Morning Alert..
*Big Oil peddled the big lie, says UN chief Guterres at WEF 2023*
The world is in a “sorry state” because of myriad “interlinked” challenges including climate change and Ukraine war that are “piling up like cars in a chain reaction crash,” the UN chief said at the World Economic Forum’s meeting on Wednesday. “We learned last week that certain fossil fuel producers were fully aware in the 1970s that their core product was baking our planet,” he said in his speech. “Some in Big Oil peddled the big lie.” UN Secretary-General Antonio Guterres delivered his message on the second day of the elite gathering of world leaders and corporate executives in Davos. Guterres said the “gravest levels of geopolitical division and mistrust in generations” are undermining efforts to tackle global problems, which also include widening inequality, a cost-of-living crisis sparked by soaring inflation and an energy crunch, lingering effects of the Covid-19 pandemic, supply-chain disruptions and more.
*Rupee surges as foreign banks make dollar sales, likely for FPI flow*
The rupee strengthened sharply against the US dollar in late trade on Wednesday, gaining 52 paise as some foreign banks sold the greenback, likely on account of overseas investment into domestic markets, traders said. The domestic currency closed at 81.25 per US dollar as against 81.77 at previous close, Bloomberg data showed. In 2023, the rupee has appreciated 1.8 per cent against the US dollar. The domestic currency was also boosted by a weaker US dollar index as investors anticipate a slowdown in the pace of the Federal Reserve’s rate hikes, given data showing easing inflation in the world’s largest economy.
*India better than many economies, needs work on labour mkts: Gita Gopinath*
IMF Deputy Managing Director Gita Gopinath has cautioned that India needs to work on labour markets and land, even as she hailed the country for doing better than many global economies. In an interview on the sidelines of the ongoing World Economic Forum (WEF) meeting at Davos on Wednesday, Gopinath cautioned against growing fragmentation globally, saying it hurt the global growth rate. The Covid-19 pandemic and the Russia-Ukraine war has made countries much more concerned about national security and economic security, which is causing them to undertake policies that could lead to greater fragmentation, she was quoted as saying in the interview. India though, she said, has been receiving lots of positive sentiments but at the same time added that greater reforms are needed for foreign direct investment in the manufacturing sector.
*Commodities play*
Gold – Rs 56471/10gm, Silver – Rs 68738/kg, Brcrude – Rs 6550/barrel, Degumsyoil – Rs 1296/10kg, Copper – Rs 785/kg.
*Corporate News*
Vedanta to acquire debt-laden Meenakshi Energy for Rs 1,440 crore.
IndusInd Bank's Q3 net profit increases 58% YoY on firm loan growth.
LTTS: Recent acquisition of SWC overhang dents investor sentiment.
SGX Nifty indicates negative start to Indian markets trading at 18130 levels down by 0.50% or 91.5 points. Dow Jones also ended yesterday`s session in red down by 1.81% at close.
Sector in focus – Banks ,Infrastructure, Metals & Power.
