RBI's annual report offers its prognosis of the current economic slowdown. It's a soft patch mutating into a cyclical downswing, with several structural problems remaining unaddressed, says the central bank. It then goes on to recommend fiscal readjustments to boost growth without accumulating public debt, and more spending on infrastructure and social sector. But it stops short of suggesting any expansion of the fiscal deficit, meaning the strategy to reverse the downswing would require austerity, including pruning of various subsidies.
STREET PULSE: Where we stand Asian shares rose on Friday as China struck a hopeful tone on trade with the United States but continued fears about a global growth slowdown, or even a recession, capped sharp rallies.
Read More  | SGX Nifty traded flat at 7 am (IST), signalling indecisiveness. MSCI index for Asia-Pacific shares outside Japan climbed 0.6%. Japan's Nikkei jumped 1%, South Korea's KOSPI 1.5% and Australian shares 0.9%. |
| US stocks posted strong gains overnight. Dow advanced 326 points, or 1.3%, while S&P500 rose 36 points, and the Nasdaq 116 points |
Oil prices eased after three days of gains on concerns over possible global slowdown. Brent crude slipped 10 cents to $60.98 a barrel, while WTI crude fell 6 cents to $56.65.
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Make in India... India is targeting companies including Apple, Foxconn and Wistron Corp with a charm offensive to encourage them to shift business out of trade war-hit China. Indian officials met on August 14 and listed out "target companies" that also include Taiwan-headquartered Pegatron Corp and have started meeting them, trying to help identify best investment zones. The government is targetting nine sectors, including electronics, auto, pharma and telecom.
Read More | Sebi exonerates 3 former NSE execs in co-location case >>> |
| FM hints at new measures to boost consumption, infra >>> |
| ADB says RBI's surplus trasnfer to stimulate economy >>> |
Festive Bonanza... Expect to be spoilt for choice this festive season. Auto makers are pulling out all stops to make the most of the festive season, amid a crippling slowdown. As buyers dither to enter showrooms, companies are literally landing up at their doorsteps to make a sales pitch. Retail chains are set to increase marketing and promotional expenditure to revive footfalls and consumer spending after the end-of-season sales flopped. Apart from discounts, lifestyle and apparel retailers also plan to showcase widest range of new products.
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Grim Outlook… Stock traders rolled over more short positions into the September F&O series on continued concerns over economic slowdown in India and globally and US-China trade tensions, which trumped the measures announced by the government last week to boost liquidity and withdrawal of the controversial surcharge on FPIs registered as trusts. Nifty ended the August series down 2.7% – the third consecutive series where the index has ended in the red – while Bank Nifty fell 6%.
Read More Strict Vigil... About 275 systemically important NBFCs, which would include entities from Shriram Group and Bajaj twins, will face tighter central bank scrutiny, particularly on their interlinkages with commercial banks, as RBI seeks to ensure greater stability in India's credit landscape. Together, these NBFCs account for 85 per cent of the total assets in the sector, and are at the forefront of ensuring last-mile credit to Indians buying television sets, air conditioners, home gadgets, or cars. NBFCs constitute around 12 per cent of total assets in the banking and non-banking space.
Read More Meanwhile... China has indicated that it wouldn't immediately retaliate against the latest US tariff increase announced by US President Donald Trump last week, emphasising the need to discuss ways to de-escalate the trade war between the world's two largest economies.
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