Plan and Policy

Plan & Policy

India-US yield spread jumps on Fed soft stance, RBI rate hike fears

The spread between the 10-year benchmark US government bond yield and its comparable Indian bond widened to its highest level in eight months, supported by the softer stance of the US Federal Open Market Committee (FOMC) and speculation among local investors of a likely RBI rate hike in mid-2018.

Low-teen EPS growth, volatility seen for 2018

It seems 2018 is going to be a different year for the equity market that delivered around 25 per cent return in 2017. Top foreign banks and asset managers predict significant uncertainty around growth and higher volatility next year from state and general elections

This year, the market had a one-way bull run from the very start, with the Sensex starting around the 26,500 range and reaching 33,246, as of today, with minor volatility in between.

SC allows Voda to begin 2nd arbitration in $2b tax dispute

The Supreme Court on Thursday allowed Britain’s Vodafone to initiate a second arbitration process under an India-UK investment pact over a long-running $2 billion-plus tax dispute with New Delhi. A two-judge panel said a second arbitration tribunal may be set up and its proceedings can begin after a regional court formally lifts a stay order on the move. The Delhi High Court is expected to rule on the case in January.

Exit polls predict BJP retaining Guj, winning Himachal

All exit polls have predicted a clean sweep for BJP in Himachal Pradesh and Gujarat. The BJP is expected to topple the Congress government in Himachal Pradesh and retain Gujarat for a record fifth consecutive time. Most of the surveys have predicted that BJP will win around 110 seats in the 182-member Gujarat assembly. The contest is likely to be one-sided in Himachal Pradesh, where BJP is expected to win around 50 out of 68 seats.

Will significantly overtake disinvestment target: Jaitley

Finance Minister Arun Jaitley today said the government will "significantly overtake" the disinvestment target for the current financial year.

Speaking at the AGM of industry chamber Ficci, the finance minister also said that Air India disinvestment plan is moving expeditiously and is on track.

Need to continue momentum on building infrastructure: Jaitley

Finance Minister Arun Jaitley today emphasised the need to continue the momentum on infrastructure creation and expedite investment in railways to propel the Indian economy.

Addressing industry association FICCI's annual general meeting here, he said India has had one of the highest infrastructure spendings in the world but the momentum needs to be sustained.

There is a need to "hurry up" on investment in railway infrastructure, including on stations and super fast and bullet trains, he said.

Nov trade deficit set to narrow

India’s trade deficit is expected to narrow in November as services exports accelerated on pick up in global growth am­id fading disruptions cau­sed by implementation of the goods and services tax (GST), experts say. Adding to this, momentum in imports is expected to moderate partially driven by a higher base of comparison.

“Improved global dema­nd conditions and fading off GST-related impact on the export business is likely to narrow the trade deficit,” said a senior economist with a private-sector bank.

You have time till March 31 to link Aadhaar with bank a/c

The new deadline for linking Aadhaar and PAN with bank accounts and certain financial transactions is March 31, 2018. The government has announced an extension of three months, replacing the earlier limit to link these two identification instruments by December 31. The government had last week extended the deadline for linking of Permanent Account Number (PAN) with national biometric identifier Aadhaar until till March 31, 2018.

SC stays Centre’s takeover of Unitech

The Supreme Court on Wednesday stayed an order of the National Company Law Tribunal (NCLT) directing government takeover of the management of Unitech, which owes thousands of crores of rupees to homebuyers.

A three-judge bench of chief justice Dipak Misra and justices AM Kanwilkar and DY Chandrachud stayed the December 8 order of the NCLT on a petition filed by Unitech challenging the same. The NCLT had allowed the government to name new directors on the board of the debt-ridden firm to protect the interest of homebuyers.

Rumours being spread on FRDI bill, says PM

Prime Minister Narendra Modi said today that the government is working to protect the interest of bank customers and their deposits, seeking to dispel the rumours regarding the proposed FRDI Bill.

The so-called "bail-in" clause in the draft Financial Resolution and Deposit Insurance (FRDI) Bill, 2017 has been commented upon by experts as bringing potential harm to deposits in savings accounts.

The draft law, which was introduced in the Lok Sabha in August, is undergoing scrutiny by a joint parliamentary committee.