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10 things you need to know before the opening bell on October 22

Updated : 2019-10-22 07:30:42

Indian shares are expected to open lower on Tuesday as MPC minutes released on Friday indicated that slowing economy and subdued private investment prompted for a 25 bps policy rate cut in October. The market remained closed on Monday due to Assembly elections in Maharashtra. Meanwhile, Asian shares were mixed. At 7:15 AM, the SGX Nifty Futures traded 41 points or 0.35 percent lower at 11,657.50, indicating a negative start for the Sensex and the Nifty 50.

1. Asia: Asian share markets edged ahead on Tuesday amid cheery chatter about the chance of a Sino-U.S. trade deal, while investors were sanguine yet another vote on Brexit would still avert a hard exit. A holiday in Tokyo kept turnover light and MSCI's broadest index of Asia-Pacific shares outside Japan added a slight 0.13 percent. Futures for Japan's Nikkei were trading flat at 22,700, compared to Monday's index close at 22,548. South Korean stocks rose 0.4 percent, while E-Mini futures for the S&P 500 were little changed.  (Image: Reuters)
1. Asia: Asian share markets edged ahead on Tuesday amid cheery chatter about the chance of a Sino-U.S. trade deal, while investors were sanguine yet another vote on Brexit would still avert a hard exit. A holiday in Tokyo kept turnover light and MSCI's broadest index of Asia-Pacific shares outside Japan added a slight 0.13 percent. Futures for Japan's Nikkei were trading flat at 22,700, compared to Monday's index close at 22,548. South Korean stocks rose 0.4 percent, while E-Mini futures for the S&P 500 were little changed.  (Image: Reuters)
2. US: The benchmark S&P 500 stock index rose within striking distance of a record high on Monday as further signs of progress toward a resolution of the U.S.-China trade war boosted shares in sectors sensitive to trade and the global economy. U.S. President Donald Trump continued to strike optimistic tones, while White House adviser Larry Kudlow said tariffs on Chinese goods scheduled for December could be withdrawn if talks go well. The Dow Jones Industrial Average rose 57.44 points, or 0.21 percent, to 26,827.64, the S&P 500 gained 20.52 points, or 0.69 percent, to 3,006.72 and the Nasdaq Composite added 73.44 points, or 0.91 percent, to 8,162.99.  (Image: Reuters)
2. US: The benchmark S&P 500 stock index rose within striking distance of a record high on Monday as further signs of progress toward a resolution of the U.S.-China trade war boosted shares in sectors sensitive to trade and the global economy. U.S. President Donald Trump continued to strike optimistic tones, while White House adviser Larry Kudlow said tariffs on Chinese goods scheduled for December could be withdrawn if talks go well. The Dow Jones Industrial Average rose 57.44 points, or 0.21 percent, to 26,827.64, the S&P 500 gained 20.52 points, or 0.69 percent, to 3,006.72 and the Nasdaq Composite added 73.44 points, or 0.91 percent, to 8,162.99.  (Image: Reuters)
3. Markets At Close On Friday: Domestic equity market extended its gains for the sixth straight session on Friday, with the benchmark Sensex rising 246 points on sustained buying across sectors. Investor sentiment was upbeat after Finance Minister Nirmala Sitharaman hinted at further stimulus in FY20. The benchmark BSE Sensex closed up 0.63 percent at 39,298.38 on Friday, while the broader NSE Nifty ended 0.65 percent higher at 11,661.85. All sectoral indices, except Nifty Media, were trading in green. Meanwhile, foreign institutional investors bought 37 crores in the cash market while domestic institutional investors bought 587 crores. (Image: Reuters)
3. Markets At Close On Friday: Domestic equity market extended its gains for the sixth straight session on Friday, with the benchmark Sensex rising 246 points on sustained buying across sectors. Investor sentiment was upbeat after Finance Minister Nirmala Sitharaman hinted at further stimulus in FY20. The benchmark BSE Sensex closed up 0.63 percent at 39,298.38 on Friday, while the broader NSE Nifty ended 0.65 percent higher at 11,661.85. All sectoral indices, except Nifty Media, were trading in green. Meanwhile, foreign institutional investors bought 37 crores in the cash market while domestic institutional investors bought 587 crores. (Image: Reuters)
4. Crude Oil: Oil prices steadied a little on Tuesday, supported by signs of progress in talks on resolving the U.S.-China trade dispute, but gains were contained by lingering anxiety a slowdown in the global economy could hurt crude demand. Brent crude futures were at $59.10 a barrel by 0027 GMT, up 14 cents, or 0.2 percent, from their previous settlement. Brent settled down 0.8 percent at $58.96. (Image: Reuters)
4. Crude Oil: Oil prices steadied a little on Tuesday, supported by signs of progress in talks on resolving the U.S.-China trade dispute, but gains were contained by lingering anxiety a slowdown in the global economy could hurt crude demand. Brent crude futures were at $59.10 a barrel by 0027 GMT, up 14 cents, or 0.2 percent, from their previous settlement. Brent settled down 0.8 percent at $58.96. (Image: Reuters)
5. Currency: The rupee ended flat at 71.14 against the US dollar on Friday amid hardening crude oil prices and lacklustre global cues. Persistent foreign fund inflows propped up the local unit though the gains were capped by crude oil hitting the $60 per barrel mark, forex brokers said. It traded in the range of 71.31 and 71.05 during the day, before finally finishing at 71.14, up just 2 paise from its previous close. The dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.15 percent to 97.45. (Image: Reuters)
5. Currency: The rupee ended flat at 71.14 against the US dollar on Friday amid hardening crude oil prices and lacklustre global cues. Persistent foreign fund inflows propped up the local unit though the gains were capped by crude oil hitting the $60 per barrel mark, forex brokers said. It traded in the range of 71.31 and 71.05 during the day, before finally finishing at 71.14, up just 2 paise from its previous close. The dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.15 percent to 97.45. (Image: Reuters)
6. JP Morgan Chase On Indian Economy: Interest rates are the reflection of what is going on in the economy and growth drives borrowing, said JP Morgan Chase chairman and CEO Jamie Dimon. According to Dimon, while reducing interest rates might help fuel growth to some extent, it is not a silver bullet. “I think people make a mistake thinking that if you push upon interest rates that change everything. Very often interest rates are the reflection of what is going on in the economy. Companies that borrow money, borrow money when they need to borrow. So growth actually drives borrowing, their demand book drives borrowing and if things slow down that will actually go down. But having said that, reducing rates can help too. It is one of the two rules that can help economy grow a little faster,” he noted. (Image: Reuters)
6. JP Morgan Chase On Indian Economy: Interest rates are the reflection of what is going on in the economy and growth drives borrowing, said JP Morgan Chase chairman and CEO Jamie Dimon. According to Dimon, while reducing interest rates might help fuel growth to some extent, it is not a silver bullet. “I think people make a mistake thinking that if you push upon interest rates that change everything. Very often interest rates are the reflection of what is going on in the economy. Companies that borrow money, borrow money when they need to borrow. So growth actually drives borrowing, their demand book drives borrowing and if things slow down that will actually go down. But having said that, reducing rates can help too. It is one of the two rules that can help economy grow a little faster,” he noted. (Image: Reuters)
7. FM Nirmala Sitharaman On IBC: Finance minister Nirmala Sitharaman has said that uncertainty arising out of one case should not be generalised about the efficiency and effectiveness of Insolvency and Bankruptcy Code. Sitharaman was responding to a question on a particular recent case which many allege reflects some major loopholes in the IBC.
7. FM Nirmala Sitharaman On IBC: Finance minister Nirmala Sitharaman has said that uncertainty arising out of one case should not be generalised about the efficiency and effectiveness of Insolvency and Bankruptcy Code. Sitharaman was responding to a question on a particular recent case which many allege reflects some major loopholes in the IBC. "I don't think we should escalate one case to reflect everything to do with IBC," Sitharaman told reporters at a news conference here. "If ED attaches somebody's property and as a result of which some uncertainty comes into the IBC process, it's nothing, first of all, to say on the IBC itself, Sitharaman said responding to a question on a recent case. (Image: Reuters)
8. MPC Minutes Hint at Another Rate Cut: Slowing economy and subdued private investments prompted RBI Governor Shaktikanta Das to opt for 25 basis points reduction in policy rate earlier this month, as per the minutes of the MPC meeting released on Friday. Das-headed Monetary Policy Committee (MPC) reduced the key policy rate for the fifth time in a row since January, taking the total to 135 basis points. As per the minutes, Das said that overall, domestic demand has moderated significantly and the weakening of private consumption, which for long has been the bedrock of aggregate demand, is a matter of concern. Private investment has also lost traction, with the corporate sector reluctant to make fresh investments even though capacity utilization in the manufacturing sector has operated close to the long-term average in the recent period, he opined during the three-day MPC meeting that concluded on October 4. (Image: Reuters)
8. MPC Minutes Hint at Another Rate Cut: Slowing economy and subdued private investments prompted RBI Governor Shaktikanta Das to opt for 25 basis points reduction in policy rate earlier this month, as per the minutes of the MPC meeting released on Friday. Das-headed Monetary Policy Committee (MPC) reduced the key policy rate for the fifth time in a row since January, taking the total to 135 basis points. As per the minutes, Das said that overall, domestic demand has moderated significantly and the weakening of private consumption, which for long has been the bedrock of aggregate demand, is a matter of concern. Private investment has also lost traction, with the corporate sector reluctant to make fresh investments even though capacity utilization in the manufacturing sector has operated close to the long-term average in the recent period, he opined during the three-day MPC meeting that concluded on October 4. (Image: Reuters)
9. SEBI Lays Stricter Norms For Statutory Auditors: Regulator Sebi on Friday put in place stricter norms for auditors, including prompt disclosures about reasons for their resignation and requirement to approach chairman of audit committee directly in case of any concerns with the management of the firm concerned. The norms have been issued against the backdrop of rising instances of auditors quitting companies as well as those of auditors coming under the scanner in connection with alleged financial irregularities at firms. The circular on 'Resignation of statutory auditors from listed entities and their material subsidiaries' will come into force with immediate effect. According to Sebi, the resignation of an auditor of a listed entity before completion of the audit of financial results for the year due to reasons such as pre-occupation may seriously hamper investor confidence and deny them access to reliable information for taking timely investment decisions. (Image: Reuters)
9. SEBI Lays Stricter Norms For Statutory Auditors: Regulator Sebi on Friday put in place stricter norms for auditors, including prompt disclosures about reasons for their resignation and requirement to approach chairman of audit committee directly in case of any concerns with the management of the firm concerned. The norms have been issued against the backdrop of rising instances of auditors quitting companies as well as those of auditors coming under the scanner in connection with alleged financial irregularities at firms. The circular on 'Resignation of statutory auditors from listed entities and their material subsidiaries' will come into force with immediate effect. According to Sebi, the resignation of an auditor of a listed entity before completion of the audit of financial results for the year due to reasons such as pre-occupation may seriously hamper investor confidence and deny them access to reliable information for taking timely investment decisions. (Image: Reuters)
10. REITs, InVITs Gain Traction: Emerging investment instruments -- REITs and InvITs --seem to be finally catching on with investors as mutual funds have invested nearly Rs 9,000 crore in such units in the first nine months of the year.  Fund managers have infused Rs 451 crore in real estate investment trusts (REITs) and Rs 8,528 crore in infrastructure investment trusts (InvITs), according to the Securities and Exchange Board of India (Sebi). Mutual funds have increased their exposure in these investment avenues over the past nine months. The investment by fund houses in REITs jumped to a staggering Rs 69 crore in September from a mere Rs 7 crore in January, while the same in InvITs rose to Rs 1,034 crore in September from Rs 611 crore in January.<br />Market experts believe that REITs could be a potential investment option giving good returns as interest of investors in the residential segment is declining due to the inability to monetize assets and limited appreciation in property prices. (Image: Reuters)
10. REITs, InVITs Gain Traction: Emerging investment instruments -- REITs and InvITs --seem to be finally catching on with investors as mutual funds have invested nearly Rs 9,000 crore in such units in the first nine months of the year.  Fund managers have infused Rs 451 crore in real estate investment trusts (REITs) and Rs 8,528 crore in infrastructure investment trusts (InvITs), according to the Securities and Exchange Board of India (Sebi). Mutual funds have increased their exposure in these investment avenues over the past nine months. The investment by fund houses in REITs jumped to a staggering Rs 69 crore in September from a mere Rs 7 crore in January, while the same in InvITs rose to Rs 1,034 crore in September from Rs 611 crore in January.
Market experts believe that REITs could be a potential investment option giving good returns as interest of investors in the residential segment is declining due to the inability to monetize assets and limited appreciation in property prices. (Image: Reuters)
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