10 things you need to know before the opening bell on August 1

SUMMARY

Indian shares are set to start August on a weak note, tracking sluggish Asian stocks, following US Federal Reserve chairman Jerome Powell's fresh comments on global slowdown, coupled with simmering US trade tensions. On Wednesday, the Fed suggested that policymakers were not embarking on a new cycle of rate-cutting after it trimmed interest rates by 25 basis points. At 7.05 AM, the SGX Nifty futures traded down 55.50 points, or 0.50 percent lower, at 11,065, indicating a negative start for the Sensex and the Nifty 50.

By CNBC-TV18Aug 1, 2019 7:22:10 AM IST (Updated)

1. Asia: Asian shares fell to six-week lows on Thursday and the dollar rose after the U.S. Federal Reserve delivered a 25-basis-point rate cut as expected but poured cold water on market expectations of a lengthy easing cycle, reported Reuters. MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.4 percent, extending losses for a fifth day to the lowest since mid-June. Japan's Nikkei also fell 0.4 percent. South Korea's KOSPI slipped 0.5 percent while Australian shares declined 0.3 percent.

2. US: The Dow and S&P 500 registered their biggest daily percentage drops in two months on Wednesday after Federal Reserve Chair Jerome Powell dampened expectations for further cuts following the central bank's first interest rate cut in a decade, Reuters reported. The Dow Jones Industrial Average fell 333.75 points, or 1.23 percent, to 26,864.27, the S&P 500 lost 32.8 points, or 1.09 percent, to 2,980.38 and the Nasdaq Composite dropped 98.20 points, or 1.19 percent, to 8,175.42.

3. Markets At Close On Wednesday: Indian benchmark indices snapped two days of losses to end higher on Wednesday led by gains in banking, metal, and auto stocks. IndusInd Bank, Tata Consultancy Services, Kotak Bank, and Sun Pharma contributed the most in gains. The Sensex ended 84 points higher at 37,481, while the broader Nifty50 index added 33 points to end at 11,118. Meanwhile, foreign institutional investors sold 1,497 crore while domestic institutional investors bought 2,479 crore on a net basis. Reuters reported that the U.S. dollar index gained ground to touch its highest in more than two years. The index, which measures the greenback against a basket of currencies, was up about 0.5 percent on the day. The Indian Rupee closed at 68.79, lower by 7 paise or 0.10 percent.

4. Crude Oil: In commodities, crude oil futures settled higher on Wednesday for the fifth straight day, buoyed by a bigger-than-expected drop in U.S. inventories, but the stronger dollar helped bring prices down from session highs in post settlement trading. U.S. crude futures fell more than $1 to $57.56 per barrel. Brent was down $1.10 at $63.95.

5. Hawkish US Fed Reserve Rate Cut: The US Federal Reserve on Wednesday announced a 25 basis point rate cut while warning that the move might not be the start of a lengthy campaign to shore up the economy against risks including global weakness. Fed Chairman Jerome Powell cited signs of a global slowdown, simmering U.S. trade tensions and a desire to boost too-low inflation in explaining the central bank's decision to lower borrowing costs for the first time since 2008 and move up plans to stop winnowing its massive bond holdings, said Reuters.

6. Fiscal Deficit: India's fiscal deficit in the three months ending in June stood at Rs 4.32 trillion rupees ($62.80 billion), or 61.4 percent of the budgeted target for the current fiscal year, government data showed on Wednesday. Net tax receipts in the first three months of the fiscal year were Rs 2.51 trillion, while total expenditure was Rs 7.22 trillion, government data showed. The government has set a fiscal deficit target of 3.4 percent for 2019/20, same as 2018/19.

7. Nirmala Sitharaman To Meet PSU Banks' CEOs: Finance Minister Nirmala Sitharaman will meet the CEOs of public sector banks on Friday to review the financial performance of the lenders and discuss ways to increase credit growth to propel the economy, sources said. The meeting will also review the progress of resolution of NPA cases under the Insolvency and Bankruptcy Code (IBC), the sources added. It is expected to take a stock of the banking sector, and discuss ways to improve their financial health. (Getty Image)

8. RBI Capital Transfer: The Bimal Jalan panel may get more time to finalise its report on excess capital transfer from the RBI to the government as Subhash Chandra Garg has been moved out from the finance ministry, sources said. Garg was transferred to the power ministry last week before he could sign the report as it was not finalised by then.

The recommendations are not unanimous, with Garg having submitted a dissent note, sources said. They added that the government is looking to replace its representative on the panel following the transfer of the former economic affairs secretary. (AP Photo)

9. Piyush Goyal On India's Exports: Commerce and Industry Minister Piyush Goyal on Wednesday said India's exports will have to contribute USD 1 trillion as the country aims to become a USD 5 trillion economy in the next few years. Speaking at an interactive session with the exporters, Goyal urged manufacturers and exporters to come forward with data and details which directly and indirectly add to the cost of exported products like cess paid on coal, electricity and royalty paid on mines. (PTI Photo)

10. Auto Makers Cut Production: Automobile manufacturers in the country slashed production by 11 percent in April-June period this fiscal over the year-ago period amid the industry facing the worst slowdown with sales declining month after month,

said a rating agency's report on Wednesday. Vehicle sales across all categories declined by 12.35 percent to 60,85,406 units in the April-June period against 69,42,742 units in the same period of last year. (Stock Image)