10 things you need to know before the opening bell on March 6

SUMMARY

The Indian markets are likely to open sharply lower on Friday tracking sell-off in global equities on fears of a prolonged world economic slowdown due to the coronavirus outbreak. At 7 am, the SGX Nifty was trading 271 points or 2.41 percent lower at 10,959.00, indicating a negative start for the Sensex and Nifty50.

By CNBC-TV18Mar 6, 2020 8:06:32 AM IST (Updated)

1. Asia: Asian shares are down following another Wall Street rout as disruptions to global business from the coronavirus beyond China worsened, stoking fears of a prolonged world economic slowdown. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.5 percent. Australian shares fell 1.86 percent, while Japan's Nikkei stock index slid 1.45 percent.

2. Wall Street: U.S. stocks tumbled on Thursday, with shares of banks and travel companies taking a beating, as a new wave of fear about the spread of the coronavirus and its economic impact gripped investors just one day after election results powered a rally. The Dow Jones Industrial Average fell 969.58 points, or 3.58 percent, to 26,121.28, the S&P 500 lost 106.18 points, or 3.39 percent, to 3,023.94 and the Nasdaq Composite dropped 279.49 points, or 3.1 percent, to 8,738.60.

3. Market At Close On Thursday: Indian shares ended with mild gains on Thursday, supported by a rise in Asian and US markets but worries over a spike in coronavirus cases in the country kept gains in check. Investors remained cautious that a rapid spread could further hit an already slowing economy. The BSE Sensex ended 61 points higher at 38,470, while the Nifty50 index settled 18 points higher at 11,269. Meanwhile, the foreign institutional investors sold Rs 2,477 crore in the cash market while the domestic institutional investors bought Rs 2,511 crore.

6. Crude Oil: Oil prices fell on Thursday as the coronavirus epidemic showed no signs of slowing, feeding worries about the global economy and prompting investors to sell more risky assets like stocks and crude oil and park money in safe havens. Brent crude fell by $1.14, or 2.2 percent, to settle at $49.99 a barrel while U.S. West Texas Intermediate (WTI) ended the session down 88 cents, or 1.9 percent, at $45.90.

5. Rupee Close: The rupee snapped it's four-session losing run on Thursday to close 6 paise higher at 73.33 against the US dollar amid hopes that efforts by countries and global agencies would offset financial damage from the novel coronavirus outbreak. At the interbank foreign bank exchange, the domestic unit opened on a positive note but soon gripped by intense volatility. During the session, the rupee swung between a high of 73.04 and a low of 73.56 against the American unit. It finally settled at 73.33, showing a rise of 6 paise over its previous close. (Image for representational purpose)

6. Government Approves SBI TO Buy Stake In YES Bank: The government is set to approve a plan for State Bank of India (SBI) to buy a stake in Yes Bank, according to a Bloomberg report. India's biggest lender will most probably be asked to form a consortium for this purpose. Earlier, the bank in an exchange filing said that the bank had received strong interest from multiple foreign as well as domestic private equity and strategic investors. (File Photo: IANS)

7. RBI Deputy Governor NS Vishwanathan To Step Down: RBI Deputy Governor N S Vishwanathan has decided to step down by March 31 due to ill health, three months before the end of his extended one-year tenure. While the Reserve Bank has accepted his request to be relieved by March 31, the same has to be accepted by the Cabinet as well, which is likely to happen any day given his health condition, a person in the know of the development said. His one-year extension was to end on July 3. Sources said, despite ill health, the senior-most deputy governor at the RBI was planning to leave by end-April, but the deteriorating health did not allow him. So he has asked for early retirement.

8. Eight PSU Banks Announce Swap Ratios For Merger: With the March-end deadline for the biggest-ever amalgamation scheme is approaching, eight state-owned banks on Thursday announced swap ratios for the proposed mergers. Punjab National Bank (PNB) in a regulatory filing announced the share exchange ratio in accordance with the scheme of amalgamation, as it is set to merge the Oriental Bank of Commerce (OBC) and the United Bank of India (UBI) into itself with effect from April 1. According to the swap ratio, 1,150 equity shares of PNB are to be exchanged for every 1,000 equity shares of Oriental Bank of Commerce, while 121 equity shares of PNB are to be swapped for every 1,000 equity shares of UBI.

9. Sebi Proposes New Mechanisms On E-Voting: Regulator Sebi on Thursday proposed two mechanisms to make the e-voting process more secure, convenient and simple for shareholders. At present, multiple players provide e-voting facility to listed entities in the country and shareholders require to register and maintain multiple user IDs and passwords with them, the Sebi noted in a consultation paper. To enable e-voting through a single login credential, Sebi after consultation with the depositories and ESPs suggested a mechanism wherein demat account holders may access e-voting portals of multiple ESPs through web-based services provided by depository participants or depositories.

10. ICRA Expects Steel Prices To Come Under Pressure: After witnessing uptrend, domestic steel prices are expected to come under pressure in the near-term due to the outbreak of deadly coronavirus, Icra said on Thursday. After touching a low of Rs 32,250 tonne in the first week of November 2019, domestic hot-rolled coil (HRC) prices have been on the rise and are currently ruling at around Rs 37,000 tonne, a rise of about 15 percent, the rating agency said in a report. "The domestic steel prices, which despite moderate domestic demand have witnessed an uptrend since November 2019 in line with international trends, are expected to come under pressure in the near-term as an aftermath of the COVID-19 outbreak," it said.