need2know: Seven macro cues to watch out for today

India's economy will only be able to maintain its impressive growth if its bureaucracy ceases to be "an expert in setting up roadblocks", US Secretary of State John Kerry said on Wednesday. Speaking in New Delhi, Kerry said red tape and a lack of transparency continued to deter entrepreneurs and foreign investors even though India is now the world's fastest-growing major economy.

Meanwhile, latest government data show that India's GDP growth in April-June period has declined to lowest in six quarters while the core sector growth also slowed in July. Fiscal deficit in first four months is already at 73.7% of full year target.

Here's a look at seven macro triggers that are going to impact the market today


Measures to revive stalled projects cleared: The government has announced a package of measures to revive the construction sector, putting in place a mechanism to release funds stuck in arbitration awards to revive stalled projects, and promised a scheme to address stressed loans in the sector. The Union Cabinet on Wednesday also gave post facto approval to the June 20 foreign direct investment reforms that opened food sector to 100 per cent foreign investment and raised the limit for civil aviation and defence to 100 per cent among others.

GDP grows at 7.1% in Q1 FY17: India’s economic growth decelerated to its slowest level in six quarters in the April-June period, potentially making the government’s target of achieving 8% growth this year more daunting. However, an imminent boost from the agriculture sector on account of a normal monsoon after two consecutive drought years and a push to urban consumption from the pay hike to central government employees are expected to significantly push economic growth in the remaining quarters of 2016-17.

April-July fiscal deficit at 73.7% of FY17: Fiscal deficit in the first four months of the current financial year is estimated at 73.7% of the budget projection for the full year, slightly higher compared with the same time last year when it was 69.3%. Fiscal deficit tends to be higher in the initial months as revenue growth is muted during the period. The situation should look better from August, when the Rs 65,875 crore that the Reserve Bank paid as dividend to the government would show up in the accounts.

7 core industries grow slower at 3.2% in July: India's infrastructure sector growth moderated in July from the month before, marking a slow start to the second quarter of the fiscal after a moderate first quarter. The core sector index, which measures output of eight infrastructure sectors, was up 3.2% in July compared with a 5.2% rise in June, data released by the commerce and industry ministry on Wednesday showed. These sectors have a 38% weight in the Index of Industrial Production (IIP), suggesting a weaker industrial growth in July. The IIP numbers for July will be released on September 12.

Shah panel indicts Reliance in gas dispute: The justice A.P. Shah committee that probed a dispute between state-run Oil and Natural Gas Corp. Ltd (ONGC) and Reliance Industries Ltd (RIL) has indicted the latter for “unfair enrichment” in a report submitted to the government on Wednesday. The dispute pertained to the flow of gas between the adjacent fields of ONGC and RIL in the Krishna-Godavari (KG) basin. The unfair enrichment stemmed from RIL retaining the gains of the gas which flowed into its KG D6 field from adjacent fields of ONGC, said the report released by the oil ministry late on Wednesday.

New benami law put on fast track: The government has fast tracked the operationalisation of the new Benami law, which will complete its framework for tackling black money generation. The Benami law complements a law passed earlier to discourage parking of illicit funds overseas. The Act cannot be notified till rules are in place so the process has been put on fast track. Central Board of Direct Taxes (CBDT) chairperson Rani Singh Nair said, "We are already working on it....We have to operationalize...Both adjudicating authorities and rules would soon be in place."

Ease of doing business rankings rankle states: A fierce competition has broken out among states on the ease of doing business rankings, with states contesting every point, while some have even hired top consultants to keep tabs on the entire process. States want these consultants, including PwC, EY and KPMG, to not just help them with their own reforms, but also assess the business reforms of those states which are ranked above them, and point out possible discrepancies. As of now, the rankings which are getting changed almost daily, have Chhattisgarh and Gujarat in the lead, followed by Rajasthan, Jharkhand and Madhya Pradesh.

...and in financial markets yesterday

Rupee up: Rising for a second straight day, the rupee firmed up by 6 paise to close at 66.96 against the greenback due to sustained dollar selling from exporters amid weak overseas tone.

Bonds up: India Government Bond 10Y, maturing in 2026, increased 0.007 percent or 0.10% to 7.11 on Wednesday August 31 from 7.10 in the previous trading session. India Government Bond 10Y changed -0.36% during the last week, -0.42% during the last month and -8.32% during the last year.