10 things you need to know before the opening bell on July 8

SUMMARY

Indian shares are likely to open on a cautious note on Wednesday in-line with its global peers, and WHO's warning on further surge in cases of coronavirus. At 7:30 am, the SGX Nifty traded 15 points lower to 10,798.50, indicating a cautious opening for Sensex and Nifty50.

By CNBCTV18.comJul 8, 2020 7:50:57 AM IST (Published)

1. Asia: Stocks in Asia Pacific traded mixed on Wednesday morning as concerns around the coronavirus pandemic continue to linger. In Japan, the Nikkei 225 dipped 0.35 percent in early trade while the Topix index shed 0.24 percent. Over in South Korea, on the other hand, the Kospi added 0.28 percent. Meanwhile, the S&P/ASX 200 in Australia slipped 0.26 percent. Overall, the MSCI Asia ex-Japan index traded 0.04 percent lower.

2. Wall Street: US stock futures were flat in overnight trading, following weakness in equities in the previous session. Dow futures rose 40 points, indicating a gain of 0.16 percent. The S&P 500 and Nasdaq-100 also were set to open higher, with gains of 0.08 percent and 0.12 percent, respectively. On Tuesday, the Dow Jones Industrial Average fell 397 points, or 1.5 percent, breaking a two-day winning streak. The Dow was brought down by a 4.8 percent drop in Boeing. The S&P 500 also registered a loss, slipping 1.1 percent, to break a five day win streak.

3. Market At Close On Tuesday: Indian benchmark equity indices, Sensex and Nifty ended higher amid volatility on Tuesday led by banks. At close, Sensex ended 187.24 points or 0.51 percent higher to 36,674.52 while the Nifty50 index ended at 10,786.20, up 22.55 points or 0.21 percent higher. Among broader market indices, Nifty Smallcap 100 index outperformed, by ending 1 percent higher while Nifty Midcap 100 index rose 0.40 percent at close.

4. Crude Oil: Oil prices eased in early trade on Wednesday as industry data showing a build in US crude stockpiles and a forecast for US crude output to fall less than anticipated in 2020 added to worries about oversupply. Brent crude futures fell 13 cents, or 0.3 percent, to $42.95 a barrel. US West Texas Intermediate (WTI) crude futures dropped 10 cents, or 0.3 percent, to $40.52 a barrel.

5. Rupee Close: After a flat start Indian rupee ended near the day's low level at 74.93 per dollar, amid volatile trade seen in the domestic equity market. Forex traders said foreign fund inflows and easing crude oil prices supported the rupee, while, factors like a strong dollar and rising COVID-19 cases dragged down the local unit. It opened flat at 74.70 per dollar against the previous close of 74.68 and traded in the range of 74.67-74.97.

6. KV Kamath On GDP Contraction: The contraction in India's economy will not be as much as various economists are expecting it to, veteran banker KV Kamath said in an exclusive interview to CNBC-TV18. The 72-year old Kamath, who has helmed ICICI Bank and the New Development Bank founded by BRICS countries, is being spoken of as someone whom Prime Minister Narendra Modi may tap for a senior role in government. Speaking to Rahul Joshi, Editor-in-Chief, Network18, Kamath said the rebound so far has been faster than what most people thought it would be, and that the economy was likely to see a shallow U-shaped recovery.

7. GST Relief To MNCs On Expats Salary: A recent observation by Maharashtra Authority of Advance Rulings (AAR) resulted in the ruling that GST will not be applicable if the Indian project office (PO) of an MNC is accounting for the salary of an expatriate employee. The AAR also observed that considering, the expat employee, in such cases, is on the payrolls of the foreign company and the project office is just a temporary extension in India, such employees should be considered as employees of the project office as well. Thus, this AAR ruling gave GST relief to several MNCs with expat employees on need basis in India.

8. ED Files Money Laundering Case Against GVK Group: The Enforcement Directorate (ED) has filed a money laundering case against the GVK group, the Mumbai International Airport Limited (MIAL) and others to probe alleged irregularities to the tune of Rs 705 crore in running the Mumbai airport, officials said on Tuesday. The central probe agency has filed an enforcement case information report (equivalent of a police FIR) under the Prevention of Money Laundering Act after studying a recent CBI FIR filed against the same entities. The ED will probe if genuine funds were laundered to amass personal assets by the illegal routing of funds, they said.

9. Indian Households Shun Downmarket Palm Oil: Palm oil demand in India, the world's top edible oil importer, is set to plunge this year as coronavirus lockdowns slash food service sector demand and households opt for alternatives at the supermarket. India's palm oil imports could plunge 20 percent from a year ago to 7.5 million tonnes in the 2019/20 marketing year ending on Oct. 31, said Angshu Mallick, deputy chief executive of Adani Wilmar, a leading edible oil refiner in the country. That would be the lowest imports since 2010/11, according to data from India's Solvent Extractors Association (SEA).

10. US Military To Stand With India In Conflict With China: The US military "will continue to stand strong in relationship to a conflict between India and China or anywhere else, a top White House official has said after the Navy deployed two aircraft carriers to the strategic South China Sea to boost its presence in the region. "The message is clear. We're not going to stand by and let China or anyone else take the reins in terms of being the most powerful, dominant force, whether it's in that region or over here," White House Chief of Staff Mark Meadows told Fox News on Monday.