need2know: Five macro triggers that market may watch today

The finance ministry has sought a report from the RBI and National Payments Corporation of India (NPCIL) in the debit cards compromise issue, termed as the biggest ever breach of financial data in the country.

Here's a look at five macro-economic triggers that may shake up the market today


RBI allows 100% FDI in regulated financial services: The Reserve Bank of India (RBI) has opened the gates for more overseas investment coming to India by a series of steps liberalising the foreign direct investment rules, even as it braces for a possible $26-billion outflows on account of FCNR-B deposit maturities. RBI has allowed 100% foreign investment through the automatic route to the regulated financial services companies other than banks or insurance companies, and simplified rules for easier entry of venture capital funds to startup ventures. It has also eased external commercial borrowing regulations.


Muted industrial production may hit overall growth: Industrial production in the country is expected to remain subdued and this can act as a restrain to the overall growth momentum in the current fiscal, says a Dun & Bradstreet report. Weak private sector investment and fragile external sector demand are likely to pull down industrial production in the coming months. While the IIP is expected to remain muted owing to the low investment and weak external demand, it is likely to edge on the positive zone supported by the festive season related demand and the favourable base effect.

Manufacturing sector in trouble: Acknowledging that India's manufacturing sector is in "trouble", Union Minister Anant Geete today exhorted companies to counter the challenge posed by the growing Chinese clout by selling products at globally competitive prices. The Nikkei Markit India Manufacturing Purchasing Managers' Index (PMI) -- a gauge of manufacturing performance -- fell to 52.1 in September from 52.6 in August, indicating that growth in the sector lost some momentum.

Govt support for gems and jewellery: The government will extend full support to the gems and jewellery exports as it is recording healthy growth at a time when outbound shipments are facing challenges, Commerce and Industry Minister Nirmala Sitharaman said yesterday. In September, gems and jewellery exports grew by 22.42% year-on-year to USD 4.46 billion. Since December 2014, exports fell for the straight 18 months till May 2016 due to weak global demand and slide in oil prices.


...and in financial markets yesterday

Rupee down: The rupee snapped its two-day rise against the US dollar and ended lower by 13 paise at 66.81 on fresh bouts of dollar demand from banks and importers.

Bonds down: Government bonds (G-Secs) weakened further on selling pressure from banks and corporates. The 7.59% G-Secs maturing in 2026 dipped to Rs 104.9950 from Rs 105.1950 previously, while its yield moved up to 6.85% from 6.82%. The 7.59% G-Secs maturing in 2029 dropped to Rs 104.98 from Rs 105.1075, while its yield inched up to 6.98% from 6.97%. The 7.61% G-Secs maturing in 2030 fell to Rs 105.51 from Rs 105.68, while its yield edged up to 6.97% from 6.96%. The 7.88% G-Secs maturing in 2030, the 6.97% G-Secs maturing in 2026 and 7.68% G-Secs maturing in 2023 were also quoted lower at Rs 107.45, Rs 101.4825 and Rs 104.69 respectively.

Call rates up: The overnight call money rates finished higher at 6.20% from Wednesday's level of 6.10%. It opened higher at 6.30% and moved in a range of 6.40% and 6.20%.

Liquidity: The Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 9940 crore in a 21-bids at the overnight repo auction at a fixed rate of 6.25% as on Thursday, while it sold securities worth Rs 3181 crore from 25-bids at the overnight reverse repo auction at a fixed rate of 5.75% as on October 19.