Dogecoin mania hits a high in India
Brokers reap big profits amid pandemic
FPIs take shelter in defensives in a Covid-hit economy
India Covid wave cripples Wall Street back offices
Hi there. Welcome to ETMarkets Morning, the show about money, business and markets. I am Sandeep Singh. Let’s start with a quick glance on the state of the markets.
The trade setup on Dalal Street looked strong as Nifty futures on Singapore Exchange traded with gains, signalling strength. Stocks in other Asian markets opened slightly higher. In overnight trade, US equity indices gained on positive economic data. In currencies, The rupee strengthened by 13 paise to 73.78 against the US dollar while the dollar held losses. And in commodities, Oil prices reversed gains under pressure from rising Covid-19 infections in India and elsewhere. Domestic gold prices soared by 239 to Rs 46,992 per 10 gm in Mumbai retail market on Thursday on strong global cues, but further advanced was restricted by a firm rupee. Silver jumped by Rs 465 to Rs 69,300 a kg.
That said, here’s what else is making news.
The Dogecoin mania has reached Indian cryptocurrency exchanges. Named after a meme of the Japanese dog breed Shiba Inu and with supporters including Tesla’s Elon Musk, the cryptocurrency has risen over 10 times in the last three months, with its market cap standing at almost $80 billion as on Thursday. Indian cryptocurrency exchanges are now witnessing record-breaking trading volumes of Dogecoin, causing massive surge in traffic on these platforms.
Stock broking firms have emerged among the biggest beneficiaries of the disruptions caused by the Covid-19 pandemic. With retail investors trading in various securities like never before i n the past few months, profits of various top stock brokers have more than doubled in FY21 driven by a 50-75% growth in revenues despite challenges around stricter upfront margin norms.
FPI enthusiasm for business-as-usual stocks in India that rely on normal mobility has dwindles as the Covid second wave crippled the economy. Instead, the overseas investors that own more than one-fifth of India’s market value are now buying up the traditional ‘defensives’ — products one can’t live without. Accordingly, consumer staples and IT stocks are back on FPI buy list, while banking, financial services and auto counters are seeing outflow of foreign money.
As Covid case counts soar across Bangalore and much of India, work-from-home arrangements that have sustained Wall Street’s back-office operations for months are coming under intense strain. A growing number of employees are either sick or scrambling to find critical medical supplies such as oxygen for relatives or friends. Standard Chartered said about 800 of its 20,000 staffers in India were infected. As many as 25% of employees in some teams at UBS are absent. At Wells Fargo offices in Bangalore and Hyderabad, work on co-branded cards, balance transfers and reward programs is running behind schedule.
The second wave of pandemic in India, which is worsening day by day, could cost the country dearly if it does not peak in May, said economists and analysts at ratings agency S&P. According to them, in a severe scenario, i.e., if the second wave peaks in late June instead of what some believe to be May, Indian economy will lose $210 million or approximately Rs 1,575 crore worth of output daily.
And lastly, a Sebi panel has suggested that corporate foundations, political and religious organisations should not be allowed to list on the social stock exchange. The panel said both for-profit and not-for-profit organisations should be allowed to tap the social stock exchange, provided they can demonstrate that social intent and impact are their primary goals and such intent is demonstrated through their focus on eligible social objectives for the underserved or less privileged populations or regions.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
The country’s largest two-wheeler maker Hero MotoCorp on Thursday reported an increase of 39% year-on-year in its standalone net profit for the fourth quarter ended March at Rs 864.9 crore, beating analysts’ expectations.
Private lender IDBI Bank expects just about 2% of its individual and MSME borrowers to seek restructuring under the central bank window that allows borrowers with up to Rs 25 crore exposure to avail the facility.
Microfinance firm CreditAccess Grameen reported an 83% jump in consolidated net profit at Rs 65 crore for the fourth quarter despite higher writeoffs and additional provision to cover the likely asset stress ahead.
Adani Transmission plans to invest Rs 3,000 crore in its transmission business and ₹1,500 crore in the Mumbai electricity distribution business in 2021-22, as it aims to continue its expansion plan.
Do also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.
That’s it for now. Stay put with us for all the market news through the day. Happy investing!
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