Investors and strategists have broadly welcomed Indian Prime Minister Narendra Modi’s announcement of a larger-than-expected stimulus package worth an estimated 10 per cent of gross domestic product.
The measures are impressive in their size, should boost investor confidence in India’s ability to deal with the economic impact of the coronavirus outbreak and provide support to the currency, according to early reaction from a number of market participants. Still, further details are required, especially on how the package will be financed, they said.
Equity futures on India’s NSE Nifty 50 Index traded in Singapore climbed in early trading Wednesday and dollar-rupee one-month non-deliverable forwards retreated.
Here’s what strategists and economists are saying about the new measures:
Samiran Chakraborty and Baqar Zaidi, India economists at Citigroup said: “The size of the package likely exceeds market expectations and the details will eagerly be awaited.”
“This is likely to necessitate both additional market borrowing as well as an immediate announcement of the Reserve Bank of India (RBI) support through large OMO and may be even direct monetisation if the combined power of fiscal and monetary stimulus has to be unleashed.”
“By explicitly referring to reforms in land, labour, agriculture, legal and administrative systems and infrastructure the PM has embarked on an ambitious reform agenda to make India more productive. Bolder structural reforms in the financial sector is also need of the hour.”
“While all these measures to boost domestic capacity is welcome, there could be a more explicit protectionist bent on the trade front in the near term as India shapes up to be more self-reliant.”
Gaurav Saroliya, director of macro strategy at Oxford Economics said “Alongside monetary easing by the RBI, we think this move, the details of which are still awaited, will boost market confidence that India will be able to limit the economic costs of the lockdown, which our macro team earlier estimated at around 6 per cent of annual GDP.”
“Indian equities and the rupee have underperformed during the sell-off in March as they tend to be a reflection of India’s domestic growth expectations. The fiscal boost has come at an opportune time for India as valuations are cheap both historically and relative to the Asia ex-Japan peer group.”
Qi Gao, a currency strategist at Scotiabank said: “US dollar and Indian rupee will likely trade between 74 and 77 in the coming weeks. A fiscal stimulus package itself could provide some support to the Indian rupee.”
Vishnu Varathan, head of economics and strategy at Mizuho Bank in Singapore said: “Arguably, Indian PM Modi’s announcement of a 10 per cent of GDP (Dh976 billion / $266bn) COVID stimulus is a big deal compared to the earlier 0.8 per cent of GDP fiscal boost.”
“But with details awaited, it is unclear if this includes the already announced RBI credit/liquidity measures worth some 2.5 per cent of GDP. And so, the precise [quantum and dispersion] impact across sectors/industries remains to be seen, while the question of how it will be financed may prove to be a bugbear.”
Kaushik Das, India chief economist at Deutsche Bank said: “The 10 per cent of GDP economic package is inclusive of the various liquidity measures announced by RBI earlier and the previous fiscal package announced on 26 March (1.7tn rupees; 0.8 per cent of GDP); so we need to see what the incremental package size is excluding the support from earlier measures.”
Mahesh Nandurkar and Abhinav Sinha, equity analysts at Jefferies Financial Group said: “The headline no of the gross fiscal package of 20tn rupees / 10 per cent of GDP is impressive. This leaves a space of ~10tn rupees / 5 per cent of GDP for incremental announcements.”
Why your domicile status is important
Your UK residence status is assessed using the statutory residence test. While your residence status – ie where you live - is assessed every year, your domicile status is assessed over your lifetime.
Your domicile of origin generally comes from your parents and if your parents were not married, then it is decided by your father. Your domicile is generally the country your father considered his permanent home when you were born.
UK residents who have their permanent home ("domicile") outside the UK may not have to pay UK tax on foreign income. For example, they do not pay tax on foreign income or gains if they are less than £2,000 in the tax year and do not transfer that gain to a UK bank account.
A UK-domiciled person, however, is liable for UK tax on their worldwide income and gains when they are resident in the UK.
Four motivational quotes from Alicia's Dubai talk
“The only thing we need is to know that we have faith. Faith and hope in our own dreams. The belief that, when we keep going we’re going to find our way. That’s all we got.”
“Sometimes we try so hard to keep things inside. We try so hard to pretend it’s not really bothering us. In some ways, that hurts us more. You don’t realise how dishonest you are with yourself sometimes, but I realised that if I spoke it, I could let it go.”
“One good thing is to know you’re not the only one going through it. You’re not the only one trying to find your way, trying to find yourself, trying to find amazing energy, trying to find a light. Show all of yourself. Show every nuance. All of your magic. All of your colours. Be true to that. You can be unafraid.”
“It’s time to stop holding back. It’s time to do it on your terms. It’s time to shine in the most unbelievable way. It’s time to let go of negativity and find your tribe, find those people that lift you up, because everybody else is just in your way.”
Western Region Asia Cup T20 Qualifier
Sun Feb 23 – Thu Feb 27, Al Amerat, Oman
The two finalists advance to the Asia qualifier in Malaysia in August
Group A
Bahrain, Maldives, Oman, Qatar
Group B
UAE, Iran, Kuwait, Saudi Arabia
UAE group fixtures
Sunday Feb 23, 9.30am, v Iran
Monday Feb 25, 1pm, v Kuwait
Tuesday Feb 26, 9.30am, v Saudi
UAE squad
Ahmed Raza, Rohan Mustafa, Alishan Sharafu, Ansh Tandon, Vriitya Aravind, Junaid Siddique, Waheed Ahmed, Karthik Meiyappan, Basil Hameed, Mohammed Usman, Mohammed Ayaz, Zahoor Khan, Chirag Suri, Sultan Ahmed
Killing of Qassem Suleimani
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Yuki Means Happiness
Alison Jean Lester
John Murray
$1,000 award for 1,000 days on madrasa portal
Daily cash awards of $1,000 dollars will sweeten the Madrasa e-learning project by tempting more pupils to an education portal to deepen their understanding of math and sciences.
School children are required to watch an educational video each day and answer a question related to it. They then enter into a raffle draw for the $1,000 prize.
“We are targeting everyone who wants to learn. This will be $1,000 for 1,000 days so there will be a winner every day for 1,000 days,” said Sara Al Nuaimi, project manager of the Madrasa e-learning platform that was launched on Tuesday by the Vice President and Ruler of Dubai, to reach Arab pupils from kindergarten to grade 12 with educational videos.
“The objective of the Madrasa is to become the number one reference for all Arab students in the world. The 5,000 videos we have online is just the beginning, we have big ambitions. Today in the Arab world there are 50 million students. We want to reach everyone who is willing to learn.”
'Doctor Strange in the Multiverse Of Madness'
Director: Sam Raimi
Cast: Benedict Cumberbatch, Elizabeth Olsen, Chiwetel Ejiofor, Benedict Wong, Xochitl Gomez, Michael Stuhlbarg and Rachel McAdams
Rating: 3/5
if you go
The flights
Emirates flies to Delhi with fares starting from around Dh760 return, while Etihad fares cost about Dh783 return. From Delhi, there are connecting flights to Lucknow.
Where to stay
It is advisable to stay in Lucknow and make a day trip to Kannauj. A stay at the Lebua Lucknow hotel, a traditional Lucknowi mansion, is recommended. Prices start from Dh300 per night (excluding taxes).
RESULTS
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Killing of Qassem Suleimani
