INSUBCONTINENT EXCLUSIVE:
Here’s a lowdown on top macro triggers that may move market on Thursday
This report was compiled from agency feeds.
US Fed Raises Rates, Signals Two More Hikes in 2018The Federal Reserve raised interest rates on
Wednesday, a move that was widely expected but still marked a milestone in the US central bank's shift from policies used to battle the
2007-2009 financial crisis and recession
The Fed also upgraded its forecast to four total increases in 2018
In raising its benchmark overnight lending rate a quarter of a percentage point to a range of between 1.75 per cent and 2 percent, the Fed
dropped its pledge to keep rates low enough to stimulate the economy "for some time" and signalled it would tolerate above-target inflation
at least through 2020.
CAD Triples to 1.9% in Q4Higher software exports and remittances have failed to salvage India's current account
deficit which rose to 1.4% of GDP pushing the import bill from 0.4% of GDP a year ago on account of rising crude and commodity prices
India's current account deficit (CAD) rose to $13 billion (Rs 87,800 crore and 1.9 per cent of gross domestic product, or GDP) in the fourth
and final quarter (Q4 of 2017-18), compared to $2.6 billion (Rs 17,600 crore and 0.4 per cent of GDP) in the same period of 2016 -17
For the full financial year (2017-18), the deficit increased to 1.9 per cent of GDP, from 0.6 per cent in 2016-17
The trade deficit rose to $160 billion, from $112.4 billion in 2016-17.
China Numbers Slow, US Tariff ImminentWith a sharp deceleration in
credit growth and the threat of a worsening trade dispute with the U.S., Chinese businesses face an increasingly uncertain outlook
China’s economy showed signs of losing steam in May, with an unexpected slowdown in factory output and lackluster investment and
Industrial output rose 6.8 percent in May from a year earlier, versus a projected 7 percent while retail sales expanded 8.5 percent from a
year earlier, versus a forecast 9.6 percent
Meanwhile, the Trump administration, deepening its global trade offensive, is preparing to levy tariffs on tens of billions of dollars of
Chinese goods in the coming week, perhaps as early as Friday — a move that is likely to spark heavy retaliation from Beijing
Time for Oil Buyers' ClubAs oil producers' cartel OPEC playing havoc with prices, India has discussed with China the possibility of forming
an 'oil buyers club' that can negotiate better terms with sellers as well as getting more US crude oil to Asia to cut dominance of the oil
Production cuts by OPEC have led to international oil prices hitting a four year high last month that forced a Rs 3.8 per litre hike in
petrol and Rs 3.38 a litre increase in diesel prices
Rates started to cool towards month end and retail prices have been cut thereafter
Meanwhile, Bloomberg reports that Moscow will propose that OPEC and its Russia-led non-OPEC partners in the deal increase their combined
production by 1.8 million bpd, starting as early as in July
Yesterday, oil prices went up again, prompting US President Donald trump to tweet "oil prices are too high, OPEC is at it again
Not good!"
Gold Prices SlipGold prices inched lower on Thursday as the Federal Reserve forecast two more U.S
rate increases this year after raising rates on Wednesday, although lingering worries over trade tensions between Washington and Beijing
Spot gold XAU= was down 0.1 per cent to $1,298.61 per ounce at 0047 GMT
It touched an over one-week low at $1,292.15 an ounce in the previous session
gold futures GCcv1 for August delivery rose 0.1 percent to $1,302.60 per ounce
In India, on Wednesday, gold prices had climbed by Rs 150 to Rs 31,950 per 10 grams at the bullion market on Wednesday on fresh buying by
local jewellers.
India-US to Talk on Trade SoonCommerce and industry minister Suresh Prabhu has said India’s purchases of commercial
aircraft and gas from the US would help bridge the trade deficit between the two countries even as they agreed to hold official talks soon
to address trade and economic irritants between them
In 2017-18, India had a $21-billion trade surplus with the US
His statement assumes significance in the wake of US President Donald Trump accusing India of levying 100% tariff on some American products
and threatened to cut off trade ties if America’s trading partners did not cooperate
FIIs Ditching IndiaHimanshu Srivastava, senior research analyst, Morningstar Advisers, says a lot of money is moving out of India focussed
funds and ETFs, including India focussed offshore funds as well which are considered to be long term in nature
FIIs have been focussing on the short-term trends like how the crude is reacting, how currency is depreciating, what is the relationship
between US and North Korea etc
On the domestic side, they are focussing on general elections, on how the state elections pan out, revival of economic growth and revival of
With US hiking rates, the dollar may become stronger against the rupee and that does not augur well for FII money in India
But the market remains more or less stable because of DII investments.
THESE MAY ALSO MOVE MARKETSGovt Listing Air IndiaGovernment of India
is open to listing ailing state carrier Air India, reports Reuters quoting a government source, after failing to attract buyers for a 76 per
cent stake in the company
The government was considering several proposals related to reviving the divestment process, the source said, declining to be named before
various government ministries finalise their decision.
Cabinet Nod for HDFC Plan to Raise FDI CapitalThe government on Wednesday approved
the proposal of HDFC Bank to raise additional capital Rs 24,000 crore by selling equity to foreign investors to fund its business growth
This includes premium, over and above the previous approved limit of Rs 10,000 crore, that the composite foreign shareholding in the bank
should not exceed 74 per cent of the enhanced paid-up equity share capital of the bank.
Adani Wilmar Gets Option to Up Ruchi Soya
OfferLenders are giving Adani Wilmar, the highest bidder for bankrupt Ruchi Soya, the option to improve its offer
Following this, the second-highest bidder, Patanjali Ayurved, will be allowed to better that offer, they said
This is in contrast with the typical practice of the No
2 bidder being first asked to match or top the best offer on the table.
Top VideoAther 450 Review Test RideTop Quote'We Bid Aggressively to
Get 4-5 Orders, But Ended Up With 16 in UP'FUNDAMENTALSRupee Down: The rupee ended at 67.64 against the US dollar on Wednesday— a level
last seen on 29 May,-- down 0.23% from its previous close of 67.49
Bond Yields Down: The 10-year bond yield ended at 7.93% from its Tuesday’s close of 7.97%.
