The one way rally post the gap down opening must have surprised many. Even more baffling was the way our market defied the global trend. Ultimately, to see a bullish candle formed on charts, against all odds, is always a good feeling for an investor.
Parotta vs Roti: Nation engulfed in a heated debate
Different GST rates between Parottas and Rotis became an issue of national interest today. Twitter was abuzz as the Karnataka bench announced that Parotta must be taxed at 18% GST while putting Roti in the 5% bracket.
Both the items were put in different tax slabs based on the temperature at which they are served and Twitterati’s didn't miss out on a hearty dose of humor.
While a few lamented the government for complexities surrounding the GST laws, Anand Mahindra thought Indians might come up with their trademark jugaad and invent 'Parotis' to evade taxes. Other users were busy wondering what GST rates other regional versions of Indian bread like Puris, Bhaturas and Theplas could attract. They also felt offended about why their regional varieties were not part of the discussion.
Restart 1.0: Some hits, a few misses:
Macro indicators in June continue to record improvement in activity levels post lockdown. Google mobility data is showing higher time people are spending outside their homes. In some states, time spent on grocery shopping is already at pre-COVID levels.
The daily average number of e-way bills between June 1 and June 7 was at 71% of the daily average for FY20. Except for Mumbai, traffic is also moving slowly towards normal levels.
Import duty collection is close to 65% of the FY20 level. Property registration numbers in Maharashtra for the first 10 days of June were 75% of FY20 average.
On the other hand, auto, aviation and hotel industries continue to remain in the slower lane. Car/two-wheeler registrations are still down significantly from pre-COVID19 levels while domestic air traffic is still at 16-17% of normal levels after opening on 25th May.
New job opportunities have also shrunk by 61% in May, according to Info Edge's new job postings tracking index. It is now nearing the levels of the financial crisis of 2008. While new job postings in sectors like Hospitality and Aviation were down up to 90%, Pharma, Biotech and Healthcare were the least impacted sectors, down only 28%.
Today’s recovery in the market is a healthy sign. In the coming week, Nifty could attempt to cross the resistance that it faced ~10,200-10,250 levels while it could find key support around the level of 9,600.
On fundamental grounds, the progress of the unlock as well as the advancement of the monsoon will be the key factors for a speedy recovery.
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