10 things you need to know before the opening bell on May 30

SUMMARY

Indian shares are set to open little changed on Thursday ahead of the expiry of futures and options contracts and fourth-quarter gross domestic product (GDP) data. Investors will also keep an eye on new government formation and ministry allocation as Narendra Modi is set to take oath as the prime minister of India for the second term. In global markets, Asian shares fell following losses on Wall Street as US and China showed no signs of easing trade tensions. Chinese newspapers reported that Beijing could use rare earths to strike back at Washington, reported Reuters. Indian benchmark indices BSE Sensex and NSE’s Nifty 50 settled snapped a three-day losing streak and settled 0.6 percent lower in the previous session. At 7.10 AM, the SGX Nifty was up 15 points, or 0.13 percent, at 11,879, indicating a mixed start for the Sensex and the Nifty 50.

By CNBC-TV18May 30, 2019 8:05:40 AM IST (Updated)

1. Asia: MSCI Asia Pacific index was down 0.79 percent in the morning. The Nikkei in Japan dropped 0.34 percent in early trade, and the Topix also declined 0.44 percent. In South Korea, the Kospi bucked all trends as it rose 0.72 percent.

2. US: US stocks fell on Wednesday, with the S&P 500 and Nasdaq closing just above key support levels, as worries that a lengthy U.S.-China trade war would crimp global growth pushed investors into the safety of government bonds. The Dow Jones Industrial Average closed at its lowest level since February 11, while the S&P and Nasdaq ended the session at their lowest closing levels in nearly three months.

3. Markets At Close On Wednesday: PSU banks, auto and metals dragged the most in the domestic market. Investors also remained cautious ahead of May F&O expiry and Q4 GDP data due later this week. The Sensex settled 248 points lower at 39,502, while the Nifty50 lost 68 points to end at 11,861. Foreign institutional investors (FIIs) sold shares worth Rs 304 crore on a net basis in the cash market, while domestic institutional investors (DIIs) sold shares worth Rs 190 crore.

4. Crude Oil: Brent crude futures, the international benchmark for oil prices, were up 3 cents at $69.48 a barrel. US West Texas Intermediate (WTI) crude futures were up 19 cents, or 0.3 percent, at $59 a barrel by 0023 GMT.

5. Rupee & Dollar Index: The Indian rupee closed at 69.83, up 0.20 percent against the US dollar from its previous close. While, the dollar index, which tracks the U.S. currency against a basket of six other major currencies, fell 0.04 percent to 98.1070.

6. CEA On Solvency Issues: Chief Economic Advisor Krishnamurthy Subramanian said the issue of solvency is at the core of the problems afflicting the non-bank lenders. He said the "crux" of the problem is the asset liability mismatch, where lending institutions borrowed short for creating long term assets. For a market economy, he said the legal framework forms the bedrock for all the transactions and has to be made stronger. (stock image)

7. RBI On Housing Finance Securitization Market: The Reserve Bank of India (RBI) on Wednesday constituted a committee to review the existing state of mortgage securitisation in India and suggest measures to deepen it. The panel would also suggest specific measures for facilitating secondary market trading in mortgage securitisation instruments, such as broadening investor base, and strengthening market infrastructure.

8. NCLAT To IL&FS On Debt Paying: The National Company Law Appellate Tribunal (NCLAT) has asked IL&FS group companies, which are being upgraded to 'green' category, to start servicing their debts as per the payment schedule. The NCLAT also said that if 'amber' listed companies are not reclassified into 'green' category, then it may pass an order directing such companies to pay 100 percent of their obligations towards provident and pension funds, and rest other creditors would get on "proportionate basis".

9. Goldman Sachs On RBI Repo Rate: The Reserve Bank of India may leave repo rate unchanged next week due to uncertainty over oil prices, monsoon, weak transmission of monetary policy and on expected pick-up in inflation, according to Goldman Sachs report.

10. DPIIT Proposal On National Retail Policy: The Department for Promotion of Industry and Internal Trade (DPIIT) has proposed to formulate a national retail policy to support growth of domestic trade, an official said. "A national retail policy will be formulated to support development of the sector that would benefit 65 million small traders," the official said. The department is already in the process of formulating guidelines on e-commerce and, hence, it would be appropriate for the ministry to come out with norms for retail trade, the official added.