EUR 120.00 For Business Accounts Only

MOSL: Morning India (23/January/19): 1. Ecoscope (Budget Preview); 2. Asian Paints; 3. Sun Pharma; 4. HDFC Std Life; 5. Shree Cement; 6. ICICI Pru Life; 7. Havells India; 8. L&T Fin. Holdings

MOrning India (23/January/19): 1. Ecoscope (Budget Preview); 2. Asian Paints (Strong performance); 3. Sun Pharma; 4. HDFC Std Life (In-line); 5. Shree Cement; 6. ICICI Pru Life (Modest quarter); 7. Havells India; 8. L&T Fin. Holdings

 

Today’s top research idea

Ecoscope | Budget Preview: Union Budget 2019-20 Preview; Capital spending may decline again in FY19

• The Union Budget 2019-20 – to be presented on 1st Feb’19 – is more likely to be an interim (or vote-on-account, VOA) budget. A full budget will be announced after the formation of the new government following the general election.
• The forthcoming interim budget will be keenly watched, especially given the high expectations from all participants in the economy. We, nevertheless, believe that the government is unlikely to fulfill all of these given the constrained financial resources.
• In our view, some incentives to the rural sector are likely, indicating that the government's capital spending could decline again in FY19. We expect the fiscal deficit to be 3.5% of the GDP for the third consecutive year in FY19; however, the government may show high growth for FY20 in its budget with another deficit target of 3.3%.

Piping hot news

Government likely to target about ₹800 billion from divestment in FY 2019/20

• The Indian government is likely to seek to raise about 800 billion rupees ($11.21 billion) through the sale of state-owned assets in the next fiscal year, beginning April 1, two government sources with direct knowledge of budget discussions told Reuters on Tuesday.