need2know: Five macro triggers that may move your market today

The cabinet is expected to clear the plan to cut majority stake in around 20 state-run firms on Wednesday, including several profit-making entities, signalling a restart of equity sale in public sector companies after a 12-year gap. There will also be a detailed review of the plan to shed 10% stake in public sector general insurance companies, a move aimed at helping the insurers raise funds to take on private sector players.


Here's a look at four other macro triggers that are likely to impact the market today

GST tax structures presented: The Centre proposed a four-slab structure with two standard goods and services tax (GST) rates of 12% and 18% at the latest meeting of the GST Council, keen to ensure minimal impact of the new levy on prices and revenue. But some states called for a higher rate on luxury goods. The Centre has proposed a lower rate of 4% on precious metals, a threshold rate of 6%, two standard rates of 12% and 18%, a higher rate of 26% and a cess on luxury items, pan masala and tobacco products.


Govt to help bidders unite for oilfield sale: The government is planning to play the matchmaker between capital providers, technology firms and oilfield services companies to help them build coalitions and bid for small discovered fields being auctioned currently. The government is seeking investors for 67 small discovered fields and has held roadshows since May in India and abroad for this. It has extended the deadline for submission of bids by three weeks to November 21.

Independent regulators for steel, mines sectors soon? Government think-tank Niti Aayog has favoured creating independent regulators for steel and mining sectors in the country in a bid to make both industries profitable. The premier policy-making body has also pitched for a new and dynamic steel policy to bring the over $100 billion industry back on track as well as meet the target of 300 million tonnes ( mt) capacity by 2025. Aayog has favoured creating independent regulators for steel and mining sectors in the country in a bid to make both industries profitable. The premier policy-making body has also pitched for a new and dynamic steel policy to bring the over $100 billion industry back on track as well as meet the target of 300 million tonnes (mt) capacity by 2025.


Sebi blow for MF ditribution biz looms: Sebi's latest consultation paper introduced on October 6, proposes amendment to the Sebi Investment Advisors Regulations, 2013. If approved, it will lead to the segregation of the advisory function from distribution. The distributors (also called agents or independent financial advisors) will not be able to give any advice to investors. Earlier, they were allowed to offer advice “incidental to the sales processes”. In case distributors want to give advice, they need to become registered investment advisors (RIA) within three years. If they fail to make this transition, their function will be reduced to distribution and execution only.

...and in financial markets yesterday

Rupee up: The Indian rupee ended higher by 16 paise at 66.73/$ against the US dollar on Tuesday due to fresh selling of dollar by banks and exporters and also rally in domestic equities.

Bonds firm up: Government bonds (G-Secs) prices firmed up on good buying support from banks and corporates. The 7.59% G-Secs maturing in 2026 surged to Rs 105.25 from Rs 105.03 previously, while its yield eased to 6.81% from 6.84%. The 7.59% G-Secs maturing in 2029 climbed to Rs 105.21 from Rs 104.99, while its yield edged down to 6.96% from 6.98%. The 7.61% G-Secs maturing in 2030 regained to Rs 105.80 from Rs 105.5775, while its yield down to 6.94% from 6.97%. The 6.97% G-Secs maturing in 2026, the 7.88% G-Secs maturing in 2030 and 7.68% G-Secs maturing in 2023 were also quoted higher at Rs 101.7875, Rs 107.6400 and Rs 104.86 respectively.

Call rates up: The overnight call money rates finished higher at 6.30% from Monday's level of 6.25%. It resumed higher at 6.30% and moved in a range of 6.35% and 6.20%.

Liquidity: The Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 5505 crore in a 8-bids at the overnight repo auction at a fixed rate of 6.25% as on Tuesday, while it sold securities worth Rs 3550 crore from 17-bids at the overnight reverse repo auction at a fixed rate of 5.75% as on October 17.