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10 things you need to know before the opening bell on January 31

Updated : 2020-01-31 08:15:37

The Indian market is likely to open in the green on Friday following Asian markets that are attempting to rally after a gut-wrenching week. However, factors like increasing worries over coronavirus after WHO declared it a global emergency, as well as investors trading cautiously ahead of the Union Budget due on Saturday, may weigh on the market.

1. Asia: Asian share markets were praying for a reprieve at the end of a punishing week as investors snatched at hopes the coronavirus could be contained, even as headlines spoke of more cases and deaths. MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.1 percent but was still down 4.1 percent on the week so far. Japan's Nikkei added 0.9 percent but again was off 2.7 percent for the week. E-Mini futures for the S&P 500 held steady having rebounded late Thursday to end up 0.5 percent. (Image: Reuters)
1. Asia: Asian share markets were praying for a reprieve at the end of a punishing week as investors snatched at hopes the coronavirus could be contained, even as headlines spoke of more cases and deaths. MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.1 percent but was still down 4.1 percent on the week so far. Japan's Nikkei added 0.9 percent but again was off 2.7 percent for the week. E-Mini futures for the S&P 500 held steady having rebounded late Thursday to end up 0.5 percent. (Image: Reuters)
2. US: Global equity markets tumbled on Thursday as the death toll from China's coronavirus outbreak hit 170, pummelling oil prices and inverting a closely watched bond indicator as investors worried about the world's second-largest economy. The Dow Jones Industrial Average rose 124.99 points, or 0.43%, to 28,859.44. The S&P 500 gained 10.26 points, or 0.31%, to 3,283.66 and the Nasdaq Composite <.IXIC> added 23.77 points, or 0.26%, to 9,298.93. (Image: AP)
2. US: Global equity markets tumbled on Thursday as the death toll from China's coronavirus outbreak hit 170, pummelling oil prices and inverting a closely watched bond indicator as investors worried about the world's second-largest economy. The Dow Jones Industrial Average rose 124.99 points, or 0.43%, to 28,859.44. The S&P 500 gained 10.26 points, or 0.31%, to 3,283.66 and the Nasdaq Composite <.IXIC> added 23.77 points, or 0.26%, to 9,298.93. (Image: AP)
3. Markets at Close On Thursday: The Indian markets ended lower on Thursday, following global peers, with all major sectors ending in the red. The sentiment was affected amid fears of Coronavirus affecting the global economy after its death toll reached 170 forcing airlines to cut flights and stores to close. The Sensex ended 285 points lower at 40,914, while Nifty settled 94 points lower at 12,036. Meanwhile, foreign institutional investors sold Rs 962 crore in the cash market while the domestic institutional investors bought Rs 292 crore.
3. Markets at Close On Thursday: The Indian markets ended lower on Thursday, following global peers, with all major sectors ending in the red. The sentiment was affected amid fears of Coronavirus affecting the global economy after its death toll reached 170 forcing airlines to cut flights and stores to close. The Sensex ended 285 points lower at 40,914, while Nifty settled 94 points lower at 12,036. Meanwhile, foreign institutional investors sold Rs 962 crore in the cash market while the domestic institutional investors bought Rs 292 crore.
4. Crude Oil: Oil prices fell more than 2 percent on Thursday to the lowest in three months on concerns over the potential economic impact of the coronavirus that continues to spread worldwide, while the market also considered the possibility of an early OPEC meeting. Brent crude was down $1.52, or 2.5 percent, to settle at $58.29 a barrel. The global benchmark earlier dropped to $57.71, its lowest since Oct. 8. U.S. crude fell $1.19, or 2.2 percent, to settle at $52.14 a barrel, after hitting a session low at $51.66 a barrel, its weakest since Oct. 10. (Image: Reuters)
4. Crude Oil: Oil prices fell more than 2 percent on Thursday to the lowest in three months on concerns over the potential economic impact of the coronavirus that continues to spread worldwide, while the market also considered the possibility of an early OPEC meeting. Brent crude was down $1.52, or 2.5 percent, to settle at $58.29 a barrel. The global benchmark earlier dropped to $57.71, its lowest since Oct. 8. U.S. crude fell $1.19, or 2.2 percent, to settle at $52.14 a barrel, after hitting a session low at $51.66 a barrel, its weakest since Oct. 10. (Image: Reuters)
5. Rupee Close: The rupee lost 22 paise to close at a three-week low of 71.49 against the US dollar on Thursday tracking heavy sell-off in domestic equities amid rising concerns over the outbreak of coronavirus. Forex traders said most Asian currencies declined after the US Federal Reserve kept its key policy rates steady.  Moreover, market participants are also assessing the economic implications of the coronavirus outbreak and awaiting cues from the Union Budget. At the interbank foreign exchange market, the domestic currency opened weak at 71.39 a dollar. It finally settled for the day lower by 22 paise at 71.49, a level not seen since January 8.  (Image for representational purpose)
5. Rupee Close: The rupee lost 22 paise to close at a three-week low of 71.49 against the US dollar on Thursday tracking heavy sell-off in domestic equities amid rising concerns over the outbreak of coronavirus. Forex traders said most Asian currencies declined after the US Federal Reserve kept its key policy rates steady.  Moreover, market participants are also assessing the economic implications of the coronavirus outbreak and awaiting cues from the Union Budget. At the interbank foreign exchange market, the domestic currency opened weak at 71.39 a dollar. It finally settled for the day lower by 22 paise at 71.49, a level not seen since January 8.  (Image for representational purpose)
6. Exporters On Coronavirus: Exporters on Thursday urged the government to review the possible impact of deadly Coronavirus on trade as China is one of the top trading partners for India. The Federation of Indian Export Organisations (FIEO) said that if the problem persists for long, it may impact domestic mobile manufacturers as they import certain components from China.
6. Exporters On Coronavirus: Exporters on Thursday urged the government to review the possible impact of deadly Coronavirus on trade as China is one of the top trading partners for India. The Federation of Indian Export Organisations (FIEO) said that if the problem persists for long, it may impact domestic mobile manufacturers as they import certain components from China. "Mobile exporters may face issues if the problem will continue for long as they import a lot of components from the neighbouring country," FIEO Director General Ajaya Sahai said. He added that certain Indian exporters have received inquiries from Hong Kong and China for the import of N72 masks. (Image: Reuters)
7. COAI On AGR Dues: Industry body COAI is pitching for a 10-15 year payment schedule for telecom companies to pay their past statutory dues, beginning with part-payment upfront and a two-year moratorium. COAI Director General Rajan Mathews said the industry requires a debt package for payment of past statutory dues with a two-year moratorium, as in the case of payment made for spectrum bought in auctions.
7. COAI On AGR Dues: Industry body COAI is pitching for a 10-15 year payment schedule for telecom companies to pay their past statutory dues, beginning with part-payment upfront and a two-year moratorium. COAI Director General Rajan Mathews said the industry requires a debt package for payment of past statutory dues with a two-year moratorium, as in the case of payment made for spectrum bought in auctions. "Give telecom companies 10-15 years for payment of the full adjusted gross revenue (AGR) dues, a two-year moratorium and an interest rate at interbank borrowing rate levels that is at around 4-5 percent," Mathews said. There could be an upfront payment of about 15 percent, which is equivalent to the principle AGR amounts, he added. (Image: AP)
8. IRDAI On Micro Insurance: An Irdai panel has suggested the introduction of daily premium payment policies to deepen insurance penetration in low-income groups. The committee on 'micro-insurance' also said the product benefits need to be simple so that they can be easily understood by customers. It should be clearly spelled out in terms of gives and gets for the customer -- that is, what the customer gives and what s/he gets, the panel said in its report. The panel has also made a case for 'goal-based savings products' like those for child education or higher education. (Image: Shutterstock)
8. IRDAI On Micro Insurance: An Irdai panel has suggested the introduction of daily premium payment policies to deepen insurance penetration in low-income groups. The committee on 'micro-insurance' also said the product benefits need to be simple so that they can be easily understood by customers. It should be clearly spelled out in terms of gives and gets for the customer -- that is, what the customer gives and what s/he gets, the panel said in its report. The panel has also made a case for 'goal-based savings products' like those for child education or higher education. (Image: Shutterstock)
9. Niti Aayog Vice-Chairman On Budget Expectations: The government should focus on alternate measures to stimulate the economy as it is not possible to give fiscal stimulus, Niti Aayog Vice-Chairman Rajiv Kumar said ahead of the Budget. Kumar also said growth-enhancing measures are the need of the hour to achieve India's potential growth rate of 7-8 percent per annum. He attributed the current slowdown to low investment, muted consumption expenditure and lagging exports. Experts are divided over whether the government should provide stimulus to boost the slowing economy without bothering too much about the fiscal deficit.
9. Niti Aayog Vice-Chairman On Budget Expectations: The government should focus on alternate measures to stimulate the economy as it is not possible to give fiscal stimulus, Niti Aayog Vice-Chairman Rajiv Kumar said ahead of the Budget. Kumar also said growth-enhancing measures are the need of the hour to achieve India's potential growth rate of 7-8 percent per annum. He attributed the current slowdown to low investment, muted consumption expenditure and lagging exports. Experts are divided over whether the government should provide stimulus to boost the slowing economy without bothering too much about the fiscal deficit. "Growth-enhancing measures are the need of the hour to achieve India's potential growth rate of 7–8 percent per annum. (Image: Reuters)
10. Coronavirus Could Hit Electronics Production: Smartphone vendors and consumer electronics companies do not expect any immediate business impact in India on account of the coronavirus outbreak in China, but warned that production could be hit if the situation continues beyond February. Consumer Electronics and Appliances Manufacturers Association President Kamal Nandi said brands usually stock for components for about a month.
10. Coronavirus Could Hit Electronics Production: Smartphone vendors and consumer electronics companies do not expect any immediate business impact in India on account of the coronavirus outbreak in China, but warned that production could be hit if the situation continues beyond February. Consumer Electronics and Appliances Manufacturers Association President Kamal Nandi said brands usually stock for components for about a month. "We generally plan for a month for the imported items. We had planned for holidays in China (Lunar New Year) but if the situation continues (on account of Coronavirus outbreak), it would be challenging for us in manufacturing," Nandi said. He cited the example of ACs and refrigerators that see a scale up in production ahead of summers to cater to increased demand. (Image: AP)

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