SumanSpeaks: The Information Super Highway

Tit - bits Photo : Motley Fool Indian domestic bourses slumped on Tuesday, mirroring weak global shares after the historic overnight plunge in U.S. crude oil to below zero. This highlighted the economic damage caused by the coronavirus-led lockdowns. The barometer S&P BSE Sensex crashed by 1,011.29 points or 3.20% to 30,636.71. The Nifty 50 index lost 280.40 points or 3.03% to end the day at 8,981.45.  Banks shares witnessed major selling pressure, after several reports spoke that severe downturn and resultant job losses on account of the lockdown could lead to fall in consumer lending and a jump in bad loans for public and private  lenders.  In my last post I recommended a buy on  State Bank of India at Rs.188 -- both the targets have been achieved. Congratulations to all who made money.  Shares of IT companies also saw declines  after US President Donald Trump temporarily suspended all immigration into United States.  ...

Tit - bits Domestic share markets are performing in tune with the firmness in other Asian stock markets after President Donald Trump's announced plans to gradually re-open the US economy. The news offset record slump in China GDP. The broader market was in line with benchmark indices. The S&P BSE Mid-Cap index was up 1.19% while the S&P BSE Small-Cap index was up 1.79%. Meanwhile, the RBI governor Shaktikanta Das today said India is expected to post a sharp turnaround and resume its pre-COVID pre-slowdown trajectory by growing at 7.4% in 2021-22. The ET, 17 April, 2020 writes: RBI announces second tranche of liquidity boost; cuts reverse repo by 25 basis points,basis point reverse repo cut taking it to 3.75 per cent from 4 per cent earlier. The move has been taken to allow banks to lend more. A TLTRO 2.0 of Rs 50,000 crore specifically targeted at NBFCs has been announced. These liquidity measures are over and above the Rs.3.74 lakh liquidity boost a...

Tit - bits  Yesterday (April 16), the domestic Benchmark indices ended in the green, with the Sensex closing 223 points higher at 30,602.61 while the Nifty finished 68 points up at 8,992.80. Mid-caps and small-caps outperformed the large cap benchmarks as their sectoral indices on BSE closed 1.42% and 1.71% higher, respectively. While the coronavirus panic has sent global markets to jitters, India is well prepared to take on the headwinds, Sanjeev Sanyal, Principal Economic Advisor to the Ministry of Finance, said. India cannot remain entirely insulated from what is going on in the global financial market, but, it is well prepared to deal with it because of its over $400 billion-worth foreign exchange reserves, he told CNBC TV-18. To top it off, there is a decline in oil prices, and inflation is under control. India has a lot of monetary space, unlike its peers in Europe. It is “time for us to remain in control,” he added. #The Food related scrips did well yesterd...

Tit - bits  According to a report published in Money Control, globally, there have been over 17.7 lakh confirmed cases of COVID-19.  At least 1.08 lakh people have died so far. At over 5.2 lakh, the United States has the highest number of confirmed cases. The US is followed by Spain, Italy, France and Germany. The outbreak continues to have a major impact on the global economy. The Sky News on 12 April,  2020 reported that a vaccine for COVID-19 could be ready as soon as September, according to a professor from Oxford University. The news report goes on to say that  Researchers are ready to begin Human Trials in the next Fortnight with the team working around the clock to develop the vaccine. Meanwhile, on the last trading day, the Nifty spot closed at 9,111.90 up 363.15 points (+4.15%), while the Bank Nifty gave a closing at 19913.6 up 967.15 points (+5.1%), with some of the better placed Private Sector banks: : Axis Bank (Rs.420.15), ICICI Bank (R...

Coronavirus and Some issues  World has been under grip of fear and anxiety since sometime, following  coronavirus epidemic, epicentred in China. The Medical Research Institute, Sri Lanka says: " Coronavirus ( shown in the below picture) is large in size where the cell diameter is 400-500 micron and for this reason  any mask prevents its entry . It usually settle on the surfaces due to its weight. The virus lives on the hands for 10 minutes, so using an  alcohol sterilizer  to clean meets the purpose of prevention". The news report suggest that, few countries like Italy, Spain and Spain are still battling to control it. In India, the devastation due to coronavirus is hereto is minimal.  Till the reports last came in, total number of: CORONAVIRUS Cases in India: 5,865 Cured: 477 Death: 169 This is nothing compared to the figure of 130 crore population. In percentage terms this comes as 1.3*10^(-)5 or 0.00013%. But lot of noises are made...

Tit - bits It is a long time that I had updated this blog. The reasons are obvious. In between the Indian share markets corrected by more than 35% from the peak levels, due to coronavirus epidemic.   The Nifty (8083.80) may test 2016 low of 7511 before moving up towards 8700.  Meanwhile, the FIIs pulled out Rs.65,817 crore from Indian equities in March 2020 alone. On the  other hand the financial sector got hit the most due to lockdown which impacts collection efficiency of MFI, NBFC, HFC, SFB and Banks. In another significant development the price of Natural Gas has been cut, benefiting the power and fertilizer companies. However since the demand from the power sector has reduced due the factories closing down, and hence the power sector will not be much benefited from this move. Therefore the maximum Beneficiary would be fertilizer sector and we already saw the scrip of many fertiliser share moving up on last Friday.  Moreover, with many ...