Tuesday, March 10
France's opposition and widespread farmer protests are jeopardizing the EU's long-delayed free-trade deal with Mercosur. Angry farmers fear competition from cheaper agricultural imports, threatening a pact that has been nearly 25 years in the making. The deal's signing, planned for December 20, now faces significant delays, potentially pushing it to 2026 or later.
Finance Minister Nirmala Sitharaman refuted claims of India being a "dead economy" in the Lok Sabha, citing strong growth figures and sovereign rating upgrades. She highlighted India's position as the fastest-growing major economy, with 8.2% growth in the September quarter, and emphasized the country's transition from fragility to fortitude.
China's economic recovery is losing momentum as consumer spending and investment faltered in November. Retail sales saw their slowest growth since the Covid period, while factory output and car sales also softened. This weak domestic demand, coupled with external risks, has prompted leadership to prioritize expanding domestic demand for the upcoming year.
Leading financial institutions are bullish on several Indian companies. Morgan Stanley sees potential in Adani Power, while CLSA maintains an outperform rating on Dixon Technologies despite some concerns. HSBC is positive on Tata Steel's growth prospects, and Jefferies reiterates a buy on BPCL due to strong refining performance. Citigroup recommends IGL, citing improved volume outlook from clean energy mandates.
Stock market today: The BSE Sensex fell by 54.30 points (0.06 per cent) to 85,213.36. During trading hours, it had dropped by 427.34 points (0.50 per cent) to 84,840.32. The NSE Nifty decreased by 19.65 points (0.08 per cent) to 26,027.30.
India's merchandise trade deficit narrowed significantly to $24.53 billion in November, driven by reduced imports of gold, oil, and coal. This decline exceeded analyst expectations and comes as India implements measures to counter US tariffs and seeks concessions on key exports.
The Indian Rupee hit an all-time low of 90.56 against the US dollar, marking its second consecutive week of record declines. This depreciation is attributed to a lack of a US trade deal, weak capital inflows, and a widening trade deficit.
Indian Railways is implementing significant cost-cutting measures in maintenance, procurement, and energy to bolster its finances. This proactive approach aims to absorb anticipated wage increases from the Eighth Pay Commission, projected to be substantial. The railway is focusing on operational efficiency and increased freight revenue to manage the financial impact.
