The H2 borrowing plan reflects government confidence in meeting the fiscal deficit target. This is good news, but wrapped in suspense. How Sitharaman plans to keep it at 3.3 per cent of GDP is not clear to anyone. Will strategic sale be enough? Will it be deferral of expenditure? Is an overseas sovereign bond coming? With the growth rate down at 5%, it's a real uphill task ahead
STREET PULSE: Where we stand Global share prices ticked up on Tuesday as some investors clung to hopes that China and the US could work towards a trade deal in fourth quarter.
Read More  | SGX Nifty traded nearly 29 points higher at 7 am (IST), signalling positivity on Dalal Street after Monday's fall. MSCI index for Asia-Pacific shares outside Japan inched up 0.11%, while Japan's Nikkei rose 0.6% |
| US stocks finished higher in the final trading session of the month and quarter. Dow rose 96.58 points, S&P500 14.95 points and the Nasdaq 6.91 points |
Oil prices were under pressure on fading concerns of supply shortfalls and conflicts in West Asia. WTI crude rose 0.39% early Tuesday to $54.28 a barrel after falling 3.3% on Monday.
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Sale Season… The government is getting set for a series of blockbuster divestments — lining up strategic sales in four blue-chip, state-run companies and firming up plans for embattled Air India. A group of secretaries on Monday cleared strategic sales in BPCL, BEML, Concor and SCI. Stake sales in power companies THDC India and Neepco, have also been approved. These could be taken over by state-run NTPC.
Read More Strong Signal… The government has stayed with the borrowing plan for the current fiscal announced in the budget, sending a strong signal that it will try and meet the fiscal deficit target for the year despite a sharp cut in corporate tax rate that is expected to cost Rs 1.45 lakh crore. It will borrow Rs 2.68 lakh crore in second half, having borrowed Rs 4.42 crore in the first half out of the total planned Rs 7.1 lakh crore for FY20, Finance Ministry said.
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Auto Woes… Brokerage Jefferies said it expects sharp cuts to FY20 earnings estimates of auto companies despite the recent corporate tax cut bonanza. Downgrading Maruti Suzuki to 'hold' after the recent runup in share price, the brokerage said the auto sector is still in the middle of a downcycle, which has lasted an average of 7-11 quarters. M&M is its top pick among auto stocks.
Read More Slowdown Signs… India's infrastructure output fell in August from a year earlier for the first time since April 2015, signalling the economic growth recovery in Asia's third largest economy may be slow despite a cut in the corporate tax rate and other policy measures designed to spur investment. Infrastructure output, which comprises eight sectors such as coal, crude oil and electricity, accounts for nearly 40% of India's industrial output.
Read More Deal Terms... Indiabulls and Lakshmi Vilas Bank will not renegotiate the share swap ratio for their merger proposed in April despite the share prices falling after the bank was placed under prompt corrective action.
Read More Meanwhile...India blocked a US request to set up a panel to settle its disagreement over retaliatory tariffs imposed by New Delhi on 28 American products including apples, almonds, walnuts, chemicals, chickpeas, pulses and some steel products. The US had taken India to the World Trade Organization in July for according "less favorable treatment" to its products.
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