The Indian market is expected to open higher on Friday taking cues from US bourses that hit record highs after President Donald Trump said the country had reached a "deal in principle" with China. However, weak macro data — retail inflation jumping to a 40-month high of 5.54 percent in November and the index of industrial production (IIP) contracting by 3.8 percent in October — are expected to limit the gain. At 7:11 am, the SGX Nifty was trading 29 points higher at 12,055, indicating a positive opening for the Sensex and Nifty50.
1. Asia: Asian share markets jumped on Friday as a last-gasp Sino-US trade deal and a likely major election win by Britain's Conservative Party looked to have cleared a couple of dark clouds from the global horizon. In Asia, Japan's Nikkei climbed 2.1 percent to a 14-month high, while South Korean stocks firmed 1.2 percent. E-Mini futures for the S&P 500 rose 0.4 percent to another peak. MSCI's broadest index of Asia-Pacific shares outside Japan put on 0.5 percent. (Image: Reuters)
2. US: Wall Street's main indexes hit record highs on Thursday following news that the United States had reached a "deal in principle" with China to resolve a trade war that has rattled markets for nearly two years. Stocks were boosted in the morning when President Donald Trump tweeted that the United States was close to a deal ahead of Sunday, when a new round of tariffs on Chinese goods has been set to go into effect. Later in the day, reports emerged that the two countries had reached a deal in principle. The Dow Jones Industrial Average rose 220.75 points, or 0.79 percent, to 28,132.05, the S&P 500 gained 26.94 points, or 0.86 percent, to 3,168.57, and the Nasdaq Composite added 63.27 points, or 0.73 percent, to 8,717.32. (Image: Reuters)
3. Markets At Close On Thursday: Indian shares pared some gains in the last leg of trade but ended higher on Thursday, following global markets, led mainly by gains in metal, banking and auto stocks. Index heavyweights like HDFC Bank, TCS, SBI, Kotak Bank, and Tata Motors contributed the most to the indices. The Sensex ended 169 points higher at 40,582, while the Nifty50 index ended 62 points higher at 11,972. Meanwhile, foreign institutional investors sold Rs 684 crore and the domestic institutional investors bought Rs 810 crore in the cash market. (Image: Reuters)
4. Rupee: The rupee pared most of its early gains and settled marginally up at 70.83 against the US currency on Thursday amid uncertainty over the delay in the deadline for imposition of higher US tariffs on Chinese goods. A spike in crude oil prices and fears of a further rise in retail inflation also capped the rupee gains. At the interbank foreign exchange market, the rupee had opened higher at 70.67 against the US dollar and later touched a high of 70.56 largely on the back of losses in the US dollar following the Federal Reserve's decision to keep interest rates unchanged. However, growing concerns over the nearing deadline of December 15 for setting in of higher US tariffs on Chinese goods eroded the rupee gains. (Image: Reuters)
5. Crude Oil: Oil prices gained nearly 1 percent on Thursday on hopes that the United States and China were close to reaching a deal on an ongoing trade dispute that has raised concerns about global demand for crude. Brent crude futures rose 48 cents to settle at $64.20 a barrel. West Texas Intermediate (WTI) crude futures rose 42 cents to settle at $59.18 a barrel. (Image: Reuters)
6. Retail Inflation Rises: Retail price based consumer inflation spiked to a 40-month high of 5.54 percent in November on costlier food items, according to the data released by the statistics office on Thursday, compared to 4.62 percent in the month of October. During the month, the prices of vegetables spiked to 36 percent from 5.40 percent in September, while for fruits it jumped to 4.08 percent from 0.83 percent. The Reserve Bank of India (RBI) has been mandated by the government to contain inflation in the range of 4 percent, with a margin of 2 percent on either side. (Image: Reuters)
7. Industrial Production Shrinks: The country's economic slowdown deepened as the industrial production measured by the Index of Industrial Production (IIP) contracted in October, mainly due to poor performance by power, mining and manufacturing sectors, according to official data released on Thursday. Index of industrial production contracted by 3.8 percent in October, official data showed. In October 2018, the factory output had expanded at 8.4 percent. Factory output, as measured in terms of Index of Industrial Production (IIP), had expanded 8.4 percent in October 2018. (Image: Reuters)
8. Real Estate Hits Slow Track In 2019: Dwindling consumption, lacklustre investment appetite and the global slowdown have brought down growth in the real estate sector, according to a report. Housing sales in 2019 saw a modest 4-5 percent annual growth. According to an ANAROCK Property Consultants report, over 2.58 lakh homes were sold during the year against 2.48 lakh housing units sold in 2018. However, affordable housing remained upbeat in 2019 thanks to multiple government sops throughout the year. The government this year announced tax deductions (amounting to Rs 3.5 lakh in a year) on interest amount of home loans below Rs 45 lakhs availed for the first-time homebuyers. (Image: Reuters)
9. EV Market Seen Growing 36% Annually Till 2026: The domestic electric vehicle
(EV) market is projected to grow 36 percent annually between 2019 and 2026 as the market has gained traction following the implementation of the second phase of the EV incentives scheme in April. Under the government's ambitious Fame (Faster adoption and
manufacture of electric vehicles) II scheme to popularize electric and hybrid vehicles, up to 1 million EV two-wheelers powered by new advanced technology battery of 2KWH are pegged to get subsidy of up to Rs 20,000 each. (Image: Reuters)
10. Small Finance Banks Need To Widen Deposit Base: Small finance banks (SFBs) have to garner at least Rs 60,000 crore in deposits over the next two years to support an asset growth of 30 percent and to maintain borrowings at 25 percent of liabilities, says a report.
Total deposits of SFBs jumped 130 percent in FY19, leading to an increase in their share of deposits to 59.6 percent of non-equity liabilities in FY19. "SFBs need to ramp up their deposit base quickly to replace grandfathered loans and gradually build granular deposits," India Ratings said in a report on Thursday. (Image: Reuters)