need2know: Six macro triggers that may matter for market today

Indian stocks slumped on Wednesday mirroring the weakness in global markets as signs that the US Presidential election would be a tight contest rattled investors. Markets had earlier perceived that Hillary Clinton was ahead in the race, but the latest poll showing Donald Trump rapidly closing the gap prompted flight to safer havens. The India VIX index, a gauge for market volatility, soared nearly seven% as investors feared an upset by Republican nominee Donald Trump.

The political uncertainty saw overseas investors pulling out Rs 667 crore from stocks. It is to be seen how the global markets hold up today


Here's a look at five other macro triggers that may impact the market today

S&P not to upgrade India rating for 2 yrs: S&P Global Ratings has ruled out an upgrade for India over the next two years even as it affirmed the stable outlook on the country's `BBB-' long-term and `A-3' short-term sovereign credit ratings. “The outlook indicates that we do not expect to change our rating on India this year or next, based on our current set of forecasts,“ S&P said in a statement on Wednesday laying down the conditions for a ratings upgrade.

Fed sets stage for December rate hike: US Federal Reserve left interest rates unchanged while saying the argument for higher borrowing costs strengthened further amid accelerating inflation, reinforcing expectations for a hike next month. Fed officials revealed growing confidence that inflation is on track to hit 2%. The decision to forgo a rate increase had been widely expected owing to the proximity of next week's US presidential election.

Major overhaul of drug policy likely: In a major overhaul of the country's drug policy, the government is likely to soon disband the National Pharmaceutical Pricing Authority (NPPA) in its present form and assume the power to set prices of essential medicines, as it seeks to address concerns that excessive controls were stifling innovation and competitiveness of the sector. The revamped policy will also delink price control from essential medicines. Under the current regime, the moment a drug is brought under the list of essential medicines, it is subject to the price control mechanism. The new system will be more flexible and prices will be regulated only when required.

Assocham, KPMG warn against sharp anomalies in GST rates: Ahead of the crucial Goods and Services Tax Council meeting on Thursday and Friday, industry body Assocham and consultancy KPMG have called for avoiding sharp anomalies in taxation structure across different industries such as telecom, tobacco and textiles under the new tax regime. Taxation structure for sin goods like tobacco should not be based on emotive issues, but on rational parameters like the need to check illicit trade.

Government keeping close watch on Tata-Mistry row: Government is keeping a "close watch" on the Tata-Mistry feud as developments at the USD 100 billion conglomerate can have implications for the economy, Minister of State for Finance Arjun Ram Meghwal said on Wednesday. The government, said Meghwal, who is also incharge of the Ministry of Corporate Affairs (MCA) - where corporate disputes eventually land up, will steer clear of the row as "it is an internal affair of Tata Sons".

...and in financial markets yesterday

Rupee steady: Defying extreme global volatility, the rupee managed to pull back from the early stumble and ended steady at 66.71 against the US dollar even as speculation around the Fed policy kept investors on edge.

Bonds recover: Government bonds (G-Secs) recovered on fresh buying support from banks and corporates. The 7.59% G-Secs maturing in 2026 climbed to Rs 104.6175 from Rs 104.5650 previously while its yield inched down to 6.90% from 6.91%. The 6.97% G-Secs maturing in 2026 spurted to Rs 101.0850 from Rs 101.08 while its yield held stable at 6.82%. The 7.61% G-Secs maturing in 2030 rose to Rs 105.07 from Rs 105.05 while its yield softened to 7.02% from 7.03%. The 7.59% G-Secs maturing in 2029, the 7.88% G-Secs maturing in 2030 and the 7.68% G-Secs maturing in 2023 were also quoted higher at Rs 104.57, Rs 107.07 and Rs 104.61, respectively.

Call rates up: The overnight call money rates finished higher at 6.25% from Tuesday's closing level of 6%. It resumed higher at 6.25% and moved in a range of 6.25% and 6.10%.

Liquidity: The Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 3484 crore in 6 bids at the overnight repo auction at a fixed rate of 6.25% as on Wednesday. It sold securities worth Rs 8221 crore from 29 bids at the overnight reverse repo auction at a fixed rate of 5.75% as on November 1.