10 things you need to know before the opening bell on November 26

SUMMARY

The Indian market is set to open in the green on Tuesday, following global markets that surged as trade talks between the US and China gained momentum. The Sensex ended at a record high on Monday while the Nifty50 is only 30 points away from its lifetime high. At 6:57 am, the SGX Nifty was trading 17.50 points or 0.14 percent higher at 12,124.50, indicating a positive start for the Sensex and Nifty50.

By CNBC-TV18Nov 26, 2019 7:14:37 AM IST (Updated)

1. Asia: Asian stocks rose on Tuesday as an apparent olive branch from Beijing in trade talks with Washington added to other recent signs of progress, fuelling a rally in Wall Street's main benchmarks to record highs. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent. Australian shares were up 0.59 percent, while Japan's Nikkei stock index rose 0.78 percent.

2. US: Each of Wall Street's three major averages kicked off the trading week with record closes on Monday as signs pointed to progress between the United States and China on a trade truce, while a round of merger deals also helped buoy sentiment. The Dow Jones Industrial Average rose 189.77 points, or 0.68 percent, to 28,065.39, the S&P 500 gained 23.29 points, or 0.75 percent, to 3,133.58 and the Nasdaq Composite added 112.60 points, or 1.32 percent, to 8,632.49.

3. Markets At Close On Monday: Indian shares ended higher on Monday with Sensex at record closing high and Nifty just 30 points away from its all-time high, led by metals, banks, and real estate stocks. The Sensex ended 530 points high at its record closing high 40,889, as against its previous closing high of 40,653.74, hit on November 7, while, the Nifty50 index settled 159 points higher at 12,074. Meanwhile, the foreign institutional investors bought Rs 961 crore in the cash market while domestic institutional investors sold Rs 214 crore.

4. Currency: The Indian rupee on Monday slipped 3 paise to close at 71.74 against the US dollar due to fag-end dollar buying by banks and importers. Rising crude prices and strengthening dollar overseas also weighed on the rupee sentiment, forex dealers said. At the interbank foreign exchange, after a positive opening at 71.68, the rupee pared all its gains to slip in negative territory against the dollar. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.01 percent to 98.27.

5. Crude Oil: Oil prices edged higher on Monday as positive comments from the United States and China rekindled hopes in global markets that the world's two largest economies could soon sign an interim deal to end their trade war. Brent crude futures ended the session up 26 cents, or 0.4 percent at $63.65 a barrel while West Texas Intermediate (WTI) crude settled up 24 cents or 0.4 percent at $58.01.

6. Moody's On NBFCs' Bankruptcy Provisions: To allow bankruptcy proceedings against non-banking financial companies (NBFCs) is positive for banks as it paves the way for an orderly resolution of stressed shadow banks, says a report. The government recently empowered RBI to refer stressed NBFCs and HFCs with assets worth of at least Rs 500

crore to insolvency courts after notifying Section 227 of the Insolvency and Bankruptcy Code. Prior to this, the only resolution framework available for stressed NBFCs was liquidation and with this DHFL is set to become the first HFC to go to a bankruptcy court.

"Inclusion of NBFCs into the bankruptcy code is credit positive for banks (NBFCs' biggest source of funds) because IBC provides for the orderly resolution of a stressed NBFC

company," rating agency Moody's said in a report on Monday.

7. Finance Minister Introduces Taxation Laws: Finance Minister Nirmala Sitharaman on Monday introduced the Taxation Laws (Amendment) Bill, 2019, in the Lok Sabha to replace the Ordinance that was used to slash corporate tax rate to stimulate growth rate in a slowing economy. The Taxation Laws (Amendment) Bill, 2019 will replace the Taxation Laws (Amendment) Ordinance, 2019, promulgated on September 20, 2019, to cut the base corporate tax rate to 22 percent from 30 percent. Besides reduction in corporate tax rates for existing and new domestic companies, the Ordinance also implemented the withdrawal of higher surcharge for non-corporates on certain capital market transactions announced earlier on August 24, 2019, and also provides relief from buyback tax for listed companies in respect of buybacks which were publicly announced prior to the Budget announcement on July 5, 2019.

8. CoS On Telecom Bailout Package: With the Cabinet allowing telecom operators to defer payments due for airwaves bought via auction until the end of March 2022, a committee of secretaries constituted to look at relief package for the debt-laden and loss-making sector has been wound-up, a top source said. The Committee of Secretaries under Cabinet Secretary Rajiv Gauba was last month constituted to examine "all aspects" of "financial stress" faced by service providers such as Bharti Airtel and Vodafone-Idea Ltd and suggest measures to mitigate them. The panel was constituted shortly after the Supreme Court upheld the government's position on including revenue from non-telecommunication businesses in calculating the annual adjusted gross revenue (AGR) of telecom companies, a share of which is paid as licence and spectrum fee to the exchequer. The source replied in affirmative when asked if the CoS has been disbanded now.

9. Nitin Gadkari On MSMEs: The government is in the process of launching 'Digital data-based credit ratings' of Micro, Small and Medium Enterprises (MSME), to help entrepreneurs to get bank loans on the basis of these credit ratings, Union Minister Nitin Gadkari said. He emphasized on building credibility by MSME's by timely payment of loans and pitched for setting up more small scale businesses in rural areas. The Minister assured all support from the MSME ministry. Timely payment of taxes and loans will ensure good credit ratings and the concerned MSME will get digital data-based credit ratings, he said.

10. IRDAI On Vehicle Depreciation Calculation: Irdai on Monday proposed vehicle new age-based depreciation formula for computing sum insured for motor vehicles, including private cars and two-wheelers. A working group on 'Product Structure for Motor Own Damage cover' set up by the regulator has recommended two options for calculating sum insured for private cars. For brand new private cars up to 3 years, the sum insured "shall represent the current day on-road price of the vehicle insured including invoice value, road tax & registration charges and value of all accessories fitted thereon by the manufacturer", the exposure draft based on the recommendations of the working group said. Beyond seven years, the sum insured could be negotiated with the insurer. According to the second option, the sum insured (refers to the percentage of vehicle's current manufacturer listed price) would decrease from 95 percent for up to six months to 40 percent for up to 7 years.