Global: In keeping with expectations, ECB maintained its ultra-accommodative stance and kept all interest rates and asset purchase program unchanged. ECB said that the balance of risks on growth is still to the downside on account of global uncertainties and slow pace of domestic structural reforms. Euro weakened on cues that the ECB has no immediate plans to add further stimulus – nor did it indicate that the currency was in overvalued zone to renew concerns about its impact on the Euro economy.
Domestic: With the Parliamentary session recommencing early next week, focus will be back on bankruptcy and GST bills. The parliamentary committee on bankruptcy law has made some headway in arriving at political consensus, which increases the chance of passage of the bill. The committee may submit the revised bill with some delay, after which it will be tabled in the Parliament.
Q4 earnings: After Infosys, which posted a strong operating performance, TCS also delivered better-than expected profit and in-line revenue. Both the IT biggies gave a rather sanguine outlook for FY17. However, Wipro underwhelmed with a subdued guidance of 1-3% QoQ growth though its operational performance was largely in line with our expectations.
Amongst the early birds within BFSI space, private sector banks (HDFC Bank and IndusInd Bank) and HFCs (LIC Housing) that have reported their Q4FY16 earnings thus far, all have reported superlative growth in advances and disbursements; asset quality largely remained stable. While private banks did not see any impact on margins, HFCs have reported expansion in their NIMs.
India
NRI
