Morning Alert..
*Australian Parliament clears path for free trade agreement with India*
The Australian Parliament on Monday ratified the Economic Cooperation and Trade Agreement (ECTA) with India, paving the way for implementing the deal as early as January 1, 2023. This will be India’s first trade deal with a developed country in more than a decade, after the Comprehensive Economic Partnership Agreement was signed with Japan in 2011. “The (Anthony) Albanese government has worked hard to expeditiously advance all processes necessary, to ensure Australia is in a position to implement both (India and the UK) free trade agreements before the end of 2022,” the Australian trade ministry said in a statement. The Australian Parliament on Tuesday also ratified its pending deal with the UK. “There is a good chance that the deal will be implemented starting January 1, 2023, though the Christmas holidays are coming,” said a senior Indian government official requesting anonymity.
*India, EU hopeful of timely conclusion of negotiations on trade*
India and the European Union on Tuesday expressed hope that there is a timely conclusion of negotiations on their trade and investment agreements, and agreed on the need for greater ambition in the implementation of their connectivity partnership. The 9th India-EU Foreign Policy and Security Consultations were held here co-chaired by Secretary (West) in the Ministry of External Affairs Sanjay Verma and Enrique Mora, Deputy Secretary General for Political Affairs, European External Action Service. During the consultations, both sides were pleased to note the enhanced intensity and political momentum in the India-EU relationship, a start towards which was made during the 15th India-EU Summit held in July 2020 and which was further strengthened by the India-EU Leaders' Meeting in May 2021, a statement issued by the Ministry of External Affairs said.
*OECD cuts India FY23 GDP forecast to 6.6% on slowdown at home, global fears*
The Organisation for Economic Co-operation and Development (OECD), on Tuesday, cut its gross domestic growth forecast for India for the current financial year (FY23) to 6.6 per cent from 6.9 per cent, citing higher medium-term global uncertainty and slowing domestic economic activity. OECD is the latest of a host of banks, agencies and multilateral institutions which have recently cut their India GDP forecast for FY23 (see chart). “Economic growth has lost momentum over the summer, due to a combination of erratic rainfall, which impacted sowing activities, and falling purchasing power. Concerns over demand conditions are considerable in services and infrastructure sectors, while consumers have become cautious regarding non-essential spending due to higher prices for food and energy,” the agency said in its latest economic outlook report.
*Commodity play*
Gold – Rs 52294/10gm, Silver – Rs 61254/kg, Brcrude – Rs 6650/barrel, Degumsyoil – Rs 1296/10kg, Copper – Rs 670/kg.
*Corporate News*
Vedanta to pay third interim dividend at Rs 17.5 per equity share.
Volvo-Eicher looks to make most of post-pandemic recovery in bus market.
Airtel may end cheap subscription plans but decision has risks: Analysts.
SGX Nifty indicates positive start to Indian markets trading at 18351 levels up by 0.35% or 63.50 points. Yesterday Dow Jones also ended on higher note up by 1.18%.
Sector in focus – Banks, Infrastructure, Chemicals & Automobiles.
