need2know: Five macro triggers that may matter for market today
To make public sector lenders more accountable and push performance, government is working on stricter qualifying norms for banks to receive new recapitalisation funds. Government is mulling keeping 50% of the total FY 18 recap budget of Rs 10,000 crore linked to meeting certain performance criteria such as lowering bad loans, credit growth, etc. In the current fiscal, only 25% of the total recap fund was linked to performance. Government has already disbursed 75% of Rs 25,000 crore and would take a final decision on rest of 25% on March 15.
Meanwhile, global rating agency Fitch today said Indian economy will grow by 7.1% in the current fiscal before stepping up to 7.7% in the next two financial years.
Here's a look at four other macro triggers that are likely to impact the market today
FM-led panel to decide on labour codes today: Finance minister Arun Jaitley-led inter-ministerial committee on labour is set to consider on Wednesday two labour codes on wages and industrial relations, a move aimed at improving the ease of doing business in the country. In his 2017-18 budget speech, Jaitley had said that his government will initiate legislative reforms to simplify, rationalise and amalgamate the existing labour laws into four codes. The ministry has held several rounds of tripartite consultation with all the stakeholders, including trade unions and employers before finalising the draft codes.
Energy policy may bring subsidy cut, price control in power, energy: The government will soon outline comprehensive energy sector reforms that could free up sectors such as coal, electricity and fertilisers of subsidies and price controls, helping produce more power and make generation projects commercially viable for private companies. The policy could also give greater emphasis towards improving the financial condition of power distribution companies (discoms), which are bogged down by debt, to make the sector profitable in the medium to long term.
Cash ban takes 11 off the billionaires' list: The country's economy faced a 'tough year' due to the government's disruptive policies like the recent demonetisation drive, a global rich list report said on Tuesday. According to the Hurun Global Rich List India, the demonetisation drive which started on November 8, 2016 eroded the wealth of 11 individuals to below the threshold limit of $1 billion. The list ranked Reliance Industries Chairman Mukesh Ambani, as the richest Indian. Ambani topped the list of 132 individuals with a fortune of Rs 175,400 crore ($26 billion).
BSNL, MTNL merger plan back on discussion table: After a hiatus of few years, the proposal to merge BSNL and MTNL is back on the discussion table with top officials at the telecom department once again 'brainstorming' on various options before the two loss-making, state-owned entities. According to a highly-placed source in the Department of Telecom, a top-level meeting recently discussed possibility of merging both the entities that are facing financial stress due to increasing competition in the sector.
...and in financial markets yesterday
Rupee up: The rupee on Tuesday firmed up for the second consecutive session and closed at a nearly 4-month high of 66.67 on continued selling of the American currency by banks and exporters.
Bonds mixed: Government bonds (G-Secs) ended mixed on alternate bouts of buying and selling. The 7.59% G-Secs maturing in 2026 rose to Rs 103.53 from Rs 103.4150 previously, while its yield edged down to 7.04% from 7.06%. The 6.97% G-Secs maturing in 2026 gained to Rs 100.95 from Rs 100.71, while its yield moved down to 6.83% from 6.87%. The 7.61% G-Secs maturing in 2030 also moved up to Rs 102.32 from Rs 102.31, while its yield held stable to 7.33%. However, the 7.68 % G-Secs maturing in 2023 fell to Rs 102.81 from Rs 102.91, while its yield edged-up to 7.15% from 7.13%. The 8.27% G-Secs maturing in 2020 fell to Rs 104.46 from Rs 104.59, while its yield rose to 6.71% from 6.67%. The 7.80% G-Secs maturing 2021 declined to Rs 103.2750 from Rs 103.49, while its yield rose to Rs 6.87% from 6.81%.
Call rates up: The overnight call money rates ended higher to 6.30% from Monday’s level of 6.25%. Its resumed higher at 6.10% and moved in a range of 6.30% and 5.95%.
Liquidity: The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 3803 crore in 21-bids at the overnight reverse repo operations at a fixed rate of 5.75% as on March 06, while it sold securities worth Rs 450 crore in 1-bids at the overnight repo operation at a fixed rate of 6.25% as on Tuesday.
Meanwhile, global rating agency Fitch today said Indian economy will grow by 7.1% in the current fiscal before stepping up to 7.7% in the next two financial years.
Here's a look at four other macro triggers that are likely to impact the market today
FM-led panel to decide on labour codes today: Finance minister Arun Jaitley-led inter-ministerial committee on labour is set to consider on Wednesday two labour codes on wages and industrial relations, a move aimed at improving the ease of doing business in the country. In his 2017-18 budget speech, Jaitley had said that his government will initiate legislative reforms to simplify, rationalise and amalgamate the existing labour laws into four codes. The ministry has held several rounds of tripartite consultation with all the stakeholders, including trade unions and employers before finalising the draft codes.
Energy policy may bring subsidy cut, price control in power, energy: The government will soon outline comprehensive energy sector reforms that could free up sectors such as coal, electricity and fertilisers of subsidies and price controls, helping produce more power and make generation projects commercially viable for private companies. The policy could also give greater emphasis towards improving the financial condition of power distribution companies (discoms), which are bogged down by debt, to make the sector profitable in the medium to long term.
Cash ban takes 11 off the billionaires' list: The country's economy faced a 'tough year' due to the government's disruptive policies like the recent demonetisation drive, a global rich list report said on Tuesday. According to the Hurun Global Rich List India, the demonetisation drive which started on November 8, 2016 eroded the wealth of 11 individuals to below the threshold limit of $1 billion. The list ranked Reliance Industries Chairman Mukesh Ambani, as the richest Indian. Ambani topped the list of 132 individuals with a fortune of Rs 175,400 crore ($26 billion).
BSNL, MTNL merger plan back on discussion table: After a hiatus of few years, the proposal to merge BSNL and MTNL is back on the discussion table with top officials at the telecom department once again 'brainstorming' on various options before the two loss-making, state-owned entities. According to a highly-placed source in the Department of Telecom, a top-level meeting recently discussed possibility of merging both the entities that are facing financial stress due to increasing competition in the sector.
...and in financial markets yesterday
Rupee up: The rupee on Tuesday firmed up for the second consecutive session and closed at a nearly 4-month high of 66.67 on continued selling of the American currency by banks and exporters.
Bonds mixed: Government bonds (G-Secs) ended mixed on alternate bouts of buying and selling. The 7.59% G-Secs maturing in 2026 rose to Rs 103.53 from Rs 103.4150 previously, while its yield edged down to 7.04% from 7.06%. The 6.97% G-Secs maturing in 2026 gained to Rs 100.95 from Rs 100.71, while its yield moved down to 6.83% from 6.87%. The 7.61% G-Secs maturing in 2030 also moved up to Rs 102.32 from Rs 102.31, while its yield held stable to 7.33%. However, the 7.68 % G-Secs maturing in 2023 fell to Rs 102.81 from Rs 102.91, while its yield edged-up to 7.15% from 7.13%. The 8.27% G-Secs maturing in 2020 fell to Rs 104.46 from Rs 104.59, while its yield rose to 6.71% from 6.67%. The 7.80% G-Secs maturing 2021 declined to Rs 103.2750 from Rs 103.49, while its yield rose to Rs 6.87% from 6.81%.
Call rates up: The overnight call money rates ended higher to 6.30% from Monday’s level of 6.25%. Its resumed higher at 6.10% and moved in a range of 6.30% and 5.95%.
Liquidity: The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 3803 crore in 21-bids at the overnight reverse repo operations at a fixed rate of 5.75% as on March 06, while it sold securities worth Rs 450 crore in 1-bids at the overnight repo operation at a fixed rate of 6.25% as on Tuesday.
