need2know: Demonetisation fallout and other macro triggers that should matter for market today
, ETMarkets.com|
Updated: Nov 08, 2017, 08.05 AM IST
Hello! Here’s a lowdown on top macro triggers that may move market on Wednesday. This report was compiled from agency feeds.
50% Cap on Spectrum Holdings May Go
The Telecom Regulatory Authority of India (Trai) is considering removal of the 50% limit on spectrum holdings within a particular band, said people familiar with the matter. The move should help Vodafone and Idea retain all their airwaves once the merger of the two is complete, experts said. The relaxation will also afford Reliance Jio Infocomm leeway to acquire more airwaves in 850 MHz band of Reliance Communications, which may otherwise breach limits in some circles, they said. The government is also likely to benefit as it should mean more bidders available for a band at the next auction, possibly boosting revenue.
Yash Birla's 2 bank A/cs, House Attached
In a bid to unearth Yashovardhan Birla's undisclosed assets allegedly lying in multiple tax havens, the income-tax department has issued 'provisional attachment orders' on two bank accounts of Birla and his row house in South Mumbai's Grand Parade complex. The tax office is aiming to recover Rs 743 crore on earnings of Rs 1,500 crore which the department believes had escaped taxation. The tax department's claim is understood to be built on evidence it gathered in the course of a search conducted few years ago and information subsequently obtained from some of the tax havens.
Gold Demand Slips in H1
Demand for gold ornaments slipped 12% from its five-year average of 266 tonnes in the first half of 2017 as 2016 demonetisation sucked out cash liquidity, causing job losses in its immediate aftermath and making unaccounted cash transactions more difficult. But the situation began improving somewhat from mid-March as cash became available in fresh 2,000 and 500 note denominations. Jewellers say between 15% and 25% of the karigars, or jewellery makers, have returned to the trade and 15-20% of the cash transactions have moved to digital.
2,19,000 Millionaires in India
India is home to the fourth largest population of millionaires in the Asia Pacific region with 2,19,000 ultra-rich individuals with a combined wealth of $877 billion, says the 2017 Asia-Pacific Wealth Report (APWR) released by Capgemini. At the end of 2016, there were 28,91,000 millionaires in Japan, while China ranked second with 11,29,000 HNWIs and Australia was at the third place had 2,55,000. Between the period 2015-2016, India's HNWI population witnessed a surge by 9.5%, outbeating the average annual growth rate of 7.4% of APAC.
Paper Probe
India has initiated an anti-dumping probe into imports of a certain kind of paper from Indonesia, Thailand and Singapore following complaints from some domestic companies. The West Coast Paper Mills, Tamil Nadu Newsprint, Papers Ltd, Ballarpur Industries and JK Paper had filed an application before the Directorate General of Anti-dumping and Allied Duties (DGAD) for initiation of anti-dumping investigation into imports of 'Uncoated Paper' from the three countries.
USFDA Warns Lupin
Drug firm Lupin yesterday said it has received warning letter from the US health regulator for its manufacturing facilities in Goa and Pithampur, Indore. The company had earlier received three form 483 observations for the Goa facility on April 7, 2017 and six form 483 observations for Pithampur (Unit II) on May 19, 2017, Lupin said, adding that it had responded to all the observations.
Top Video
Exclusive: Microsoft CEO Satya Nadella Unplugged
Top Quote
"Next 10-15 Years Will be Incredible and Will Shock People"
FUNDAMENTALS
Direct Tax Mop-up Up : The government has collected Rs 4.39 lakh crore in direct taxes, up 15.2% year-on- year, during the first seven months of the current fiscal. The collection, which includes personal income tax and corporate tax, represents 44.8% of the total budget estimates of Rs 9.8 lakh crore in direct taxes for 2017-18.
Rupee Down : The Indian rupee weakened past 65-mark against the US dollar and ended at 65.03 against the dollar, down 0.55% from its Monday’s close of 64.68.
Bonds Down : Government bonds (G-Secs) dropped on sustained selling pressure from banks and corporates.The 6.79% G-Secs maturing in 2027 dipped to Rs 99.05 from Rs 99.2825 on Monday, while its yield moved up to 6.93% from 6.89%. The 6.68% G-Secs maturing in 2031 fell to Rs 96.85 from Rs 96.8850, while its yield inched up to 7.04% from 7.03%. The 6.79% G-Secs maturing in 2029 slid to Rs 97.4650 from Rs 97.58, while its yield edged up to 7.10% from 7.09%. The 7.16% G-Secs maturing in 2023, the 7.35% G-Secs maturing in 2024 and the 6.84% G-Secs maturing in 2022 also quoted lower at Rs 101.3450, Rs 102.1150 and Rs 100.33 respectively.
Call Rates Down : The overnight call money rates finished lower at 5.80% from Monday's level 5.85%. It resumed higher at 6.00% and moved in a range of 6.00% and 5.70%.
Liquidity: the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 5,715 crore in 14-bids at the overnight repo operation at a fixed rate of 6.00% as on Tuesday, while its sold securities worth Rs 15,752 crore from 49-bids at the overnight reverse repo auction at a fixed rate of 5.75% as on November 06.
50% Cap on Spectrum Holdings May Go
The Telecom Regulatory Authority of India (Trai) is considering removal of the 50% limit on spectrum holdings within a particular band, said people familiar with the matter. The move should help Vodafone and Idea retain all their airwaves once the merger of the two is complete, experts said. The relaxation will also afford Reliance Jio Infocomm leeway to acquire more airwaves in 850 MHz band of Reliance Communications, which may otherwise breach limits in some circles, they said. The government is also likely to benefit as it should mean more bidders available for a band at the next auction, possibly boosting revenue.
Yash Birla's 2 bank A/cs, House Attached
In a bid to unearth Yashovardhan Birla's undisclosed assets allegedly lying in multiple tax havens, the income-tax department has issued 'provisional attachment orders' on two bank accounts of Birla and his row house in South Mumbai's Grand Parade complex. The tax office is aiming to recover Rs 743 crore on earnings of Rs 1,500 crore which the department believes had escaped taxation. The tax department's claim is understood to be built on evidence it gathered in the course of a search conducted few years ago and information subsequently obtained from some of the tax havens.
Gold Demand Slips in H1
Demand for gold ornaments slipped 12% from its five-year average of 266 tonnes in the first half of 2017 as 2016 demonetisation sucked out cash liquidity, causing job losses in its immediate aftermath and making unaccounted cash transactions more difficult. But the situation began improving somewhat from mid-March as cash became available in fresh 2,000 and 500 note denominations. Jewellers say between 15% and 25% of the karigars, or jewellery makers, have returned to the trade and 15-20% of the cash transactions have moved to digital.
2,19,000 Millionaires in India
India is home to the fourth largest population of millionaires in the Asia Pacific region with 2,19,000 ultra-rich individuals with a combined wealth of $877 billion, says the 2017 Asia-Pacific Wealth Report (APWR) released by Capgemini. At the end of 2016, there were 28,91,000 millionaires in Japan, while China ranked second with 11,29,000 HNWIs and Australia was at the third place had 2,55,000. Between the period 2015-2016, India's HNWI population witnessed a surge by 9.5%, outbeating the average annual growth rate of 7.4% of APAC.
Paper Probe
India has initiated an anti-dumping probe into imports of a certain kind of paper from Indonesia, Thailand and Singapore following complaints from some domestic companies. The West Coast Paper Mills, Tamil Nadu Newsprint, Papers Ltd, Ballarpur Industries and JK Paper had filed an application before the Directorate General of Anti-dumping and Allied Duties (DGAD) for initiation of anti-dumping investigation into imports of 'Uncoated Paper' from the three countries.
USFDA Warns Lupin
Drug firm Lupin yesterday said it has received warning letter from the US health regulator for its manufacturing facilities in Goa and Pithampur, Indore. The company had earlier received three form 483 observations for the Goa facility on April 7, 2017 and six form 483 observations for Pithampur (Unit II) on May 19, 2017, Lupin said, adding that it had responded to all the observations.
Top Video
Exclusive: Microsoft CEO Satya Nadella Unplugged
Top Quote
"Next 10-15 Years Will be Incredible and Will Shock People"
FUNDAMENTALS
Direct Tax Mop-up Up : The government has collected Rs 4.39 lakh crore in direct taxes, up 15.2% year-on- year, during the first seven months of the current fiscal. The collection, which includes personal income tax and corporate tax, represents 44.8% of the total budget estimates of Rs 9.8 lakh crore in direct taxes for 2017-18.
Rupee Down : The Indian rupee weakened past 65-mark against the US dollar and ended at 65.03 against the dollar, down 0.55% from its Monday’s close of 64.68.
Bonds Down : Government bonds (G-Secs) dropped on sustained selling pressure from banks and corporates.The 6.79% G-Secs maturing in 2027 dipped to Rs 99.05 from Rs 99.2825 on Monday, while its yield moved up to 6.93% from 6.89%. The 6.68% G-Secs maturing in 2031 fell to Rs 96.85 from Rs 96.8850, while its yield inched up to 7.04% from 7.03%. The 6.79% G-Secs maturing in 2029 slid to Rs 97.4650 from Rs 97.58, while its yield edged up to 7.10% from 7.09%. The 7.16% G-Secs maturing in 2023, the 7.35% G-Secs maturing in 2024 and the 6.84% G-Secs maturing in 2022 also quoted lower at Rs 101.3450, Rs 102.1150 and Rs 100.33 respectively.
Call Rates Down : The overnight call money rates finished lower at 5.80% from Monday's level 5.85%. It resumed higher at 6.00% and moved in a range of 6.00% and 5.70%.
Liquidity: the Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 5,715 crore in 14-bids at the overnight repo operation at a fixed rate of 6.00% as on Tuesday, while its sold securities worth Rs 15,752 crore from 49-bids at the overnight reverse repo auction at a fixed rate of 5.75% as on November 06.
