need2know: 9 macro cues for your day on D-Street

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


Flat 12% GST for Restaurants?
Eating out in air-conditioned comfort could get cheaper if a proposal to fix the goods and services tax (GST) at a flat 12% on all restaurants is adopted by the GST Council. But this could also mean them losing the benefit of input tax credit. Air-conditioned restaurants currently charge 18% GST and non-air-conditioned ones charge 12% GST. Unifying the rate may mean giving up the ability to claim back taxes paid on inputs.

Power Supplier Portability
The government plans to give electricity consumers the freedom to choose the supplier by enacting a new law that will bring a system similar to mobile number portability. The Bill may be moved in the Winter Session of Parliament. The new bill will usher in competition, which analysts say will attract investors apart from giving consumers reliable supply at affordable rates and reducing losses.To address the concerns of the states, the bill may not impose timelines for implementation.

Easier FDI Proposal Processing
The commerce and industry ministry has eased the mechanism for processing foreign direct investment (FDI) proposals by doing away with the requirement of sending the applications to the department of revenue. Amending a provision in the standard operating procedure for processing of FDI proposals, marking of proposals to the revenue department for their comments has been "discontinued" with immediate effect. The move aims to promote ease of doing business to attract overseas inflows.

Indians Likely to Spend Less This Diwali
About 49% Indians are likely to spend less this Diwali compared to last year due to demonetisation and impact of GST, with expenditure on clothes and sweets to be the highest, says a survey by news app InShorts and research firm Ipsos. Though 21% will be spending more over last year, 18% will spend same as the last year while 21% respondents said they were undecided. Clothes and sweets will see highest spending at 38%, gadgets and gizmos will see 13% spending followed by home renovation and furnishing at 12% and automobiles at 3%.

Digital India
Telecom secretary Aruna Sundararajan on Tuesday said that telecom infrastructure would grow massively over the next 2-3 years backed by an investment of Rs 1.3 lakh crore. “In 2-3 years, the country will see more new initiatives with an investment of Rs 130,000 crore. Telecom infrastructure will see massive expansion and upgradation,” Sundararajan said at an industry event. “From January onwards, we will be able to offer a bouquet of services to rural India. Lowest data rates and affordable devices will propel India towards a digital age,” said Sundararajan.

Bitter Pill
India's apex drug regulator has flagged Indian drug major Sun Pharma’s popular medicine brands ‘Pantocid’ and ‘Pantocid DSR’ for failing quality tests last month. At the same time, the firm claims the samples of these brands that were tested by the regulator were fake imitations of its products. Batches of the two antacids have figured in an alert listing 22 medicine brands with samples found sub-standard by the Central Drugs Standard Control Organisation (CDSCO).


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FUNDAMENTALS
Rupee Down: The Indian rupee closed at 65.03 against the dollar on Tuesday, down 0.47% from its Monday’s close of 64.72.

Bonds Down: Government bonds (G-Secs) declined on selling pressure from banks and corporates on Tuesday. The 6.79% G-Secs maturing in 2027 slipped to Rs 100.18 from Rs 100.3825 yesterday, while its yield edged up to 6.76% from 6.73%. The 6.68% G-Secs maturing in 2031 fell to Rs 97.69 from Rs 98.00, while its yield moved up to 6.94% from 6.91%. The 6.79% G-Secs maturing in 2029 slid to Rs 98.23 from Rs 98.41 yesterday, while its yield up to 7.01% from 6.98%. The 7.72% G-Secs maturing in 2025, the 7.16% G-Secs maturing in 2023 and the 7.35% G-Secs maturing in 2024 also quoted lower at Rs 104.5250, Rs 101.7175 and Rs 102.5250 respectively.

Call Rates Down: The overnight call money rates finished lower at 6.00% from Monday's level 6.20%. It resumed higher at 6.10% and moved in a range of 6.15% and 5.80%.

Liquidity: The Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 12930 crore in 19-bids at the overnight repo auction at a fixed rate of 6.00% as on Tuesday, while its sold securities worth Rs 5994 crore from 33-bids at the overnight reverse repo auction at a fixed rate of 5.75% as on October 16.