Benchmark stock indices opened the day on a negative note as cases of coronovirus affected investor sentiment.
Join us as you follow the top business news through the day.
11:00 am
A ‘foreign’ investment t (r) ip!
What happens when a stock rises 17 times in 15 days? You jump after the 15th day, of course! This is the story of GME (the stock ticker for American electronics game retailer GameStop) and Indian investors entering the US market – kickstarting their equity journey with a ‘foreign stock’. and how? After reading about it in reddit groups!
There is no doubt that investing in a foreign country can help diversify your portfolio. And in particular, when it comes to investing in the US, stocks of companies give you value in everyday life (Google or Apple or Netflix). The question is what is the prudent way to invest in America and how much can you expose yourself to a market you know little about. Therefore, here are things that you should know before investing internationally.
First, choosing a foreign share is no different from choosing a equity share locally. Business and financial fundamentals of the company, moat, balance sheet quality and governance, all matters. If not, foreign stocks can also go down to be penny stocks and destroy your wealth.
10:30 am
Most Asian currencies are weak due to the Turkish lira’s slide being based on risk sentiment.
Emerging market currencies come under pressure.
Reuters Reports: “Most emerging Asian currencies weakened on Monday, with investors becoming slightly volatile due to a slowdown in Turkey’s lira when President Tayyip Erdogan sacked a hawkish central bank governor, and criticized him for high interest rates Changed as.
As markets opened, Turkey’s lira fell by 15% in response to President Tayyip Erdogan’s removal of Governor Neki Agbal over the weekend.
The Indonesian rupiah weakened 0.2% against the dollar, while the Philippine peso and Thai bath dropped 0.1%. “The slide in the lira will probably have only a limited spillover effect in Asia. What is happening in Turkey is very specific and has no direct impact on Asia,” said Khoon Goh, head of Asia’s research at ANZ. Banking group.
“The immediate knee jerk reaction during the Asian trading session has been of a slightly risky mood. But I don’t see any long-term impact. Once the market digests the news, the business sector in Asia is likely to reflect. Overall Basics ”.
Taking the trend further, South Koreans won slightly when the country’s exports jumped 12.5% from a year earlier in the first 20 days of March, according to preliminary data, when the country was still dealing with the first outbreak of coronovirus Was. Investors also monitored central bank meetings in the region later this week.
Unlike other emerging economies such as Russia and Turkey, which have already been involved in a monetary tightening cycle, Asian central banks have slapped on rates. Last week, Indonesia and Taiwan held their key interest rates steady, while central banks in the Philippines and Thailand are expected to leave rates unchanged at their meetings during the week. “
10:00 am
Increasing cases of COVID-19 led to a financial decline in Indian stocks.
A poor start to the week for the shares.
Reuters Report: “Indian stocks declined on Monday, pressured by financial stocks as investors moved money to so-called safe zones due to fresh current fears in coronovirus cases as the country rebounded.
The blue-chip NSE Nifty 50 index fell 0.4% to 14,687 and the benchmark S&P BSE Sensex fell 0.6% to 49,579.75 as of 0502 GMT.
Saurabh Jain, assistant vice president of research at SMC Global Securities in New Delhi, said, “There is some nervousness among the market participants in view of the second wave of COVID-19.
“We are seeing some sectoral rotation with money going into information technology and pharma stocks.”
Daily coronavirus cases in the country were worst hit since early November on Monday and some areas have resumed prevention measures, including lockdowns and restaurant closures, with more phases being considered.
Last week, India’s two main stock exchanges recorded their first weekly decline in three, due to a fresh surge in domestic COVID-19 cases and rising US bond yields.
On Monday, the Nifty Bank index fell 0.9% and the Finance index fell 0.7%.
Jain said that investors fear that the increase in cases and new restrictions will affect the payment capacity of the business, leaving banks at a disadvantage.
On the bright side, the Nifty IT index rose 0.8% and the Pharma index rose 1.44%.
Shares of Andani Green Energy grew by 5%, with the company saying it had won an order to set up a 300 MW wind power project.
The company said on Friday that shares of Tata Motors had fallen by 1.2%, adding that Mark Listalocella Bischoff, who was to join as chief executive and managing director, would not join the company.
Meanwhile, Asian markets remained mixed and bonds surged on Monday, as Lira said in Turkey that capital controls may be needed to control capital. “
9:30 am
Oil giant Saudi Aramco drops 2020 profits by $ 49 billion
Saudi Arabia’s state-backed oil giant Aramco says its profits have fallen sharply to $ 49 billion in 2020. The coronavirus virus epidemic caused major declines in global energy markets.
The Saudi Arabian oil company released its financial results after a year on Sunday, as oil prices crashed to all-time lows as people stopped going around the world to slow the spread of the virus.
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