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09-Dec-2019   08:41 Hrs IST Markets likely to get cautious start on Monday <p align="justify">Indian markets ended sharply lower on Friday, dragged by sustained selling in banking, consumer and auto counters. Today, the markets are likely to make cautious start amid concerns over ongoing slowdown in the India's economy and inflationary risk. Investors will be eyeing macro-economic data to be out later in the week. IHS Markit in its latest report said that India's real GDP growth in 2019-20 fiscal is expected to be slightly below 5 per cent as the impact of stimulus measures will take time to filter through to the economy. Some cautiousness will come with report that reversing their buying trend, foreign portfolio investors (FPI) turned net sellers in December with a net outflow of Rs 244 crore from the capital markets amid subdued economic data. Traders will be also concerned with former Reserve Bank of India (RBI) governor Raghuram Rajan's statement that India is in the midst of a growth recession with signs of deep malaise in the Indian economy that is being run through extreme centralisation of power in Prime Minister's Office and powerless ministers. However, some support may come with Finance Minister Nirmala Sitharaman's statement that the government is working on more measures to revive the sagging economy. She added that the government has taken several measures during August and September to boost the economy. Traders may take note of report that industry chamber CII has suggested that the government should reduce the personal income tax rate and slash corporate tax further to 15 percent for all companies over three years to boost demand and propel growth. There will be some buzz in the banking stocks with report that the insurance regulator may allow public sector banks to hold over 10 per cent stake in multiple insurance companies, given that they limit their promoter control to one entity and remain just an investor in others with no say in management decisions. </p><p align="justify">The US markets ended higher on Friday on much better than expected jobs data. Asian markets are trading mostly in green on Monday, catching some of Wall Street's momentum after surprisingly strong US jobs data although regional gains were capped by concerns about China's economy due to the prolonged Sino-US trade war.<br></p><p align="justify"></p><p align="justify">Back home, bears dominated Dalal Street on Friday, with Sensex and Nifty losing over 0.80% each. The start of the day was positive, as Reserve Bank of India's (RBI) Governor Shaktikanta Das indicated that the government may come up with some countercyclical policy measures on the fiscal side to revive growth. Indices remained in green during early morning deals, taking support with Commerce and Industry Minister Piyush Goyal's statement the target of Rs 5 lakh crore business through government's e-marketplace GeM is achievable in less than five years given the huge amount of procurement done via the platform. However, markets failed to hold gains in noon deals and turned negative to settle in red terrain, impacted with Reserve Bank of India's consumer confidence survey which highlighted that a further drop in consumer confidence in November as households remained pessimistic about jobs and the general economic situation. Weakness persisted over the street, as Federation of Indian Chambers of Commerce and Industry (FICCI) expressed disappointment at the Reserve Bank of India's (RBI) decision to keep interest rates unchanged and said there is a need for continued action on the policy rate front to boost growth. Finally, the BSE Sensex lost 334.44 points or 0.82% to 40445.15, while the CNX Nifty was down by 96.90 points or 0.81% to 11921.50.<br></p>
06-Dec-2019   08:31 Hrs IST Indian equity markets likely to make positive start on Friday <p align="justify">Indian equity markets witnessed volatile session and ended lower on Thursday after Reserve Bank of India (RBI) kept its repo rate unchanged at 5.15% with accommodative stance. Today, the start is likely to be good on positive global cues and traders will be drawing encouragement with Reserve Bank of India (RBI) Governor Shaktikanta Das indicating 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. Support may also come with Commerce and Industry Minister Piyush Goyal's statement the target of Rs 5 lakh crore business through government's e-marketplace GeM is achievable in less than five years given the huge amount of procurement done via the platform. Meanwhile, Assocham President B K Goenka said a temporary pause by the RBI to the policy interest rate reduction cycle while keeping its stance accommodative is understandable as long as it keeps nudging the banks to significantly pass the benefits of earlier rate combined repo rate cuts of 135 basis points since February this year. However, expressing disappointment at the RBI's decision to keep interest rates unchanged, industry body Ficci said there is a need for continued action on the policy rate front to boost growth. Banking stocks will be in action with Fitch Ratings stating that Indian banks are likely to take significantly more loan write-offs to reduce bad loans against a backdrop of rising provisions and weak recovery prospects. The state-owned banks account for around 90 per cent of impaired loan stock, and have cumulatively written off nearly $30 billion in bad loans in the past three years. There will be buzz in aviation stocks with the International Air Transport Association (IATA) stating that India's domestic air passenger traffic grew 3.6 per cent in October 2019 but the expansion was slower than last year, reflecting general economic slowdown and disruptive impact of Jet Airways' collapse. There will be some reaction in information technology (IT) stocks with report that Finance Minister Nirmala Sitharman said the lower 15 per cent tax rate for new manufacturing companies will not apply to computer software development, mining and printing of books. </p><p align="justify">The US stocks closed higher for a second consecutive session Thursday as investors remained optimistic about prospects for a US-China trade deal. Asian markets are trading in green in early deals on Friday as US President Donald Trump's rhetoric kept investors' hopes up on a trade deal with China. <br></p><p align="justify"></p><p align="justify">Back home, Indian equity benchmarks moved in a see-saw manner for some part of the day and ended Thursday's session marginally in red, following the outcome of the Reserve Bank of India's (RBI's) Monetary Policy Committee (MPC) meeting where the central bank kept the repo rate unchanged. Markets started off with marginal gains, as traders took some support with the Union Cabinet approving the launch of an exchange-traded fund (ETF) for bonds to create an additional source of funding for Central Public Sector Enterprises (CPSEs) and state-owned financial institutions. Finance Minister Nirmala Sitharaman has said that with the creation and launch of umbrella ETF the government hopes to diversify investor base. She emphasised that this is expected to eventually increase the size of bond ETFs in India, leading to achieving key objectives at a larger scale. However, key indices erased all gains and turned volatile in afternoon session, after RBI raised its inflation projection to 5.1-4.7 percent for the second half of the current fiscal on the back of a spike in prices of vegetables such as onion and tomatoes. RBI also sharply lowered GDP growth forecast for the current financial year to 5 percent from the earlier estimate of 6.1 percent on account weak domestic and external demand. Anxiety also spread among traders with Union Minister Nitin Gadkari expressing regret over hurdles like land acquisition and environment clearance faced by various road projects, saying the country must have a positive approach towards development. The market participants failed to take support with Reserve Bank Governor Shaktikanta Das' statement that there is good coordination between the fiscal and monetary policies so far, in addressing growth concerns and that the central bank is not worried about government missing fiscal deficit target. Finally, the BSE Sensex lost 70.70 points or 0.17% to 40,779.59, while the CNX Nifty was down by 24.80 points or 0.21% to 12,018.40.<br></p>
05-Dec-2019   08:27 Hrs IST Markets to get cautious start ahead of RBI's policy meet outcome
04-Dec-2019   08:33 Hrs IST Benchmarks likely to make pessimistic start
03-Dec-2019   08:42 Hrs IST Markets likely to get slightly negative start on Tuesday
02-Dec-2019   08:39 Hrs IST Markets likely to make cautious start of new week
29-Nov-2019   08:34 Hrs IST Benchmarks to open marginally in red; GDP data eyed
28-Nov-2019   08:36 Hrs IST Markets to make slightly negative start ahead of F&O series expiry
27-Nov-2019   08:40 Hrs IST Markets likely to make cautious start amid growth concerns
26-Nov-2019   08:35 Hrs IST Benchmarks likely to make positive start on Tuesday