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10 things you need to know before the opening bell on August 12

Updated : 2020-08-12 07:49:42

The Indian market is expected to open lower on Wednesday amidst negative sentiment across global markets. At 7:30 am, the SGX Nifty traded 83 points lower at 11,236, indicating a negative start for the Sensex and the Nifty50.

1. Asia: Markets in Asia-Pacific mostly declined on Wednesday morning, erasing earlier gains as investors continue to monitor coronavirus developments. Russia claimed to have developed the first vaccine in the world, while the U.S. was in a stalemate over virus aid talks. Japan’s Nikkei 225 slightly higher by 0.16 percent, while the Topix rose 0.42 percent. In South Korea, the Kospi was down 0.67 percent. Australia’s S&P/ASX 200 dropped 0.56 percent. In Thailand, markets are closed for a holiday, reported CNBC International. (Image: Reuters)
1. Asia: Markets in Asia-Pacific mostly declined on Wednesday morning, erasing earlier gains as investors continue to monitor coronavirus developments. Russia claimed to have developed the first vaccine in the world, while the U.S. was in a stalemate over virus aid talks. Japan’s Nikkei 225 slightly higher by 0.16 percent, while the Topix rose 0.42 percent. In South Korea, the Kospi was down 0.67 percent. Australia’s S&P/ASX 200 dropped 0.56 percent. In Thailand, markets are closed for a holiday, reported CNBC International. (Image: Reuters)
2. US: U.S. stock futures rose in overnight trading and pointed to gains at the open on Wednesday after the S&P 500 closed lower for the first time in eight days. Dow futures rose more than 100 points. The S&P 500 and Nasdaq-100 futures gained 0.3 percent and 0.5 percent, respectively. After the bell on Tuesday, President Donald Trump said the U.S. government will purchase 100 million doses of Moderna’s experimental coronavirus vaccine, which is currently in late-stage human trials, reported CNBC International. (Image: Reuters)
2. US: U.S. stock futures rose in overnight trading and pointed to gains at the open on Wednesday after the S&P 500 closed lower for the first time in eight days. Dow futures rose more than 100 points. The S&P 500 and Nasdaq-100 futures gained 0.3 percent and 0.5 percent, respectively. After the bell on Tuesday, President Donald Trump said the U.S. government will purchase 100 million doses of Moderna’s experimental coronavirus vaccine, which is currently in late-stage human trials, reported CNBC International. (Image: Reuters)
3. Market At Close On Tuesday: The Indian benchmark equity indices, Sensex and Nifty, ended higher Tuesday led by gains in metal and banking stocks. Better than expected June quarter earnings and strong global cues boosted investor sentiment. The Sensex ended 224.93 points or 0.59 percent higher at 38,407.01 while the Nifty gained 52.35 points or 0.46 percent to close at 11,322.50. Broader indices ended mixed with Nifty Midcap100 ending 0.34 percent lower while Nifty Smallcap100 index gaining 0.37 percent. (Image: Reuters)
3. Market At Close On Tuesday: The Indian benchmark equity indices, Sensex and Nifty, ended higher Tuesday led by gains in metal and banking stocks. Better than expected June quarter earnings and strong global cues boosted investor sentiment. The Sensex ended 224.93 points or 0.59 percent higher at 38,407.01 while the Nifty gained 52.35 points or 0.46 percent to close at 11,322.50. Broader indices ended mixed with Nifty Midcap100 ending 0.34 percent lower while Nifty Smallcap100 index gaining 0.37 percent. (Image: Reuters)
4. Crude Oil: Crude oil prices turned negative on Tuesday, despite expectations of U.S. economic stimulus to support the world’s biggest oil consumer as well as a rebound in Asian demand as economies reopen. West Texas Intermediate crude settled 33 cents, or 0.79 percent, lower at $41.61 per barrel, after earlier rising more than 2 percent. International benchmark Brent crude fell 37 cents, or 0.82 percent, to trade at $44.64 per barrel, reported CNBC International. (Image: Reuters)
4. Crude Oil: Crude oil prices turned negative on Tuesday, despite expectations of U.S. economic stimulus to support the world’s biggest oil consumer as well as a rebound in Asian demand as economies reopen. West Texas Intermediate crude settled 33 cents, or 0.79 percent, lower at $41.61 per barrel, after earlier rising more than 2 percent. International benchmark Brent crude fell 37 cents, or 0.82 percent, to trade at $44.64 per barrel, reported CNBC International. (Image: Reuters)
5. Rupee Close: The Indian currency ended higher on Tuesday amidst gains in the equity market and weakness in the greenback. The rupee closed 12 paise higher at 74.78 against the US dollar as compared to Tuesday's close of 74.90. Forex traders said gains in the domestic currency were supported by foreign fund inflows into domestic equity and debt markets. (Image: Reuters)
5. Rupee Close: The Indian currency ended higher on Tuesday amidst gains in the equity market and weakness in the greenback. The rupee closed 12 paise higher at 74.78 against the US dollar as compared to Tuesday's close of 74.90. Forex traders said gains in the domestic currency were supported by foreign fund inflows into domestic equity and debt markets. (Image: Reuters)
6. GST Council: The upcoming GST Council, which shall meet on only a single-point agenda, anytime in August, to iron out measures to meet the compensation requirements, is likely to discuss three top suggestions to raise compensation funds.
6. GST Council: The upcoming GST Council, which shall meet on only a single-point agenda, anytime in August, to iron out measures to meet the compensation requirements, is likely to discuss three top suggestions to raise compensation funds. "The council is likely to discuss the proposal sent by some states on hiking the cess percentage on sin goods. Some of the states that have given this suggestion include, Punjab, Chattisgarh, Bihar, Goa, Delhi, among others," sources privy to the developments told CNBC-TV18. According to the current GST rate structure, some of the sin goods that attract a cess include cigarettes, pan masala, and aerated drinks. Apart from sin goods, luxury products like cars also attract cess. (Image: Reuters)
7. IIP Declines 16.6% in June: Industrial production declined by 16.6 percent in June, mainly due to lower output of manufacturing, mining, and power generation, as per the government data released on Tuesday. The reading, however, was better than the CNBC-TV18 analyst poll which expected a decline of 22 percent. The May reading has been revised too to minus 33.9 percent. According to the Index of Industrial Production (IIP) data, manufacturing sector production registered a decline of 17.1 percent, while the output of mining and power fell 19.8 percent and 10 percent, respectively. (Image: Reuters)
7. IIP Declines 16.6% in June: Industrial production declined by 16.6 percent in June, mainly due to lower output of manufacturing, mining, and power generation, as per the government data released on Tuesday. The reading, however, was better than the CNBC-TV18 analyst poll which expected a decline of 22 percent. The May reading has been revised too to minus 33.9 percent. According to the Index of Industrial Production (IIP) data, manufacturing sector production registered a decline of 17.1 percent, while the output of mining and power fell 19.8 percent and 10 percent, respectively. (Image: Reuters)
8. DPIIT On Manufacturing Hub: The Department of Promotion of Industry and Internal Trade (DPIIT) has proposed short- and-long-term measures to turn Indian into a manufacturing hub for auto components and air conditioning, sources told CNBC-TV18. In the auto ancillary or components sector, the aim is to target 5 percent of the global auto component trade and a four-fold increase in exports.In the short term, the DPIIT suggests using the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), a scheme under the Ministry of Electronics and Information Technology (MEITY) for Auto Electronics and Electric vehicles. The scheme gives a 25 percent incentive on CAPEX for electronic components. (Image: Reuters)
8. DPIIT On Manufacturing Hub: The Department of Promotion of Industry and Internal Trade (DPIIT) has proposed short- and-long-term measures to turn Indian into a manufacturing hub for auto components and air conditioning, sources told CNBC-TV18. In the auto ancillary or components sector, the aim is to target 5 percent of the global auto component trade and a four-fold increase in exports.In the short term, the DPIIT suggests using the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), a scheme under the Ministry of Electronics and Information Technology (MEITY) for Auto Electronics and Electric vehicles. The scheme gives a 25 percent incentive on CAPEX for electronic components. (Image: Reuters)
9. Narayana Murthy On GDP Growth, Economy: Flagging fears that the country's GDP growth may even touch its lowest since independence in the backdrop of coronavirus pandemic, Infosys founder N R Narayana Murthy on Tuesday said the economy should be brought back on track and people should be prepared to live with the pathogen. He also pitched for developing a new system that should allow every player in every sector of the country's economy to operate at full steam with suitable precautions.
9. Narayana Murthy On GDP Growth, Economy: Flagging fears that the country's GDP growth may even touch its lowest since independence in the backdrop of coronavirus pandemic, Infosys founder N R Narayana Murthy on Tuesday said the economy should be brought back on track and people should be prepared to live with the pathogen. He also pitched for developing a new system that should allow every player in every sector of the country's economy to operate at full steam with suitable precautions. "India's GDP is expected to shrink by at least five per cent. There is a fear that we may even reach the lowest GDP (growth) since independence, since 1947," Murthy said. (Image: Reuters)
10. Fitch Ratings On RBI's Loan Recast: Fitch Ratings believes Reserve Bank of India’s (RBI) recent proposal to allow banks to restructure loans may extend uncertainty over the banking sector’s asset quality. In a report released today, the rating agency said that the proposal could open a window for banks to build capital buffers while putting off full recognition of the coronavirus pandemic’s impact on loan portfolios. However, Fitch added, the idea is “reminiscent of a strategy adopted over 2010-2016 that delayed and exacerbated problems for the banks”. As per Fitch, most state banks would struggle to maintain the regulatory minimum capital of 6.125 percent common equity Tier 1 (CET1) ratio under a high-stress scenario. (Image: Reuters)
10. Fitch Ratings On RBI's Loan Recast: Fitch Ratings believes Reserve Bank of India’s (RBI) recent proposal to allow banks to restructure loans may extend uncertainty over the banking sector’s asset quality. In a report released today, the rating agency said that the proposal could open a window for banks to build capital buffers while putting off full recognition of the coronavirus pandemic’s impact on loan portfolios. However, Fitch added, the idea is “reminiscent of a strategy adopted over 2010-2016 that delayed and exacerbated problems for the banks”. As per Fitch, most state banks would struggle to maintain the regulatory minimum capital of 6.125 percent common equity Tier 1 (CET1) ratio under a high-stress scenario. (Image: Reuters)
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