20th May's MORNING NEWSLETTER .

Good Morning! Franklin Templeton is now telling investors in six closed credit funds that they may have to wait for over five years to fully recoup their money. It says the schemes will explore all opportunities to monetise the underlying assets in the portfolio, without resorting to any distress sales. The fund says it may be able to return the money earlier if there is any opportunity for sale of the underlying assets in the frozen funds in the secondary market or if there is prepayment or accelerated payment by the debt issuers. The news is bound to add to the dismal sentiment in the debt fund market. MARKET CUES: Where do we stand..  Nifty futures on the Singapore Exchange traded some 18 points up at 7 am (IST) in signs that Dalal Street is indecisive amid lack of directional cues. On Tuesday, Nifty formed an Small Bearish Candle on the daily chart. Analysts expect selling to emerge on any fall below the 8,800-8850 range. They see Nifty upside capped at 9,050 level in the near term. In monthly options, Nifty saw maximum Call open interest at 10,000 and then 9,500 levels, and maximum Put OI at 9,000 and 8,500 levels. These data indicated an immediate trading range between 8,600 and 9,200 levels Elsewhere in Asia, equity benchmarks came under pressure on Wednesday, tracking overnight declines on Wall Street. Japanese shares edged higher along with those in Hong Kong, while those in South Korea traded flat and shares dropped in China and Australia. Wall Street dropped in late-day trade after a report said early data from Moderna Inc’s Covid-19 vaccine was insufficient. Dow fell 1.59%, S&P500 lost 1.05% and the Nasdaq 0.54%. Oil prices dipped on Wednesday as concerns over the lasting economic fallout from the coronavirus pandemic. Brent crude futures for July delivery traded 11 cents, or 0.3%, down at $34.54 a barrel, while WTI crude futures slipped 13 cents, or 0.4%, to $31.83 The rupee appreciated 25 paise to settle at 75.66 against the US dollar on Tuesday as reports of initial success in Covid-19 vaccine trial boosted investor sentiment the world over. The US dollar fell against the euro on Tuesday as the common currency added to Monday’s gains. The greenback found little support from data showing US homebuilding dropped by the most on record in April. LOOK WHO'S FM says 2013 lessons guided stimulus... Finance Minister Nirmala Sitharaman says the government kept the lessons of the 2008-13 period in mind when designing its Rs 20 lakh crore stimulus package, and asserts that announced since last week cannot be boxed into “supply side measures” as they put money in the hands of people who will spend and create demand. On future stimulus measures, she said “As we go forward we have to keep assessing.”  India Inc fundraise on a high... India Inc may be heading for one of its best ever fundraising years in FY21 as companies rush to take advantage of low rates and shore up their capital after the devastating impact of Covid-19 related disruptions. Filings so far in April and May show that companies have announced plans to raise Rs 1.5 lakh crore in debt and equity which include Reliance Industries’ Rs 53,000 crore rights issue.  Wealthy sends record money abroad...Indian remittances overseas surged to a record in March as many wealthy Indians might have shifted a part of their savings to safe haven assets and to purchase popular technology company stocks, taking advantage of the sudden collapse in valuations. Indians sent a record $18.75 billion in FY'20 under the liberalised remittance scheme, whose scope was widened in 2015 to facilitate investments in overseas markets, send money for maintenance of close relatives abroad and other purposes.  Ecommerce sees demand surge... With the government allowing online sale of non-essentials in red zones, consumers flocked to e-commerce platforms, resulting in a spike in sales coming from pent-up demand. E-tailers like Amazon and Flipkart have seen a “significant” spike in sales in categories like work-from-home equipment, smartphones along with kitchen and home appliances. Vertical online platform furniture retailer Pepperfry has also seen demand double over the last couple of weeks as it starts delivering study chairs and desks.  AND WHO'S  India Inc seeks to avoid Q1 earnings... Companies have approached Sebi to allow listed firms to either postpone their financial results for the June quarter or merge them with the September numbers amid growing concern that wide losses and decline in sales between April and June could unsettle investors and put off banks. Some leading industry bodies have also urged Sebi to consider relaxing rules on pricing of preferential equity offer and open offer to enable capital infusion and simplify the process for delisting.  Govt pushes NBFC Covid relief.... The government is in talks with RBI on how best to ensure that the Rs 30,000 crore relief package for NBFCs is targeted at those that need it most, particularly since lower-rated paper of investment grade will be the focus. This assumes importance after RBI’s Rs 2.5 lakh crore Targeted Long Term Repo Operation saw banks subscribing mostly to bonds issued by top-rated companies.  NPA provision rules may be eased... The one-year suspension for filing new cases under the Insolvency and Bankruptcy Code and a default holiday for loans taken to deal with Covid-19 is likely to force RBI to soften its restructuring and provisioning norms to deal with stressed assets. Bankers said the blanket ban on new IBC entries leaves restructuring of loans as the only plausible route to cure default, but stringent RBI norms will have to be amended.  Jobless rate steady... India’s unemployment rate was at 24% for the week ended May 17, the same as the previous week, independent think tank CMIE said. With the gradual opening up of industries, there has, however, been an increase in labour participation rate. “Halfway into May, the unemployment rate appears to be around the same level as in April, mostly higher by a whisker,” it said.  Meanwhile... More trains set to resume service... Indian Railways is set to operate 200 non-air-conditioned trains every day starting June 1. They will run on a timetable and passengers can book tickets online, the railway ministry said in a statement. Booking will commence in a few days and schedule and the routes will be announced soon, the ministry said. No tickets will be sold at railway stations, it added. The DAY PLANNER Earnings Today: Bajaj Auto | Chennai Petro | Dr Reddy's | JSW Energy | Jubilant Foodworks | Ultratech Cement UK April Infation Rate (11.30 am) EIA May Crude Oil Stock Change (08.00 pm) Euro Area May Consumer Confidence (07.30 pm) © copyright 2020 – All rights reserved