GDP growth figures for the quarter that ended in June are expected to be released today with analysts expecting a sharp contraction.Join us as we follow the top business news through the day.10:40 AMIndian economy likely to see record quarterly slump as pandemic hits Reuters reports: “10:20 AMA letter to the investing class of 2020Dear new investors of 2020, this is one of the strangest of times to start investing. Whether you make a success out of your investment journey or call it quits will depend on what you make of this year!I said these are the strangest of times to invest. Here’s why.When your stock market valuations hit a new high — with an early 30s price-earnings ratio — and your GDP growth is at a decadal low — that’s strange.When you have lending rates at multi-decadal lows and yet there is little growth in loans, that doesn’t seem normal!When the Nifty bounces back 50% from its March lows but saw its June quarter earnings fall more than half over a year ago, it is odd.When nobody wants to buy anything, for fear of running down their savings in these tough times, the consumer inflation is at a peak 6.9%. That seems weird.
10:00 AM 9:30 AMFPIs invest Rs 47,334 crore in Aug so farForeign investors remain net buyers of Indian assets despite all the economic uncertainty.PTI reports: “Overseas investors remained net buyers in Indian capital markets in August so far, pumping in a massive Rs 47,334 crore on net basis as excess liquidity in the global markets and low interest rates drove money to emerging markets.According to the depositories data, the equities segment saw a net investment of Rs 46,602 crore while Rs 732 crore was invested in the debt segment by foreign portfolio investors (FPI) in August so far.The total net investment between August 3-28 stood at Rs 47,334 crore. Prior to this, FPIs were net buyers for two consecutive months. They invested Rs 3,301 crore in July and Rs 24,053 crore in June on net basis.“FPIs have invested over Rs 80,000 crore in equities since April this year. More than 50 per cent of this investment took place in August itself,” Harsh Jain, co-founder and COO at Groww, said.Rusmik Oza, executive vice-president, head of fundamental research at Kotak Securities said that “FPIs continue to remain net sellers this week in most emerging and Asian markets except India and South Korea“.“On month to date and calendar year to date basis also, FPIs have been sellers in most emerging markets and India has remained an exception.”Himanshu Srivastava, associate director – manager research, Morningstar India, said excess liquidity in the global markets and low interest rates have resulted in foreign money to flow into the Indian equity markets, among others.FPIs have turned their focus towards emerging markets like India also because these markets have been performing well and offer a good potential to generate better returns.Indian equities continue to be attractively valued thus drawing FPI’s attention, Srivastava added.“Recent qualified institutional placement, follow on public offer and initial public offers by many companies have also caused a lot of FPI money to flow into India. They are investing in companies they believe are good picks and are suffering temporarily due to the COVID-19 situation,” Jain said.In fact, many bets made in April this year have already resulted in handsome gains for some FPIs, he added.”9:00 AMWarren Buffett looks to Japan, takes 5% stakes in five trading companiesBerkshire Hathaway Inc said it has acquired slightly more than 5% of the shares in five large Japanese companies, marking a departure for Chairman Warren Buffett as he looks outside the United States to bolster his conglomerate.In a statement on Sunday, Mr. Buffett’s 90th birthday, Berkshire said it acquired its stakes in Itochu Corp, Marubeni Corp, Mitsubishi Corp, Mitsui & Co and Sumitomo Corp over approximately 12 months.Berkshire said it intends to hold the investments for the long term, and may boost its stakes to 9.9%. A Berkshire insurance business, National Indemnity Co, is holding the shares.“I am delighted to have Berkshire Hathaway participate in the future of Japan,” Buffett said in a statement. “The five major trading companies have many joint ventures throughout the world and are likely to have more…. I hope that in the future there may be opportunities of mutual benefit.”
