There could some from global economies, including India, on the growth front. China is poised to report its slowest growth in 28 years for year 2018. According to a report, China is likely to report a growth of less than 6.4% for the calendar year 2018. This is the slowest rate at which China has grown in the last 28 years and could be the direct outcome of an internal loan tightening and the trade war with the US. Experts believe that this could be a trigger for further stimulus by the Chinese government and the PBOC. The stimulus of $85 billion has already been commenced by China.

With welfare schemes and famer rescue packages on the rise, the impact could be felt on government borrowings. The government has projected a rise of 33% in gross borrowings by FY 2020-21. The gross borrowing of the government is likely to rise to Rs.7.14 trillion from the current level of Rs.5.35 trillion in the next two years. According to a report, there are 2 assumptions to this projection. Firstly, fiscal deficit is expected to fall to 3% of GDP. Secondly, the nominal GDP is expected to grow at 11.6% for the fiscal year 2018-19. If revenues fall short, then this figure could rise even further.

In what is a case of strange miscalculation by the L&T legal department, the L&T buyback worth Rs.9000 crore has been rejected by SEBI over compliance issues. The regulator refused permission for the buyback citing non compliance with post buyback equity ratio. As per a report in Business Standard, SEBI has pointed out that the total secured and unsecured debt of L&T on a consolidated basis would be more than twice that of the company’s equity post the buyback. L&T claimed that the letter of the law did not talk about consolidated numbers, but surely it looks like an awful lapse by the company.

India’s largest private bank and its most valuable bank by market continued to flatter the street. HDFC Bank reported 20% higher profits for the third quarter at Rs.5586 crore on the back of a sharp growth in net interest income (NII) and treasury income. According to a report, NII grew by 22% for the quarter while the NIMs stood at a healthy 4.3%. While Gross NPAs were marginally higher at 1.38%, the net NPAs were slightly lower at 0.42% in the third quarter. The bank has corrected from higher levels and also presents a more enticing picture in terms of P/BV valuations.

Brent Crude touched a 2-month high of $62.70/bbl on trade war resolution hopes. According to a report, China had offered a Trillion dollar buying spree to boost the world economy through its massive demand engine. To defuse trade tensions with the US, China has promised a virtual blank cheque to Trump to buy US products over a sustained period of time. In fact, China has committed to the US that over a period of time they will endeavour to reduce the trade deficit to zero by buying billions of dollars worth of US products. The US currently runs a $600 billion trade deficit with China and that had been the bone of contention that led to the trade war. Brent crude touched $62.70 on hopes that the global upturn will boost oil demand. China remains the largest alpha creator for world oil demand.

With elections season round the corner, the Election Commission is likely to announce election dates in first week of March. According to a report by Bloomberg, the EC is expected to announce the election dates, phase wise, by first week of March. The term of the Lok Sabha ends on June 03rd. The polling is expected to be completed between April and May. The contest assumes importance in the light of the massive turnout at the Mahagathbandhan rally of opposition parties in Kolkata on Saturday. Markets will be closely watching the outcome of the elections and the likely impact on the reforms process.