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10 things you need to know before the opening bell on February 28

Updated : 2020-02-28 07:54:01

Indian benchmark indices BSE Sensex and NSE’s Nifty50 are likely to open lower on Friday after coronavirus fears triggered a massive sell-off in the US stocks. The Dow saw its worst day since February 2018, while Nasdaq and S&P500 posted its biggest one-day loss since August 11. In India, investors await Q3 GDP data due to be released later today. At 7:24 am, the SGX Nifty was trading 176.50 points or 1.52 percent lower at 11,432.50, pointing at a negative opening for the Sensex and Nifty50.

1. Asia: Stocks in Asia declined in Friday morning trade after the major indexes on Wall Street tumbled into correction territory overnight as fears over the spread of the coronavirus globally drove investors to safety. Japan’s Nikkei 225 dropped 3.1 percent while the Topix index fell 2.99 percent. Meanwhile, South Korea’s Kospi was down 1.48 percent while the S&P/ASX 200 in Australia plunged 3.26 percent. Overall, the MSCI Asia ex-Japan index dropped 0.62 percent lower. (Image: Reuters)
1. Asia: Stocks in Asia declined in Friday morning trade after the major indexes on Wall Street tumbled into correction territory overnight as fears over the spread of the coronavirus globally drove investors to safety. Japan’s Nikkei 225 dropped 3.1 percent while the Topix index fell 2.99 percent. Meanwhile, South Korea’s Kospi was down 1.48 percent while the S&P/ASX 200 in Australia plunged 3.26 percent. Overall, the MSCI Asia ex-Japan index dropped 0.62 percent lower. (Image: Reuters)
2. US: U.S. stocks plummeted on Thursday as fears about the effect of the coronavirus outbreak on economic growth flared even as U.S. officials pledged that they were stepping up efforts to safeguard Americans from the virus' spread. The Dow Jones Industrial Average plummeted 1,190.95 points, or 4.4%, to close at 25,766.64. The S&P 500 slid 4.4 percent to 2,978.76 while the Nasdaq Composite dropped 4.6 percent to 8,566.48. The Dow had its worst day since February 2018 while the Nasdaq and S&P 500 posted its biggest one-day loss since August 2011. (Image: AP)
2. US: U.S. stocks plummeted on Thursday as fears about the effect of the coronavirus outbreak on economic growth flared even as U.S. officials pledged that they were stepping up efforts to safeguard Americans from the virus' spread. The Dow Jones Industrial Average plummeted 1,190.95 points, or 4.4%, to close at 25,766.64. The S&P 500 slid 4.4 percent to 2,978.76 while the Nasdaq Composite dropped 4.6 percent to 8,566.48. The Dow had its worst day since February 2018 while the Nasdaq and S&P 500 posted its biggest one-day loss since August 2011. (Image: AP)
3. Market At Close On Thursday: Indian market settled Thursday's session on a negative note amid growing concerns over the spread of coronavirus outside China and ahead of the expiry of the February series derivative contracts today. That marked fifth straight session of losses. The 30-share BSE barometer finally settled 143.30 points, or 0.36 per cent, lower at 39,745.66. Similarly, the broader NSE Nifty fell 45.20 points or 0.39 per cent to end at 11,633.30. Foreign institutional investors sold Rs 3,127 crore in the cash market while the domestic institutional investors bought Rs 3,498 crore. (Image: Reuters)
3. Market At Close On Thursday: Indian market settled Thursday's session on a negative note amid growing concerns over the spread of coronavirus outside China and ahead of the expiry of the February series derivative contracts today. That marked fifth straight session of losses. The 30-share BSE barometer finally settled 143.30 points, or 0.36 per cent, lower at 39,745.66. Similarly, the broader NSE Nifty fell 45.20 points or 0.39 per cent to end at 11,633.30. Foreign institutional investors sold Rs 3,127 crore in the cash market while the domestic institutional investors bought Rs 3,498 crore. (Image: Reuters)
4. Crude Oil: Oil prices tumbled for a fifth day on Thursday to their lowest level in more than a year, as new reports of novel coronavirus cases outside China spurred investor fears that the rapidly spreading outbreak could slow the global economy. Brent crude  dropped $1.25, or 2.3 percent, to settle at $52.18 a barrel, off the session low of $50.97 a barrel, which was the lowest since December 2018. West Texas Intermediate (WTI) futures sank $1.64, or 3.4 percent, to $47.09. (Image: Reuters)
4. Crude Oil: Oil prices tumbled for a fifth day on Thursday to their lowest level in more than a year, as new reports of novel coronavirus cases outside China spurred investor fears that the rapidly spreading outbreak could slow the global economy. Brent crude  dropped $1.25, or 2.3 percent, to settle at $52.18 a barrel, off the session low of $50.97 a barrel, which was the lowest since December 2018. West Texas Intermediate (WTI) futures sank $1.64, or 3.4 percent, to $47.09. (Image: Reuters)
5. Rupee Close: Extending gains for the third day, the rupee climbed 4 paise to close at 71.61 against the US dollar on Thursday amid easing crude oil prices and weakening of the greenback overseas. Forex traders said the rupee consolidated in a narrow range as gains were restricted by sustained foreign fund outflows and robust selling in domestic equities. Moreover, market participants will be keeping an eye on third quarter GDP growth number scheduled to be released on Friday. At the interbank foreign exchange market, the local currency opened at 71.65 to the US dollar. During the day, it swung between a high of 71.55 and a low of 71.69. (Image: Reuters)
5. Rupee Close: Extending gains for the third day, the rupee climbed 4 paise to close at 71.61 against the US dollar on Thursday amid easing crude oil prices and weakening of the greenback overseas. Forex traders said the rupee consolidated in a narrow range as gains were restricted by sustained foreign fund outflows and robust selling in domestic equities. Moreover, market participants will be keeping an eye on third quarter GDP growth number scheduled to be released on Friday. At the interbank foreign exchange market, the local currency opened at 71.65 to the US dollar. During the day, it swung between a high of 71.55 and a low of 71.69. (Image: Reuters)
6. SEBI Amends IFSC Intermediaries: Markets regulator Sebi on Thursday amended the guidelines for intermediaries operating at the International Financial Services Centre (IFSC), wherein such entities will be permitted to carry out operations without forming a separate company. The facility - subject to various conditions, including Sebi nod - would not be applicable for trading and clearing members. Besides, the watchdog has changed the guidelines for reporting of financial statements by issuers listing their debt securities at IFSC. The regulator said the changes are being made to
6. SEBI Amends IFSC Intermediaries: Markets regulator Sebi on Thursday amended the guidelines for intermediaries operating at the International Financial Services Centre (IFSC), wherein such entities will be permitted to carry out operations without forming a separate company. The facility - subject to various conditions, including Sebi nod - would not be applicable for trading and clearing members. Besides, the watchdog has changed the guidelines for reporting of financial statements by issuers listing their debt securities at IFSC. The regulator said the changes are being made to "further streamline the operations at IFSC, based on the internal discussions and consultations held with the stakeholders". In this regard, amendments have been made to the Sebi (International Financial Services Centres) Guidelines, 2015. (Image: Reuters)
7. DoT On AGR Crisis: The adjusted gross revenue (AGR) dues continue to haunt telecom companies, as the Department of Telecom (DoT) officials have firmly stated that firms “cannot manipulate the government for a bailout and relief measures will be contingent on balance payment of dues by the companies”. As of now, Vodafone Idea has paid Rs 3,500 crore against the dues of Rs 56,709 crore, whereas Bharti Airtel has so far paid Rs 10,000 crore against Rs 39,723 crore dues. Tata Teleservices has made the full and final payment of Rs 2,197 crore against Rs 14,819 crore of AGR dues. The Digital Communication Commission (DCC) headed by the telecom secretary and members of DoT along with the secretary of information technology, economic affairs, and NITI Aayog CEO are likely to meet tomorrow for the first time post AGR crisis. (Image: Reuters)
7. DoT On AGR Crisis: The adjusted gross revenue (AGR) dues continue to haunt telecom companies, as the Department of Telecom (DoT) officials have firmly stated that firms “cannot manipulate the government for a bailout and relief measures will be contingent on balance payment of dues by the companies”. As of now, Vodafone Idea has paid Rs 3,500 crore against the dues of Rs 56,709 crore, whereas Bharti Airtel has so far paid Rs 10,000 crore against Rs 39,723 crore dues. Tata Teleservices has made the full and final payment of Rs 2,197 crore against Rs 14,819 crore of AGR dues. The Digital Communication Commission (DCC) headed by the telecom secretary and members of DoT along with the secretary of information technology, economic affairs, and NITI Aayog CEO are likely to meet tomorrow for the first time post AGR crisis. (Image: Reuters)
8. Ind-Ra 'Negative' On Steel Sector: India Ratings and Research (Ind-Ra) on Thursday said it has revised its outlook on the steel sector from 'stable-to-negative' to 'negative' for FY2021-21. The revision has been made seeing the steel demand growth expectations of 5 percent and margin pressures led by iron ore price risks, the agency said in report. High iron ore premiums for new mine owners both captive and merchant could shift the cost positions of steel mills, it said.
8. Ind-Ra 'Negative' On Steel Sector: India Ratings and Research (Ind-Ra) on Thursday said it has revised its outlook on the steel sector from 'stable-to-negative' to 'negative' for FY2021-21. The revision has been made seeing the steel demand growth expectations of 5 percent and margin pressures led by iron ore price risks, the agency said in report. High iron ore premiums for new mine owners both captive and merchant could shift the cost positions of steel mills, it said. "The slowing economic activity as reflected in Ind-Ra's GDP estimates of 5 percent and 5.5 percent for FY20 and FY21, respectively, would continue to affect demand growth in the steel sector and any significant pick-up is unlikely," Ind-Ra said in a report. The rating agency said it expects steel demand growth to remain modest, in line with gross factor capital formation of 5.3 percent in FY21. (Image: Reuters)
9. India's Gas Volume Growth To Rise: India's domestic gas demand is at an inflection point and is expected to see a 66 per cent volume growth over the next five years, primarily driven by sustained weak LNG prices, as per a report. Gas demand is expected to rise from 148 million standard cubic meters per day in 2018-19 to 250 mmscmd by FY25, Elara Securities said in a report. The bulk of the incremental demand will come from city gas distribution (CGD) operations being rolled out in 400 districts. As much as 52 mmscmd of additional demand will come from retailing of CNG to automobiles and piped natural gas to industries and households, it said. Another 35 mmscmd is to come from the power sector and 15 mmscmd from fertilizer plants. (Image: Reuters)
9. India's Gas Volume Growth To Rise: India's domestic gas demand is at an inflection point and is expected to see a 66 per cent volume growth over the next five years, primarily driven by sustained weak LNG prices, as per a report. Gas demand is expected to rise from 148 million standard cubic meters per day in 2018-19 to 250 mmscmd by FY25, Elara Securities said in a report. The bulk of the incremental demand will come from city gas distribution (CGD) operations being rolled out in 400 districts. As much as 52 mmscmd of additional demand will come from retailing of CNG to automobiles and piped natural gas to industries and households, it said. Another 35 mmscmd is to come from the power sector and 15 mmscmd from fertilizer plants. (Image: Reuters)
10. Coronavirus May Hit Global GDP: The coronavirus outbreak may negatively impact global growth by 30 basis points or USD 250 billion, industry body PHDCCI said on Thursday.  PHDCCI President D K Aggarwal said disruptions in the global supply chains will not only hit China's exports but also the exports of the importing countries as they import a large chunk of raw materials and intermediate goods from China while exporting to other respective destinations.
10. Coronavirus May Hit Global GDP: The coronavirus outbreak may negatively impact global growth by 30 basis points or USD 250 billion, industry body PHDCCI said on Thursday.  PHDCCI President D K Aggarwal said disruptions in the global supply chains will not only hit China's exports but also the exports of the importing countries as they import a large chunk of raw materials and intermediate goods from China while exporting to other respective destinations. "At this juncture, we need to boost our domestic consumption demand and domestic capacities to mitigate the likely impact of coronavirus on global trade," said Aggarwal, adding that sectors such as pharmaceuticals, solar and iron and steel have been facing disruptions in imports of raw materials from China due to the outbreak of the virus. (Image: Reuters)
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