The 10 years gone by is being called the lost decade in India, but Nifty delivered 150% returns for this period. That shows the wealth creation potential of a developing economy. While economic slowdown remains a worry, the fact is between 2014 and 2019, India's mutual fund industry mopped up Rs 6,00,000 crore investment, 7 times of what it had got between 2004 and 2014. There is money with people, but they are unwilling to spend. Even a small shift of these savings into consumption can send India flying again. That's what the Union Budget should be aiming for.
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded flat at 7 am (IST), promising a tepid start to trade as Dalal Street readies for F&O expiry. Elsewhere in Asia, stocks saw another quiet year-end session, sitting on an advance of almost 9% for the quarter thanks to ebbing trade tensions.
HERE'S WHAT TO WATCH  | Shares ticked higher in Tokyo and were flat in Seoul, without a cue from Wall Street overnight given the Christmas holiday. Shanghai saw a muted open, while Hong Kong and Sydney were still shut. |
| The Dow Jones fell more than 36 points on Christmas Eve as speculation over an impending 'Christmas gift' from North Korea put stock markets on edge. While S&P500 and Dow slipped from their record highs, Nasdaq edged 0.08% higher to 8,952. |
| Oil prices rose on Thursday, buoyed by a potential breakthrough in the Sino-US trade war and OPEC-led efforts to constrain supply, although trading was quiet as many markets were in holiday mode. Brent crude was up 16 cents, or 0.2%, at $67.36 a barrel by 0155 GMT. |
| The rupee depreciated by 9 paise to close at 71.27 against the US dollar on Tuesday amid heavy selling in domestic equities and steady rise in crude oil prices. |
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Tax Cut in Budget?… A flat tax rate without exemptions, new slabs for those earning higher incomes, cuts in personal income tax in line with those in corporate tax — these proposals are being examined ahead of the budget as the government eyes ways of boosting consumption and reviving growth. The finance ministry will present arguments for and against these suggestions before a decision is taken at the highest level, a government official said. The Budget will be presented in February.
Read More Reliance Retail Share Swap… Reliance Industries has proposed a scheme that will allow shareholders of the unlisted Reliance Retail to exchange their stock for RIL shares, with the swap valuing the retail business at double that of nearest rival DMart. Under this proposed scheme, Reliance Retail shareholders will get one share of RIL in exchange for four shares of Reliance Retail, details of the arrangement uploaded on the RIL website showed. The swap ratio values the retail business at Rs 2.5 lakh crore.
Read More Grains vs Chaff…Stocks of five NBFCs rose 50% or more in 2019, defying the turbulent times for the sector amid liquidity crunch and asset quality issues. The list is dominated by micro and SME lenders which demonstrated better loan growth and greater control over asset quality. An ET Intelligence Group analysis showed 17 of the 48 NBFCs each having market capitalisation of at least Rs 1,000 crore as on December 24 outperformed Nifty50's 13.6% and Sensex's 16% returns in 2019.
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NCLAT Puzzle…The NCLAT order to reinstate Cyrus Mistry as the chairman at Tata Sons has got the legal fraternity into a huddle, as they debate whether the judiciary can overrule the primacy of shareholders on such a matter. Top legal experts expect the Supreme Court to provide clarity while dealing with the NCLAT order to reinstate Mistry, whose official term would have ended two years ago. He was appointed Tata Sons' chairman from December 2012 to March 2017, but was ousted by the board in October 2016.
Read More Kissa Kursi Ka… A new Sebi rule for clear separation in the roles of chairperson and managing director will come to force on April 1, 2020. And the issue has picked up volume in several corporate boardrooms as the deadline nears. In most Indian promoter-led companies, the posts of chairman and MD are interwoven. Promoters say the Kotak Committee did not recommend that the two posts should not be related and hope the order gets deferred by 2-3 years.
Read More Meanwhile... A trade deal in very near. US President Donald Trump said on Tuesday he and Chinese President Xi Jinping will have a signing ceremony to sign the first phase of the US-China trade deal agreed to this month. United States Trade Representative Robert Lighthizer said on December 13 that representatives from both countries would sign the Phase-I trade deal agreement in the first week of January.
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