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10 things you need to know before the opening bell on December 30

Updated : 2019-12-30 07:31:54

Indian shares are expected to open lower on Monday amid muted trends in global markets and after RBI’s financial stability report projected a fall in government revenue. The report also said that gross NPAs may rise for banks due to change in macroeconomic scenario, marginal increase in slippages and the denominator effect of declining credit growth. At 7:12 AM, the SGX Nifty was trading 22 points or 0.18 percent lower at 12,319, indicating a negative start for the Sensex and Nifty.

1. Global Markets: Asia Pacific stocks mostly traded lower on Monday — the last full trading day of the year in several major markets in the region. Japan’s Nikkei lost 0.32 percent in early trade, while Australia’s benchmark ASX 200 fell 0.76 percent. Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.12 percent. At Wall Street on Friday, US stock indexes rose slightly continuing a year-end record rally that has been fueled by optimism over a US-China trade truce and an improving global economy. The Dow was up 0.24 percent, the S&P 500 was up 0.14 percent and the Nasdaq rose 0.06 percent. (Image: Reuters)
1. Global Markets: Asia Pacific stocks mostly traded lower on Monday — the last full trading day of the year in several major markets in the region. Japan’s Nikkei lost 0.32 percent in early trade, while Australia’s benchmark ASX 200 fell 0.76 percent. Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.12 percent. At Wall Street on Friday, US stock indexes rose slightly continuing a year-end record rally that has been fueled by optimism over a US-China trade truce and an improving global economy. The Dow was up 0.24 percent, the S&P 500 was up 0.14 percent and the Nasdaq rose 0.06 percent. (Image: Reuters)
2. Markets At Close On Friday: Indian shares ended Friday's trade with strong gains, snapping three straight sessions of losses, buoyed by gains in banks and index heavyweight Reliance Industries. The BSE Sensex gained 411 points, or 1 percent, to settle at 41,575. The broader Nifty50 rose 119 points, or 0.98 percent, to settle Friday's trade at 12,245. Foreign institutional investors bought Rs 81 crore in the cash market while the domestic institutional investors bought Rs 126 crore. According to the depositories data, foreign investors remained net buyers in December by investing Rs 2,613 crore in the domestic markets. (Image: Reuters)
2. Markets At Close On Friday: Indian shares ended Friday's trade with strong gains, snapping three straight sessions of losses, buoyed by gains in banks and index heavyweight Reliance Industries. The BSE Sensex gained 411 points, or 1 percent, to settle at 41,575. The broader Nifty50 rose 119 points, or 0.98 percent, to settle Friday's trade at 12,245. Foreign institutional investors bought Rs 81 crore in the cash market while the domestic institutional investors bought Rs 126 crore. According to the depositories data, foreign investors remained net buyers in December by investing Rs 2,613 crore in the domestic markets. (Image: Reuters)
3. Crude Oil: Oil was little changed on Friday, steadying near three-month highs after new data showed U.S. crude inventories fell far more than expected, while upbeat economic data and optimism over a U.S.-China trade deal fueled a year-end stock market rally. Brent crude futures gained 18 cents to trade at $68.10 per barrel, its highest level since mid-September. The West Texas Intermediate contract gained 4 cents to settle at $61.72 per barrel. (Image: Reuters)
3. Crude Oil: Oil was little changed on Friday, steadying near three-month highs after new data showed U.S. crude inventories fell far more than expected, while upbeat economic data and optimism over a U.S.-China trade deal fueled a year-end stock market rally. Brent crude futures gained 18 cents to trade at $68.10 per barrel, its highest level since mid-September. The West Texas Intermediate contract gained 4 cents to settle at $61.72 per barrel. (Image: Reuters)
4. Rupee Close: The rupee depreciated by 4 paise to close at a fresh three-week low of 71.35 against the US dollar on Friday, continuing its losing streak for the sixth day in a row amid crude oil prices hitting three-month high levels. On a weekly basis, the rupee depreciated by 19 paise. (Image: Reuters)
4. Rupee Close: The rupee depreciated by 4 paise to close at a fresh three-week low of 71.35 against the US dollar on Friday, continuing its losing streak for the sixth day in a row amid crude oil prices hitting three-month high levels. On a weekly basis, the rupee depreciated by 19 paise. (Image: Reuters)
5. RBI On Co-Operative Banks Exposure Declaration: The Reserve Bank on Friday directed large cooperative banks to report all exposures of Rs 5 crore and more to the Central Repository of Information on Large Credits (CRILC), a move aimed at early recognition of financial distress. The Reserve Bank has created a CRILC of commercial banks, all India financial institutions and certain non-banking financial companies with multiple objectives, which, among others, include strengthening offsite supervision and early recognition of financial distress. Aggregate exposure will include all fund-based and non-fund based exposure (like partial credit enhancement) including investment exposure on the borrower. To start with, UCBs will be required to submit the CRILC report on a quarterly basis with effect from December 31, 2019. Detailed operating instructions will be issued shortly, RBI said. (Image: Reuters)
5. RBI On Co-Operative Banks Exposure Declaration: The Reserve Bank on Friday directed large cooperative banks to report all exposures of Rs 5 crore and more to the Central Repository of Information on Large Credits (CRILC), a move aimed at early recognition of financial distress. The Reserve Bank has created a CRILC of commercial banks, all India financial institutions and certain non-banking financial companies with multiple objectives, which, among others, include strengthening offsite supervision and early recognition of financial distress. Aggregate exposure will include all fund-based and non-fund based exposure (like partial credit enhancement) including investment exposure on the borrower. To start with, UCBs will be required to submit the CRILC report on a quarterly basis with effect from December 31, 2019. Detailed operating instructions will be issued shortly, RBI said. (Image: Reuters)
6. RBI Report On NBFCs NPA Ratio: Non-bank lenders witnessed stress in their asset quality in the first half of the current fiscal, with gross NPA ratio increasing to 6.3 percent in September 2019 from 6.1 percent in March, according to an RBI report. However, the net NPA ratio of non-banking financial companies (NBFCs) remained steady at 3.4 percent between end-March 2019 and end-September 2019, RBI's Financial Stability Report showed. As at end-September 2019, the capital to risk assets ratio (CRAR) of the NBFC sector stood at 19.5 percent, lower than 20 percent as at end-March 2019.  (Image: Reuters)
6. RBI Report On NBFCs NPA Ratio: Non-bank lenders witnessed stress in their asset quality in the first half of the current fiscal, with gross NPA ratio increasing to 6.3 percent in September 2019 from 6.1 percent in March, according to an RBI report. However, the net NPA ratio of non-banking financial companies (NBFCs) remained steady at 3.4 percent between end-March 2019 and end-September 2019, RBI's Financial Stability Report showed. As at end-September 2019, the capital to risk assets ratio (CRAR) of the NBFC sector stood at 19.5 percent, lower than 20 percent as at end-March 2019.  (Image: Reuters)
7. DoT's Source On AGR Dues: After sending out notices to firms such as gas utility GAIL for crores of rupees in past dues, the Department of Telecommunications has said that any relief to non-telecom companies from payment of enhanced levies can come only from the Supreme Court. The Telecom Department is current
7. DoT's Source On AGR Dues: After sending out notices to firms such as gas utility GAIL for crores of rupees in past dues, the Department of Telecommunications has said that any relief to non-telecom companies from payment of enhanced levies can come only from the Supreme Court. The Telecom Department is current "examining" the replies given by the state-owned non-telecom corporations on the Adjusted Gross Revenue (AGR) dues, a senior official told PTI. "They have sent their replies, which we are examining. We believe that they will have to go to Supreme Court to seek notification or clarification on whether they are included or not included in this (Supreme Court order). That is for them to seek," the Telecom Department official said. (Image: Reuters)
8. RBI On CRAs: After getting it badly from markets watchdog Sebi, credit rating agencies (CRAs) whose role in the bad loan implosion has been under scrutiny for years now, the Reserve Bank has blasted them for allowing low-rated companies to do
8. RBI On CRAs: After getting it badly from markets watchdog Sebi, credit rating agencies (CRAs) whose role in the bad loan implosion has been under scrutiny for years now, the Reserve Bank has blasted them for allowing low-rated companies to do "rating shopping".  In the 25th edition of the Financial Stability Report released on Friday, the RBI has warned of 'rating shopping' by companies for long-term bank loans based on indicative ratings given by CRAs which are not available to the banks or investors. The report notes that "most rating shopping happened around 'BBB' or lower graded instruments and has called for closer scrutiny of instances of rating shopping". (Image: Reuters)
9. ACMA On Auto Component Industry: The automobile component industry is expected to end the current financial year on a negative note as it would be difficult for the segment to make a recovery in the second half after reporting a de-growth of 10 percent in the first six months, ACMA President Deepak Jain said. The Automotive Component Manufacturers Association (ACMA) also expects the first half of the next financial year to remain challenging for the industry. It, however, expects things to become relatively better in the second half of the next financial year. (Image: Reuters)
9. ACMA On Auto Component Industry: The automobile component industry is expected to end the current financial year on a negative note as it would be difficult for the segment to make a recovery in the second half after reporting a de-growth of 10 percent in the first six months, ACMA President Deepak Jain said. The Automotive Component Manufacturers Association (ACMA) also expects the first half of the next financial year to remain challenging for the industry. It, however, expects things to become relatively better in the second half of the next financial year. (Image: Reuters)
10. No MDR Charges Via RuPay, UPI: In a bid to promote digital payments, Finance Minister Nirmala Sitharaman on Saturday said no MDR charges will be applicable on transactions through homegrown RuPay and UPI platforms beginning January 1, 2020. The Department of Revenue (DoR) will soon notify RuPay and UPI as the prescribed mode of payment for digital transactions without any Merchant Discount Rate (MDR), she said after meeting with CEOs of public sector banks here. Accordingly, all companies with a turnover of Rs 50 crore or more will be mandated by DoR to provide the facility of payment through RuPay Debit card and UPI QR code to their customers, she said.  (Image: Reuters)
10. No MDR Charges Via RuPay, UPI: In a bid to promote digital payments, Finance Minister Nirmala Sitharaman on Saturday said no MDR charges will be applicable on transactions through homegrown RuPay and UPI platforms beginning January 1, 2020. The Department of Revenue (DoR) will soon notify RuPay and UPI as the prescribed mode of payment for digital transactions without any Merchant Discount Rate (MDR), she said after meeting with CEOs of public sector banks here. Accordingly, all companies with a turnover of Rs 50 crore or more will be mandated by DoR to provide the facility of payment through RuPay Debit card and UPI QR code to their customers, she said.  (Image: Reuters)
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