When telecom tariffs were raised, some analysts discussed possible impact on FMCG volumes; such is the extent of demand slowdown in the economy. Crude oil was at $63 when RBI went for the second rate cut in April, 2019. Today it is at $60. Nobody, including RBI, is disputing the spike in inflation, caused by a seasonal food price rise, is temporary. And RBI itself has just cut FY20 GDP growth estimate to 5% from 6.1%, signalling a wide output gap. This is why the money policy caused unease. Looks like, more than anything else, a niggling worry about fiscal deficit was behind the mood swing.
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded 25 points higher at 7 am (IST), signalling positivity on Dalal Street. Elsewhere in Asia, shares held firm on Friday as US President Donald Trump's rhetoric kept investors' hopes up on a trade deal with China.
HERE'S WHAT TO WATCH  | MSCI index for Asia-Pacific shares outside Japan was up 0.19%. Japan's Nikkei rose 0.28%, Australian shares gained 0.24%, while South Korea's Kospi added 0.57%. |
| Wall Street eked out slight gains on Thursday as investors waited for concrete news on a hoped-for interim trade deal between the US and China before a new round of tariffs scheduled to kick in on Dec 15. Dow rose 28.01 points, the S&P500 4.67 points and the Nasdaq 4.03 points |
| Oil prices edged higher in early Asia trade on Friday, with US crude trading near a two-month high after OPEC agreed to increase output curbs by nearly 50 percent in early 2020. WTI futures rose by 2 cents to $58.45 a barrel while Brent futures gained 1 cent to $63.40. |
| The rupee rose sharply in the last hour of trade to settle 24 paise higher at 71.29 to the US dollar on Thursday after RBI promised to continue with accommodative stance in its monetary policy. |
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Opportunity in Karvy Crisis… The crisis at Karvy Stock Broking has rival firms vying for its client base. As clients worry about the safety of their shares and securities in Karvy in the wake of regulatory restrictions, other brokerages are going all out to lure them with discounts on various services and cheaper fees. Brokerage officials said these offers are for all potential clients but, in private, agreed that they have been launched to attract clients of Karvy.
Read More More Govt Sops Coming?... RBI Governor Shaktikanta Das has indicated that the government may come up with some countercyclical policy measures on the fiscal side to revive growth which may be another reason why the Monetary Policy Committee did not vote for a policy rate cut despite popular expectation. "It is also likely that the government may initiate some more counter-cyclical fiscal and other measures to arrest the slowdown," Das said after announcing status quo on the rate front, disappointing market participants.
Read More Signs of Recovery… India is set for a modest recovery after a loss of momentum as reforms to simplify taxation, lighten business regulations and upgrade infrastructure start to bear fruit, the Organization for Economic Cooperation and Development (OECD) said on Thursday, even as it pushed for reforms to create jobs and improve public welfare. Growth in Asia's third largest economy will slow down to 5.8% in 2019 but would recover to 6.2% in 2020 and 6.4% in 2021, the OECD said in its 'Economic Survey of India' report.
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Deep Opec Cuts Ahead… Oil producers led by Saudi Arabia and Russia agreed on Thursday to cut output by an extra 500,000 barrels a day in the first quarter of 2020, but stopped short of pledging action beyond March. The countries involved pump over 40% of the world's oil, and their new combined cuts amount to 1.7 million bpd or 1.7% of global production. Details of the agreement and how the cuts will be distributed among producers still need to be ratified at a meeting in Vienna of OPEC and non-OPEC nations on Friday.
Read More Mint Street Headache… North Block may have to pay more to borrow from Mumbai's financiers after Mint Road sprang a surprise on Thursday, keeping the benchmark policy rate unchanged despite consensus expectations of further easing in benchmark rates. The Overnight Interest Rate Swap (OIS) with one-year maturity, a derivative gauge where investors exchange fixed rates for floating, surged 24 basis points to 5.26%, suggesting that traders do not expect any rate reduction for now.
Read More Meanwhile... Aramco IPO has missed the mark, but is still set to be biggest in history. The oil giant priced its IPO at 32 riyals ($8.53) per share, the top of its indicative range, raising $25.6 billion and beating Alibaba's record $25 billion listing in 2014. But it will fall short of the towering $2 trillion valuation long sought by Crown Prince Mohammed bin Salman. At that level, Aramco has a market valuation of $1.7 trillion, comfortably overtaking Apple as the world's most valuable listed firm.
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