Tit - bits

The domestic benchmark indices trimmed losses

Photo: The Street 

after hitting fresh intraday low in afternoon trade. The NSE Nifty50 was seen trading at 12,036.25 down 101.35 points (-0.77%), after the rise of deaths due to coronavirus (SERS and/or MERS) and Kerala reporting the 1st confirmed case.
However, if we do a bit of internet search then we would find that this is somewhat common in China and Middle East -- the new name Coronavirus seems to have created the confusion and hence the obnoxious commotion, surrounding its name.. The traders are suggested to not to panic before the union budget to be presented on 1 February 2020.
The Nifty is likely to recover from the current levels -- bullish outlook to continue especially after Federation of Indian Chamber of Commerce and Industry (FICCI) projected India's FY20 GDP Growth Rate at 5%. FICCI on Wednesday said that its Economic Outlook Survey has projected the country's annual GDP growth rate at 5%. The projection made is in line with projections made by the National Statistical Organization (NSO). 

#The uncertainty due to outbreak of Coronavirus, has given a forward push to the gold prices. But it is surprising why the scrip of Titan Company Ltd (Rs.1178.50) is getting sold down even though the ace investor,  Rakesh Jhunjhuwala has increased his stake by buying 16 lakh shares of the company, in September - December quarter. The FM Nirmala Sitaraman is expected to give some positive doses to the sector in the ensuring budget. 

Also,  a rise in gold price indirectly soars up the share price of a company, by giving more valuation to inventory. Hence,  whether sale gets affected or not due CAA protests,  if Gold price rises, the share of a Jewelry company should rise by logic.
Besides,  the Indian Jewelry exporters are having around 15% cushion against China, as far as US exports are concerned. 
Moreover,  the commerce minister Piyush Goel has requested the FMO, to go for a duty cut in the gold imports; which augurs well for all the Jewelry companies and stores (P C Jewellers Ltd; CMP: Rs. 22.40).

#The scrip of BHEL (Rs.44) came down to Rs.43.20, intraday due to panic selling, before recovering. The company is the largest maker of power equipments (It is a capital goods company)  in India, having a huge order book and has NO relationship with the Panic gripping Dalal Street news on Coronavirus. The investors are suggested to buy in bulk the shares of the company, as the government of India has decided to go in for strategic investment of the shares of the company,  which in other words means the government wants to rope in a strategic investor to give more legs to the fundamentals of the company.
Moreover,  its book  value of Rs.90.18 and dividend yield of around 4.50% (at Par with savings bank rate per year), will be one of the deciding factors, to find the strategic investment price of the shares. Therefore,  this stock should be in your portfolio, like NFL (Rs. 29.40).