markets: need2know: 10 macro triggers that market would watch today

India has been ranked as the 40th most competitive economy — slipping one place from last year’s ranking — on the World Economic Forum’s global competitiveness index, which is topped by Switzerland. On the list of 137 economies, Switzerland is followed by the US and Singapore in second and third places, respectively.

Here’s a lowdown on nine more macro triggers that are likely to impact the market on Thursday. This report was compiled from agency feeds.

ONGC Oilfields’ Stake to be Sold to Pvt Firms?
Nearly 25 years after ONGC’s prime discovered oilfields were privatised, the government is planning to allow private firms to take majority stake in the state-owned firm’s producing oil and gas fields such as Mumbai High. The Oil Ministry plans to approach the Cabinet soon for allowing private firms to take participating interest (PI) in a nomination block. The policy currently allows giving out of PI or a stake to a private company only in the blocks or areas awarded in open auctions under New Exploration Licensing Policy (NELP) since 1999. However only exploration acreage was auctioned under global bidding.

Sensex Seen @1 lakh in 10 Years
Morgan Stanley expects the benchmark Sensex to cross the 1 lakh-mark by 2028, making it one of the the top five equity markets in the world with a market capitalisation of $6.1 trillion. “We think India’s stock market could be among the world’s best performers in the next ten years, leading to India’s market cap rising from $2 trillion to $6 trillion.” “We see the BSE Sensex crossing the 100,000 mark, albeit the bulk of the returns are likely to be front ended in the coming five years,” said Morgan Stanley in a note on Wednesday.

Telecom Secor & Govt
The government is prepared to intervene to protect the telecom sector, as it has done in the past, so that the sector does not die, telecom minister Manoj Sinha said Wednesday on the side lines of the India Mobile Congress. The minister said that he was aware of the financial stress in the sector, and said that the department will not get involved in competition – between arch rivals Bharti Airtel and Reliance Jio – but hopes that the companies will work together for the greater Digital India agenda.

Festive Boost for Realty Cos
Realty developers are betting big on the upcoming festive season to push housing sales, and are going all out to regain some lost ground, especially at a time when interest rates on home loans are at more than six-year low and demand for affordable housing is picking up. While a broad market discount remains elusive, freebies and various incentives being offered amount to net discount of around 10-15%. Even during the quarter ended June, 35,000 new apartments launched across top 8 markets and festive season will certainly see the number cross that mark, according to Liases Foras Real Estate Rating & Research.

Capital Push
The government plans to give “growth capital” to performing state-run banks as it looks to encourage credit disbursement for private investment. An assessment is being carried out and adequate capital will be provided to performing state-run banks to push credit growth. While the government has only budgeted Rs 20,000 crore for bank capital infusion till 2018-19, it is looking at all options to increase this amount. “Various options including capital bonds are being looked at to provide this extra support,” the official said.

Oil Deals
Oil and Natural Gas Corporation, India’s state-run petroleum explorer, may look at selling its existing stake in other Public Sector Undertakings (PSUs) to partly fund a planned acquisition of downstream refiner Hindustan Petroleum Corp. ONGC owns 14% stake in the country’s largest fuel retailer Indian Oil Corporation and a 5% stake in state-run natural gas utility GAIL (India) which can be considered, he said. HPCL will remain a separate listed entity even after the completion of the acquisition but will become a subsidiary of ONGC. The ONGC board had last month given in-principle approval to acquire the government’s 51.11% stake in HPCL.

Top Video
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Top Quote
“Economy seems to have bottomed out in July 2017, expect upturn now”

Rupee Down : The rupee’s five-day fall stretched to 2.4% and it closed at 65.71 on Wednesday against the greenback, a level last seen on March 15.

Bonds Mixed : Government bonds (G-Secs) ended mixed trend in a quiet trade due to alternate bouts of buying and selling. The 6.79% 10-year benchmark bond maturing in 2027 rose to Rs 100.8550 from Rs 100.84 yesterday, while its yield ruled steady to 6.67%. The 6.79% G-Secs maturing in 2029 gained to Rs 98.65 from Rs 98.6150 previously, while its yield inched down to 6.95% from 6.96%. The 6.68% G-Secs maturing in 2031 weakened to Rs 98.37 from Rs 98.45 previously, while its yield inched up to 6.86% from 6.85%. However, the 7.16% G-Secs maturing in 2023 and the 6.35% G-Secs maturing in 2020 were quoted higher to Rs 101.67 and Rs 99.80 respectively.

Call Rates Down : The overnight call money rates ended lower to 5.77% from Tuesday’s close 5.80%. Its resumed higher to 6.00% and moved in a range of 6.00% and 5.70%.

Liquidity : The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 21.05 billion in 3-bids at the overnight repo operation at a fixed rate of 6.00% as on today, while it sold securities worth Rs 208.70 billion in 55-bids at the overnight reverse repo auction at a fixed rate of 5.75% as on September 26.

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