Investor’s reading list for March 21, 2020

Shorting curbs

SEBI has made it harder for big investors to short stocks via futures.

On Friday, after the markets closed, SEBI said that ‘short positions’ in index derivatives of any entity, including foreign portfolio investors (FPIs), proprietary traders, mutual funds and clients (retail and high net worth individuals) should not exceed their stock holdings.

Nearing it

The bottom is in sight says Motilal Oswal in an exclusive interaction.

The current turbulent phase will be over soon and the market will recover fast, says stock market veteran and ace investor Motilal Oswal, MD & CEO at Motilal Oswal Financial Services. According to him, best time to invest is when gloom is around, and “we ourselves start buying our stock,” he said.

Value buying

Insider buys and buybacks offer glimmers of hope in the market meltdown.

While the negative news reports absorb most of our attention, there are some under-the-radar events in the market too that could be signalling that we are at the end of dark tunnel.

Fall from grace

Private bank stocks are tanking on worries that their retail, unsecured loan book will take a hit on income losses.

While the Sensex has lost 31 per cent so far this year (up to March 19), the S&P BSE Bankex has fallen 38 per cent. About two-third of the bank stocks have fallen 40 per cent and above since January, indicative of the widespread sell-off in banking stocks.

COVID cover

Insurers are getting into the game of covering against COVID.

Most existing health insurance policies already provide cover, but these are separate risk policies for those who wish to avail it or do not have health insurance.

No run

The lifting of the Yes Bank moratorium didn’t see depositors rushing to withdraw.

Though the physical branches were deserted, customers tried to transact online. Many YES Bank customers said on Twitter that the bank’s UPI, net, mobile banking and credit card services were not working even after the moratorium was lifted as it faced heavy traffic

Fall from grace

Private bank stocks are tanking on worries that their retail, unsecured loan book will take a hit on income losses.

While the Sensex has lost 31 per cent so far this year (up to March 19), the S&P BSE Bankex has fallen 38 per cent. About two-third of the bank stocks have fallen 40 per cent and above since January, indicative of the widespread sell-off in banking stocks.

Fallen angel

HDFC Bank, the bull market favourite is attracting Sell calls.

In the current Covid-19 pandemic driven environment, Bernstein said HDFC Bank carries certain idiosyncratic risks and unique management challenges.

Results delay

SEBI has granted extra time to companies to file their quarterly and annual results.

SEBI has given companies 45 more days to file financial results for the quarter ending March 2020 and 30 more days for filing the results for the financial year 2019-20.

COVID versus Oil

ICICI Sec looks at key risks to FPI flows.

Stock performance indicates relatively higher institutional selling in realty, banks, metals and IT, while selling in mid- and small-caps may not have been significant given the lower underperformance vs previous instances of large drawdowns.

COMMENT NOW