The Indian market is likely to open flat on Thursday as investors fret over IMF's comment that the economy is in the middle of a "significant" slowdown. Moreover, the SGX Nifty, an indicator of the opening for the Nifty50, was trading at 12,233.50 at 7:20 am, indicating a flat start for the domestic market.
1. Asia: Stocks in Asia nudged higher on Thursday morning following Christmas Day, with markets in Australia and Hong Kong closed for holidays. Overall, the MSCI Asia ex-Japan index was 0.08 percent higher. Major markets across the region were closed on Wednesday for Christmas, including Hong Kong, South Korea and Australia. The Nikkei 225 in Japan was 0.55 percent higher in morning trade, while the Topix index also saw gains of 0.44 percent. South Korea’s Kospi recovered from its earlier slip to rise 0.19 percent. (Image: Reuters)
2. US: On Wednesday, markets in the US were closed on account of the Christmas holiday. The S&P 500 was flat and the Nasdaq Composite edged higher to another new record in muted Christmas Eve trading. The Dow Jones Industrial Average fell 36.08 points, or 0.1 percent, to 28,515.45, while the S&P 500 finished the day little changed at 3,223.38. The Nasdaq Composite rose slightly to hit a new record high of 8,952.88, posting its ninth consecutive record close for the first time since 1998. (Image: AP)
3. Markets At Close On Tuesday: India's currency, debt and equity markets were also closed on Wednesday. However, on Tuesday, the Sensex closed 181.40 points or 0.44 percent lower at 41,461.26 while the Nifty50 closed 48.20 points or 0.39 percent at 12,214.55. Meanwhile, the foreign institutional investors sold Rs 114 crore in the cash market while the domestic institutional investors sold Rs 345 crore. (Image: Reuters)
4. Rupee Close On Tuesday: The rupee depreciated by 9 paise to close at 71.27 against the US dollar on Tuesday amid heavy selling in domestic equities and a steady rise in crude oil prices. Forex traders said the rupee traded in a narrow range but was weighed down in the latter half of the session after reports emerged that the government might not be able to meet its disinvestment target. At the interbank foreign exchange market, the domestic currency opened weak at 71.22 and later fluctuated between a high of 71.15 and a low of 71.29. The domestic unit finally settled at 71.27, showing a fall of 9 paise over its previous close of 71.18. (Image: Reuters)
5. Crude Oil: On Tuesday, oil prices rose on Tuesday in thin pre-Christmas trading after Russia said cooperation with OPEC on supply cuts would continue and amid optimism that the United States and China could finalize a trade agreement. Brent crude settled up 81 cents, or 1.22 percent, at $67.20 a barrel after a shortened session ahead of the Christmas holiday. U.S. West Texas Intermediate settled up 59 cents, or 0.97 percent, at $61.11 a barrel. (Image: Reuters)
6. IMF Advises On India's Economic Situation: India should "recommit" to cutting on debt by bringing down its public sector borrowing requirements and enhance focus on having greater fiscal transparency to help investors make informed economic decisions, according to multilateral agency IMF. Despite some improvement in reported fiscal deficits, debt as a share of GDP remains little changed over the past decade partly due to increases in off-budget financing, the International Monetary Fund (IMF) further said.
"More fiscal transparency would mean better economic policy in India...Getting the word out on India's true fiscal stance could yield significant benefits for policymakers and the Indian economy," the Washington-based institution said in a report. (Image: Reuters)
7. RBI's New Payment Instrument: The Reserve Bank of India (RBI) has introduced a new type of prepaid payment instrument (PPI) that could be used only for the purchase of goods and services up to a limit of Rs 10,000 per month. "To give impetus to small value digital payments and for enhanced user experience, it has been decided to introduce a new type of semi-closed PPI...," RBI said in a circular on Tuesday. PPIs are financial instruments that facilitate the purchase of goods and services against the value stored on such instruments. As per the circular, such PPIs shall be issued by a bank and non-bank 'PPI Issuers' after obtaining minimum details of the holder. (Image: Reuters)
8. Mutual Funds Expect Momentum Next Year: Mutual funds have added a staggering over Rs 4 lakh crore to their asset base in 2019 and the industry expects the growth trajectory to continue in the new year on the back of strong inflows in debt schemes and measures taken by regulator Sebi for boosting investors' confidence. It was because of strong inflows into debt-oriented schemes that saved 2019 from being a "dark-dull year of investing" as inflows into equity funds have dropped this year due to a volatile market. Going ahead, the industry should witness growth in the range of 17-18 percent in 2020 and equity funds should see robust inflows as expectations are high about improved equity markets and a revival in economic growth, industry body AMFI's CEO N S Venkatesh said. (Image: Reuters)
9. RBI On Public Sector Banks' Health: The financial health of state-owned banks should be assessed by their ability to raise resources from markets rather than depending on capital infusion from the government, according to a report by the RBI. In the Budget 2019-20, the government made a provision of Rs 70,000 crore for recapitalization of public sector banks (PSBs) and has so far infused Rs 60,314 crore. In 2017-18, the government had infused capital of Rs 90,000 and another Rs 1,06,000 crore in 2018-19 into the PSBs, bolstering their capital position. "Going forward, the financial health of PSBs should increasingly be assessed by their ability to access capital markets rather than looking at the government as a recapitaliser of the first and last resort," the RBI said in its report on 'Trends and Progress of Banking 2018-19'. (Image: Reuters) (
10. NBFC's NPA Ratio Rises: The non-banking financial company (NBFC) sector, which has been affected by a series of default by IL&FS, reported a sharp jump in gross non-performing assets ratio to 6.1 percent in FY19 from 5.3 percent in FY18, says an RBI report. The net NPA ratio saw a marginal uptick at 3.4 percent in the fiscal ended March 2019, compared to 3.3 percent in FY18. In its report on Trends and Progress 2018-19, the Reserve Bank of India said in FY20, up to September, the asset quality of the sector showed deterioration with a slight increase in gross non-performing assets (GNPA) ratio.
However, it did not disclose of the September NPA ratio. The report said in 2018-19, the GNPA ratio of non-deposit NBFCs deteriorated to 6.1 percent from 5.3 percent in FY18. (Image: Reuters)