{LONGTERMINVESTORS} Fwd: Morning Market Starter - December 24, 2015

---------- Forwarded message ----------
From: <research@icicibank.com>
Date: Thu, Dec 24, 2015 at 11:17 AM
Subject: Morning Market Starter - December 24, 2015
To: stockdesai@gmail.com

Central Bank watch: Bank of Japan released the minutes of its November policy meeting. The communique reinforced the Central Bank's dovish stance with many members putting forth the idea of further easing if prices did not respond sufficiently to the current stimulus in the near term. Chart: UK Q3 2015 GDP print (final reading) was revised to 0.4% QoQ vs. prior estimate of 0.5% QoQ. Source: Bloomberg, ICICI Bank Research Global market developments: UK data on GDP and current account balance was released yesterday o Q3 GDP (final reading) was revised down to 0.4% QoQ vs. the prior estimate of 0.5% QoQ. o Current account deficit in Q3 2015 remained unchanged at GBP 17.5 bn, same as the deficit for Q2 2015. US PCE and home sales data were mixed: o PCE deflator for November read 0.4% YoY, relative to October's print of 0.2% YoY. Core PCE, however, remained unchanged at 1.3% YoY. o While durable goods orders in November remained flat, new homes sales for the same period declined to 4.3% MoM (prior of 10.7% MoM). US equities ended in the green yesterday. The gains were led by a rally in energy and commodity stocks. Markets also took positive cues from the slew of US data that came in yesterday. Dow Jones and S&P gained 1.1% and 1.2% respectively. Asian equities are trading largely in the green this morning, in line with US indices. Nikkei (0.1%), Hang Seng (0.4%), Kospi (0.2%) and Australia's ASX (1.2%) are all trading higher. Meanwhile, Shanghai Composite has tumbled 1.0% on account of issuance of tighter regulatory and disclosure norms by the Chinese regulator. US Treasuries are trading flat this morning, albeit holding on top bulk of its previous losses. The benchmark 10Y yield is currently at 2.25%, same as yesterday's close.   Global market developments Domestic Market Developments: Reserve Bank of India released the twelfth issue of Financial Stability Report. The report pointed to subdued performance of the Indian banking sector as a whole. Overall, macroeconomic fundamentals remain robust; however downside risks pertaining to domestic issues of indebtedness levels of corporates, limited policy flexibility and volatile external sector scenario remain pertinent challenges to consider. Bankruptcy and Insolvency Code that was presented to the Lok Sabha on Monday has been referred to a Parliamentary joint committee. The aforesaid panel shall submit its report during the Budget session. Sensex is trading flat this morning while Rupee and Gsec markets are closed on account of Eid holiday. Regards, ICICI Bank Contact: Sagrika Gogia (+91-22) 4008-1414 (extn:2180) sagrika.gogia@icicibank.com

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CA. Rajesh Desai

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