Rise With Profit: NTPC Green's Listing, Global Cues This Week, Maharashtra CM Oath-Taking Likely | Podcast

Good morning!

This is the daily morning update from NDTV Profit and I'm Alex Mathew. Here's everything you need to know at the start of your day.

It was a busy weekend here in the financial capital, with votes being counted in the crucial high stakes assembly election in Maharashtra. And equity markets will likely react to the result, which was a landslide victory for the Bharatiya Janata Party–Mahayuti alliance. The coalition won a smashing 235 seats out of the total 288, with the BJP securing 132 seats by itself.

The oath-taking ceremony of the new chief minister and the deputy chief minister could take place later today. And according to people aware of the development, there is no decision yet on who will take the posts.

Meanwhile, the Jharkhand Mukti Morcha-led INDIA bloc defeated the BJP-led NDA in the state, by winning 56 seats in the 81-member Jharkhand Assembly.

On the global stage, a number of trends continue to play out. The heightened geopolitical tension emanating from the dispute between Russia and Ukraine has pushed gold prices to close to all-time highs. As of this morning, gold prices were at over $2,733 per troy ounce. The dollar has been gaining strength in recent weeks as well, after Donald Trump won the US presidential election. His policies are expected to be inflationary, which have pushed up the bond yields in the US and the dollar.

As of this morning, the US dollar index, which measures the greenback's strength against a basket of currencies, was at close to $107.

An interesting appointment by Trump could have a bearing on expectations though. He has nominated Scott Bessent, a hedge fund manager, to become Treasury Secretary. He's viewed as a fiscal hawk, with those familiar with his views are expecting that he will look to rein in spending.

The rise in the dollar index has coincided with outflows from the Indian capital markets. And during this time, India's foreign exchange reserves have fallen steadily. In the week of Nov. 15, forex reserves fell to just under $660 billion, having fallen for seven straight weeks from a peak of over $700 billion.

For the equity markets in India, the major cue at the start of the week will be the result of the Mahrashtra Assembly election, of course, but even the global cues are positive. In the Asia Pacific region this morning, equity markets have opened positive, with all three starting with solid gains. In fact, the Nikkei 225 in Japan was higher by nearly 2%, when I checked.

The key talking points in the week ahead will be the minutes of the Federal Open Market Committee's last meeting. That could point to the direction of rate cuts going forward. Currently, of course, a likelihood of a slowing of the pace is being priced in. There will also be the release of US GDP data on Wednesday. Back home, the key data points you should watch for include the GDP growth data and fiscal deficit at the end of the week.

In the primary market, NTPC Green Energy Ltd. is set to debut on the stock exchanges on Wednesday after its highly anticipated maiden public issue. The Rs 10,000-crore initial public offering was entirely a fresh issue of approximately 92.6 crore shares.

Speaking of the equity markets, there's a change in the constitution of the benchmark Sensex. Zomato will be added to the 30-stock index from Dec. 23, while JSW Steel will be removed.

In other news, Finance Minister Nirmala Sitharaman advocated for India to establish a “Bharat Food and Drug Administration (FDA)” to set global standards for pharmaceutical products. Sitharaman was speaking at the 8th India Ideas Conclave in Bengaluru. The minister was suggesting the changes India should make to build its brand in the future for the globe.

An update in the aviation space to tell you about—the Ministry of Civil Aviation has instructed airlines to improve passenger support during flight delays to enhance convenience during disruptions. The Directorate General of Civil Aviation issued an advisory requiring airlines to provide specific services based on the delay duration. These include a provision of meals for delays more than four hours.

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