Market Movers: Top triggers for your day on D-Street
Good morning! Here’s a lowdown on top macro triggers that may move market on Friday. This report was compiled from agency feeds.
Trade deficit widens in Oct India's exports rose by 17.86% to $26.98 billion in October mainly due to the low base effect even as trade deficit widened to $17.13 billion, according to the commerce ministry data. The exports on monthly basis were down compared to $27.95 billion in September. Imports during October also rose by 17.62% to $44.11 billion, leading to widening of trade deficit to $17.13 billion.
$2bn share sale of ONGC, IOC & OIL in pipeline The government is considering a plan to sell shares worth $2 billion in Oil and Natural Gas Corp (ONGC), Indian Oil Corp (IOC) and Oil India (OIL) to help meet this year’s divestment target. This would be on top of the proceeds generated from a likely Rs 10,000-crore share buyback by these firms. The finance ministry is planning the mix of share sales and buybacks by state oil companies with about a fourth of the ?80,000-crore asset-disposal target.
Fitch keeps India rating unchanged Refusing to upgrade India's credit rating for the 12th year in a row, Fitch Thursday retained its sovereign rating for the country at 'BBB-', the lowest investment grade with a stable outlook, saying a weak fiscal position continues to constrain the ratings and there were significant risks to macroeconomic outlook. Fitch had last upgraded India's sovereign rating from BB+ to BBB- with a stable outlook on August 1, 2006.
Trade war tensions ease, markets up Wall Street’s major indexes reversed an early drop after The Financial Times reported that US Trade Representative Robert Lighthizer told a group of industry executives the next tranche of tariffs on Chinese imports was on hold. Wall Street momentarily pared gains after a spokesperson for Lighthizer denied the report, saying plans for the tariffs had not changed. But stocks resumed their upswing and rose further in the last half-hour of trading.
Oil prices stable on expected OPEC cuts Oil prices were stable on Friday, supported by expected supply cuts from OPEC but held back by record US production. US WTI crude oil futures were at $56.5/ per barrel at 0132 GMT, up 12 cents from their last settlement. Brent crude oil futures were up 7 cents at $66.69 a barrel. Morgan Stanley warned a cut by the Middle East dominated producer cartel may not have the desired effect.
Car sales in negative territory in Q2 The Indian passenger vehicle market fell into negative category in the quarter ended September with sales falling 3.6% year-on-year to 870,804 when Maruti Suzuki sales dropped 1% to 449,834. This came after the industry grew by a whopping 22% to 873,501 units in April-June quarter, led by a 3% out-performance by the most dominant player.
FMCG grows 16.5% in value terms in Q3 The FMCG sector grew 16.5% in terms of value in the third quarter of 2018 because of increase in private consumption, expansion in rural income and moderate inflation levels of about 4%, according to Nielsen’s quarterly report. For the last quarter of 2018, the research firm expects the growth in the FMCG sector to drop to as much as 12-13% due to macro-economic factors such as below average rainfall, ban on plastics in some states, and floods in Kerala.
POLICIES & MORE
Prime Minister Narendra Modi’s government has sought Tata Sons Ltd.’s help to rescue struggling Jet Airways India Ltd, reports Bloomberg.
The Indian consumer spent more cash this Diwali even after many migrated to digital transactions. Cash in circulation has almost doubled during the Diwali week ending November 09 to Rs 49,420 crore from Rs 28,170 crore in the Diwali week last year, according to the latest data released by the Reserve Bank.
All (NBFCs) of them have been able to meet their commitment as far as roll overs are concerned,” said SBI Chairman Rajnish Kumar at an event.
The Finance Ministry is planning to come out with a share sale offer of two recently listed insurance companies -- GIC and New India Assurance.
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Rupee up: The rupee vaulted 34 paise to close at a two-month high of 71.97 against the US dollar on Thursday on robust foreign fund inflows amid low crude oil prices.
10-yr bond yields down: India 10-year bonds' yields rose 0.01% to 7.75% on Thursday, November 14, from 7.74% in the previous trading session, reports Bloomberg.
Call rates: The overnight call money rate weighted average was 6.34% on Thursday, according to RBI data. It moved in a range of 5.10-6.55%.
