Morgan Housel makes an interesting point about India. He says India today looks very similar to what the US was about 100 years ago, a country with plenty of dynamism, opportunity, entrepreneurship and a growing population. These are things the US misses today, but they are what will keep India swinging between the extremes of the growth journey. That should sound comforting at a time when nobody seems comfortable projecting the economy's imminent rebound from the ongoing slump.
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded nearly 20 points lower at 7 am (IST), signalling a positive start ahead on Dalal Street. Asian shares neared a 20-month top as Wall Street extended its run of record peaks on solid US economic data and lashes of liquidity from the Federal Reserve.
HERE'S WHAT TO WATCH  | In early trade, MSCI's broadest index of Asia-Pacific shares outside Japan firmed 0.1%, after notching its highest close since June 2018. Japan's Nikkei added 0.2 per cent to be near its highest in 15 months. |
| US stocks ended week on a positive note on Friday as Wall Street digested a slew of economic data. Dow rose 50.46 points, or 0.17 per cent, to 29,348, while S&P500 gained 12.81 points, or 0.39 per cent, and the Nasdaq 31.81 points, or 0.34 per cent |
| Oil prices jumped after two large crude production bases in Libya began shutting down amid a military blockade, setting the stage for crude flows from the OPEC member to be cut to a trickle. Brent crude futures were up by 75 cents, or 1.2 per cent, to $65.60 |
| The rupee furthered its losses for the second day, dropping 15 paise to close at 71.08 against the US dollar on Friday amid strengthening of the American currency overseas and rising crude prices. |
| LOOK WHO'S |  |
Budget Surprise... The Centre could include a host of off-budget spending and other government liabilities on its books to give a clearer picture of finances though this could raise the fiscal deficit sharply. Top government officials have held discussions on the move amid budget preparations and there is a growing view that a full picture is needed. Finance minister Nirmala Sitharaman will present the budget on February 1. The move will mean the fiscal deficit for FY20 could get pushed to 4.5% or higher.
Read More NBFC Booster… The government is debating a mechanism to get credit flowing by providing support to NBFCs amid a growing realisation that financial sector stress has impacted demand and stalled economic recovery. The options that have been deliberated ahead of the February 1 budget include a plan akin to the Troubled Asset Relief Program that the US put in place after the subprime mortgage crisis. Such a programme would be run by the RBI or a special purpose vehicle set up by the government.
Read More Sale Season: Amazon and Walmart-owned Flipkart have assured brands that there will be no change in the pricing and discount strategy on their ecommerce marketplaces and it will be business as usual during the sales that started on Sunday. Discounts during the ongoing Republic Day and Great Indian sales on Flipkart and Amazon will be similar to that last year. In some categories such as TV, the discounts could be as steep as Diwali discounts.
Read More | WHO'S |  |
MFs Feel Voda Pain… NAVs of debt schemes of UTI Mutual, Nippon India Mutual and Aditya Birla Sun Life Mutual Fund holding bonds of Vodafone Idea dipped between 1% and 10% on Saturday after the fund houses marked down the values of their holdings of the telecom operator's papers. A day earlier, NAVs of six Franklin schemes holding Vodafone securities fell between 4.28% and 6.87%, adjusting for the markdown. The decline in NAVs followed the Supreme Court's decision to reject review petitions of various telecom companies challenging its AGR judgement.
Read More PoA Ban in Markets?… Sebi may soon bar brokers from using power of attorney privileges that give them control of clients' demat accounts to prevent misuse as in the case of Karvy Stock Broking. The regulator plans to mandate that brokers taking collateral from clients can only create a pledge on the shares with customer consent. The step is aimed at protecting clients' shares, said two people close to the development.
Read More Pay More for Phone Use: The country's billion-plus mobile users may have to brace for more sharp jumps in phone bills by end-2020 itself with telcos likely to raise prices by another 25-30% with Arpu still low and overall telecom-related consumer spends in India amongst the lowest globally, industry executives and analysts said. Vodafone Idea and Bharti Airtel, staring at huge payouts after they got no relief from the Supreme Court on their adjusted gross revenue (AGR) dues, would need to raise prices in a bid to rebuild financial strength.
Read More Meanwhile... Junk is in! Trades in Indian junk bonds hit a record last week, with a leading European bank buying the lowest graded debt of two financial services companies going into administration. About Rs 1,200 crore worth of outstanding bonds of Dewan Housing Finance and Reliance Capital changed hands last week, eclipsing previous records. Between June and December, about ?700-1,000 crore of high-risk papers were sold on the exchange platform, traders said.
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