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10 things to know before the opening bell on December 11

Updated : December 11, 2019 07:57 AM IST

The Indian market is expected to open on a cautious note ahead of the inflation data, to be released this week. Meanwhile, the global markets also remained flatlined as no concrete details came on the US-China trade deal and investors await US Federal Reserve’s interest rate decision. At 7:08 am, the SGX Nifty was trading 7.50 points or 0.06 percent higher at 11,914.50, indicating a flat start for the Sensex and the Nifty50.

1. Asia: Asian stocks flatlined on Wednesday as Sino-U.S. trade talks approached a weekend deadline with little sign of progress, while a tightening of the UK election race knocked the pound. Investors are beginning to suspect that even if U.S. tariffs due to take effect on Sunday are delayed, it may be 2020 before Washington and Beijing can agree a broader rapprochement. Japan's Nikkei ticked lower after White House trade adviser Peter Navarro said a decision on the December 15 tariffs would come soon, also knocking modest early gains off Australia's S&P/ASX 200. (Image: AP)
1. Asia: Asian stocks flatlined on Wednesday as Sino-U.S. trade talks approached a weekend deadline with little sign of progress, while a tightening of the UK election race knocked the pound. Investors are beginning to suspect that even if U.S. tariffs due to take effect on Sunday are delayed, it may be 2020 before Washington and Beijing can agree a broader rapprochement. Japan's Nikkei ticked lower after White House trade adviser Peter Navarro said a decision on the December 15 tariffs would come soon, also knocking modest early gains off Australia's S&P/ASX 200. (Image: AP)
2. US: Wall Street's main stock indexes ended slightly lower on Tuesday, though not far from record highs, as investors awaited concrete news on whether a new round of U.S. tariffs on Chinese goods would take effect on December 15, a potential turning point in a trade dispute between the world's two largest economies that has convulsed markets. The Dow Jones Industrial Average fell 27.88 points, or 0.1 percent, to 27,881.72, the S&P 500 lost 3.44 points, or 0.11 percent, to 3,132.52 and the Nasdaq Composite dropped 5.64 points, or 0.07 percent, to 8,616.18. (Image: AP)
2. US: Wall Street's main stock indexes ended slightly lower on Tuesday, though not far from record highs, as investors awaited concrete news on whether a new round of U.S. tariffs on Chinese goods would take effect on December 15, a potential turning point in a trade dispute between the world's two largest economies that has convulsed markets. The Dow Jones Industrial Average fell 27.88 points, or 0.1 percent, to 27,881.72, the S&P 500 lost 3.44 points, or 0.11 percent, to 3,132.52 and the Nasdaq Composite dropped 5.64 points, or 0.07 percent, to 8,616.18. (Image: AP)
3. Markets At Close On Tuesday: Indian shares ended lower on Tuesday, amid the broad-based selloff, dragged by IT, metal, and banking stocks. Losses in index heavyweights like TCS, ITC, Axis Bank, and Reliance Industries also added to the fall. The Sensex ended 247 points lower at 40,240, while the Nifty50 index ended 81 points lower at 11,857.  Meanwhile, foreign institutional investors sold Rs 367 crore in the cash market while the domestic institutional investors bought Rs 338 crore. (Image: Reuters)
3. Markets At Close On Tuesday: Indian shares ended lower on Tuesday, amid the broad-based selloff, dragged by IT, metal, and banking stocks. Losses in index heavyweights like TCS, ITC, Axis Bank, and Reliance Industries also added to the fall. The Sensex ended 247 points lower at 40,240, while the Nifty50 index ended 81 points lower at 11,857.  Meanwhile, foreign institutional investors sold Rs 367 crore in the cash market while the domestic institutional investors bought Rs 338 crore. (Image: Reuters)
4. Rupee: The Indian rupee extended its gains and trading near day's high level at 70.90 per dollar, with selling seen in the domestic equity market. It opened at 1-month high at 70.96 per dollar on Tuesday versus previous close 71.05. (Image: Reuters)
4. Rupee: The Indian rupee extended its gains and trading near day's high level at 70.90 per dollar, with selling seen in the domestic equity market. It opened at 1-month high at 70.96 per dollar on Tuesday versus previous close 71.05. (Image: Reuters)
5. Crude Oil: Oil prices inched up on Tuesday as OPEC's deal with associated producers last week to deepen output cuts in 2020 continued to provide a floor for prices, but U.S.-China trade tensions clouded the demand outlook. Brent crude settled up 9 cents at $64.34 a barrel, and West Texas Intermediate oil rose 22 cents, or 0.4 percent, to $59.24 a barrel. The benchmarks fell 0.2 percent and 0.3 percent, respectively, on Monday. (Image: Reuters)
5. Crude Oil: Oil prices inched up on Tuesday as OPEC's deal with associated producers last week to deepen output cuts in 2020 continued to provide a floor for prices, but U.S.-China trade tensions clouded the demand outlook. Brent crude settled up 9 cents at $64.34 a barrel, and West Texas Intermediate oil rose 22 cents, or 0.4 percent, to $59.24 a barrel. The benchmarks fell 0.2 percent and 0.3 percent, respectively, on Monday. (Image: Reuters)
6. Review Of GST Slabs: A report of the Parliamentary Standing Committee on finance was tabled on Tuesday in the Parliament. The report suggests that the government has begun a review of Goods and Services Tax (GST), including possible resetting of GST rates and slabs. The panel has also commented on the low GST collections saying,
6. Review Of GST Slabs: A report of the Parliamentary Standing Committee on finance was tabled on Tuesday in the Parliament. The report suggests that the government has begun a review of Goods and Services Tax (GST), including possible resetting of GST rates and slabs. The panel has also commented on the low GST collections saying, "the committee is constrained to observe that the GST collections have slowed down in the recent months as compared to the target." Speaking to CNBC-TV18 about this development, Pratik Jain of PwC India said that a rate hike might not necessarily mean an increase in collections. (Image: Reuters)
7. Federal Reserve Policy Decision: The Federal Reserve is expected to conclude its December meeting on Wednesday afternoon by signaling it’s in no hurry to do anything to change its neutral stand on interest rates. But Fed Chairman Jerome Powell is likely to promise the central bank will do whatever is necessary to keep liquidity high and overnight lending rates steady at the end of the year, a time when the short-term lending market is typically under the most pressure, The Fed releases its post-meeting statement at 2 p.m. ET Wednesday, and it is not expected to make significant changes in its statement from its previous meeting. It will, however, release its interest rate forecast and latest economic projections at the same time, and it could show some improvement particularly after November’s increase in payrolls of 266,000. (Image: Reuters)
7. Federal Reserve Policy Decision: The Federal Reserve is expected to conclude its December meeting on Wednesday afternoon by signaling it’s in no hurry to do anything to change its neutral stand on interest rates. But Fed Chairman Jerome Powell is likely to promise the central bank will do whatever is necessary to keep liquidity high and overnight lending rates steady at the end of the year, a time when the short-term lending market is typically under the most pressure, The Fed releases its post-meeting statement at 2 p.m. ET Wednesday, and it is not expected to make significant changes in its statement from its previous meeting. It will, however, release its interest rate forecast and latest economic projections at the same time, and it could show some improvement particularly after November’s increase in payrolls of 266,000. (Image: Reuters)
8. SEBI Relaxes Group Exposure Limit For MFs: Debt-oriented mutual fund schemes that have more than 10 percent exposure to their sponsors' group companies before October 1 have been allowed to continue with such investments till respective maturity dates. A circular about the 10 percent limit was issued by Sebi on October 1, 2019. In the latest circular, Sebi said:
8. SEBI Relaxes Group Exposure Limit For MFs: Debt-oriented mutual fund schemes that have more than 10 percent exposure to their sponsors' group companies before October 1 have been allowed to continue with such investments till respective maturity dates. A circular about the 10 percent limit was issued by Sebi on October 1, 2019. In the latest circular, Sebi said: "the investments of mutual fund schemes in debt and money market instruments of group companies of both the sponsor and the asset management company of the mutual fund in excess of the limits specified therein, made on or before October 1, 2019, may be grandfathered till maturity date of such instruments". (Image: Reuters)
9. Credit Suisse On FPI Cap: Neelkanth Mishra, the noted economic analyst and a part-time member of the Prime Minister's Economic Advisory Council, on Tuesday said hikingthe foreign portfolio investment cap has not worked for the bond market yet.
9. Credit Suisse On FPI Cap: Neelkanth Mishra, the noted economic analyst and a part-time member of the Prime Minister's Economic Advisory Council, on Tuesday said hikingthe foreign portfolio investment cap has not worked for the bond market yet. "The token increase in FPI limits is not working because we are not part of any global bond index," said Mishra, who is also the co-head for APAC strategy and chief India strategist for Swiss investment bank Credit Suisse. He said there should be greater differentiation in the cost of borrowing of different states based on their fiscal position. (Image: Reuters)
10. Banks On High Retail Loan Book: Banks' retail credit growth is up due to higher reliance on securitisation by liquidity starved non-banking lenders, and does not represent a higher credit pick-up by small borrowers, says a report. Adjusted for the securitisation, which is when a lender transfers future receivables to another one, retail credit growth will come at a lower 12 percent for the first half of the fiscal, as against 16.6 percent classified as
10. Banks On High Retail Loan Book: Banks' retail credit growth is up due to higher reliance on securitisation by liquidity starved non-banking lenders, and does not represent a higher credit pick-up by small borrowers, says a report. Adjusted for the securitisation, which is when a lender transfers future receivables to another one, retail
credit growth will come at a lower 12 percent for the first half of the fiscal, as against 16.6 percent classified as "retail credit growth", Crisil said in a report on Tuesday. The agency said this will end the apparent dichotomy between the slowdown in consumption growth despite the jump in retail credit. (Image: Reuters)
Published : December 11, 2019 07:19 AM IST
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