Stock Market says a lot can happen over coffee

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By S Jha

New Delhi, August 17: Runaway food inflation and the Chinese economy in tailspin continue to hammer the equity markets. Nifty tanked once more and there were no rescue efforts from any counters as most of the sectors ended the day in the red. Bank Nifty, showing signs of being oversold, was seen to be resilient, but the index also gave up all gains to close the day with a cut.

The change of the government in Karnataka appears to be a fortuitous for the battered Café Coffee Day. The coffee chain once offered the twin taste of internet and coffee all across the country. The tagline ‘a lot can happen over coffee’ touched chords with the youngsters. The scrip, however, ran into trouble as the promoters piled mountains of debt.

But the journey of the scrip to recover appears to be timed with the change of government in Karnataka. The scrip on Thursday rose by almost 17 per cent to close at the level of Rs 46. The company is said to be reducing debt.

The news break that Bata India will tie up with Adidas sent the shoe giant to the moon as the scrip rose by almost seven per cent in the day. Adani Port shrugged off the jitters of the auditors quitting to post a handsome gain in Thursday session when major constituents ended the day with cuts.

The indices are said to be in the sideways mode with overall theme being of correction. The global and the domestic cues have turned negative for the equity markets. China is being described by economists to have entered the deflation stage, with the people being shy of spending. Even the likes of Tesla had to cut prices twice within a span of a few days. A Chinese economy in deflation is stated to be bad news for the global economy, as Beijing may flood the global market with cheap goods to make adverse impacts on other nations’ exports.

But theme-based equities continue to shine as the likes of Cochin Shipyard, Data Patterns, Shipping Corporation, select PSU banks, and others posted gains on Thursday. The PSU equities are rising for the past few months and there was no looking back for them even on Thursday as the likes of BEML, REC, Power Finance, Indian Bank, and others posted handsome gains.