Good morning.
Here is a list of market-moving macro stories that you may like to read.
The same has been prepared from newspaper and wire feeds.Fed may again defy Trump to raise ratesIts the decision day at the Fed and the US Central Bank is expected to raise interest rates by a quarter point and trim its forecast for further rate hikes despite complaints from President Donald Trump, who wants the Fed to stop raising interest rates.
Some strategists say the Fed's message should be soothing to markets, which have been worried about rising rates and a slowing economy.Modi promises to rationalise GSTPrime Minister Narendra Modi has pledged further rationalisation of GST to ensure that items of regular use wont face the top 28% rate.
All things related to common man will be 18% or below that; 99% articles will be 18% or below 18% rate, he said, adding that GST should be made as simple and as convenient as possible.
Only 1% or half per cent of luxury items will remain outside the 18% slab, he said.Rahul Gandhi triggers competitive populism Congress president Rahul Gandhi on Tuesday promised a nationwide waiver of farm loans if voted to power in the 2019 general elections which are less than six months away, accusing Prime Minister Narendra Modi of not waiving a rupee of farmers loans in the last four years.
Analysts expect the promise may trigger competitive populism among political parties and states.Investor outlook gloomyInvestor outlooks have deteriorated to their most pessimistic in a decade, Bank of America Merrill Lynchs December investor survey showed on Tuesday.
A net 53 percent of investors surveyed, who manage $694 billion in assets, said they expect global growth to weaken over the next 12 months, according to the poll, which took place from Dec.
7 to Dec.
13.NBFCs restart disbursing loansNBFCs, which were going slow on loan disbursals earlier, have eased their stance and begun to open their purse strings as liquidity position begins to improve.
Companies like HDFL, IIFL Holdings and Indiabulls Housing have begun disbursements of existing loans and in some cases new credit sanctions over the past few weeks.RBI to open liquidity tapRBI will purchase Rs 50,000 crore of bonds in January and has earmarked an additional Rs 10,000 crore in open market operation for December to intensify cash injection in the banking system.FM didn't ask Patel to quitFinance minister Arun Jaitley says the government hadnt sought Urjit Patels resignation as RBI governor over differences such as ensuring adequate cash in the system for liquidity-starved sectors.
He said the government has no need of funds from RBIs reserves to meet its fiscal deficit target or to cover spending requirements.Cost of demonetisationA US thinktank says demonetisation hit Indias economic activity in the period following the November 8, 2016, event and lowered the growth rate by at least 2 percentage points during the quarter.
A working paper by the US-based National Bureau of Economic Research however says the impact dissipated by the summer of 2017.DoT body blow to RCom plansThe telecom department has dealt a big blow to the Anil Ambani-owned Reliance Communications after it said it cant approve it deal with Reliance Jio Infocomm to trade airwaves as the same does not conform to its guidelines.
The decision will mar the telcos efforts to repay creditors and avoid insolvency proceedings.
The development followed Jios letter to DoT, written on Friday, where it sought an assurance from the government that it wont be held liable for RComs past dues related to airwaves.FROM FINANCIAL MARKETSSebi Chairman has expressed concerns about the slow pace of initial public offerings (IPOs) hitting the market despite approval for filings worth around Rs 60,000 crore.
Ajay Tyagi cautioned that pricing of IPOs should be done more carefully in volatile times.The rupee rallied a whopping 112 paise on Tuesday, its best single-day gains in over five years, to settle at 70.44 against the US dollar as softening crude oil prices eased concerns over India's current account deficit expansion.Oil prices tumbled more than 5 percent on Tuesday amid fears of oversupply and deteriorating demand, extending a selloff that has taken major crude benchmarks down more than 30 per cent from an October peak.
Brent lost $3.35, or 5.62 percent, to settle at $56.26 a barrel.