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    Market Movers: Sebi, RBI monitor markets; Rafale issue festers, China cancels trade talks with US & more

    Synopsis

    A lowdown on top macro triggers that may move market on Monday.

    market3
    Here’s a lowdown on top macro triggers that may move market on Monday. This report was compiled from agency feeds.

    China Cancels Trade Talk with US, Oil Rises
    The safe haven yen gained on Monday in holiday-thinned trading as China canceled upcoming tariff talks with the United States, ratcheting up tensions while oil prices jumped weeks ahead of Washington’s plan to impose new sanctions against Iran after Saudi Arabia and Russia ruled out any immediate boost to crude output on Sunday. The intensifying dispute between the world’s two biggest economies has spooked financial markets. Brent crude futures LCOc1 were at $79.74 per barrel at 0036 GMT, up by 94 cents, or 1.2%. US WTI crude futures CLc1 rose by 74 cents, or 1.1%, to $71.52 a barrel.

    Sebi, RBI Stand Guard on Dalal, Bond Streets

    rescue action
    The central bank and Securities and Exchange Board of India (Sebi) are ready to act to ensure there’s no crisis when markets reopen on Monday, following Friday’s wild fluctuations on account of a debt default scare. “The Reserve Bank of India and Sebi are closely monitoring recent developments in financial markets and are ready to take appropriate actions, if necessary,” RBI and Sebi said in separate but identical statements issued on Sunday.


    Rafale Deal Issue
    The Rafale saga continues with the French government on Sunday saying that it feared damage to its relations with India after former president Francois Hollande stirred controversy about a major deal to sell fighter jets to New Delhi. However, Finance Minister Arun Jaitley has asserting that the Rafale deal would not be cancelled as allegations of a scam were farcical. The opposition in India has demanded PM Modi's resignation over Rafale jet deal after Hollande said India had influenced the choice of a local partner. However, the makers of the jets and the French Government have rebutted former French president's claim.

    Consolidation of Regional Rural Banks Started
    The government has initiated consolidation of regional rural banks along with the public sector lenders and intends to bring down their number to 36 from the existing 56. The Centre has begun consultations with states as they are one of the sponsors of the regional rural banks (RRBs) in the country.

    Ordinance to Settle Commercial Disputes Faster
    Seeking to improve India's ranking on ease of doing business index, the government is mulling an ordinance which provides for time-bound settlement of commercial disputes and make arbitrators accountable, a senior government functionary has said. The government plans to bring the ordinance based on a bill cleared by Lok Sabha during the monsoon session.

    Modi Launches Ayushman Bharat Health Scheme
    Prime Minister Narendra Modi on Sunday launched Ayushman Bharat, world's largest government-funded healthcare scheme in Jharkhand's capital Ranchi. With the roll out of the Centre's flagship scheme -- renamed as PM Jan Arogya Yojana (PMJAY), the Narendra Modi-led NDA government aims to provide healthcare facilities to over 10 crore families covering urban and rural poor. All NDA chief ministers launched the scheme from their respective states.

    Biz Confidence at All-time High: CII Survey
    Business sentiment has touched an all-time high, shows a survey by Confederation of Indian Industries (CII), with respondents seeing ‘return of the good times’ going ahead. The CII’s Business Confidence Index (BCI) touched series high of 64.9 in the current quarter against 60.1 in the last quarter. This is the fourth successive quarter of rise in the index.

    Strategic Sales
    The government has identified huge tract of land and other assets of 9 of the 24 Central Public Sector Enterprises (CPSEs), that have in-principle approval for strategic sale, which will be hived off before the select state-owned companies are put on the block. These nine CPSEs are Pawan Hans, Scooters India, Air India, Bharat Pumps & Compressors Ltd, Project & Development India Ltd, Hindustan Prefab, Hindustan Newsprint Ltd, Bridge and Roof Co and Hindustan Fluorocarbons.

    Monsoon Withdrawal a Month Behind Schedule
    The southwest monsoon is expected to start withdrawing towards the end of this month, nearly a month behind schedule, the met department said on Friday. Monsoon normally begins to withdraw from September 1. This year's delayed withdrawal is likely to help the country avoid a drought situation, even as countrywide rainfall is hovering on borderline drought conditions, measuring 10% below normal levels since the beginning of the monsoon season.


    POLICIES & MORE

    • Fitch Ratings on Friday upped India's growth forecast for the current fiscal to 7.8%, from 7.4% earlier, but flagged rising oil bill and higher interest rates as key concerns.
    • The tax department has slapped ONGC Videsh Ltd a service tax demand of Rs 7,666.10 crore on remittance the firm makes to its overseas subsidiaries for past one decade
    • Tata Steel has signed a definitive agreement to take over the specialty steel business of Kolkata-based steel and wire rope maker Usha Martin for a cash consideration between Rs 4,300 crore and Rs 4,700 crore

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    Top Quote
    Fundamentals Have not Changed, Market over-reacted: Keki Mistry, HDFC

    FUNDAMENTALS
    Rupee Up: The rupee continued its bullish trend for the second day, rising 17 paise to end at 72.20 against the US dollar on sustained selling of the American currency even as local equities witnessed a high volatility.

    Long-term Bond Yields Up: Government bonds (G-Secs) slipped on selling pressure from banks and corporates on Friday. The 7.17% 10-year benchmark bond maturing in 2028 slid to Rs 94.14 from Rs 94.15, while its yield inched up to 8.08% from 8.07%. The 6.68% G-Secs maturing in 2031 declined to Rs 88.05 from Rs 88.17, while its yield inched up to 8.19% from 8.18%.

    Shorter-term Bond Yields Up: The 6.84% G-Secs maturing in 2022 eased to Rs 95.5750 from Rs 95.59, while its yield edged up to 8.09% from 8.08%. The 7.59% G-Secs maturing in 2026, the 8.20% G-Secs maturing in 2022 and the 8.15% G-Secs maturing in 2022 were also quoted lower at Rs 96.6225, Rs 100.32 and Rs 100.15 respectively.

    Call Rates Down: The overnight call money rates ended lower to 6.30% from Wednesday's closing level of 6.50%, it resumed higher at 6.60% and moved in a range of 6.70% and 6.25%.

    Liquidity: The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 4,006 crore in 7-bids at the 3-days repo operation at a fixed rate of 6.50% as on today, while it sold securities worth Rs 4,942 crore in 14-bids at the overnight reverse repo auction at a fixed rate of 6.25% as on September 20.




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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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