would be less impressive than the year-ago period

Loans to companies grew just 7.4%, a far cry from double-digit growth the lender reported in previous quarters (Mint file)
Amara Raja's net sales of  ₹1,815 crore, a fraction higher than the year-ago period, was about 6% higher than the average estimate of 12 brokers on Bloomberg (HT file)
Amara Raja's net sales of 1,815 crore, a fraction higher than the year-ago period, was about 6% higher than the average estimate of 12 brokers on Bloomberg (HT file)

Will changing dynamics crimp Amara Raja’s earnings growth?

  • There are also challenges in the near term, with a price war on in the replacement market for auto batteries
  • Exide and Amara Raja will have to fight for a larger share of the replacement market, when the original equipment segment is dull

Gold prices today inched closer to  ₹36,000 per 10 gram
The central government has decided to fix MSPs at least 150% of the cost of production for all kharif crops for 2018-19. Photo: Bloomberg
The central government has decided to fix MSPs at least 150% of the cost of production for all kharif crops for 2018-19. Photo: Bloomberg

Weak kharif season ups earnings challenges for agrochemical companies

  • Insufficient rainfall in several parts of the country has delayed sowing, which was down 6.8% as of last week, as compared to this time last year
  • A monsoon failure can accentuate earnings challenges for agricultural input providers, notably Rallis India and Dhanuka Agritech

Out of the total investments made till the end of June,  ₹56,664 crore was invested in the equities segment.
Out of the total investments made till the end of June, 56,664 crore was invested in the equities segment.

Investments via P-notes decline to 81,913 crore in June

  • In the previous four months, cumulative investment of 73,428 crore was made till the end of February
  • There is a decline of 0.85% in the total value of P-notes investment from the previous month

The benchmark Sensex Index fell 1% to 37,971.17 points. (Photo: Reuters)
Federal Reserve Board building on Constitution Avenue. (Photo: Reuters )
Brent crude futures climbed 85 cents, or 1.4%, at$63.32 a barrel (AP file)
An added punch came from softer lead prices that were nearly 10-12% lower (yoy). (Photo: Reuters)
A boat of the Iranian Revolutionary Guard sails next to Stena Impero, a British-flagged vessel owned by Stena Bulk, at Bandar Abbas port
A boat of the Iranian Revolutionary Guard sails next to Stena Impero, a British-flagged vessel owned by Stena Bulk, at Bandar Abbas port

How the Iran crisis could impact oil prices

  • Japan, India and South Korea would be some of the most vulnerable economies to a Persian Gulf war due to their heavy dependence on the region’s crude
  • Every 10% increase in the price of a barrel of crude widens India's current-account deficit by about 0.4% of gross domestic product: Nomura

Sensex and Nifty starts the week on a negative note. (Photo: ANI)
Steel companies are grappling with rising input costs due to an increase in iron ore prices. (Photo: iStock)
Benchmark index Sensex was down over 350 points
The rupee has risen 1.1% against the greenback in the year so far. (Photo: Reuters)
The government plans to spend about  ₹1.6 lakh crore on transportation infrastructure this year
The government plans to spend about 1.6 lakh crore on transportation infrastructure this year

Kotak Mahindra Life prefers infrastructure over consumption

  • Kotak Mahindra Life prefers shares of cement makers, engineering firms and construction contractors
  • Kotak Classic Opportunities fund has returned 11% annually over the past five years, beating 73% of rivals

Global equity markets had risen briefly towards the end of last week. (Photo: Bloomberg)
Spot gold prices are highest in about 6 years