need2know: Six macro triggers that market may watch today

The Cabinet on Wednesday approved the merger of the Railway and General Budgets from 2017-18 and advancing in principle the Budget by a month but Finance Minister Arun Jaitley said since a number of states are going to the polls early next year, a call on a new date for Budget will be taken after studying the election calendar.

Meanwhile, as expected the US Fed has kept the rates steady for now while hinting at a December hike.


Here's a look at six macro triggers that will impact the market today

Budget advanced, railway budget merged: In a sweeping recast of India's annual budget process, the government ended the 92-year-old practice of having a separate rail budget, giving the embattled organisation political space to work below the radar and implement the massive reforms needed to turn it around. The union cabinet also approved finance ministry's proposal to advance the general budget's presentation by a month from the end of February. This will allow budget proposals to be implemented and public spending to kick off from April 1, the first day of the financial year. In other decisions on Wednesday, the cabinet also approved the budget proposal to do away with plan and non-plan categorisation, redundant after the Planning Commission was abolished.

Sebi asks NSE to probe intenal wrongdoing: The market regulator has asked the National Stock Exchange to investigate the possible collusion of its officials with brokers that may have led to breaches of fair access norms by providing unfairly preferential treatment to some. That could make things difficult for India's biggest stock exchange as it prepares for a much-anticipated initial public offering.

Fed rates unchanged: The US Federal Reserve left interest rates unchanged on Wednesday but strongly signaled it could still tighten monetary policy by the end of this year as the labor market improved further. The Fed said US economic activity had picked up and job gains were "solid" in recent months. A divided Fed also cut the number of rate increases expected this year to one from two previously,

Stock limits on pulses, edible oils extended by 1 year: The government on Wednesday extended stockholding limits on traders of pulses, edible oils and oilseeds by one year till September 30, 2017, to check hoarding and control price rise. A decision in this regard was taken in the Cabinet meeting, chaired by Prime Minister Narendra Modi. By and large, all the state governments have supported the imposition of stock limits.

Brand value: The overall value of top 50 brands in the country witnessed a marginal dip of 2% this year, almost entirely driven by the decline in brand value of state-owned banks, according to a recent study. However, the brand value of India’s top 50 brands has increased by 30% over the last three years, as per the BrandZ study conducted by research agency Millward Brown and commissioned by WPP, which was released here today.

FinMin to look into FPI's suggestions: The finance ministry has promised to look into some taxation issues raised by foreign investors, some of which may be addressed in the budget next year, economic affairs secretary Shaktikanta Das said on Tuesday. "They are looking at bigger opportunities for investing in Indian market. So overall outlook, I would say, is very, very positive," Das told reporters after a three-hour meeting between foreign portfolio investors and officials.

...and in financial markets yesterday

Rupee flat: In a lacklustre trade, the rupee on Wednesday closed almost flat at 67.02 against the American unit amid caution ahead of the US Federal Reserve policy decision.

Bonds up: Government bonds (G-Secs) recovered following fresh demand from corporates and banks. The 7.59% G-Secs maturing in 2026 rose to Rs 103.6975 as compared to Rs 103.52 previously, while its yield moved down to 7.04% from 7.07%. The 7.59% G-Secs maturing in 2029 gained to Rs 103.81 from Rs 103.60, while its yield softened to 7.12% from 7.15%. The 7.61% G-Secs maturing in 2030 climbed to Rs 104.7050 from Rs 104.52, while, its yield edged down to 7.07% from 7.09%. The 7.88% G-Secs maturing in 2030, the 7.68% G-Secs maturing in 2023 and the 7.72% G-Secs maturing in 2025 were also quoted higher at Rs 106.30, Rs 103.6250 and Rs 103.94 respectively.

Call rates upThe overnight call money rates finished higher at 6.30% from Tuesday's level 6.25%. It resumed higher at 6.55% and moved in a range beyween 6.60% and 6.30%.

Liquidity: The Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 3647 crore in 8-bids at the overnight repo auction at a fixed rate of 6.50% as on Wednesday, while its sold securities worth Rs 2945 crore from 17-bids at the overnight reverse repo auction at a fixed rate of 6% as on September 20.