Benchmarks to start final day of 2019 on negative note

Indian markets closed flat after a see-saw trade on Monday amid lack of domestic as well as global cues. Today, the markets are likely to make pessimistic start of the final day of 2019, tracking weak global cues. Traders will remain concern on private report that the government might breach the fiscal deficit target this financial year amid drop in the revenue mobilisation and expected additional expenditure by the government. Traders may take note of a report that Federation of Indian Export Organisations (FIEO) said the country’s exports are expected to touch $330-340 billion during the ongoing fiscal on account of uncertain global situation and rising protectionism. During April-November, 2019-20, exports dipped by about 2 per cent to $212 billion. FIEO President Sharad Kumar Saraf said the global situation is becoming extremely challenging as rising protectionism is leading to uncertainty in global trade which will have adverse impact on it.  He said despite having a moderate share in global trade, India’s exports have always followed the trend in global imports. However, some respite can come later in the day with Commerce and Industry Minister Piyush Goyal stating his ministry will review all existing free trade agreements (FTAs) with different countries to protect interest of industry and traders. He said India also decided to walk out from the Regional Comprehensive Economic Partnership agreement, keeping in view the interest of small traders and dairy industry. There will be some buzz in Renewable energy sector stocks on report that ratings agency Icra revised its outlook for India's renewable energy sector from stable to negative amid delays in payments from discoms and execution of projects. The sector is facing headwinds because of the long delays in making payments by the state distribution utilities, delays in projects bid out over the past two years, difficulties in acquiring land for projects, securing transmission connectivity and financing in a timely manner.

The US markets ended lower on Monday as investors booked profits from gains made this month after the United States and China reached a trade deal. Asian markets are trading lower in early deals on Tuesday on the last trading day of 2019, echoing falls on Wall Street.

Back Home, Indian equity bourses closed flat in the penultimate session of the Calendar Year 2019, amid weak cues from global markets. The start of the day was firm, aided with CII’s statement that India’s economy is expected to rebound in 2020 on the back of measures taken by the government & the RBI coupled with easing of global trade tensions. Adding more relief, Vice President M Venkaiah Naidu also said that Indian economy would rebound in the future and the current slowdown was cyclical. He said the economy was facing challenges due to decline in growth this fiscal & asked the gathering to be optimistic about a turnaround. However, in noon deals, markets turned negative, as the RBI flagged falling government revenue as a threat to the overall fiscal numbers -- with tax and non-tax revenues lagging way behind targets -- saying this along with weaker private consumption and investment could prove to be a challenge. But, bourses managed to trim their losses at time of closing, after FIEO said that the country's exports are expected to touch $330-340 billion during the ongoing fiscal on account of uncertain global situation and rising protectionism. During April-November, 2019-20, exports dipped by about 2 per cent to $212 billion. Finally, the BSE Sensex lost 17.14 points or 0.04% to 41558.00, while the CNX Nifty was up by 10.05 points or 0.08% to 12255.85.