Dow 8,635 259.18
Nasdaq 1,509 63.75
S&P 500 876 30.85
Europe
London 4,049 -114.24
Paris 2,988 -173.15
Frankfurt 4,381 -182.76
Asia at 9 00 AM
Tokyo 8,249 331.94
Hong Kong 14,575 728.52
SGX Nifty 2819 +103 pts
Commodities
Oil $42.44 1.63
Gold $752.20 -13.30
Market Outlook:
US Markets ended higher even after abysmal Job data. Big 3 automakers are closing in on a $15 billion bail out. Europe had a bad day on Friday had 3% cuts across the board. Nifty will react positive and price in the RBI rate cut and the fiscal stimulus package.
News Today:
* Indian Government Announces a $4billion stimulus to jump start the economy, cuts cenvat by 4% across the board. Quantum of the package is lesser than expected. Companies have decided to pass on the benefit of vat to customers.
* RBI slashes interest rates by 100 bps, says economy is slowing down significantly.
* US job numbers came at a 34 year low,Unemployment rate shoots to 6.7%. With more companies announcing job cuts Unemployment rate is likely to head higher.
* OPEC will cut output, chief says . Oil slips to near 5 year lows.
* Inflation is likely to fall significantly on the back of fuel prices cuts. Gives room for further cuts by RBI.
* Honda motors announced that it will not participate in the F1 Grand prix. Gives and indication how the Japanese car makers are also hurt badly by the global fall out.
Highlights of Fiscal package :
- Plan, non-plan expenditure of Rs.300,000 crore (Rs.3,000 billion/$60 billion) in four months
- - Parliament nod to be sought for Rs.20,000 crore more toward plan expenditure
- - Across-the-board cut of four percent in the ad valorem central value-added tax
- - Interest subvention of two percent on export credit for labour intensive sectors
- - Additional allocations for export incentive schemes
- - Full refund of service tax paid by exporters to foreign agents
- - Incentives for loans on housing for up to Rs.500,000, and up to Rs.2 million
- - Limits under the credit guarantee scheme for small enterprises doubled
- - Lock-in period for loans to small firms under credit guarantee scheme reduced
- - India Infrastructure Finance Co allowed to raise Rs.100 billion through tax-free bonds
- - Norms for government departments to replace vehicles relaxed
- - Import duty on naphtha for use by the power sector is being reduced to zero
- - Export duty on iron ore fines eliminated
- - Export duty on lumps for steel industry reduced to five percent
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