The stocks rally has stalled because some of the bank earnings have signalled distress in retail books, raising alarm bells that the economic slowdown may have started singeing at that level. The rise in NPAs has been seen in retail banks considered most efficient. Retail loan growth too has slowed down significantly in last two-three quarters, as all banks have cut down disbursements. Since most private banks are over-owned with investors are seeking safety in them, a lower-than-expected growth and not up-to-the-mark asset quality are bound to trigger a de-rating. Stay alert
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded nearly 24 points higher at 7 am (IST), signalling possible strength in Mumbai trading. Risk assets took a hit across the globe on Tuesday while the Japanese yen and US Treasury prices gained as financial markets reacted to mounting concern about a new strain of flu-like virus in China.
HERE'S WHAT TO WATCH  | Emerging market stocks have slipped 1.58%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 1.63% lower, while Japan's Nikkei lost 0.91%. Hong Kong, which suffered badly during the SARS outbreak, saw its index fall 2.8%. |
| Overnight, Dow fell 20.99 points, or 0.07%, to 29,327.11, the S&P 500 lost 1.13 points, or 0.03%, to 3,328 while the Nasdaq added 1.12 points, or 0.01%, to 9,390. |
| Oil prices edged lower, as investors continue to shrug aside the impact of almost all of Libya's crude production being off-line amid plentiful supplies elsewhere. Brent crude slipped 13 cents, or 0.2%, to $64.46 a barrel while US oil fell 16 cents, or 0.3%, to $58.22 |
| The rupee logged its fourth straight loss on Tuesday, dropping another 10 paise to settle at 71.21 against the US dollar amid concerns over IMF revising downwards India's growth forecast and weak quarterly earnings. |
| LOOK WHO'S |  |
Cairn Value Unlocking… The Anil Agarwal-led Vedanta is looking to sell a minority stake in Cairn India to a strategic partner as the diversified oil-to-metals conglomerate looks to cut its mammoth $6.6 billion (Rs 46,500 crore) debt and revive cash flows amid economic uncertainty. Cairn is the country's largest private sector oil and gas producer accounting for nearly a quarter of India's total domestic crude oil production and Vedanta may look to dilute up to 25% to raise a minimum of $1.5-2 billion (Rs 10,500-14,100) through this "value unlocking" exercise.
Read More Green Shoots... Payroll data of the Employees' State Insurance Corporation for November showed 19.62 lakh new additions in the month, providing some evidence of a pickup in economic activity. The net addition to the ESIC, after excluding those who ceased paying their contribution during the month, was 6.97 lakh, the highest for any month in the current fiscal year. The slight improvement is also corroborated by a 6% increase in GST collections in November at Rs 1.03 lakh crore, reversing two months of decline.
Read More FMCG Outlook… India's fast-moving consumer goods market is expected to grow 9-10% in the January-December period, matching the expansion rate in 2019, according to market researcher Nielsen, which said the rural slowdown has bottomed out and demand will stabilise. Growth slowed to 9.7% growth last year from 13.5% in 2018. It fell to its slowest in at least three years to 6.6% in the December quarter from 15.7% a year ago.
Read More | WHO'S |  |
Raw Deal for FPIs… Singapore might lose some of its allure for various FPIs as a preferred destination to route their investments into India. With the multi-lateral agreement between the two countries set to come into force from April 1, fund managers in Singapore, who invest in India, could face a stiffer task of convincing local tax authorities that they have not set up shop in the island nation to avail the tax benefits. Investors based out of Singapore currently continue to avail several tax benefits for putting money in India.
Read More Singhs Charged... Religare Enterprises' former promoters Malvinder and Shivinder Mohan Singh had diverted public money from group entity Religare Finvest to shell companies and used it to "square off their personal liabilities", the Delhi Police's Economic Offences Wing has said in its charge sheet against the brothers. Executives at Religare Finvest, the group's lending arm, had approved unsecured loans worth hundreds of crores to the shell companies within two hours of getting the proposals, even when these companies themselves had not sought the loans, the EOW said.
Read More Meanwhile... PEs, FPIs get tax notice… Private equity funds and foreign portfolio investors that were looking to get clarity around grandfathering benefit of Singapore and Mauritius tax treaties have hit a roadblock as advance tax ruling authorities have demanded additional details from many of them. Many PE funds and FPIs that had invested in India through Mauritius and Singapore had got a grandfathering benefit whereby they were allowed to pay lower taxes if they had invested before the bilateral tax treaties were amended.
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