Heres a lowdown on top macro triggers that may move market on Wednesday.
This report was compiled from agency feeds.Govt Uses Never-Used Powers to Direct RBI GuvThe government has invoked never-before-used powers under the RBI Act allowing it to issue directions to the central bank governor on matters of public interest, reports The TheIndianSubcontinent.
Separate letters have been sent to the RBI governor in recent weeks exercising powers under this section on issues ranging from liquidity for NBFCs, capital requirement for weak banks and lending to SMEs.
The unprecedented move could have triggered last weeks rare public assertion of independence by RBI, with deputy governor Viral Acharya warning the Centre of disastrous consequences if the regulators autonomy is impinged upon.RBI to Inject Rs 12,000-cr in System on Nov 1The Reserve Bank Tuesday announced it will inject Rs 12,000 crore into the system through purchase of government securities on November 1.
Last week, the central bank said had announced plans to inject Rs 40,000 crore into the system in November through purchase of government securities to meet festive season demand for funds.
The RBI had earlier stated that the system liquidity will move into deficit in the second half of 2018-19 and the evolving liquidity conditions would determine its choice of instruments for both transient and durable liquidity management.
Redemption Ahead! NBFCs, HFCs in a HuddleSenior officials of close to 20 large non-banking finance companies (NBFCs) and housing finance firms met in Mumbai this week to figure out the road ahead as thousands of crores come up for redemption.
They fear that another default or failure to roll over commercial paper (CP) could once again rattle the market where liquidity has dipped with most mutual funds, which have been a ready provider of credit for years, sitting on cash to meet possible redemption pressure from investors.Ease of Biz Ranking Out Today, India ShiningCommerce and Industry Minister Suresh Prabhu hinted at improvement in India's ranking in the World Bank's ease of doing business report, to be released today.
"We already have improved substantially.
We will make the formal announcement tomorrow with the World Bank (releasing its report)," Prabhu said here Tuesday.
India jumped 30 places to rank 100th among 190 nations in the last year's World Bank's 'ease of doing business' index.
India's Long-term Growth RobustIndia's long-term growth story remains robust despite global headwinds as well as rupee depreciation and high oil prices, according to Dun Bradstreet's Economy Forecast.
The balance sheet of banks, corporate and government remains strained while the gross non-performing assets (NPAs) have increased significantly.
Sectors laden with high stressed assets are engineering, infrastructure, construction whose debt serviceability and profitability have been impacted.
Dollar Holds Near 16-month HighsThe dollar hovered near 16-month highs versus a basket of its major rivals after gaining overnight as traders bet on the relative outperformance of the US economy and continued rate increases by the Federal Reserve.
The dollar index .DXY, a gauge of its value versus six major peers, kept its overnight gains to trade at 97.
The US 10-year treasury bond yields US10YT=RR have been inching higher for the last three sessions and was last traded at 3.12 percent.Govt to Sell 3% in Coal India at Rs 266 a Share The centre has decided to sell 3% in Coal India through an offer for sale with a green shoe option to sell another 6% to financial institutions and retail investors at a floor price of Rs 266 per share.
This will allow Coal India to conform to the minimum public holding norm of 25% and help the government raise a minimum of Rs 4421.5 crore at the base price.
In case the total green shoe option is exercised the government may be able to raise a minimum of Rs 9.907 crore.
For a total 9% stake the centre may be able to raise a minimum of Rs 14,328.5 crore.
Oil Prices Move up After 3 DaysOil prices climbed for the first time in three days on Wednesday, but rising supply and fears over the outlook for demand amid the US-China trade war kept pressure on the market.
Brent crude LCOc1 futures had gained 36 cents, or 0.5%, to $76.27 a barrel by 0110 GMT.
They fell 1.8% on Tuesday, at one point touching their lowest since Aug.
24 at$75.09 a barrel.
US West Texas Intermediate (WTI) crude CLc1 futures advanced 27 cents, or 0.4% to $66.45 a barrel on Wednesday.
China Factory Growth Weakest in Over 2 YrsChinas manufacturing sector barely expanded in October and missed expectations, as both domestic and external demand ebbed, in a sign of deepening cracks in the economy from an intensifying trade war with the United States.
The official Purchasing Managers Index (PMI), released on Wednesday, fell to 50.2 in October, the lowest since July 2016 and down from 50.8 in September.POLICIES MOREThe Securities and Exchange Board of India (Sebi) is planning to overhaul the role of credit rating agencies (CRAs) in the wake of the ILFS fiasco.A no-deal Brexit would be likely to tip Britain into a recession as long as the downturn that followed the global financial crisis, and investors should no longer ignore this danger, credit ratings agency Standard Poor's said on Tuesday.
Indian sugar mills have traded 8.3 lakh tonnes of sugar, if the 50 lakh tonne that they have to export during 2018-19 sugar season with Uttar Pradesh accounting for more than half of the contacts, said traders at a conference organised by All India Sugar Trades Association (AISTA).
Competition Commission of India (CCI), the anti-trust regulator has given its approval to IHH Healthcares acquisition of controlling stake in Fortis HealthcareNSE 2.92 %, the second largest hospital chain in the country, two people familiar with the development said.
An announcement to this effect is expected shortly.
Top VideoWe Are in a New World Which is Facing Profound Disruptions: Ray DalioTop Quote'Go Stock Specific in 4 Sectors with a 2-year View'FUNDAMENTALSRupee Down: The rupee depreciated 13 paise to 73.58 against dollar in early trade on Tuesday on account of buying in American currency by banks and importers amid sustained outflows by foreign investors.
10-yr Bond Yields Up: India 10-year bond yield rose 0.02% to 7.83% on Tuesday, October 30 from 7.81% in the previous trading session, reports Bloomberg.Call Rates: The overnight call money rate weighted average was 6.44% on Tuesday, according to RBI data.
It moved in a range of 5.00-6.60.