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Germany's government collapsed amid disputes over the debt brake, a constitutional fiscal rule limiting government debt. Chancellor Olaf Scholz's push for reform clashed with former Finance Minister Christian Lindner's strict adherence to the rule, leading to early elections in February. As the new coalition forms, debates on the future of the debt brake and potential fiscal reforms are expected, with varying opinions on the necessity and extent of changes.
Markets surged mid-day, with the Sensex climbing 1,025.48 points to 78,181.27 and the Nifty gaining 324.90 points to 23,674.80, driven by strong performances in realty, banking, and IT sectors. Despite challenges like the Russia-Ukraine war and a prolonged selling streak by FIIs, the overall market sentiment remains positive, reflecting a correction rather than a crash.
Brian Arcese, portfolio manager at Foord Asset Management, suggests that a market correction could be healthy if U.S. economic growth and earnings stall, particularly given the high valuations of the S&P 500. He identifies potential catalysts for this correction, including slowing GDP growth and rising inflation, alongside high corporate earnings expectations. Arcese notes that while utilities remain relatively undervalued, the demand for electricity driven by data centers and AI growth presents investment opportunities.
Billionaires Elon Musk and Vivek Ramaswamy propose drastic deregulation and eliminating remote work to help reduce the growing American bureaucracy and save money. With federal employee numbers rising to nearly 2.4 million, the U.S. now spends more on debt interest than on defense, highlighting the urgent need for fiscal reform.
The French Social Security deficit for 2025 has been revised down from 16 billion to 15 billion euros following Senate amendments, according to Health Minister Geneviève Darrieussecq. Key measures include a new "solidarity contribution" expected to generate 2.5 billion euros, alongside increased taxes on tobacco and soft drinks. However, the Senate also approved less favorable revenue measures, impacting employer contributions and local civil servant pensions, with further debates on expenditure still pending.
The Indian economy is projected to have slowed to a six-quarter low of 6.5% in Q2 of FY25, down from 6.7% in the previous quarter, according to a Moneycontrol poll of 11 economists. Contributing factors include muted government spending, declining merchandise exports, and subdued quarterly results. In contrast, the economy had grown by 8.1% in the same quarter of FY24.
Investment houses are currently releasing their forecasts for the upcoming year, but such predictions are often deemed futile. The focus should instead be on the long-term outlook, which holds greater significance for most institutions.
Felix Patrascanu’s courier service has flourished due to government salary and pension increases, alongside infrastructure improvements. However, as Romania approaches crucial elections, the country faces the challenge of the widest budget deficit in the EU, raising concerns about the potential economic fallout.
Enviro Infra Engineers Ltd (EIEL), established in 2009 and based in Delhi, specializes in designing, constructing, and maintaining Water and Wastewater Treatment Plants for government projects across India. With a strong order pipeline and a focus on large-scale projects, the company is well-positioned for growth, particularly with government initiatives like the Jal Jeevan Mission and NAMAMI Gange Programme. At an upper price band of ₹148, EIEL is fairly priced with a P/E of 23.9x (FY24), leading to a "subscribe" recommendation for medium- to long-term investment.
Indian benchmark indices, Sensex and Nifty 50, are expected to open positively on November 22, following GIFT Nifty trading around 23,454. After a strong rebound on November 19, the indices faced pressure on November 21, with the Sensex closing down 422.59 points at 77,155.79 and Nifty falling 168.60 points to 23,349.90.

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