10 things you need to know before the opening bell on February 14

SUMMARY

The Indian market is likely to open in the green on Friday over global markets stabilising as China is set to halve tariff rates on certain US products with effect later during the day. However, increasing coronavirus death toll and cases could put pressure on the market. At 7:20 am, the SGX Nifty was trading 27.50 points or 0.23 percent higher at 12,178, indicating a positive opening for the Sensex and Nifty50.

By CNBC-TV18Feb 14, 2020 8:18:57 AM IST (Updated)

1. Asia: Stocks in Asia were edged lower in Friday morning trade as concerns around the ongoing coronavirus outbreak continue to weigh on investor sentiment. In Japan, the Nikkei 225 slipped 0.65 percent, the Topix index also declined by 0.62 percent. South Korea’s Kospi also shed 0.21 percent. Meanwhile, stocks in Australia were little changed in morning trade, with the S&P/ASX 200 hovering above the flatline. Overall, the MSCI Asia ex-Japan edged 0.06 percent lower.

2. US: Wall Street lost ground on Thursday, backing away from record highs as investors digested new coronavirus developments and mixed corporate earnings. The Dow Jones Industrial Average fell 128.11 points, or 0.43 percent, to 29,423.31, the S&P 500 lost 5.51 points, or 0.16 percent, to 3,373.94 and the Nasdaq Composite dropped 13.99 points, or 0.14 percent, to 9,711.97.

3. Market At Close On Thursday: Indian shares ended lower on Thursday due to concerns around growth after data showed a surprise drop in industrial output for December and a rise in January inflation to a six-year high. The BSE Sensex ended 106 points lower at 41,460, while the Nifty50 index settled 26 points lower at 12,175. Meanwhile, foreign institutional investors bought Rs 1,061 crore in the cash market while the domestic institutional investors sold Rs 960 crore.

4. Crude Oil: Oil prices edged higher on Thursday, as investors hoped the world’s biggest producers would cut output more, while they largely shrugged off forecasts of slumping demand due to the coronavirus outbreak in top oil importer China. Brent crude rose 55 cents, or 0.99 percent, to settle at $56.34 per barrel. U.S. West Texas Intermediate rose 25 cents, or 0.49 percent, to settle at $51.42 per barrel.

5. Rupee Close: The rupee on Thursday settled flat at 71.33 (provisional) against the US dollar after weak macro-economic data disappointed market participants. Forex traders said disappointing macroeconomic numbers and weak domestic equities weighed on the local unit while easing crude oil prices and weakening of the American currency in the overseas market restricted the fall to some extent. At the interbank foreign exchange market, the rupee opened at 71.35, then lost further ground to touch a low of 71.49. (Image for representational purpose)

6. IMF On India's Sector Reforms: India's economy looks weaker than the IMF projected earlier in January and the government needs to focus on more ambitious structural and financial sector reform measures, said Gerry Rice, communications director of the International Monetary Fund. The government’s “accommodative fiscal stance” in the Union Budget of FY2020-21 is appropriate in an environment of weak economic activities but the focus should be on a medium-term fiscal consolidation strategy due to rising debt levels, noted Rice. The IMF sharply cut India’s growth forecast for the FY20 to 4.8 percent last month from the 7.5 percent made in January 2019. (File Photo: IANS)

7. US Declares India As A Developed Nation: In a notice issued by the Office of the US Trade Representative (USTR) earlier this week, India has been removed from the list of ‘developing’ countries and instead will now be considered a ‘developed’ nation. Countries with a share of 0.5 percent or more of world trade will now be recognized as ‘developed’ countries, the notice said. It also stated that countries that have G20 membership, of which India is a party, will not be seen anymore as a ‘developing’ country. In other words, technically, India will not be eligible anymore for the GSP trade benefits.

8. S&P Affirms India's Rating With Stable Outlook: Global ratings agency Standard and Poor's on Thursday affirmed India's sovereign rating at 'BBB-' with stable outlook, saying the country's GDP growth is likely to gradually recover towards longer-term trend rates over the next two to three years. 'BBB' rating refers to adequate capacity of the rated entity to meet its financial commitments. "Despite a notable deceleration in India's economy in recent quarters, we believe its structural growth outperformance remains intact. The real GDP growth is therefore likely to gradually recover toward longer-term trend rates over the next two to three years," S&P said in a statement. It expects the economic growth rate to improve to 6 percent during 2020-21, 7 percent in the next fiscal and 7.4 percent thereafter.

9. SEBI To Study Investment Behaviour: Sebi is looking to appoint an agency to conduct a digital survey of investors which will help the markets regulator in gauging financial savings and investment behaviour of millennials. In addition, the regulator plans to conduct a study on household investors to determine their risk profile and relate it to their investment behaviour as well as to find out mutual fund investors' behaviour and investment patterns. In separate notices, Sebi has invited Expression of Interest (EOI) from agencies to conduct a pan-India digital survey of investors and a survey of household investors. The regulator is seeking to appoint agencies that have extensive experience in conducting an online survey, preparing questionnaires, data collection, computing, analysis and report writing, among others.

10. SEBI Issues Guidelines For Portfolio Managers: Markets watchdog Sebi on Thursday issued guidelines for portfolio managers and said they cannot charge an upfront fee from clients. Sebi (Portfolio Managers) Regulations, 2020, were notified on January 16.

In addition, certain changes to the regulatory framework for portfolio managers have been mandated. "As provided in Regulation 22 (11) of the PMS Regulations, no upfront fees shall be charged by the portfolio managers, either directly or indirectly, to the clients," Sebi said in a circular. According to the regulator, brokerage at actuals should be charged to clients as an expense. "Operating expenses excluding brokerage, over and above the fees charged for Portfolio Management Service, shall not exceed 0.50 percent per annum of the client's average daily Assets under Management (AUM)," it added.