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10 things you need to know before the opening bell on August 29

Updated : 2019-08-29 07:14:58

Indian shares are likely to open lower on Thursday, tracking weak Asian stocks, as intensifying US-China frictions are likely to weigh on investor sentiment. However, losses are likely to be limited, with the government announcing a big relief on the FDI norms, by allowing 100 percent foreign investment in contract manufacturing and coal mining, and also eased sourcing norms for single-brand retailers. At 7:00 AM, the SGX Nifty futures traded 0.20 percent lower at 11,026.

1. Asia: Stocks in Asia were little changed on Thursday as investors continue to watch the yield curve in US Treasurys, which inverted further overnight. The Nikkei in Japan traded 0.1 percent lower in early trade, while the Topix was slightly lower. In South Korea, Kospi was fractionally higher. (Image: Reuters)
1. Asia: Stocks in Asia were little changed on Thursday as investors continue to watch the yield curve in US Treasurys, which inverted further overnight. The Nikkei in Japan traded 0.1 percent lower in early trade, while the Topix was slightly lower. In South Korea, Kospi was fractionally higher. (Image: Reuters)
2. US: U.S. stocks climbed on Wednesday, recovering from early declines on gains in energy and financial shares, but investors remained leery about the potential for another flare-up in the U.S.-China trade war, reported Reuters. The Dow Jones Industrial Average rose 258.2 points, or 1 percent, to 26,036.1, the S&P 500 gained 18.78 points, or 0.65 percent, to 2,887.94 and the Nasdaq Composite added 29.94 points, or 0.38 percent, to 7,856.88. (Image: Reuters)
2. US: U.S. stocks climbed on Wednesday, recovering from early declines on gains in energy and financial shares, but investors remained leery about the potential for another flare-up in the U.S.-China trade war, reported Reuters. The Dow Jones Industrial Average rose 258.2 points, or 1 percent, to 26,036.1, the S&P 500 gained 18.78 points, or 0.65 percent, to 2,887.94 and the Nasdaq Composite added 29.94 points, or 0.38 percent, to 7,856.88. (Image: Reuters)
3. Markets At Close On Wednesday: Snapping its three-day rising streak, benchmark BSE Sensex dropped 189 points on Wednesday, tracking heavy losses in metals, energy, banking and auto counters amid concerns over a looming global recession. After a choppy session, the 30-share Sensex settled 189.43 points, or 0.50 percent, lower at 37,451.84. It hit an intra-day high of 37,687.82 and low of 37,249.19. Similarly, the broader NSE Nifty fell 59.25 points, or 0.53 percent, to 11,046.10. Meanwhile, foreign institutional investors sold Rs 935 crore in the cash market while domestic institutional investors bought Rs 359 crore. (Image: Reuters)
3. Markets At Close On Wednesday: Snapping its three-day rising streak, benchmark BSE Sensex dropped 189 points on Wednesday, tracking heavy losses in metals, energy, banking and auto counters amid concerns over a looming global recession. After a choppy session, the 30-share Sensex settled 189.43 points, or 0.50 percent, lower at 37,451.84. It hit an intra-day high of 37,687.82 and low of 37,249.19. Similarly, the broader NSE Nifty fell 59.25 points, or 0.53 percent, to 11,046.10. Meanwhile, foreign institutional investors sold Rs 935 crore in the cash market while domestic institutional investors bought Rs 359 crore. (Image: Reuters)
4. Currency: The rupee declined by 29 paise to close at 71.77 against the US dollar on Wednesday as fears of an impending global recession prompted investors to stick to safe-haven assets like the Japanese yen. Rising crude oil prices and weakness in the equity market put further pressure on the domestic currency, forex dealers said. (Image: Reuters)
4. Currency: The rupee declined by 29 paise to close at 71.77 against the US dollar on Wednesday as fears of an impending global recession prompted investors to stick to safe-haven assets like the Japanese yen. Rising crude oil prices and weakness in the equity market put further pressure on the domestic currency, forex dealers said. (Image: Reuters)
5. Crude Oil: Oil prices clung to gains on Thursday after official data confirmed a big drop in U.S. crude inventories, helping ease concerns about weakening demand, but worries about wider economic growth held prices in check. U.S. crude was up by 6 cents, or 0.1 percent, at $55.84 a barrel, while Brent crude was down 7 cents, or 0.1 percent, at $60.42 a barrel by 0011 GMT after rising for two days. (Image: Reuters)
5. Crude Oil: Oil prices clung to gains on Thursday after official data confirmed a big drop in U.S. crude inventories, helping ease concerns about weakening demand, but worries about wider economic growth held prices in check. U.S. crude was up by 6 cents, or 0.1 percent, at $55.84 a barrel, while Brent crude was down 7 cents, or 0.1 percent, at $60.42 a barrel by 0011 GMT after rising for two days. (Image: Reuters)
6. FDI Norms Relaxed: To boost the ailing economy, the Narendra Modi government on Wednesday relaxed foreign direct investment (FDI) rule for foreign single-brand retailers and also permitted foreign investment in contract manufacturing and coal mining. In the first decision, the cabinet has allowed online retailing under single-brand retail and relaxed rules for complying with the mandatory 30 percent local sourcing norms by foreign single-brand retailers. In the second decision, 100 percent FDI in contract manufacturing under automatic route has been allowed and 26 percent FDI has been allowed in digital media. (Stock Image)
6. FDI Norms Relaxed: To boost the ailing economy, the Narendra Modi government on Wednesday relaxed foreign direct investment (FDI) rule for foreign single-brand retailers and also permitted foreign investment in contract manufacturing and coal mining. In the first decision, the cabinet has allowed online retailing under single-brand retail and relaxed rules for complying with the mandatory 30 percent local sourcing norms by foreign single-brand retailers. In the second decision, 100 percent FDI in contract manufacturing under automatic route has been allowed and 26 percent FDI has been allowed in digital media. (Stock Image)
7. Government Approves Sugar Subsidy: On Wednesday, the government approved Rs 6,268 crore export subsidy for 60 lakh tonnes of sugar. The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi. A lump sum export subsidy of Rs 10,448 per tonne will be given to sugar mills in the 2019-20 marketing year (October-September), costing the exchequer Rs 6,268 crore as a subsidy, said Prakash Javadekar. (Image: Reuters)
7. Government Approves Sugar Subsidy: On Wednesday, the government approved Rs 6,268 crore export subsidy for 60 lakh tonnes of sugar. The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi. A lump sum export subsidy of Rs 10,448 per tonne will be given to sugar mills in the 2019-20 marketing year (October-September), costing the exchequer Rs 6,268 crore as a subsidy, said Prakash Javadekar. (Image: Reuters)
8. India Ratings On GDP Growth: India Ratings on Wednesday lowered the country's growth forecast to six-year low of 6.7 percent for the current fiscal from an earlier estimate of 7.3 percent on account of slowdown in consumption and moderation in industrial growth among other factors. This would be the third consecutive year of subdued growth, India Ratings principal economist Sunil Kumar Sinha said here. Even on a quarterly basis, he said, April-June is expected to be the fifth consecutive quarter of declining GDP growth at 5.7 percent. (Stock Image)
8. India Ratings On GDP Growth: India Ratings on Wednesday lowered the country's growth forecast to six-year low of 6.7 percent for the current fiscal from an earlier estimate of 7.3 percent on account of slowdown in consumption and moderation in industrial growth among other factors. This would be the third consecutive year of subdued growth, India Ratings principal economist Sunil Kumar Sinha said here. Even on a quarterly basis, he said, April-June is expected to be the fifth consecutive quarter of declining GDP growth at 5.7 percent. (Stock Image)
9. More surplus transfer? The Reserve Bank could transfer an additional Rs 1.23 trillion from its surpluses to the government, thanks to the gains from bond buying and a change in the accounting practices of its forex operations, sources said Wednesday.<br />These two heads alone have contributed as much as Rs 57,000 crore to the income of the central bank, people in the know explained. The higher quantum of bond buying to inject liquidity into the system has resulted in additional income of Rs 36,000 crore, while the changes in accounting practices resulted in gains of Rs 21,000 crore, the source said. (Image: Reuters)
9. More surplus transfer? The Reserve Bank could transfer an additional Rs 1.23 trillion from its surpluses to the government, thanks to the gains from bond buying and a change in the accounting practices of its forex operations, sources said Wednesday.
These two heads alone have contributed as much as Rs 57,000 crore to the income of the central bank, people in the know explained. The higher quantum of bond buying to inject liquidity into the system has resulted in additional income of Rs 36,000 crore, while the changes in accounting practices resulted in gains of Rs 21,000 crore, the source said. (Image: Reuters)
10. Moody's Downgrades Indian Steel Sector: Global rating agency Moody's on Wednesday revised its outlook for the steel sector to negative following the rising input costs and inability to pass on higher costs to customers is pressuring the profitability of Asian steel producers.
10. Moody's Downgrades Indian Steel Sector: Global rating agency Moody's on Wednesday revised its outlook for the steel sector to negative following the rising input costs and inability to pass on higher costs to customers is pressuring the profitability of Asian steel producers. "We expect steel producers' profitability, as measured by EBITDA per tonne, will decline by around 15 percent in the 12 months to June 2020, following an 8 percent drop in the 12 months to June 2019," Moody's Corporate Finance Group associate managing director Chris Park said. (Image; Reuters)
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