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It may be soon time to phase out India's export subsidies in the current form as World Trade Organization (WTO) rules bar it from offering export incentives to any sector, including textiles, when it reaches certain thresholds that it is nearing. The deadline for ending direct subsidies to textile companies is December 2018. Under the WTO agreement, only least developed countries and developing countries whose gross national income (GNI) per capita is below $1,000 per annum at the 1990 exchange rate, are allowed to provide export incentives to any sector that has a share of below 3.25% in global exports.

Meanwhile, state-owned Oil and Natural Gas Corp ( ONGC) made 23 oil and gas discoveries in the fiscal year ended March 31 as a record number of wells drilled helped it uncover new reserves.

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


PSUs may be asked to take over NPAs: In a fresh approach to tackle bad loans in state-run banks, the government is looking at possible takeover of troubled projects by state-run firms operating in related sectors, two senior officials said. The government has asked all banks to identify top 50 non-performing assets ( NPA) in each sector. This list will then be shared with all concerned ministries to work out faster resolution mechanisms or take over by state run firm in some cases. There is value in some projects which central public sector enterprises (CPSEs) can take over and banks are also willing to take deeper haircut given the project is being handed over to another staterun firm.

Time not right for 5G spectrum auction, says minister: The government believes that 5G is still a work in progress globally and this may not be the right time to sell airwaves which support the technology, said communications minister Manoj Sinha. In an interview to ET, he said the government, which hasn’t yet decided on the time frame for the next auction, needs to prepare for selling the 5G airwaves when the time is right.

Ageing oilfields drag down crude output: India's crude oil production fell for the fifth straight year in 2016-17 as output continued to slide at ageing oilfields. Output fell 2.5% from the previous fiscal to 36 million metric tonnes as production at the Oil and Natural Gas Corporation's Mumbai High field and Cairn India's fields in Rajasthan slipped, according to Petroleum Planning and Analysis Cell (PPAC), an arm of the oil ministry. A rapidly expanding economy pushed up country's oil demand 5% in 2016-17.Though lower than 11% demand growth witnessed in 2015-16, increased consumption, along with falling output, prompted a 5.2% jump in the import of crude to 213 million metric tonnes worth $70 billion during the fiscal.

Cement prices in April rebound to pre-demonetisation levels: As prices of cement move back to their pre-demonetisation levels in April, 2017 after getting negatively impacted as the note ban was put into effect in November, ICRA forecasts a demand growth of 4-5% in FY2018, mainly led by activity in infrastructure. “With the impact of demonetisation gradually subsiding, cement prices have reached the pre-demonetisation levels in April 2017 in most markets,” Sabysachi Majumdar, senior vice-president and group head, ICRA Ratings said.

No more Jio-like plans? The Telecom Regulatory Authority of India (Trai) plans to start by May this year an industry-wide consultation on framing rules for new mobile operators testing their services prior to full-fledged commercial launch. The issue of specific framework for trial services had cropped up last year after newcomer Reliance Jio's stormy entry into the telecom sector. The incumbent cellular operators had demanded that the dos and don'ts of such trial service needs to be clearly spelt out.

...and in financial markets yesterday

Rupee down: The rupee closed at 64.15 a dollar on Thursday, down 0.06% from its Wednesday’s close of 64.12.

Bonds mixed: Government bonds (G-Secs) ended mixed on alternate bouts of buying and selling. The 6.97% G-Secs maturing in 2026 firmed up to Rs 100.1725 from Rs 100.08 previously, while its yield eased to 6.94% from 6.96%. The 6.79% G-Secs maturing in 2029 inched down to Rs 97.55 from Rs 97.56 previously, while its yield remained steady at 7.08%. The 7.59% govenrment security maturing in 2026 firmed up to Rs 103.6725 from Rs 103.5350, while its yield fell to 7.02% from 7.04%. The 7.61% government seurity maturing in 2030 decline to Rs 103.0750 from Rs 103.14, while its yield inched up to 7.24% from 7.23%. The 7.72% G-Secs maturing in 2025 and the 7.68% G-Secs maturing in 2023 gained to Rs 103.21 and Rs 103.28 respectively.

Call rates stable: The overnight call money rates ended stable at its previous level of 6.05% after trading in a range of 6.25% and 5.95%.

Liquidity: The Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 1455 crore in 3-bids at the overnight repo operations of 6.25% as on Thursday, while it sold securities worth Rs 19271 crore in 53 bids at the overnight reverse repo auction at a fixed rate of 6.00% as on April 26.