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10 things you need to know before the opening bell on August 24

Updated : 2020-08-24 07:51:52

The Indian market is expected to open in the green on Monday following its Asian peers. At 7:42 am, the SGX Nifty was trading 36 points higher at 11,434, indicating a higher start for the Sensex and the Nifty50.

1. Asia: Asia Pacific stocks rose on Friday following the release of mixed U.S. economic data overnight. Mainland Chinese stocks were higher on the day. The Shanghai composite advanced 0.5 percent to about 3,380.68 while the Shenzhen component jumped 1.179 percent to around 13,478. Hong Kong’s Hang Seng index rose 1.3 percent to close at 25,113.84. In Japan, the Nikkei 225 rose 0.17 percent to close at 22,920.30 while the Topix index added 0.3 percent to end its trading day at 1,604.06. Australia’s S&P/ASX 200 closed 0.14 percent lower at 6,111.20. Overall, the MSCI Asia ex-Japan index gained 0.9 percent, reported CNBC International. (Image: Reuters)
1. Asia: Asia Pacific stocks rose on Friday following the release of mixed U.S. economic data overnight. Mainland Chinese stocks were higher on the day. The Shanghai composite advanced 0.5 percent to about 3,380.68 while the Shenzhen component jumped 1.179 percent to around 13,478. Hong Kong’s Hang Seng index rose 1.3 percent to close at 25,113.84. In Japan, the Nikkei 225 rose 0.17 percent to close at 22,920.30 while the Topix index added 0.3 percent to end its trading day at 1,604.06. Australia’s S&P/ASX 200 closed 0.14 percent lower at 6,111.20. Overall, the MSCI Asia ex-Japan index gained 0.9 percent, reported CNBC International. (Image: Reuters)
2. US: Stock futures climbed slightly higher in overnight trading on Sunday as Wall Street tries to build on a record-setting week. Futures on the Dow Jones Industrial Average rose about 50 points, indicating a 30-point gain at Monday’s open. The S&P 500 futures and the Nasdaq 100 futures gained 0.1 percent each. The tech-heavy Nasdaq Composite gained 2.6 percent last week. Investors remained on high alert for updates on the coronavirus pandemic as the world attempts to ease restrictions and revive economic growth, reported CNBC International. (Image: Reuters)
2. US: Stock futures climbed slightly higher in overnight trading on Sunday as Wall Street tries to build on a record-setting week. Futures on the Dow Jones Industrial Average rose about 50 points, indicating a 30-point gain at Monday’s open. The S&P 500 futures and the Nasdaq 100 futures gained 0.1 percent each. The tech-heavy Nasdaq Composite gained 2.6 percent last week. Investors remained on high alert for updates on the coronavirus pandemic as the world attempts to ease restrictions and revive economic growth, reported CNBC International. (Image: Reuters)
3. Market At Close On Friday: The Indian benchmark equity indices, Sensex and Nifty ended higher Friday led by gains in financial and FMCG stocks amid positive momentum in the global markets. The Sensex ended 214.33 points or 0.56 percent higher at 38,434.72 while the Nifty gained 59.40 points or 0.53 percent to close at 11,371.60. Broader indices participated in the rally with Nifty Midcap100 index gaining 0.49 percent while Nifty Smallcap100 rising 1.03 percent. For the week, the market ended on a positive note with benchmarks up 0.5 percent each.(Image: Reuters)
3. Market At Close On Friday: The Indian benchmark equity indices, Sensex and Nifty ended higher Friday led by gains in financial and FMCG stocks amid positive momentum in the global markets. The Sensex ended 214.33 points or 0.56 percent higher at 38,434.72 while the Nifty gained 59.40 points or 0.53 percent to close at 11,371.60. Broader indices participated in the rally with Nifty Midcap100 index gaining 0.49 percent while Nifty Smallcap100 rising 1.03 percent. For the week, the market ended on a positive note with benchmarks up 0.5 percent each.(Image: Reuters)
4. Crude Oil: Oil prices dropped on Friday as the economic recovery worldwide runs into stumbling blocks due to renewed coronavirus lockdowns, even as major global crude producers limit crude supply. Brent crude futures were down 84 cents, or 1.9 percent, at $44.06 a barrel, heading for a nearly 2 percent weekly fall. West Texas Intermediate crude futures settled 48 cents, or 1.12 percent, lower at $42.34 per barrel, reported CNBC International. (Image: Reuters)
4. Crude Oil: Oil prices dropped on Friday as the economic recovery worldwide runs into stumbling blocks due to renewed coronavirus lockdowns, even as major global crude producers limit crude supply. Brent crude futures were down 84 cents, or 1.9 percent, at $44.06 a barrel, heading for a nearly 2 percent weekly fall. West Texas Intermediate crude futures settled 48 cents, or 1.12 percent, lower at $42.34 per barrel, reported CNBC International. (Image: Reuters)
5. Rupee Close: The Indian rupee appreciated on Friday due to the gains in the domestic equity markets. The rupee ended 18 paise higher to 74.85 against the US dollar as compared to the previous close of 75.03. (Image: Reuters)
5. Rupee Close: The Indian rupee appreciated on Friday due to the gains in the domestic equity markets. The rupee ended 18 paise higher to 74.85 against the US dollar as compared to the previous close of 75.03. (Image: Reuters)
6. PM Modi On Manufacturing In India: In a bid to boost the manufacturing of local toys, Prime Minister Narendra Modi on Saturday held a meeting with senior ministers and officials and discussed ways to increase the global imprint of Indian toys. PM Modi said India is home to several toy clusters and thousands of artisans who produce indigenous toys which not only have cultural connect but also helps in building life-skills and psychomotor skills among children at an early age. He said such clusters should be promoted through innovative and creative methods. (Image: PTI)
6. PM Modi On Manufacturing In India: In a bid to boost the manufacturing of local toys, Prime Minister Narendra Modi on Saturday held a meeting with senior ministers and officials and discussed ways to increase the global imprint of Indian toys. PM Modi said India is home to several toy clusters and thousands of artisans who produce indigenous toys which not only have cultural connect but also helps in building life-skills and psychomotor skills among children at an early age. He said such clusters should be promoted through innovative and creative methods. (Image: PTI)
7. DPIIT Secretary On Exports: Department for Promotion of Industry and Internal Trade (DPIIT) on Friday said that RoDTEP scheme (Remission of Duties or Taxes on Export Product (RoDTEP) will make our exports viable and more competitive. In an interview to CNBC-TV18, Guruprasad Mohapatra, secretary, said the old MEIS scheme was for five years and has not be discontinued suddenly. Also, the government has to align India's import tariff rates with rest of the world.
7. DPIIT Secretary On Exports: Department for Promotion of Industry and Internal Trade (DPIIT) on Friday said that RoDTEP scheme (Remission of Duties or Taxes on Export Product (RoDTEP) will make our exports viable and more competitive. In an interview to CNBC-TV18, Guruprasad Mohapatra, secretary, said the old MEIS scheme was for five years and has not be discontinued suddenly. Also, the government has to align India's import tariff rates with rest of the world. "The FDI policy has been liberalised and new sectors has been opened up. To give a boost to investment, two major initiatives has been approved by the cabinet. One is constituting an empowered group of secretaries headed by the cabinet secretary, where any investment related decisions which in inter-ministerial in nature, which requires instant decisions, will go to the empowered group of secretaries," Mohapatra said. (Image: Reuters)
8. RBI Governor Sees Disconnect Between Markets, Economy: In his first interview since the onset of the coronavirus crisis, Reserve Bank of India Governor Shaktikanta Das said he would not shy away from taking “conventional” or “unconventional” steps to further help the economy, following a 115 basis points rate cut. The governor added that thanks to the COVID relief offered by RBI -- which allows banks to not classify businesses that defaulted after the start of pandemic, to not be considered as NPAs – will help contain financial stability. Earlier, the RBI had forecast the banking sector NPAs may go up from 8.5 percent currently to 12.5 percent in base case and 14.7 percent in worst case. (Image: AP)
8. RBI Governor Sees Disconnect Between Markets, Economy: In his first interview since the onset of the coronavirus crisis, Reserve Bank of India Governor Shaktikanta Das said he would not shy away from taking “conventional” or “unconventional” steps to further help the economy, following a 115 basis points rate cut. The governor added that thanks to the COVID relief offered by RBI -- which allows banks to not classify businesses that defaulted after the start of pandemic, to not be considered as NPAs – will help contain financial stability. Earlier, the RBI had forecast the banking sector NPAs may go up from 8.5 percent currently to 12.5 percent in base case and 14.7 percent in worst case. (Image: AP)
9. SBI Economists On RBI Rate Cut Cycle: The Reserve  Bank is at the end of its rate cut cycle as inflation is unlikely to decline materially from the current level, and the onus of economic recovery has now shifted to the government, economists at SBI said on Friday. The comments come a day after the release of the minutes of the latest meeting of RBI's Monetary Policy Committee, where high inflation was cited as the prime reason for the unanimous decision to hold rates. The Reserve Bank of India (RBI) had cut rates by 1.15 per cent in two moves since the onset of the pandemic in March this year in order to push economic growth, but surprised many by holding on to rates at the August review as inflation overshot its target.
9. SBI Economists On RBI Rate Cut Cycle: The Reserve  Bank is at the end of its rate cut cycle as inflation is unlikely to decline materially from the current level, and the onus of economic recovery has now shifted to the government, economists at SBI said on Friday. The comments come a day after the release of the minutes of the latest meeting of RBI's Monetary Policy Committee, where high inflation was cited as the prime reason for the unanimous decision to hold rates. The Reserve Bank of India (RBI) had cut rates by 1.15 per cent in two moves since the onset of the pandemic in March this year in order to push economic growth, but surprised many by holding on to rates at the August review as inflation overshot its target. "Fiscal policy should play a decisive role, if we have to nurture any hopes of a fast-paced recovery," economists at SBI said. (Image: Reuters)
10. Moody's On PSBs: India's state-run banks may need Rs 1.90 to 2.10 lakh crore of external capital over the next two years to restore their loss-absorbing buffers due to the COVID-19 hit, according to Moody’s latest report. “Of the total amount, PSBs will need about Rs 1 lakh crore to build loan-loss provisions to about 70 percent of NPLs, which will leave them with enough capacity to grow loans 8-10 percent annually, faster than the 4 percent in fiscal 2020,” it said. The global rating and research agency said a sharp slowdown in India’s economic growth made worse by the coronavirus outbreak will hurt public sector banks. It may lead to worsening asset quality, a sharp rise in credit costs, and therefore hurt their profitability. This, as per Moody’s, will significantly deplete their capital buffers, and government support may be required to plug the shortfall. (Image: Reuters)
10. Moody's On PSBs: India's state-run banks may need Rs 1.90 to 2.10 lakh crore of external capital over the next two years to restore their loss-absorbing buffers due to the COVID-19 hit, according to Moody’s latest report. “Of the total amount, PSBs will need about Rs 1 lakh crore to build loan-loss provisions to about 70 percent of NPLs, which will leave them with enough capacity to grow loans 8-10 percent annually, faster than the 4 percent in fiscal 2020,” it said. The global rating and research agency said a sharp slowdown in India’s economic growth made worse by the coronavirus outbreak will hurt public sector banks. It may lead to worsening asset quality, a sharp rise in credit costs, and therefore hurt their profitability. This, as per Moody’s, will significantly deplete their capital buffers, and government support may be required to plug the shortfall. (Image: Reuters)
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