India's consumption story, the showpiece of the economy until some months back, appears to have fallen apart suddenly. From pricey cars to white goods and low-end FMCG goods, the slowdown is singeing every part. One explanation is that consumer growth was largely leverage-led, which is where the NBFC crisis has applied the brakes. Others say it's about sentiment, as slowing job creation and income uncertainty have made consumers to postpone purchases. Whatever it is, a feel-good factor for consumers will be the first condition for reversing the slowdown.
STREET PULSE: Where we stand Stocks in Asia opened mixed this morning as investors awaited the outcome of the Federal Reserve's policy meeting, where it's widely expected to cut interest rates again.
Read More  | SGX Nifty traded over 30 points higher at 7 am (IST), signalling a rebound on Dalal Street after Tuesday's selloff. Equity indices in Japan edged down, while Hong Kong and South Korea traded flat. |
| US stocks finished with modest gains overnight, a day ahead of the Fed policy meeting. The Dow rose around 31 points, S&P500 gained 8 points, and the Nasdaq 32 points |
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Oil Turnaround.. Oil prices tumbled about 6% on Tuesday after Saudi Arabia's energy minister said the country has managed to restore oil supplies to where they stood before weekend attacks on its facilities shut 5% of global oil output. Saudi Energy Minister Prince Abdulaziz bin Salman said the kingdom has recovered supplies by tapping inventories, and lost oil output of 5.7 million barrels per day (bpd) by the end of September. On Wednesday, Brent crude futures fell 0.64% to $64.14 a barrel while WTI crude lost 0.78% to $58.88 per barrel.
Read More | Ban on govt vehicle purchase withdrawn >>> |
| Govt says all options open on MMTC, STC and PEC >>> |
H-1B Relief… The proposal by the Donald Trump administration to ban spouses of H-1B visa holders from working in the US may not be implemented until next year, offering temporary relief to thousands of Indian nationals as well as the technology companies employing them. On Monday, the US Department of Justice told an American court that it has set a time frame of Spring 2020 to bring in the rules.
Read More | WHO'S |  |
No Tax Cut?… The GST panel is unlikely to approve lowering the tax for the auto and allied components sector this week, as a study has warned of major revenue losses, government officials told Reuters. A government study, attached to the agenda of a Sept. 20 GST panel meeting, has said the total annual revenue loss could be as much as Rs 50,000 crore, if the panel decided to lower tax rates for the auto sector to 18% from 28%. State officials in Kerala, Punjab and West Bengal say they are also opposed to any cut in tax rates in the autos sector, or even consumer goods, because of lacklustre tax collections this financial year.
Read More Fuels on Fire... Petrol and diesel prices on Tuesday saw the biggest hike since July 5 Budget. Petrol price was increased by 14 paisa per litre to Rs 72.17 and diesel by 15 paisa to Rs 65.58 per litre in Delhi. This increase is the biggest single-day hike since the July 5 maiden Budget of Finance Minister Nirmala Sitharaman that raised rates by Rs 2.50 a litre due to an excise duty hike.
Read More Startup Missive... Some of India's richly-valued internet companies will soon petition Sebi for a revision in rules that govern listing of startups on Indian stock exchanges. Companies like Ola promoter ANI Technologies , eyewear solutions company Lenskart and online insurance policy aggregator PolicyBazaar, want Sebi to either remove the requirement of promoters holding at least 20% stake in the companies that they have founded, or consider it on a case-by-case basis.
Read More Meanwhile...Sebi has barred CG Power's sacked chairman Gautam Thapar, former directors Madhav Acharya and B Hariharan and ex-chief financial officer VR Venkatesh from accessing the securities market, alleging fraudulent diversion of funds. The regulator has also restrained them from being associated with any market intermediary or listed firm and asked the BSE to appoint forensic auditors to check the books of accounts of CG Power from FY16 onward.
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