Moneycontrol Pro Panorama | A growing tide lifts equities, but rising cases a concern

​Dear Reader,

The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of.​

Domestic equities are coasting in the slipstream of rising stock markets in the west. Investors are laying bets on how the money flowing from Joe Biden’s $1.9trillion stimulus will trickle down to companies. The US president has signed the bill and the stimulus cheques are expected to reach people soon and then reflect in higher spending in the coming months. Even Indian IT companies could benefit: US stimulus can aid Indian IT's retail business recovery.

US market sentiment was also helped by falling bond yields restoring tech stocks to favour. The calming of foreign investors’ nerves also gives some confidence that investors won’t desert emerging markets due to rising yields back home. Both the Dow and the Nasdaq are in better spirits. Of course, it’s a volatile situation that seems to bring some new factor to the fore that sends investors back to reworking their worksheets.

But Biden’s assertion that every eligible American will get access to vaccines by May advances the date by which the economy will return to a more normal situation. On Friday, Novavax said that its vaccine has been found to be 96percent effective against the original strain and 86percent effective against the UK strain. That brings it closer to applying for regulatory approval. This is also one of the vaccines slated for manufacturing in India by Serum Institute of India.

Meanwhile, India’s vaccination programme seems to have slowed a bit. While the government said Thursday’s numbers were affected because of the Mahashivratri festival, even before that a deceleration in numbers is visible. Alongside, the rising number of cases in some states, especially in Maharashtra, gives cause for concern. That state governments are not imposing harsh lockdowns across the state probably indicates they are trying to avoid the economic damage that will result from such a decision.

Since vaccination seems to be the only main defence against a rise in cases—with people evidently letting down their guard against COVID—it is imperative that the vaccination programme is stepped up. Casting the net wider to bring in more people and a massive outreach programme to remove hesitancy and ensure vaccine capacity does not go waste is the need of the hour. If lockdowns become more widespread it could deal a blow to the nascent economic recovery.

Here are today’s investment insights from our research team:

Why PSU bank privatisation will sail through

Weekly Tactical Pick | Airtel

Anupam Rasayan IPO: A tiny version of PI Industries, diversifying beyond agro-chem

V-Mart Retail: Does the value retailer have the right elements for a portfolio value?

What else are we reading today?
Interview | Expect to see a healthy earnings upgrade: Andrew Holland, CEO, Avendus Capital

A Rs 90-lakh penalty on Anugrah Stock & Broking is a joke

India’s EV ambitions show a spark, but there’s much ground to cover

A wake-up call for renewable power

The meaty issue: Is plant based meat vegetarian or non-vegetarian?

Free India-Bangladesh cross border trade will be a boon for both

Want a greener world? Don’t dump oil stocks (republished from the FT)

Technical picks:IDBI, Nippon Life, Cummins India and Kotak Mahindra Bank (These are published every trading day before the markets open and can be read on the app)

​Cheers,

Ravi Ananthanarayanan