10 things you need to know before the opening bell on November 13

SUMMARY

Indian shares are expected to open lower on Wednesday in line with global markets and amid growing concerns of slowing economic activities in India. Shares in Asian and US markets declined due to lack of progress in the US-China trade negotiations. Investors are also cautious ahead of retail inflation data due today, which is expected to surpass the RBI’s target. At 7:10 AM, the SGX Nifty futures traded 31 points, or 26 percent, lower at 11,913.50, indicating a negative start for the Sensex and the Nifty50.

By CNBC-TV18Nov 13, 2019 7:17:19 AM IST (Published)

1. Asia: Asian stocks and Wall Street futures fell on Wednesday on growing worries US-China trade talks are stalling after President Donald Trump failed to deliver any new information about when the two countries would sign a trade deal, reported Reuters. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.2 percent. Australian shares were down 0.17 percent, while Japan's Nikkei stock index slid 0.38 percent.

2. US: Wall Street continued its run to record highs on Tuesday, led by strong gains in amid remarks from President Donald Trump, who hinted at Chinese enthusiasm for a trade deal. The S&P 500 climbed 0.2 percent to 3,091.84, hitting a fresh intraday record. The Nasdaq Composite advanced 0.3 percent to 8,486.09, notching intraday and closing records. The Dow Jones Industrial Average, meanwhile, closed completely unchanged at 27,691.49 after coming within a whisker of hitting an all-time high.

3. Markets At Close On Monday: Indian shares ended flat after a volatile trade on Monday after Moody’s Investors Service cut its rating outlook for the country last week and as the absence of fresh triggers kept markets range-bound. The Sensex gained 200 points from lows to end with minor gains of 21 points at 40,345, while the broader Nifty50 index added 5 points but more crucially held onto the 11,900 peak closing at 11,913. Meanwhile, foreign institutional investors bought 664 crores in the cash market while domestic institutional investors sold 245 crores.

4. Crude Oil: Oil prices rose about 1 percent on Tuesday as markets from stocks to bonds to commodities were supported by hopes that U.S. President Donald Trump may signal progress on trade talks with China. Brent crude, the global benchmark, was up 67 cents, or 1.1 percent, at $62.85 a barrel by 10:41 a.m., after falling as low as $61.90. West Texas Intermediate (WTI) crude rose 68 cents, or 1.2 percent, to $57.54.

5. Currency: The rupee on Monday tumbled by 19 paise to a near one-month low of 71.47 against the US dollar as fresh concerns over US-China trade deal and Hong Kong unrest kept forex market participants edgy. Investors also played their bets cautiously in view of India's rating outlook cut by Moody's Investors Services last week. Opening marginally lower, the Indian currency dropped to a low of 71.54 to the US dollar before settling at 71.47, showing a fall of 19 paise. This is the lowest closing level for the domestic unit since October 15.

6. Moody's Cuts Global Sovereign Rating: Rating agency Moody's has cut its global sovereign outlook for 2020 to 'Negative' from 'Stable' saying disruptive and unpredictable world politics would slow growth and increase the risk of economic or financial shocks. Moody's, which has already slapped downgrade warnings on Britain, South Africa, India, Mexico, Turkey, and Hong Kong, said that there were three main drivers behind the move. The increasingly antagonistic environment was also likely to damage global and national institutions, which together with lower growth, raises the probability of crises but reduces the capacity to deal with them.

7. Sadananda Gowda On Chemicals Industry: Union minister for chemicals and fertilizers Sadananda Gowda on Monday said the sector has the potential to contribute over USD 300 billion to GDP over the next five years when the economy is slated to scale the USD 5-trillion-mount. The chemicals and fertilizers sector, which currently contributes nearly 7.76 percent of manufacturing now, has the potential to reach 20-25 percent in the next five years and can nearly double to USD 304 billion, he said. With per capita income steadily increasing, the mid-income population presents a huge market. It is expected that the chemical industry will grow at 9 percent annually over the next five years," Gowda said. (Stock Image)

8. PV Sales Rises Marginally, SIAM Data: Passenger vehicle sales in India rose marginally in October aided by positive festive season sentiment and introduction of new models in utility vehicle space, just about managing to snap 11 continuous months of decline in sales, auto industry body SIAM said on Monday. Society of Indian Automobile Manufacturers (SIAM) expressed hope that the positive sentiment would continue in November and December as well, thus helping the industry "slowly come out of the slowdown". According to the latest data by SIAM, passenger vehicle (PV) sales during October increased by 0.28 percent to 2,85,027 units, from 2,84,223 units in the year-ago period.

9. India's Industrial Production Declines: In signs of continuing weakness in the economy, India's factory output shrank to the lowest level in eight years as all three broad-based sectors of capital goods production, consumer durables, and infrastructure and construction goods contracted. The Index of Industrial Production (IIP) fell 4.3 percent in September as compared to a contraction by 1.4 percent in August 2019 and a growth of 4.6 percent in factory output in the same month a year back, data released by the Ministry of Statistics showed on Monday. The second straight month of contraction has taken the IIP to its lowest level since it shrank by 5 percent in October 2011. On a quarterly basis, the second quarter of 2019-20 fiscal (July-September) saw IIP contracting by 0.4 percent (Q1 3 percent expansion and 5.3 percent growth in Q2 FY19). Image: Reuters)

10. India's GDP Likely To Grow This Fiscal: An SBI research report on Tuesday sharply cut the country's GDP growth forecast to 5 percent for FY 2019-20 from the earlier projection of 6 percent. The second-quarter GDP growth rate is likely to slip to 4.2 percent on account of low automobile sales, deceleration in air traffic movements, flattening of core sector growth and declining investment in construction and infrastructure, according to Ecowrap -- the report from the Economic Research Department of State Bank of India (SBI). The report, however, said the economic growth rate will pick up pace in 2020-21 to 6.2 percent. To propel economic growth, it said, the Reserve Bank of India (RBI) may go for "larger rate cuts" in December monetary policy review.