10 things you need to know before the opening bell on May 28

SUMMARY

Indian benchmark indices BSE Sensex and NSE’s Nifty 50 are likely to open flat on Tuesday ahead of F&O expiry this week and as investors await Q4 GDP data due to be released on Friday. According to SBI research, India’s Q4 GDP is expected to moderate to 6.1 percent to 5.9 percent, which could pull down growth rate for the entire fiscal 2018-19 to below 7 percent. Asian shares traded higher after EU election results eased concerns about political difficulties in the bloc, although persistent trade concerns capped gains. Indian shares settled over half a percent higher in the previous session, rising for the second session after Lok Sabha election results. At 7.15 AM, the SGX Nifty traded 17 points, or 0.14 percent, lower at 11,907, indicating a muted beginning for the Sensex and the Nifty.

By CNBC-TV18May 28, 2019 8:07:15 AM IST (Updated)

1. Asia: The Nikkei in Japan added 0.3 percent and the Topix rose 0.17 percent. In South Korea, the Kospi advanced 0.24 percent. Markets in the US were closed on Monday in observance of Memorial Day.

2. Markets At Close On Monday: The Indian market ended higher on Monday, boosted by gains in metal and financial stocks, as investors continued to cheer Prime Minister Narendra Modi’s massive victory. The Sensex settled 248 points higher at 39,683, while the Nifty50 added 81 points to end at 11,925.

3. Crude Oil: Front-month Brent crude futures, the international benchmark for oil prices, were at $69.90 at 0106 GMT. That was 21 cents, or 0.3 percent, below the last session’s close, when Brent rose 2.1 percent. U.S. West Texas Intermediate (WTI) crude futures were at $59.03 per barrel. They did not trade on Monday due to a public holiday in the United States, but stood 40 cents, or 0.7 percent, higher than their last close on Friday.

4. Rupee & Dollar Index: The Indian rupee closed at 69.50, down 0.04 percent against the US dollar from its previous close. While, the dollar index, which measures the greenback against a basket of currencies, was up 0.14 percent to $97.74.

5. FII & DII: Foreign institutional investors (FIIs) bought shares worth Rs 1,215 crore on a net basis in the cash market, while domestic institutional investors (DIIs) sold shares worth Rs 328 crore.

6. SBI Report On GDP, RBI Interest Rate Cut: The country's economic growth in the fourth quarter ended March 2019 is expected to moderate to 6.1-5.9 per cent, which could pull down growth rate for the entire fiscal 2018-19 to below 7 per cent, according to a report by SBI. The slip in GDP growth may force the Reserve Bank of India to move with a deeper 0.50 per cent cut in rates at its next review to propel the sluggish economy, the SBI Ecowrap report. (stock image)

7. Commerce Ministry On Exports: The commerce ministry has come out with a comprehensive draft of the export policy which includes product specific rules with a view to provide a ready reckoner for exporters. "Based on inputs received from various partner government agencies, it is proposed to bring out a comprehensive exports policy for all ITC (HS) tariff codes (including items which are 'free' for export and do not currently exist in the policy), covering conditions/restrictions imposed by partner government agencies on exports," the Directorate General of Foreign Trade said.

8. Investors Wealth During Market Rally: Investors' wealth has gone up by Rs 3.86 lakh crore in two days of the market rise where the Sensex has gained 872 points after the decisive mandate for the BJP in the general election. Led by the rally in the equity market, the market capitalisation (m-cap) of BSE-listed companies rose by Rs 3,86,220.41 crore to Rs 1,54,11,395.90 crore on the BSE.

9. Report On Government Action To Curb Black Money: After the demonetisation move in its first term, the Narendra Modi-led national Democratic Alliance (NDA) government may take up more measures to curb black money generation in its second term, Business Standardreported, adding that the newly-elected government may bring back the banking cash transaction tax (BCTT) to curb cash transactions.

10. FICCI Report On Economy: India's slowing economic growth is of serious concern and the country needs to urgently cut tax and interest rates to revive the economy, a top industrial body said on Monday ahead of the inauguration of Prime Minister Narendra Modi’s second term. The economy grew 6.6 percent in the three months to December - the slowest pace in five quarters - and the Federation of Indian Chambers of Commerce & Industry (FICCI) said the bigger worry was that domestic consumption was not growing fast enough to offset a weakening global economic environment.