10 things you need to know before the opening bell on December 19

SUMMARY

Indian shares are likely to open lower on Thursday amid uncertainty in the global markets after US House voted to impeach President Donald Trump. At 7 am, the SGX Nifty was trading 37 points or 0.31 percent lower at 11,986.00, indicating a negative start for the Sensex and Nifty50. Here are the key things to know before the opening bell:

By CNBC-TV18Dec 19, 2019 7:48:08 AM IST (Updated)

1. Asian shares edged higher on Thursday amid growing confidence in the global outlook following improving economic indicators and a preliminary trade deal between the United States and China. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.08 percent. Australian shares were up 0.07 percent, while Japan's Nikkei stock index slid 0.12 percent.

2. The S&P 500 ended a five-day winning streak on Wednesday as investors' optimism about global economic growth was countered by a steep drop in FedEx Corp shares, but the benchmark index managed to hover near all-time highs. The Dow Jones Industrial Average fell 27.88 points, or 0.1 percent, to 28,239.28, the S&P 500 lost 1.38 points, or 0.04 percent, to 3,191.14, and the Nasdaq Composite added 4.38 points, or 0.05 percent, to 8,827.74.

3. The benchmark indices continued its bulls run to end at a record close for the second straight session on Wednesday with Nifty hitting 12,200 levels for the first time ever during the day. The BSE Sensex ended 206 points higher at a new closing high of 41,558, while Nifty settled 57 points higher at fresh closing high of 12,222. Meanwhile, foreign institutional investors bought Rs 1,837 crore while the domestic institutional investors sold Rs 1,268 crore in the cash market.

4. The rupee rebounded from early lows to close marginally up at 70.97 against the US currency helped by a record-breaking run in equity markets and weak crude oil prices. A stronger dollar in overseas markets after positive macro data weighed on the rupee sentiment, forex traders said. At the interbank foreign exchange market, the rupee opened weak at 71.08 then fell further to 71.12 against the US dollar, showing a decline of 14 paise over its previous closing.

5. Oil prices steadied on Wednesday after U.S. government data showed a decline in crude inventories and on expectations for an uptick in demand next year on the back of progress in resolving the U.S.-China trade fight. Brent futures gained 12 cents to trade at $66.22 a barrel, while U.S. West Texas Intermediate lost 1 cent to settle at $60.93.

6. Most of the states opposed a change in slabs or hike in GST during the crucial GST Council meeting on Wednesday arguing an increase in the levies would have adverse implications for the economy facing a slowdown, said sources. The GST Council, comprising state finance ministers and headed by Finance Minister Nirmala Sitharaman, is the highest decision-making body on the indirect tax rates. As consensus eluded, the Council for the first time exercised the option of voting to decide on the GST rate on the lottery as the economy is in a downturn. Sources said state ministers pointed out that moderation in revenue collection through GST was due to economic slowdown and not because of lower GST rate. (Stock Image)

7. India's sugar production stood at 4.58 million tonne till December 15 of the ongoing marketing year, down 35 percent from the year-ago period, owing to a sharp fall in output in Maharashtra and Karnataka, industry body ISMA said on Wednesday. Sugar marketing year runs from October to September. Mills had manufactured 7.05 million tonne of sugar in the same period of the 2018-19 marketing year. According to the Indian Sugar Mills Association (ISMA), 406 sugar mills were crushing sugarcane as on December 15, as against 473 mills on the year-ago same day.

8. India is facing a "Great Slowdown" with its economy headed for intensive care unit primarily due to a "second wave" of the twin balance sheet crisis at banks, former Chief Economic Adviser Arvind Subramanian has said. Subramanian, who was Modi government's first chief economic adviser but quit in August last year, in new paper co-authored with the former head of the International Monetary Fund's India office Josh Felman said India is facing a "Four Balance Sheet" challenge -- comprising banks, infrastructure, plus NBFCs and real estate companies -- and is trapped in an adverse interest growth dynamic.

9. Real estate developers can significantly reduce their construction and marketing costs by using data analytics and undertaking proper market study before launching projects, industry experts said on Wednesday. Addressing a CII-CBRE conference on 'Changing dynamics of the construction industry', ATS group CMD Getamber Anand stressed that real estate developers need to change their mindset and working approach to execute their residential and commercial projects.

10. As the fast-moving consumer goods sector is expected to see only 9-10 percent growth in 2019 as households continue to squeeze spending and rural growth is losing steam on the back of falling rural income, industry players are now expecting a turnaround next year. According to market research agency Nielsen's third-quarter numbers, rural growth has plunged to a low 5 percent from a high 20 percent in the corresponding quarter. This has for the first time in seven years, rural growth has fallen below urban levels.