need2know: 7 macro triggers to take note of before you start your day

Companies producing FMCG goods have effected sudden price hikes ahead of the arrival of the GST regime, guarding themselves against possible cost appreciation and creating rooms for price cuts. Meanwhile, the Modi government has gone into presidential election mode, even as many states are busy trying to find ways to work around the Supreme Court's liquor ban along side highways, and how!

These are among the interesting macro news stories we picked for you before you start your day in the financial markets.

States finding ways around liquor ban
States like Maharashtra, Himachal, Uttarakhand, Rajasthan and others have converted hundreds of kilometres of national and state highways into local, municipal or district roads, just a few days after a Supreme Court order banning liquor sale along highways. Most states have not specified any reason for changing the categories and some have even denied that the step has been taken in view of the Supreme Court verdict. Remember, liquor stocks fell all through last week

FIIs go gung-ho on India story
Foreign investors have pumped in a staggering $2.45 billion in capital markets in the last four sessions on the back of improved investor sentiments driven by passage of GST bills and growth in manufacturing sector. This comes following a record net inflow of Rs 56,944 crore (USD 8.7 billion) last month, mainly on expectations that BJP's victory in recently held assembly polls would lead to faster reforms.

PMO’s push for housing for all
In a bid to meet the objectives of the government’s Housing for All initiative by 2022, the Prime Minister’s Office (PMO) on Saturday conducted a meeting with representatives of private developers to review the impact of the affordable housing schemes. In the meeting, which lasted over two hours, the PMO discussed challenges faced by developers while launching and executing such housing projects, , including high land cost and slow approval processes. The meeting was attended by representatives of industry bodies National Real Estate Development Council (NAREDCO), The Confederation of Real Estate Developers' Associations of India (CREDAI), and MCHI-CREDAI apart from officials of the National Housing Bank. Watch the realty space.

Govt braces for presidential polls
The government seems to have gone into presidential election mode already. Prime Minister Narendra Modi has invited all the senior leaders of the National Democratic Alliance (NDA) to dinner on Monday in a move linked to the presidential and vice-presidential election due later this year. Although the ruling Bharatiya Janata Party (BJP) is yet to give a clear agenda, senior NDA leaders believe the dinner diplomacy is the first step towards consensus building for the election of the president due in July and vice-president in August.

GAAR confusion for FPIs
Custodians for foreign portfolio investors and tax consultants are in a deadlock with both parties refusing to take the onus of potential liabilities of their clients in the new tax regime. The custodians, mainly foreign banks, want a certificate from consultants such as the big four firms stating that General Anti Avoidance Rule (GAAR)-aimed at curbing tax evasion by foreign investors --have to prove it is not be applicable to their clients. Pray, this does not affect FPI sentiment in market.

FMCG price hikes ahead of GST
In the run-up to the implementation of the GST, expected on July 1, consumer goods companies such as Hindustan Unilever ( HUL) and Procter & Gamble (P&G) are either changing their production strategies or raising prices to reflect the new tax treatment for their products. Prices were raised now to give companies the room to cut, and still cushion operating margins, after GST kicked in. Watch this counter!

Gold imports down
India's gold import witnessed a fall of about 24 per cent to $23.22 billion in April- February period of the last fiscal, which is expected to keep a lid on the current account deficit. Total import of the precious metal in the corresponding period of 2015-16 stood at $30.71 billion. According to industry experts, softening prices of gold in the domestic and world markets could be the reason for the same.