One Report to Answer all your Questions!

Get your Portfolio Verdict now

Weakness persists over Dalal Street

12 Jun 2020 Evaluate

Weakness continued over the Dalal Street in late morning deals, on the back of weak cues from other Asian markets. Heavy selling at all sectoral indices except Telecom, was keeping key indices below their neutral lines, while the broader indices were too witnessed heavy losses in late morning deals. Investors got worried, after S&P Global Ratings said India's external position should remain stable over the next 12 months but COVID-19 pandemic-related risks to growth trajectory could exert downward pressure of the sovereign ratings if there is a weak recovery. S&P had projected India's economy to shrink by 5 per cent in the current fiscal, and the growth recover to 8.5 per cent next fiscal.

On the global front, Asian markets were trading in red, as Japan's large business firms' sentiment deteriorated sharply in the second quarter. The index for business conditions among large companies declined to -47.6 in the second quarter from -10.1 in the previous quarter. However, conditions are expected to improve in the next quarter, with the score rising to -6.6 points.

The BSE Sensex is currently trading at 33058.81, down by 479.56 points or 1.43% after trading in a range of 32348.10 and 33251.50. There were 4 stocks advancing against 26 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index lost 0.91%, while Small cap index was down by 1.30%.

The lone gaining sectoral index on the BSE was Telecom up by 1.32%, while Capital Goods down by 2.32%, Bankex down by 2.29%, IT down by 2.06%, Industrials down by 1.89% and PSU down by 1.57% were the top losing indices on BSE.

The top gainers on the Sensex were Bharti Airtel up by 1.21%, Titan Co up by 0.63%, Ultratech Cement up by 0.53% and Sun Pharma up by 0.04%. On the flip side, ONGC down by 4.26%, Indusind Bank down by 4.06%, Axis Bank down by 3.40%, Tech Mahindra down by 3.20% and Tata Steel down by 3.16% were the top losers.

Meanwhile, the credit rating agency ICRA in its latest report said that the pace of credit rating downgrades has accelerated with average monthly downgrades increasing by 22 percent in the past few months amid the rapid spread of the novel coronavirus (Covid-19) across the globe as well as in India. It said that from its rated portfolio, while the number of downgrades has increased, upgrades have nearly dried up.

According to the report, of the 315 negative rating actions taken by ICRA on non-financial sector entities in the period between March 1 and May 15, a majority of them were attributable to the pandemic outbreak. It also said nearly half of these negative rating actions have been downgraded (150), while a significant proportion (122) has also undergone a change in outlook to negative. The rating agency has also placed 43 entities on the ratings watch list, given the current uncertainties with regards to the pandemic and the evolving situation.

The report further stated that negative rating actions have so far impacted only 9.6 percent of the rated portfolio of corporate sector entities. It highlighted that some of the sectors on which a negative rating action has been taken by ICRA include aviation, hotels and restaurants, retail, textile, automotive and real estate. It also noted that with the impact of the pandemic across sectors being multifold, including slowdown in domestic demand and the global economy, supply chain disruptions, foreign exchange rate fluctuations, and commodity price impact, among others; and the general uncertainty with regard to timing of revival, negative rating actions have increased, while upgrades have dried up.

The CNX Nifty is currently trading at 9750.80, down by 151.20 points or 1.53% after trading in a range of 9544.35 and 9818.45. There were 9 stocks advancing against 40 stocks declining, while 1 stock remain unchaged on the index.

The top gainers on Nifty were Bharti Infratel up by 4.01%, Vedanta up by 1.93%, Bharti Airtel up by 1.09%, Titan Co up by 0.59% and GAIL India up by 0.58%. On the flip side, Zee Entertainment down by 5.14%, Tata Motors down by 4.66%, ONGC down by 4.37%, Indusind Bank down by 4.35% and Axis Bank down by 3.68% were the top losers.

All Asian markets were trading in red; Nikkei 225 slipped 149.38 points or 0.66% to 22,323.53, Straits Times plunged 44.78 points or 1.66% to 2,659.43, Hang Seng fell 290.72 points or 1.19% to 24,189.43, Taiwan Weighted declined 153.76 points or 1.33% to 11,382.01, KOSPI weakened 48.68 points or 2.24% to 2,128.10, Jakarta Composite declined 43.17 points or 0.89% to 4,811.58 and Shanghai Composite was down by 11.17 points or 0.38% to 2,909.73.

SEBI Registered: Investment Adviser - INA000013323

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity - May 16, 2019 - Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Warning: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Disclaimer: Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provides any assurance of returns to investors.

Compliance Officer:

Name: Shrikant Jagtap

Email: shrikant.jagtap@moneyworks4me.com

Mobile No: +91 97638 00745

Grievance Officer:

Name: Mukta Vaze

Email: mukta.vaze@moneyworks4me.com

Mobile No:+91 98609 19463

Principal Officer:

Name: Atharva Bhide

Email: atharva.bhide@moneyworks4me.com

Mobile No:+91 91758 99463

SEBI regional/local office address -

Plot No. C 4-A , G Block, Near Bank of India, Bandra Kurla Complex, Bandra East, Mumbai, Maharashtra 400051

Address:

The Alchemists Ark Pvt. Ltd., B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045

*Color code for outperformance consistency

*Number is average 3 year rolling returns

Want to invest successfully in stocks?

How the heck do you select a solution that ensures it?

Check how good is your current solution!

Does it get you focused on meeting your financial goals?

Investing is to means to funding your goals. Your solution must help you get clarity of your goals and how you should invest to reach them. Does your solution include Financial Planning?

Does it have a way of investing that you are confident will work for you?

Are you clear of the rationale behind recommendations?

Do you have a way of answering the most important questions: Which stocks are worth investing in, at what price and how do you build your portfolio?

Does it make it easy to find opportunities without wasting your time?

Are you spending too much time finding opportunities?
Do you have a way of knowing when opportunities from your chosen set of stocks arise in the future?
How confident are you about them?