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Published on 14/08/2019 10:06:05 AM | Source: HDFC Securities Ltd

Trump Presses pause on trade war - HDFC Securities

Posted in Market Outlook| #Market Outlook #HDFC Securities

 

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TRUMP PRESSES PAUSE ON TRADE WAR HDFC Securities

Trump Administration’s decision to delay the imposition of tariffs on goods imported from China set off a huge rally in US markets and reclaimed most of Monday's losses. Global equity markets will also breadth a sigh of relief on this de-escalation.

Indian government has issued guidelines on operationalizing Rs 1 trillion partial guarantee scheme under which public-sector banks can purchase high-rated pooled assets of sound non-banking finance companies. The government will provide one-time six months' partial credit guarantee to public sector banks for first loss of up to 10 per cent.

Wipro will remain in focus, as its Rs10,500-crore buyback will open for subscription today.

Even a gigantic 10% move in Reliance could not stop markets slumping by 1.6% yesterday. Positive global cues and improved sentiments on NBFCs will help our markets open higher. 10900 in nifty is a near term support below which we can retest the recent lows 10780. Markets will be closed tomorrow as the nation celebrates Independence Day. 11100 will act as a strong barrier in the short term. Pharmaceuticals as a sector shows promise of a decent bounce.

Government issues guidelines for Rs1 trillion partial credit guarantee for NBFCs The finance ministry has issued guidelines for rolling out its budget announcement of offering Rs1trillion partial credit guarantee to public-sector banks purchasing highrated pooled assets of financially sound non-bank lenders.

Non banking finance companies (NBFCs), including housing finance companies have been under stress following the series of defaults by group companies of Infrastructure Leasing & Financial Services Ltd. (IL&FS) last year. Finance minister Nirmala Sitharaman announced the scheme in her FY19-20 budget to ensure that financially sound NBFCs continue to get bank funding

For purchase of high-rated pooled assets of financially sound NBFCs, amounting to a total of ₹1 lakh crore during the current financial year, the government will provide one-time six months' partial credit guarantee to public sector banks for first loss of up to 10%

The guidelines also said that the NBFCs registered with RBI and housing finance companies registered with National Housing Bank can take benefit under the window.

 

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