EUR 120.00 For Business Accounts Only

MOSL: Morning India (24/January/20): 1. EcoScope (Pre-Budget II: One thing to be done and another avoided); 2. HDFC Life Insurance; 3. NTPC; 4. Biocon; 5. AU Small Finance; 6. Cholamand. Invst & Fin; 7. Tata C

Morning India (24/January/20):

Today’s top research idea
Ecoscope: Pre-Budget II - One thing to be done and another avoided
** Two major expectations from the Budget 2020-21 are: (i) investment push by relaxing the fiscal deficit targets and (ii) personal consumption boost by cutting personal income taxes. The former can be attained with strict conditionality and only after the true economic and fiscal narrative is placed before the country, while the latter must be avoided despite the very strong urge because it discourages savings as the real problem lies in subdued personal income growth.

** It is essential to inform that PSBR is almost double of the reported deficit, which has put serious stress on the domestic markets. Still, very low CAD allows the government to expand its deficit by up to 0.5% of GDP, provided it's spent entirely on investments.

Piping hot news
RBI ups investment limit for FPIs in govt, corporate bonds
The Reserve Bank of India on Thursday raised the investment limit for FPIs in government and corporate bonds to bring in more foreign funds into the market. Currently, short-term investments by a foreign portfolio investors (FPI) should not exceed 20 per cent of the total investment of that FPI in either central government securities (including treasury bills) or state development loans or corporate bonds. The short-term investment limit has now been increased from 20 per cent to 30 per cent in both cases, the RBI said in a circular.