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Economy

10 things you need to know before the opening bell on October 13

Updated : 2020-10-13 08:03:11

The Indian market is likely to open lower on Tuesday following a muted trend in Asian peers. At 7:15 am, the SGX Nifty was trading 26.00 points or 0.22 percent lower at 11942.00, indicating a negative start for the Sensex and Nifty50.

1. Asia: Trading in Hong Kong was suspended on Tuesday morning due to Typhoon Nangka, while other Asia-Pacific markets traded mixed. Mainland Chinese stocks dipped in early trade, as the Shanghai composite shed 0.44 percent while the Shenzhen component declined 0.361 percent. Chinese trade figures for September are expected to be released on Tuesday. In Japan, the Nikkei 225 dipped slightly while the Topix index traded fractionally higher. South Korea’s Kospi dipped 0.41 percent. Shares in Australia led gains among the region’s major markets, as the S&P/ASX 200 gained about 1.2 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan traded slightly lower, reported CNBC International. (Image: Reuters)
1. Asia: Trading in Hong Kong was suspended on Tuesday morning due to Typhoon Nangka, while other Asia-Pacific markets traded mixed. Mainland Chinese stocks dipped in early trade, as the Shanghai composite shed 0.44 percent while the Shenzhen component declined 0.361 percent. Chinese trade figures for September are expected to be released on Tuesday. In Japan, the Nikkei 225 dipped slightly while the Topix index traded fractionally higher. South Korea’s Kospi dipped 0.41 percent. Shares in Australia led gains among the region’s major markets, as the S&P/ASX 200 gained about 1.2 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan traded slightly lower, reported CNBC International. (Image: Reuters)
2. US: U.S. stock futures fell slightly in overnight trading on Tuesday as investors awaited the first batch of corporate earnings and updates on a stimulus package. Dow futures fell 90 points. S&P 500 futures lost 0.05 percent and Nasdaq 100 futures dropped 0.05 percent. Third-quarter earnings season kicks off on Tuesday with several major banks slated to report their results, including JPMorgan Chase, Citigroup and Delta Air Lines. Third quarter results are expected to decline significantly; however, traders are hoping for surprise to the upside, reported CNBC International. (Image: AP)
2. US: U.S. stock futures fell slightly in overnight trading on Tuesday as investors awaited the first batch of corporate earnings and updates on a stimulus package. Dow futures fell 90 points. S&P 500 futures lost 0.05 percent and Nasdaq 100 futures dropped 0.05 percent. Third-quarter earnings season kicks off on Tuesday with several major banks slated to report their results, including JPMorgan Chase, Citigroup and Delta Air Lines. Third quarter results are expected to decline significantly; however, traders are hoping for surprise to the upside, reported CNBC International. (Image: AP)
3. Market At Close On Monday: The Indian equity market ended slightly higher after paring most gains on Monday as the power failure in Mumbai disrupted the trading activity. The benchmark indices ended higher for the 8th straight day, the longest gaining streak in 30 months. IT stocks & ITC supported the market while HDFC Bank and Bharti Airtel dragged. At close, the Sensex ended 84.31 points higher at 40,593.80 while the Nifty50 index ended at 11,930.95, up 17 points. The Nifty50 index hit 12,000 intra-day after eight months, but closed off highs. Broader indices underperformed as compared to the benchmarks, with Nifty Smallcap 100 and Nifty Midcap 100 indexes ending 0.38 percent and 0.58 percent respectively. (Image: Reuters)
3. Market At Close On Monday: The Indian equity market ended slightly higher after paring most gains on Monday as the power failure in Mumbai disrupted the trading activity. The benchmark indices ended higher for the 8th straight day, the longest gaining streak in 30 months. IT stocks & ITC supported the market while HDFC Bank and Bharti Airtel dragged. At close, the Sensex ended 84.31 points higher at 40,593.80 while the Nifty50 index ended at 11,930.95, up 17 points. The Nifty50 index hit 12,000 intra-day after eight months, but closed off highs. Broader indices underperformed as compared to the benchmarks, with Nifty Smallcap 100 and Nifty Midcap 100 indexes ending 0.38 percent and 0.58 percent respectively. (Image: Reuters)
4. Crude Oil: Oil prices fell about 3 percent on Monday as force majeure at Libya’s largest oilfield was lifted, a Norwegian strike affecting production ended and U.S. producers began restoring output after Hurricane Delta. Brent crude fell $1.21, or 2.8 percent, to $41.64 a barrel West Texas Intermediate fell 2.88 percent, or $1.17, to settle at $39.43 per barrel, reported CNBC International. (Image: Reuters)
4. Crude Oil: Oil prices fell about 3 percent on Monday as force majeure at Libya’s largest oilfield was lifted, a Norwegian strike affecting production ended and U.S. producers began restoring output after Hurricane Delta. Brent crude fell $1.21, or 2.8 percent, to $41.64 a barrel West Texas Intermediate fell 2.88 percent, or $1.17, to settle at $39.43 per barrel, reported CNBC International. (Image: Reuters)
5. Rupee Close: The Indian currency snapped a three-session winning run on Monday, slipping 12 paise to close at 73.28 against the US dollar amid weakening Asian peers against the greenback. (Image: Reuters)
5. Rupee Close: The Indian currency snapped a three-session winning run on Monday, slipping 12 paise to close at 73.28 against the US dollar amid weakening Asian peers against the greenback. (Image: Reuters)
6. India Inc On Govt Stimulus: India Inc on Monday cheered Finance Minister Nirmala Sitharaman’s announcement of payment of cash in lieu of LTC and Rs 10,000 festival advance to government employees, saying these measures will boost demand while instilling a
6. India Inc On Govt Stimulus: India Inc on Monday cheered Finance Minister Nirmala Sitharaman’s announcement of payment of cash in lieu of LTC and Rs 10,000 festival advance to government employees, saying these measures will boost demand while instilling a "feel good" factor in the people and energize growth. CII Director General Chandrajit Banerjee said the finance minister’s announcement on boosting demand through a two-pronged strategy will provide a huge impetus to spending, both by consumers and governments, which in turn will accelerate economic activity. "The measures will also be a significant feel-good factor for the people who have been going through some tough and challenging times due to the pandemic," he added. (Image: PTI)
7. SEBI: The Securities and Exchange Board of India (SEBI) is planning to impose an additional charge on the redemption of debt funds in stressed schemes to ensure sufficient liquidity to meet redemption stress. This comes in a few months after Franklin Templeton closed its debt funds, citing redemption pressures and lack of liquidity in the bond markets. The closure led to assets under management for these schemes decline by about half.
7. SEBI: The Securities and Exchange Board of India (SEBI) is planning to impose an additional charge on the redemption of debt funds in stressed schemes to ensure sufficient liquidity to meet redemption stress. This comes in a few months after Franklin Templeton closed its debt funds, citing redemption pressures and lack of liquidity in the bond markets. The closure led to assets under management for these schemes decline by about half. "The regulator is also working on dissuading excessive redemptions by imposing an additional charge on redemptions in stressed schemes, and install[ing] a mechanism where asset managers could take up the illiquid paper on their books,” a SEBI official said, according to Mint. (Image: Reuters)
8. GST Council Meeting: Finance Minister Nirmala Sitharaman said on Monday night that no consensus was reached on the borrowing for a shortfall in GST compensation cess. Addressing a press conference following the 42nd GST Council meeting, Sitharaman said that the Centre answered questions from states on why it cannot borrow to meet the shortfall.
8. GST Council Meeting: Finance Minister Nirmala Sitharaman said on Monday night that no consensus was reached on the borrowing for a shortfall in GST compensation cess. Addressing a press conference following the 42nd GST Council meeting, Sitharaman said that the Centre answered questions from states on why it cannot borrow to meet the shortfall. "Today's meeting was a continuation of the previous meeting, all states spoke on the issue of borrowing, extension of GST cess. Some specific clarifications were asked by states and clarifications were sought on Attorney General's opinion on borrowings," she said. No consensus was arrived at on the way to make up for GST shortfall of states, Sitharaman added. The panel, which is the highest decision-making body on indirect taxes, for the second time in a week failed to reach a consensus on the Centre's proposal of states borrowing against future GST collections to make up for the shortfall. (Image: PTI)
9. Bernstein On Indian Economy: There are green shoots in the economy, based on the high-frequency data, said Venugopal Garre, Director at Bernstein in an interview with CNBC-TV18. Garre said that was encouraging, but the data had a positive bias, and this would continue for a while. He said other than consumption, the rest of the economy had yet to return to normalcy. “I have been of the view it is very tough to get returns from the current level of the index but at the same time given the fact that I was expecting the normal script in the economy – normal script primarily is negative 20 percent plus sort of decline in Q1, going on to flattish gross domestic product (GDP) in the second half of the year, which means that there would be this momentum reversal, which is going to ensure that any form of correction in the market would be bought. I don’t see that is changing for the rest of the year at this juncture,” he said. (Image: Reuters)
9. Bernstein On Indian Economy: There are green shoots in the economy, based on the high-frequency data, said Venugopal Garre, Director at Bernstein in an interview with CNBC-TV18. Garre said that was encouraging, but the data had a positive bias, and this would continue for a while. He said other than consumption, the rest of the economy had yet to return to normalcy. “I have been of the view it is very tough to get returns from the current level of the index but at the same time given the fact that I was expecting the normal script in the economy – normal script primarily is negative 20 percent plus sort of decline in Q1, going on to flattish gross domestic product (GDP) in the second half of the year, which means that there would be this momentum reversal, which is going to ensure that any form of correction in the market would be bought. I don’t see that is changing for the rest of the year at this juncture,” he said. (Image: Reuters)
10. Experts on CPI, IIP Numbers: Consumer inflation for September was 7.34 percent, compared to a forecast of 6.9 percent based on a CNBC-TV18 poll. Factory output for August, as a measure of Index of Industrial Production (IIP) came in at -8 percent against a CNBC-TV18 poll average of -6.4 percent. “It is a shocker, but I am not sure whether it will have any implications in terms of either the Reserve Bank of India (RBI) policy going forward or even in terms of the interest rate dynamics in the months ahead,” said Indranil Pan, Chief Economist of IDFC First Bank. Sameer Narang, Chief Economist at Bank of Baroda (BoB) said the average consumer inflation for this fiscal was likely to be over 5 percent and next year, it was expected to remain upwards of 4 percent. DK Joshi Chief Economist at CRISIL noted that risks to any inflation forecast was on the upside. (Image: Reuters)
10. Experts on CPI, IIP Numbers: Consumer inflation for September was 7.34 percent, compared to a forecast of 6.9 percent based on a CNBC-TV18 poll. Factory output for August, as a measure of Index of Industrial Production (IIP) came in at -8 percent against a CNBC-TV18 poll average of -6.4 percent. “It is a shocker, but I am not sure whether it will have any implications in terms of either the Reserve Bank of India (RBI) policy going forward or even in terms of the interest rate dynamics in the months ahead,” said Indranil Pan, Chief Economist of IDFC First Bank. Sameer Narang, Chief Economist at Bank of Baroda (BoB) said the average consumer inflation for this fiscal was likely to be over 5 percent and next year, it was expected to remain upwards of 4 percent. DK Joshi Chief Economist at CRISIL noted that risks to any inflation forecast was on the upside. (Image: Reuters)
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