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    Market Movers: CSO estimates fastest GDP growth; housing launches show an uptick

    Synopsis

    India’s economy is forecast to grow at its fastest pace in three years in FY19.

    Indian-economy---GettyGetty Images
    Gross domestic product (GDP) is forecast to grow 7.2%, up from 6.7% last year, according to the first, full-fiscal-year estimate released by the Central Statistics Office.
    Good morning! Here’s a lowdown on top macro triggers that may move market on January 8, 2019. This report was compiled from agency feeds.

    Govt clears 10% quota for low-income groups
    With an eye on securing upper caste votes ahead of the general elections, the Union Cabinet on Monday cleared a Constitutional Amendment Bill to give 10% reservation to the economically backward sections of society, over and above the 49.5% quota in place for SC, ST and OBCs.

    Economy to grow at fastest pace in 3 yrs
    India’s economy is forecast to grow at its fastest pace in three years in FY19, recovering from the disruption caused by demonetisation and the rollout of the goods and services tax (GST), marking the end of the government’s five-year term on a positive note ahead of the general elections. India will thus retain its ranking as the world’s fastest growing economy, the government said. Gross domestic product (GDP) is forecast to grow 7.2%, up from 6.7% last year, according to the first, full-fiscal-year estimate released by the Central Statistics Office.

    Up from the bottom

    Govt allows ONGC, OIL to induct foreign partners
    Oil minister Dharmendra Pradhan Monday said the government will allow state-owned ONGC and Oil India to induct private and foreign partners in oilfields to raise output and also give special incentive to make their discoveries in difficult areas viable. Pradhan said Oil and Natural Gas Corp (ONGC) and OIL will have the freedom to decide which of their currently producing fields they want to retain and in the ones where they would like to induct a partner.

    Well oiled

    RBI likely to pay govt up to Rs 40K crore interim dividend
    The Reserve Bank of India (RBI), having changed management last month following a clash with the government, is likely to transfer an interim dividend of up to Rs 30,000 crore to Rs 40,000 crore ($4.32 billion-$5.8 billion) to the government by March, reports Reuters. The dividend could help Prime Minister Narendra Modi's administration bridge a widening budget deficit following a drop in tax collections, and would come after the government pushed the RBI for the additional funds ahead of a national election due by May.

    Oil prices edge up on trade talk hopes, OPEC cuts
    Oil prices edged up on Tuesday, supported by hopes that US-Chinese talks in Beijing would bring a halt to a trade dispute between the world’s biggest economies, while the start of OPEC-led supply cuts also tightened markets. U.S. West Texas Intermediate (WTI) crude oil futures CLc1 were at $48.85 per barrel, up 33 cents, or 0.7%. International Brent crude futures LCOc1 were at $57.77 per barrel at 0113 GMT, up 44 cents, or 0.8% from their last close.

    I-T returns hit record high in FY19
    The current fiscal year is likely to be a watershed for income tax compliance and the tax department is returning the favour with quick refunds. The income tax department issued refunds to 24 million taxpayers on December 30, a 53% rise from the year ago, refuting speculation that these may be delayed as the government tries to meet the fiscal deficit target. In terms of value, Rs 1.31 lakh crore has been paid out in refunds so far, up 17.02% over the same period in the previous year.

    Housing launches see significant jump in 2018
    After a prolonged lull of nearly 3 years, residential markets in the top 3 property markets of Bengaluru, Mumbai and Delhi-NCR have showed signs of recovery in the year 2018. The positive impact of the regulatory reforms including the implementation of RERA and GST is now evident, said a JLL India report. According to JLL Research, Delhi NCR witnessed 114% year-on-year growth in new launches at 17,660 units, which is the highest among the three markets. While Bengaluru recorded annual growth of 81% at 37,286 units, Mumbai’s housing market saw a 22% rise in launches.

    US, China can reach trade deal: US comm secy
    US Commerce Secretary Wilbur Ross predicted on Monday that Beijing and Washington could reach a trade deal that “we can live with” as dozens of officials from the world’s two largest economies resumed talks in a bid to end their trade dispute. Ross told CNBC the immediate trade issues would be easiest to tackle while enforcement issues and structural reforms, such as intellectual property rights and market access, would be more challenging to resolve.

    POLICIES & MORE
    The Supreme Court is scheduled to pronounce on Tuesday its verdict on CBI Director Alok Kumar Verma's plea against the Centre's decision to divest him of powers and sending him on leave. The Centre had taken a decision against Verma and CBI's Special Director Rakesh Asthana after their feud become public as they made allegations of corruption against each other.

    Bandhan Bank, a lender to the less affluent, would absorb the financier of largely affordable homes Gruh Finance in a stock-swap deal, creating a merged entity that would offer the full suite of financial services ranging from small-business loans to mortgages. With the proposed merger, Bandhan Financial Holdings’ stake in the combined entity would fall to 61% from 82.3%. Housing Development Finance Corp (HDFC), the promoter of Gruh, would own 15% of Bandhan Bank if permitted by the regulator.

    TOP VIDEO
    It is not a 20% up-down kind of a scenario which we had in 2009 and 2004: Samir Arora, Helios Capital

    It is not a 20% up-down kind of a scenario which we had in 2009 and 2004: Samir Arora, Helios Capital

    If the US dollar depreciates a little because of they have one interest hike instead of two and the Indian rupee strengthens by 1% or 2%, it makes for a big cycle and logical difference to foreign investors, Samir Arora, Founder and fund manager, Helios Capital, tells ET Now.

    TOP QUOTE
    'We would not hesitate buying into uncertainty in case of dips'

    FUNDAMENTALS
    Rupee up: The rupee pared early gains but managed to end 4 paise higher at 69.68 against the US dollar Monday following dovish stance by the Federal Reserve and rising hopes of a thaw in ongoing US-China trade tiff.

    10-yr bond yields up: India 10-year bonds' yields rose 0.06% to 7.51% on Monday from 7.45% in the previous trading session, according to RBI data.

    Call rate: The overnight call money rate weighted average was 6.10% on Monday, according to RBI data. It moved in a range of 4.10-7.00%.



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    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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