Hi there, Good Morning. Welcome to ETMarkets Morning podcast, the show about money, business and markets. I am Sabari Saran. Let’s start with the headlines first
Value stocks bounce back as growth bets lose allure
Raamdeo projects Sensex to quadruple in next 10 years
Directors are in short supply for India Inc
Voting on JP Infra resolution next week
Now lemme give you a quick glance on the state of the markets.
Dalal Street looked indecisive this morning as Nifty futures traded flat on Singapore Exchange at 7 hours (IST). Stocks in other Asian markets traded steady. US shares rallied overnight, as investors judged a jump in inflation to be transitory, leaving scope for ongoing central bank support.
Elsewhere, the 10-year US Treasury yield held most of an earlier drop to 1.43%, its lowest point since March. The dollar retreated. Crude oil pared a rally while staying above $70 a barrel. Bitcoin was buffeted by a decision by international banking regulators to classify it as the riskiest of assets, but it remained higher for the week at about $36,950.
That said, here’s what is making news?
Value stocks are back in the game. They have bounced sharply in 2021 so far, ending a decade-long losing run that had a section of the market assert that this style of investing is dead. The MSCI India Value index has gained 18% since January against a 9% advance in the MSCI India Growth Index — the outperformer in the past decade. Growth investing focusses on companies that are steady performers, while value investors look for stocks that are trading below their actual value after being beaten down.
A Dalal Street veteran is sticking his neck out to predict that the Sensex will quadruple over the next 10 years and hit the 200,000 mark. Raamdeo Agrawal, Chairman of Motilal Oswal Financial Services, said the heartbeat index will benefit from healthy growth in corporate profits and favourable demographics. Agrawal advised investors not to bet against India despite the challenges. “I have seen Sensex move from 100 to 52,000 in the last 40 years… it doesn’t go in a straight line…there can be speed and slowdowns…India is an amazing opportunity,” he said.
Dalal Street analysts are betting on another 5-6% upside in shares of footwear maker Bata India following a 4.8% jump in Thursday’s session on the back of better-than-estimated March quarter earnings. On Thursday, the stock surged the most since September 2020 owing to the earnings beat and as it is expected to be a beneficiary of a pick-up in sales momentum as lockdown-like curbs are being lifted across states.
Looks like directors are in short supply for India Inc. A study based on data from Prime Database showed each of the 65 companies out of the top 100 listed corporates in India shares a director with at least another company. A niche group of 60 independent directors — comprising retired bureaucrats, professionals, current CEOs of listed companies, lawyers, chartered accountants, and close relatives of senior members in India Inc — are the common link between two companies in the Nifty100, the data showed.
Jaypee Infratech’s creditors have accepted the resolution plans of NBCC and the Suraksha Group for the bankrupt developer and decided to put both offers to vote next week to select the winner. The voting will start on June 14, the committee of creditors decided at a meeting on Thursday. The CoC members comprising lenders and homebuyers in Jaypee Infra’s stuck projects will have time till June 23 to vote.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
Edelweiss Financial Services is raising India’s largest distressed assets fund of $1.5 billion ahead of an anticipated spike in special-situation takeovers
Wipro chief executive officer Thierry Delaporte was paid $8.8 million in compensation last fiscal, one of the highest earnings by any executive in an Indian IT services company.
IIFL Home Finance will be looking to raise up to Rs 1,000 crore in bonds as the lender is targeting 18% growth in this fiscal despite challenges posed by the second wave of the pandemic.
YES Bank board of directors has approved raising up to Rs 10,000 crore in a debt issue, bolstering its capital base about a year after it garnered funds in a follow-on public offering.
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