For now the year 2014 is fast disappearing and this truncated week could see some wild swings. The F&O expiry will add to the choppiness in the coming days. Despite recent nervousness, investors appear ready to bet even on counters that are fairly valued hoping that the long-term growth potential of stable companies will reap rich rewards. Reports say a large chunk of the selling in December so far has been by hedge funds, known for their trading bets rather than long-term investments. In other words, much of the quality investors remain still invested in India and are looking at pumping in money early next year.
The outlook is a flat start. Some attention will be on the Rajya Sabha. The government’s ability to push through their way will be tested in the next two days. The trend in global markets, movement of rupee against the dollar, and crude oil price will dictate near-term trend. The euro has weakened on expectations that the European Central Bank (ECB) will be forced to expand its asset-buying program to include sovereign debt in early 2015, says a report. All this comes at a time when the Federal Reserve, though ‘patient,’ is preparing to lift interest rates next year.
Global cues are not really offering much cues. Asian indices are mixed with Japan's Nikkei marginally lower while Hong Kong's Hang Seng index is trading higher. China's Shanghai index is also up over a percent. On Friday, the Dow rose 0.15% while the S&P 500 and Nasdaq added 0.4% each.
As the rouble crisis deepens, with the country staring at a possible recession, Russia — the largest diamond producing country in the world — may increase its diamond exports which may lead to a decline in rough diamond prices by 2-5%, says a report.
A lot of action is likely to pick up in the auto pack early next year. Mahindra & Mahindra (M&M) has lined up close to a dozen launches for the New Year. Maruti Suzuki and Hyundai Motor also also lining up UV launches. Meanwhile, manufacturers are finalising production plans based on current trends, and most players say they are planning to roll out a higher number of petrol cars in 2015, says a report.
Infosys is in the midst of putting together a staff appraisal practice that includes some of the best practices followed at new-age companies, including Google and Facebook, and will start evaluating employees from October next, a report said.
On the political front, the Bharatiya Janata Party is poised to win the Delhi assembly polls comfortably, but the people of Delhi want Arvind Kejriwal as their chief minister, says a report.
The finance ministry is planning to rush through a Cabinet note seeking permission to sign an accord with the US on exchanging investment information before a December 31 deadline, ahead of President Barack Obama's visit to Delhi at the end of January, a report stated.
Wipro founder Azim Premji's Premji Invest, a family office specialising in private equity and venture capital investments, will purchase a 1 per cent stake in India's HDFC Standard Life Insurance for Rs 185 crore, valuing the firm at Rs 18,500 crore.
Last week, the Union Cabinet approved the proposal for introduction of a Bill in the Parliament for amending the Constitution of India to facilitate the introduction of Goods and
Services Tax (GST) in the country. The Union Finance Minister Arun Jaitley introduced the said Bill in the Lok Sabha. The proposed amendments in the Constitution will confer powers both to the Parliament and State legislatures to make laws for levying GST on the supply of goods and services in the same transaction.
GST will simplify and harmonise the indirect tax regime in the country. GST will broaden the tax base, and result in better tax compliance due to a robust IT infrastructure.
In its Mid-Year Eco Review, the Govt said it is committed to meeting FY15 fiscal aim despite difficult odds. India's GDP is expected to rise to 5.5 per cent in the current fiscal from 4.7% last year. FY15 revenue estimates were over-optimistic, the review stated adding that current RBI policy appears to be historically tight.
The Foreign Investment Promotion Board has cleared HDFC Bank's proposal to raise Rs 10,000 crore, says report. Earlier Shareholders allowed the lender to raise Rs 10,000 crore through routes that may include public or private placement as well as domestic or international markets.
Vistara has opened bookings from Thursday night for its first flights from January 9, according to reports.
According to the report, IDFC Ltd is planning to cut stake in IDFC Infrastructure Debt Fund to 49%. Report said IDFC was in talks with foreign investors in this regard.
Hindalco Industries lost its chance to bid for Mahan coal block in the upcoming coal auction, says a report.
As per the International Financial Statistics, 2014 of the International Monetary Fund (IMF), India holds 10th position among the major holders of official gold reserves in the world. The Reserve Bank of India holds 557.75 tons of gold. This was stated by Jayant Sinha, Minister of State in Ministry of Finance in written reply to a question in the Lok Sabha.
