A change of the calendar does not alter investment outlook, neither does it do anything to transform economic fundamentals. But it can be an occasion to change your investment approach, from one in which macro projections dictated your market positioning to one where the focus would be on individual companies irrespective of when the economy turns around, where interest rates are headed and if the government would slip on the fiscal deficit target. It works; 130 BSE500 stocks proved it in 2019.
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded some 0.10 per cent down at 8 am (IST), signalling a tepid start to trade on Dalal Street. Most other Asian markets are closed for New Year's Day.
HERE'S WHAT TO WATCH  | On Wall Street, Dow rose 76.3 points, or 0.27 per cent, to 28,538, S&P500 gained 9.49 points, or 0.29 per cent, and the Nasdaq added 26.61 points, or 0.3 per cent |
| The rupee dropped by 5 paise to close at 71.36 against the US dollar on the last trading session of 2019 on Tuesday, leading to a total loss of 159 paise, or 2.3%, in the year amid trade war concerns, a rebound in crude oil prices and higher import bill. |
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$5 Trillion Dream… PM Narendra Modi met a number of business leaders and entrepreneurs like Uday Kotak, Rajnish Kumar, Aditya Puri, TV Mohandas Pai; Hasmukh Adhia; CP Gurnani; Nivruti Rai and Rajesh Gopinathan over the past week to seek feedback on various sectors as well as suggestions on policy measures to boost growth and accelerate the drive toward a $5 trillion economy. "Each of these meetings lasted more than two hours and saw a candid exchange of ideas," said a person aware of the deliberations.
Read More Cheaper Home Loans… With SBI slashing external benchmark rates by a quarter percentage point, home financiers could do likewise. Housing finance companies are now considering rate reductions by up to 25 basis points across products. They will hold asset liability committee meetings in January to decide new rates. LIC Housing Finance took the lead in cutting rates just a few days ago. HDFC, PNB Housing Finance and Indiabulls Housing have begun examining the commercial viability of reducing rates.
Read More Profit Booking… While FPIs put Rs 1 lakh crore into Indian equities in 2019, overseas strategic investors withdrew over Rs 30,000 crore by selling stakes in firms such as HDFC Life, SBI Life, HDFC AMC and ICICI Lombard. Calendar 2020 may see more such transactions, with foreign strategic investors seeking to book profits, say bankers.
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Tatas' Trauma… Tata Sons will move the Supreme Court to seek early interim relief from the tribunal order reinstating Cyrus Mistry ahead of the TCS board meeting scheduled for January 9 to consider Q3 results. The holding company is likely to file an appeal on January 2 although a hearing is possible only when the SC opens on January 6 after the winter break, said people with knowledge of the matter. Legal experts said the Mistry family-owned firms that hold stakes in Tata Sons can oppose an interim stay, which could force the Tatas to re-induct Cyrus Mistry pending a final order.
Read More Deficit Worry…India's fiscal deficit at the end of November was 114.8% of the budgeted target for the fiscal through next March, highlighting the challenge the government faces in meeting its fiscal goals. The deficit, or the gap between the government's total receipts and expenditure, reached Rs 8.07 lakh crore as of November 30, the Controller General of Accounts (CGA) data on Tuesday showed. But at 114.8%, it was in line with the year-earlier level.
Read More Slowdown Pain... India's core sector contracted for the fourth consecutive month in November, although at a slower pace of 1.5% compared with 5.8% in October, led by growth in the output of fertiliser, cement and refinery products, raising expectations of industrial production moving into positive territory. For the first eight months of the year, the Index of Eight Core Industries was unchanged compared with a 5.1% increase in the April-November period of 2018, data released by the commerce and industry ministry showed on Tuesday.
Read More Meanwhile... Rail fares have gone up. The railways announced fare hikes across its network, excluding suburban trains, effective January 1, 2020. Ordinary non-AC, non-suburban fares have been increased by 1 paise per km. Fares have been hiked by 2 paise/km for mail/ express non-AC trains and 4 paise/km for AC classes.
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