Here’s a lowdown on top macro triggers that may move market on Friday. This report was compiled from agency feeds.


Opec Meet Today

Oil prices rose by more than 1% in early Asian trading on Friday as uncertainty remained whether OPEC would manage to agree a production increase at a meeting in Vienna later in the day. The Organization of the Petroleum Exporting Countries meets today to decide output policy amid calls from top consumers such as the United States, China and India to cool down oil prices and support the world economy by producing more crude. The Saudi and Russian energy ministers said a production increase of about 1 million barrels per day (bpd) or around 1% of global supply had become a near-consensus proposal for the group and its allies, but Iran’s assent was vital.


Now, India Hikes Duty on US Imports

India has retaliated against US move to hike duty on certain Indian steel and aluminium products by raising customs duty on several goods. India has raised import duties on almonds by 20% and walnuts by 120%. India is the world’s biggest buyer of US almonds, Also, duties on Bengal gram, lentils and artemi have been raised. The duty hike would be effective from August 4. The US move had tariff implication of $241 million on India and the Indian retaliatory move will have an equivalent impact on the US.

Changes in IPO Timeline, Share Buyback Code

Capital markets regulator Sebi has announced a new set of IPO reforms, reducing the timeline for announcement of IPO price band even as it announced a recast of the share buyback regulations. While time line for announcing IPO price band has been reduced to two days from five days earlier, in case of Market Infrastructure Institutions (MIIs), foreign shareholding limit will be harmonised to 15%.

RBI on Power Sector NPAs

The Reserve Bank of India has indicated to the finance ministry that its Feb. 12 circular on a new framework for stressed assets provides enough space for resolution of bad loans in the power sector. The central bank feels that if bankers have a resolution plan for stressed assets, they should stick to it. The Allahabad High Court had directed the finance ministry to work out a solution for resolution of stressed assets in power sector.


Demographic Dividend for Indian Employers?

Too much of a good thing could be bad. Korn Ferry's 'The Salary Surge' report says that by 2030, India will be the only country not to have upward revision of wages as it has a talent surplus, bucking the global trend of a talent crunch. While US, China and Germany are likely to face rapidly escalating employee costs, the same will not be true for India.

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FUNDAMENTALS

Rupee Up: The rupee on Thursday gained further ground to end at 67.98 against the US dollar, appreciating by 10 paise on sustained selling of the American currency by exporters and local banks even as Fed officials strike a hawkish tone.

Longer-term Bonds: Government bonds (G-Secs) gained further following sustained demand from corporates and banks. The 7.17% G-Secs maturing in 2028 rose to Rs 95.9850 from Rs 95.63, while, its yield eased to 7.77% from 7.83%. The 6.68% G-Secs maturing in 2031 firmed up to Rs 89.63 from Rs 89.3050, while, its yield edged down to 7.96% from 8.00%.

Short-term Bonds: The 6.84% G-Secs maturing in 2022 surged to Rs 96.45 from Rs 96.14, while, its yield moved down to 7.79% from 7.88%. The 7.59% G-Secs maturing in 2026 and the 7.80% G-Secs maturing in 2020 were also quoted higher to Rs 97.65 and Rs 100.63 respectively.

Call Rates Steady: The overnight call money rates ruled steady at its previous level of 6.25%, It resumed higher at 6.35% and moved in a range of 6.40% and 6.15%.

Liquidity: The Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 24,136 crore in 38-bids at the overnight repo opertion at a fixed rate of 6.25% as on Thurday, while its sold securities worth Rs 4,692 crore in 36-bids at the overnight reverse repo auction at a fixed rate of 6.00% as on June 20.