Market Movers: What changed for D-Street while you were sleeping

et us check out the factors which may bring action to Dalal Street on Monday.

NEW DELHI: Global markets are weak, but a sharp fall in crude oil prices and hopes of swift actions by the government to arrest a deteriorating economy may instill some confidence in the market. Let us check out the factors which may bring action to Dalal Street during the day.

TRADE SETUP:

Gold prices hit 2-month high
Gold prices rose on Monday to their highest in more than two months, with investors seeking refuge in safe-haven assets as heightened Sino-US trade tensions and Washington's threat of tariffs on Mexico stoked worries of a global recession. Spot gold was up 0.5 per cent at $1,311.15 per ounce, after touching its highest since March 28 at $1,311.44.

Relief to farmers in 1st cabinet meet
In the first meeting of cabinet ministers after swearing in ceremony yesterday, the Modi 2.0 government approved a proposal to extend the benefit of Rs 6,000 per year under the PM-KISAN scheme to all farmers in the country.

Trade privileges to India to end on June 5: US
President Donald Trump said on Friday that the United States would end its preferential trade treatment for India on June 5. Trump had announced his intention to remove India from the Generalized System of Preferences (GSP) program in early March.

FIIs buy Rs 676 cr worth equities
Foreign portfolio investors (FPIs) bought Rs 676 crore worth of domestic stocks on Friday, data available with NSE suggested. DIIs were net buyers to the tune of Rs 394 crore, data suggests.

FUNDAMENTALS

Rupee up: Snapping its three-session losing streak, the rupee Friday rose by 17 paise to close at 69.70 against the US dollar on weakening of the greenback in overseas markets and easing crude oil prices.

10-yr bond yields: India 10-year bond yields rose 0.11% to 7.03% on Friday against 7.14% in the previous session, according to RBI data.

Call rates: The overnight call money rate weighted average was 5.92% on Friday, according to RBI data. It moved in a range of 4.50-6.05%.

TOP VIDEO

Centre dismisses fears of Hindi imposition

TOP QUOTE

'Time for contrarian calls, move away from the crowd'

MACROS:

FY19 growth slumps to 5-year low of 6.8%
India’s economy grew slower than expected to a 20-quarter low in the January-March period, dragging overall growth to a five-year low in FY19, presenting the first big challenge for the second Narendra Modi government that took charge Friday. The provisional estimates for FY19 released on Friday showed that the economy grew 5.8% in the fourth quarter of FY19 against 6.6% in the preceding one and 8.1% in the year earlier. Overall growth for FY19 slumped to a five-year low of 6.8%.

Growth of core sector industries slows in April
Contraction in output of natural gas, fertilizers and crude oil pulled down the growth of India’s infrastructure sectors to 2.6% in April, official data released on Friday showed. The core sector had grown 4.9% in March 2019 and 4.7% in April last year. The eight infrastructure sectors of coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity, have a 40.27% weight in the index of industrial production.

Slowing growth may lead RBI to cut rates 25 bps
The Reserve Bank of India is likely to focus more on growth than on targeting inflation and lower the cost of funds after data showed the economy growing at the slowest pace in five years, according to the majority of market participants in an ET survey. RBI is expected to cut the benchmark interest rate by 25 basis points when it announces its second bi-monthly Monetary Policy Statement for 2019-20 on June 6, said three-fourths of the 28 respondents.

Survey shows joblessness rises with education level
It is officially confirmed now. The spectre of unemployment rises with education level. Only 2.1% of illiterate urban men were unemployed in 2017-18, but 9.2% of men with at least secondary education didn’t have a job. The gap was even wider among urban women — 0.8% of those uneducated were jobless whereas 20% of women with secondary or higher education were not employed, according to the Periodic Labour Force Survey (PLFS) released by the National Statistics Office (NSO) on Friday. However, a typical urban educated youth hardly start working before they are 23-24-year old, after completing post graduation.

Govt meets fiscal deficit target of 3.4% for 2018-19
The government has met the fiscal deficit target of 3.4% of GDP for FY19, after sharply cutting spending towards the end of the financial year as revenue fell short of estimates. The provisional fiscal deficit for FY19 was pegged at Rs 6.45 lakh crore, data released by the Controller General of Accounts showed on Friday, exceeding the Rs 6.34 lakh crore provided in the revised estimates presented in the interim budget on February 1.

China demands respect, blames US for trade talks flop
China’s government says it’s willing to work with the US to end an escalating trade war but blames President Donald Trump’s administration for the collapse in talks and won’t be pressured into concessions. Beijing released a white paper on Sunday saying the escalating trade war between the world’s two largest economies hasn’t “made America great again” -- appropriating Trump’s 2016 campaign slogan.

Monsoon loses momentum, heatwave rages
The southwest monsoon has lost momentum, making only marginal progress since it reached the Andaman and Nicobar islands two weeks ago, while many parts of northern, central and western India are blazing in an intense heatwave that has raised temperatures alarmingly above 50 degrees celsius. The weather office has forecast that the vital weather system would hit the Kerala coast on June 6.

In Video: National education policy: Centre dismisses fears of Hindi imposition