The Indian market is likely to open lower, tracking Asian markets, as investors remained cautious over deadly Coronavirus in China. At 7:18 am, the SGX Nifty was trading 25 points or 0.20 percent lower at 12,171.50, indicating a lower start for the Sensex and Nifty50.
1. Asia: Stocks made a barely positive start in early Asian trade on Friday after the world’s health body called it a little too early to declare a coronavirus outbreak a global emergency. MSCI's broadest index of Asia-Pacific shares outside Japan rose a marginal 0.1 percent, while Japan's Nikkei stood flat and Australian stocks added 0.4 percent. Trade-in Asia is already slowing down for the Lunar New Year holiday, with financial markets in China, Taiwan, and South Korea closed on Friday. (Image: Reuters)
2. US: The biggest tumble in Chinese stocks in more than eight months led global equity markets lower on Thursday as concern mounted about the coronavirus outbreak in China. The Dow Jones Industrial Average fell 26.45 points, or 0.09 percent, to 29,159.82, the S&P 500 gained 3.75 points, or 0.11 percent, to 3,325.5 and the Nasdaq Composite added 18.71 points, or 0.2 percent, to 9,402.48. (Image: AP)
3. Markets At Close On Thursday: Stock market closed in the green for the first time this week on Thursday, driven by bargain-hunting and well-received earnings reports from select companies. The Sensex gained 271.02 points, or 0.66 percent, to settle Thursday's trade at 41,386.40. The Nifty rose 73 points, or 0.60 percent, to settle at 12,179.90. Meanwhile, foreign institutional investors bought Rs 1,352 crore in the cash market while domestic institutional investors sold Rs 985 crore. (Image: Reuters)
4. Crude Oil: Oil prices fell 2 percent on Thursday on concern that the spread of a virus from China could lower fuel demand if it stunts economic growth, but losses were limited by a drawdown in U.S. crude inventories. Brent crude futures fell $1.17, or 1.9 percent, to settle at $62.04 a barrel. The session low was $61.25, the lowest since early December. U.S. West Texas Intermediate (WTI) crude ended down $1.15, or 2 percent, at $55.59 a barrel, after hitting $54.77, its lowest since November. (Image: AP)
5. Rupee Close: The rupee depreciated by 7 paise to close at 71.26 against the US dollar on Thursday as the spread of a deadly new virus from China spooked investors. However, softening crude prices and strong domestic equity market restricted the rupee's fall, forex dealer said. At the interbank foreign exchange market, the local currency opened on a weak note at 71.21. During the day, it swung between a high of 71.16 and a low of 71.35. (Image: Reuters)
6. RBI On FPIs Investment Limit: The Reserve Bank of India on Thursday raised the investment limit for FPIs in government and corporate bonds to bring in more foreign funds into the market. Currently, short-term investments by a foreign portfolio investors (FPI) should not exceed 20 percent of the total investment of that FPI in either central government securities (including treasury bills) or state development loans or corporate bonds. The short-term investment limit has now been increased from 20 percent to 30 percent in both cases, the RBI said in a circular. The central bank has also made relaxation in the voluntary retention route (VRR) for FPI investments in debt. The investment cap through VRR has been doubled to Rs 1.5 lakh crore, the RBI said in another circular. (Image: Reuters)
7. Piyush Goyal On Economy: Union Commerce and Industry Minister Piyush Goyal on Thursday said that the Indian economy is well-poised to take off and the government is committed to ensure economic growth. Speaking at the annual summit of World Economic Forum in Davos, he also said that India has had to suffer the consequences of the uncertainties that the world economy has been through in the last couple of years. He, however, noted that the slowdown has largely plateaued out. "I believe the economy is well-poised to take off from here and the government is committed to ensure that all of us work together to make that happen," Goyal said. Goyal also said that the government would have discussions with the European Union and Britain regarding Free Trade Agreements (FTA). (Image: Reuters)
8. DoT On Telcos': The government has asked the Department of Telecommunications (DoT) not to take any coercive action against telecom companies for non-payment of adjusted gross revenue (AGR) dues until further court orders. Oil Minister Dharmendra Pradhan said the Rs 3-lakh crore sought by the DoT from non-telecom PSUs, such as GAIL, Oil India Ltd and PowerGrid, was a result of "communication gap" as these firms are not liable to pay any dues following the Supreme Court's October 24 ruling that non-telecom revenues of telecom firms should be included for considering payments of government dues. (Image: Reuters)
9. Dharmendra Pradhan On Gas Infrastructure: India will see an investment of over Rs 4 lakh crore in development of gas supply and distribution infrastructure in the next five years as it chases the target of more than doubling the share of the environment-friendly fuel in its energy basket to 15 percent by 2030, Oil Minister Dharmendra Pradhan said on Thursday. Speaking at a national conclave on emerging opportunities in the natural gas sector, he said the 11th round of city gas distribution licensing bidding will shortly be launched that will help extend the supply of CNG to automobiles and piped cooking gas to household kitchens in 475 districts from current 400. (Image: Reuters)
10. RBI Buys Long-Term Securities: In the fourth special open market operation (OMO) auctions, the Reserve Bank of India on Thursday bought Rs 10,000 crore worth of long-term securities and sold Rs 2,950 crore worth of short-term government bonds. Last week, the RBI had said it will simultaneously purchase and sell government securities under open market operations (OMO) of Rs 10,000 crore each. In the OMO purchase auction, the RBI received bids worth Rs 26,887 crore for two types of securities -- 7.32 percent-2024 and 6.45 percent-2029 -- but accepted only Rs 10,000 crore of bids.
For 7.32 per cent-2024, it got 157 bids and accepted 40 bids. The RBI got 147 bids for 6.45 percent-2029 bonds but accepted 105 bids. (Image: Reuters)