Market Movers: Dollar on a high; Hearing on RBI's Feb circular continues & CFO optimism rises

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

Dollar on a High; Rouble, Lira Tumble
The dollar stood tall on Friday, hovering just short of a 13-month high against a basket of peers as European currencies such as the pound and euro continued to lose traction. The Russian rouble dropped to its weakest since late 2016 after Washington said it would impose fresh sanctions on Moscow, while the Turkish lira plumbed a record low in the wake of a diplomatic rift with the United States.The dollar index, which measures the greenback’s strength against a group of six major currencies, was up 0.05% at 95.550 after gaining 0.5% overnight.

RBI Firm on Feb Circular, Hearing Continues Today
The Reserve Bank of India maintained its stand on the revised norms for stressed assets and stuck to Aug 27 deadline for completing resolution proceedings. The court had on Aug 2 sought RBI's reply on the government's recommendation to extend deadline for completing resolution proceedings by 180 days. The Allahabad High court will continue its hearing on Friday as the hearings could not conclude on Thursday.

Oil Down, Gold Up
Oil continued to nudge lower on geopolitical tensions between US and China and now Russia. US crude dipped 0.2% at $66.67 a barrel, while Brent crude was 0.3% lower at $71.88 per barrel. Gold ticked higher, with spot gold trading up 0.1% at $1212.96 per ounce.

CFO Optimism Up in July-Sept
Optimism level among India's chief financial officers for the July-September period has improved compared to last quarter and going forward distribution of rainfall, raw material costs and revival in demand will be the key deciding factors. The Dun & Bradstreet Composite CFO Optimism Index for the third quarter of this year remained unchanged on a year-on-year basis but increased by 9.6% on a quarter-on-quarter basis.

Realty Gets Rs 24,011 cr Investment in H1
The real estate sector received an investment of around Rs 24,011 crore in the first half of 2018 due to rise in buyers' confidence on RERA implementation and improving capital values, a report said. IT parks and commercial real estate got the biggest investment share of $2,000 million (Rs 13,151 crore), followed by retail real estate at around $300 million (Rs 1,898 crore), a joint report by CII and property consultant JLL said yesterday.

Rs 5,237-cr Scheme to Clear Pulse Stock
Sitting on a huge stock, the Centre has decided to sell nearly 3.5 million tonnes of pulses to states at Rs 15 per kg lower price than the wholesale rate for distribution under PDS and other welfare schemes, costing exchequer Rs 5,237 crore. The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi took this decision. This will be one-time dispensation for a period of 12 months or complete disposal of 34.88 lakh tonnes of pulses stock, whichever is earlier.

Bhushan Steel Former Promoter Arrested
In a first, the Serious Fraud Investigation Office (SFIO) has arrested Neeraj Singal, erstwhile Promoter & Managing Director of Bhushan Steel. He was produced before the Court of competent jurisdiction yesterday & sent to judicial custody till 14th August 2018. He is accused of siphoning off funds of over Rs 2,000 crore from the loans availed by Bhushan Steel Limited using more than 80 companies.

Rs 1L Cr of Oil & Gas Blocks for Auction
India has put up for bidding 25 discovered oil and gas fields, holding resources of an estimated Rs 1 lakh crore, as it looked to expedite production from areas lying idle for years. The government is expecting as much as Rs 45,000 crore in royalty, taxes and profit petroleum over the life of the fields.


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FUNDAMENTALS

Rupee Down: Snapping its two-day rally, the rupee on Thursday ended lower by 5 paise at 68.68 against the US dollar on renewed buying interest in the American currency.

Long-term Bond Yields Down: Government bonds (G-Secs) firmed up following rising demand from corporates and banks. The 7.17% G-Secs maturing in 2028 rose to Rs 96.1950 from Rs 95.9575, while, its yield slid to 7.75% from 7.78%.The 6.68% G-Secs maturing in 2031 climbed to Rs 90.00 from Rs 89.6350, while, its yield moved down to 7.92% from 7.97%.

Shorter-term Bond Yields Down: The 6.84% G-Secs maturing in 2022 gained to Rs 96.70 from Rs 96.56, while, its yield eased to 7.74% from 7.78%. The 7.59% G-Secs maturing in 2026, the 7.37% G-Secs maturing in 2023 and the 8.20% G-Secs maturing in 2022 were also quoted higher to Rs 97.93, Rs 98.27 and Rs 101.32 respectively.

Call Rates Down: The overnight call money rates finished lower to 6.30% from Wednesday's level of 6.50%. It resumed higher at 6.50% and moved in a range of 6.55% and 6.25%.

Liquidity: The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 19,480 crore in 28-bids at the overnight repo operations at a fixed rate of 6.50% as on Thursday, while, its sold securities worth Rs 3,747 crore in 36-bids at the overnight reverse repo auction at a fixed rate of 6.25% as on Aug 08.