In the cautious euphoria caused by the steady rise of the market and the indices scaling new peaks, many investors have lost sight of the fact that in between the indices took a dip, and from there on a new set of stocks have taken charge of the rally. These are steel, pharma, auto and a new set of financial names different from the ones that had led the previous leg. Each of these sectors is staring at different prospects from here on. And that tells you where we are headed.
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded some 4 points higher at 7 am (IST), signalling fatigue on Dalal Street. Elsewhere in Asia, shares snoozed near 18-month highs on Friday as trade thinned in the run-up to Christmas and investors seemed content to digest the chunky gains already made so far this month.
HERE'S WHAT TO WATCH  | MSCI index for Asia-Pacific shares outside Japan was a fraction firmer in early trade, having gained 1.2% for the week so far and almost 5% for the month. Japan's Nikkei inched up 0.1% after reaching a 14-month top earlier in the week. South Korea's market added 0.25% on the day and 5.5% for December. |
| On Wall Street, the S&P500 hit a sixth straight record high, its longest streak since January 2018, in overnight trade and the Nasdaq climbed for the seventh session in a row. Dow ended Thursday up 0.49%, while the S&P500 gained 0.45% and the Nasdaq 0.67%. |
| Oil prices held steady near three-month highs on Friday on the back of easing Sino-U.S. trade tensions that have weighed on demand as well as the global economic growth outlook. Brent futures rose 2 cents to 66.56 a barrel while WTI crude fell 9 cents to $61.09 |
| The rupee depreciated by 6 paise to close at 71.03 against the US dollar on Thursday as steady rise in crude oil prices weighed on investor sentiment. |
| LOOK WHO'S |  |
Here Comes Op Twist… RBI has launched its own version of 'Operation Twist' to drive down yields in a move aimed at reducing pressure on government borrowings. Essentially, the central bank would swap a set of bonds that are coming up for maturity in the near future with bonds that would mature at a longer date, eliminating the need to meet redemption. On Thursday, RBI announced the sale of bonds worth Rs 10,000 crore with longer maturity and buying bonds worth similar amount that are maturing next financial year. Bond traders are expecting more such 'switch' of government bonds between the treasury and the RBI, effectively reducing the pressure on government borrowings for next financial year.
Read More The Budget Pitch… India Inc has made a strong pitch for converging corporate tax rate to 15% over three years, ease of doing business and improving regulatory environment to safeguard investment as part of its budget wish list. At a pre-Budget meeting with finance minister Nirmala Sitharaman Thursday, industry captains sought measures to stimulate consumption, revive private investment and boost growth. Industry body CII sought policy stability for restoring investor confidence in sectors like retail, mining, auto and renewable energy. Ficci president Sandip Somany suggested that income-tax for those earning over Rs 20 lakh should be halved to boost consumption.
Read More | WHO'S |  |
Tata Sons a Public Co?… The Registrar of Companies (RoC) is studying Wednesday's judgment by the National Company Law Appellate Tribunal (NCLAT) on the Tata-Mistry dispute, and may soon change Tata Sons' classification to a 'public company' from a 'private company'. The NCLAT, in its 172-page order reinstating Cyrus Mistry as executive chairman of Tata Sons, had termed the conversion of Tata Sons into a private company 'illegal'. Top officials in the corporate affairs ministry — which oversees the RoC — said the requisite documents are being sourced. Mistry's legal team is believed to be in touch with RoC officials to ensure the change happens quickly.
Read More Claims on DHFL… The administrator overseeing the affairs of DHFL is said to have received total claims of about Rs 1.2 lakh crore from creditors after the RBI referred the indebted NBFC for debt resolution. Lenders including debenture holders, secured lenders and depositors have submitted their claims and the figure is so far about Rs 1.2 lakh crore, a person privy to the matter said. The administrator will soon start the process of accepting and rejecting claims. NCLT Mumbai chapter admitted DHFL for insolvency resolution on December 2 and appointed R Subramaniakumar as the company's administrator.
Read More Meanwhile... Bharti Airtel chairman Sunil Mittal has said the average tariff per telecom user needs to rise to Rs 300, or $4, over time, which would still be the lowest across the world and would revive the currently stressed sector in India. A balance needs to be found between consumer interests and financial resources for investments, Mittal told reporters on Thursday after a pre-budget industry meeting with the finance minister. He said the Trai needs to intervene and set a floor price for services.
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