NSE - WEEKLY NEWS LETTERS
TOP NEWS OF THE WEEK

GST remains very high on the government's priority: Arun Jaitley - Finance Minister Arun Jaitley reportedly said that one main reform which is still work in progress is ‘ease of doing business’ in India and steps are under way on that front. Jaitley said the political opposition is unlikely to obstruct the reform process, including on the direct and indirect tax reforms. Speaking at ‘The Global Economic Outlook’ session, Jaitley said GST remains very high on the government’s priority, says report.
India's forex reserves fall by $1.7 billion - The country’s forex reserves were lower by $1.7 billion to $347,208 billion in the week to January 15, according to RBI data. RBI data says that the foreign currency assets slipped by $1.72 billion to $324.67 billion The value of gold in the reserves remained unchanged at $17.24 billion during the week. The country’s reserve position in the IMF further witnessed a drop of $0.7 million to $1.296 billion.
Govt may boost capital infusion plan for PSBs - The Finance Ministry is considering injecting more capital into public sector banks than the previously announced INR 70,000 crore infusion to strengthen their balance sheets, reports a business daily. “We are assessing the capital requirement position of each bank depending on their bad loans and, if need be, we may have to expand the capital infusion programme,” a Finance Ministry official has said. An announcement to this effect could be made next month by Finance Minister Arun Jaitley in the Union Budget for 2016-17 if the Government decides to expand the capital infusion programme, according to the paper. The plan is at a preliminary stage and no decision has been taken so far, adds the paper.
India is in better position than rest of the world: Chanda Kochhar, ICICI Bank - As the world dives into financial weakness, Chanda Kochhar, MD and CEO of ICICI Bank shared her insight on the macroeconomic outlook. According to her, the rupee is performing better than other global currencies. She sees a visible improvement in inflation with interest rates going down and finds the overall macroeconomic picture better when compared to the rest of the world.

India Utilities: What industry interactions suggest - 15 States have joined the SEB debt restructuring proposal introduced by the Center in Nov 2015. Power demand has been stable and is up 2.7% Y-o-Y in 9MFY16. Our industry interactions suggest that SEB payments are not seeing further delays. 4,030MW has been awarded on solar in the last 6 months, while thermal addition plans are muted as M&A focus continues. We remain positive on NTPC and Power Grid.
Indian economy has potential to grow at 8%: Montek Singh Ahluwalia - Indian economy, which expanded at 7.7 per cent between 2003 and 2014 has the potential to clock 8% growth in the near future, Planning Commission’s former deputy Chairman Montek Singh Ahluwalia reportedly said. Montek Singh Ahluwalia reportedly said that for India to grow at 7.7-8%, implementation of reforms like Goods and Services Tax and Bankruptcy law are necessary. “I would say post-1991 reform, from 2003-14, India grew at 7.7 per cent, Ahluwalia said. Indian economy grew at 7.3 per cent last fiscal.
We should be careful about calculating GDP growth: Rajan - RBI Governor Raghuram Rajan raised doubts over the new methodology used to calculate the country’s gross domestic product , according to reports. Rajan said that the policymakers should be careful while arriving at the figure. “There are problems with the way we count GDP which is why we need to be careful sometimes just talking about growth,” Rajan said while addressing students of the Indira Gandhi Institute of Development Research. Rajan reportedly said “We have to be a little careful about how we count GDP because sometimes we get growth because of people moving into different areas.
Bank of Japan adopts negative interest rate policy - The Bank of Japan adopted negative interest rates for the first time at the end of its two-day policy review on Friday, buckling under pressure to ease concerns about the health of the world's third-largest economy. In a move that was signaled by the Nikkei business daily minutes ahead of the decision, the BOJ said it will apply a rate of negative 0.1 percent to excess reserves that financial institutional place at the bank and introduce a three-tier system on rates .
Long due IMF quota reforms come into effect - The quota reforms of the International Monetary Fund are likely to be implemented soon which would be instrumental in fortifying IMF’s credibility, legitimacy and effectiveness, says a PTI report. The IMF reforms which came into effect on Thursday, have been due since a long span of time and were also approved by the US Congress last year. Emerging economies like India and China would enjoy increased voting rights, with the implementation of the reforms, as per the report. IMF had approved the reforms in 2010 however, the implementation had been held back since the same were not cleared by the US Congress.
Budget for 2016-17 likely to have quite a pruned disinvestment target: ASSOCHAM - With complete dimming of prospects of disinvestment target being met in the current financial year and the markets expected to stay in subdued mood even in the next fiscal, the government is likely to drastically scale down targets for realization of resources from PSUs’ stake sale in the Budget for 2016-17, ASSOCHAM said today. “It is given that with just about a month to go for the Budget presentation and the window of opportunity having been missed earlier in the year, there is no hope that the over-optimistic target of Rs Rs 69,500 for the current financial year could be reached. Hopefully, the Finance Ministry will desist from setting an un-realistic disinvestment yet again for the FY 2016-17,” the ASSOCHAM Paper on Budget expectations pointed out.
Fitch: Weakness in emerging markets weighs on global ratings outlook - In its latest global credit outlook report, Fitch Ratings says that rating outlooks are improving in most sectors in developed markets, but worsening in emerging markets, where they have fallen for the past five years and are now more negative than for their developed market equivalents in core sectors. History shows a correlation between a strengthening US dollar and weakening EM sovereign credit worthiness, as a falling US dollar income can affect credit fundamentals.
RBI rate reduction does not impact sovereign rating: S&P - The Standard & Poor's Ratings Services today said that RBI rate reduction does not affect the sovereign rating of the country in any way. Further, the banking sector in India is relatively well regulated compared with the peer banking system, it added. Details to follow soon.
Fed caution, an acid test of global confidence - Confidence in the global economy received another dent on Wednesday night following the Federal Reserve’s cautious tone towards the current global woes which rapidly erased any optimism that US rates could be increased four times this year. The economic landscape has morphed dramatically from the December meeting offering nothing but pain, and this has forced the previously hawkish committee to take a few steps back and re-evaluate their stance. Although the Fed decided to be mindful in the statement by reiterating a similar language to December in an attempt to mitigate further turmoil in the financial markets, critical changes highlighting slowing economic growth and low inflation levels have made the idea a US rate increase in March difficult to imagine.



For Quick Trial – 08962000225
Or mail us here: [email protected] or visit http://www.ways2capital.com/free-trial.php
Contact 0731-6554125
Toll Free – 1800-3010-2007
Give a Missed Call for Free Trial - 09699997717
For Reports And Tracksheets - http://www.ways2capital.com/downloads.php

515-516, Shagun Arcade, Vijaynagar Indore Pin- 452001
0731-6554125
[email protected]
http://www.ways2capital.com