While financial markets have baked in the fact that the government will slip on fiscal deficit this year and may let it slip a bit more for next year, the quality of government spending is now going to be the key thing to watch. As eminent economist Nouriel Roubini mentioned during his India trip last week, it would be okay if the increased Budget deficit goes towards capital spending, and not current spending, and it is done in the right way. It remains to be seen if the much-anticipated income-tax cut fits into that.
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded 35 points higher at 7 am (IST), signalling a gap-up start for Dalal Street. Asian shares paused near 19-month peaks on Monday ahead of the expected signing on a Sino-US trade deal, though talks on a phase two package are likely to drag on for months.
HERE'S WHAT TO WATCH  | MSCI's broadest index of Asia-Pacific shares outside Japan barely budged, having hit the highest since mid-2018 last week. Japan's Nikkei was closed for a holiday. |
| Wall Street slipped on Friday after data showed US non-farm payrolls missed forecasts, while wages and hours worked were soft. Dow lost 133 points, S&P500 9.35 points, and the Nasdaq 24.57 points |
| Oil prices edged down on Monday as fears of conflict between the US and Iran eased, although the decline was checked by the planned signing of an initial US-China trade deal this week, which could boost demand. Brent fell 13 cents to $64.85 a barrel while WTI slipped 9 cents to $58.95 |
| The rupee continued its winning run for fourth session in a row, soaring 27 paise to settle at 70.94 to the US dollar as softening crude oil prices lifted forex market sentiments. |
| LOOK WHO'S |  |
Advantage Infosys… Brokerages have maintained bullish view on Infosys after the IT major on Friday posted better-than-expected performance for the three months ended December. Analysts have either raised their price targets or maintained them on the stock. The company posted 23.49% year-on-year rise in profit at Rs 4,457 crore compared with Rs 3,609 crore posted for the same quarter last year. UBS said upgraded guidance and investigation outcome should be well received by the market, while Kotak Institutional Equities said Infosys is well-positioned to grow at a level similar to or faster than peers.
Read More E-invoicing Relief… Banks, airlines, insurance companies, armed forces and telecom service providers are likely to be exempted from mandatory issuing of e-invoices under goods and services tax (GST), said people aware of the matter. Such a move is likely to benefit entities in the sectors that issue a number of invoices to customers directly or have direct debit and credit facilities such as in the case of banks, said experts. Banks and insurance companies are currently allowed consolidated invoices.
Read More | WHO'S |  |
Job Cuts… Loss-laden Walmart India is in turmoil as the world's largest retailer is in the process of sacking about one-third of its top executives based at local headquarters in Gurgaon. Walmart announced layoffs of more than 100 senior executives, including vice-presidents, across sourcing, agri-business and the fast-moving consumer goods divisions at a townhall on Friday. It also plans to shut the Mumbai fulfilment centre, its largest warehouse, and halt new-store expansion in India.
Read More Problematic Loans… Reliance Home Finance, part of the Anil Ambani-led Reliance Group, granted loans worth about Rs 12,000 crore to a set of "potential indirectly linked" borrowers that had weak financials and shared common features, according to a forensic audit carried out by Grant Thornton. The forensic auditor found "anomalies" in the credit appraisal process of the home financier and noted that more than 80% of disbursals comprised corporate loans to a group of 47 borrowers that shared these common characteristics.
Read More Meanwhile... No overseas owner for Air India! The civil aviation ministry has rejected a proposal to relax the Substantial Ownership and Effective Control clause, which means overseas carriers will not be able to bid for more than 49% of Air India and won't get full operational control. The government wants to privatise the state-owned national carrier, having failed to sell stakes in it in 2018. An official said there was no precedent of any government ceding control of carriers to overseas ones.
Read More 
Buy
No comments:
Post a Comment