10 things you need to know before the opening bell on May 9

SUMMARY

Indian bourses are likely to see a tepid start on Thursday as global markets remained under pressure over US-China trade tensions. Asian shares hit six-week lows in early trade after a notice on the Federal Register said the United States will raise tariffs on $200 billion worth of Chinese imports to 25 percent from 10 percent effective on Friday. Indian shares declined over 1 percent in the previous session, falling for the sixth straight session. The Nifty 50 closed 1.2 percent weaker at 11,359.45, marking its lowest close in more than six weeks. The Sensex ended down 1.3 percent at 37,789.13, posting its lowest closing level in nearly eight weeks. At 7.14 AM, the SGX Nifty was down 9.50 points, or 0.10 percent, at 11,393.50, indicating a sluggish start for the Sensex and the Nifty.

By CNBC-TV18May 10, 2019 6:37:50 AM IST (Updated)

1. Asia: MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.75 percent, stooping to its lowest level since late March. Japan's Nikkei declined 0.45 percent in early trade and the Topix index slipped 0.78 percent. South Korea's Kospi shed 0.37 percent. ASX200 in Australia bucked the downward trend to rise around 0.1 percent as the sectors traded mixed.

2. US: The Dow Jones Industrial Average was 2.24 points higher at 25,967.33, while the S&P 500 slipped 0.16 percent to 2,879.4. TheNasdaq Composite fell 0.26 percent to 7,943.32.

3. Market At Close On Wednesday: The Sensex settled 487 points lower at 37,789, while the Nifty50 lost 138 points to end at 11,359. The broader markets were also under pressure with Nifty Midcap and Nifty Smallcap indices ending 1 percent lower.

4. Crude Oil: Brent crude oil futures were at $69.92 a barrel by 0102 GMT, down 44 cents, or 0.63 percent, from their previous settlement. U.S. West Texas Intermediate (WTI) crude futures were at $61.67 per barrel, down 45 cents, or 0.72 percent, from their last close.

5. Rupee: The rupee ended at 69.71 a dollar, down 28 paise, extending its losses for the third straight day due to escalating US-China trade tensions and a massive selloff in domestic equity markets.

6. US Dollar: The dollar index, which tracks the greenback against a basket of its peers, was at 97.589 after rising from levels below 97.57 yesterday.

7. FIIs & DIIs: Foreign institutional investors (FIIs) sold shares worth Rs 702 crore on a net basis in the cash market, while domestic institutional investors (DIIs) bought shares worth Rs 233 crore on May 8.

8. IHS Markit Report On RBI Interest Rate Cut: The Reserve Bank of India (RBI) is likely to cut interest rates one more time in June before rising inflation pressures and elevated fiscal deficits leave little room for further accommodation in rest of the year, a IHS Markit report said on Wednesday. In a report on the forecast for global monetary policy actions and resulting economic impact, the London-based global information provider said RBI is likely to tighten its monetary policy stance in early-to-mid 2020.

9. US To Hike Tariffs Of Chinese Imports: The United States will raise tariffs on $200 billion worth of Chinese imports to 25 percent from 10 percent effective on Friday, according to a notice posted to the Federal Register on Wednesday. The US Trade Representative's office will establish a process to seek exclusions for certain products from additional tariffs, the Federal Register notice said. US President Donald Trump said in a tweet that he would be "very happy with over $100 Billion a year in Tariffs filling US coffers."

10. RBI Warns Finance Panel On Fiscal Slippages: The Reserve Bank Wednesday warned

of the rising risks to fiscal consolidation of the states as their finances are saddled with farm loan waivers, income support schemes and the Uday bonds for their power

distribution companies. In its presentation, the RBI listed out the specific factors that will drive fiscal slippages in the revised estimates of FY19.