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

SUMMARY

Indian shares are expected to open lower on Wednesday as SGX Nifty, an indicator of the opening for the Sensex and the Nifty, traded lower by 23 points or 0.19 percent at 6:55 AM, hinting at a negative start for the domestic market. We bring to you the 10 vital things to know before the opening bell.

By CNBC-TV18Nov 6, 2019 7:20:04 AM IST (Published)

1. Asia: Asian shares were little changed on Wednesday as investors awaited new developments toward scaling back a bruising trade war between the United States and China. MSCI's broadest index of Asia-Pacific shares outside Japan was unchanged. Australian shares were up 0.14 percent, while Japan's Nikkei stock index rose 0.35 percent.

2. US: The benchmark S&P 500 edged lower on Tuesday, as investors paused in the wake of a rally buoyed by hopes of a trade deal between the United States and China that sent the three main U.S. stock indexes to record highs in the previous session. The Dow Jones Industrial Average rose 30.52 points, or 0.11 percent, to 27,492.63, the S&P 500 lost 3.65 points, or 0.12 percent, to 3,074.62 and the Nasdaq Composite added 1.48 points, or 0.02 percent, to 8,434.68.

3. Markets At Close On Tuesday: Indian shares ended the volatile session on a mildly lower on Tuesday, snapping seven sessions of gains. Gains in index heavyweights like Bajaj Finance, ITC, and HDFC Bank capped major losses in all the other indices. Overall, market breadth turned in favour of declines with the advance-decline ratio at 2:3. The Sensex ended the day 54 points lower at 40,243, while the broader Nifty50 index lost 24 points to end the day at 11,917. Meanwhile, foreign institutional investors bought 473 crores in the cash market while domestic institutional investors sold 1,594 crores.

4. Crude Oil: Oil prices rose more than 1 percent on Tuesday on hopes for a U.S.-China trade agreement and optimism that Washington could roll back some tariffs on Chinese imports. Brent crude futures rose 83 cents, or 1.3 percent, to settle at $62.96 a barrel. U.S. West Texas Intermediate (WTI) crude futures ended 69 cents, or 1.2 percent, higher at $57.23 a barrel.

5. Currency: The rupee gained 8 paise to close at a fresh five-week high of 70.69 against the US dollar on Tuesday following foreign fund inflows and gains in Asian peers after the Chinese central bank cut interest rates. The rupee opened lower at 70.80 per US dollar compared to the previous close of 70.77 at the interbank foreign exchange market. Later, it recovered some lost ground and moved in a range of 70.65 and 70.81 in afternoon trade before concluding at 70.69, showing a rise of 8 paise.

6. India's M&A Deals To Rise: India is expected to see M&A deals of over USD 52 billion in 2019 as mergers and acquisitions in the country are expected to remain stable despite global headwinds, according to a new report by Baker McKenzie. "Despite the global headwinds, India M&A is expected to remain stable in the next few years, with private investments reviving against the backdrop of a more favourable business environment," it said. The firm's fifth annual Global Transactions Forecast, jointly released with Oxford Economics, predicts India's GDP will grow by close to 7 percent through 2019-2022, ahead of the global GDP average growth rate of 2.8 percent for the same period. India M&A to remain stable despite a slowdown, it said. "India dealmaking activity is expected to revert to the 'normal' level in 2019, with total M&A reaching USD 52.1 billion." (Stock Image)

7. Survey On Companies' Growth In 2020: Despite global uncertainty and the rising headwinds the economy has been facing for many quarters, almost all domestic companies are optimistic about their growth next year, claims a report. Companies are buoyant about the prospect of entering new markets, getting high-quality suppliers and plans to invest in technologies that will pave the way for new products and services, says an HSBC report released on Tuesday. The report also claims that nearly all of those polled --as much as 96 percent-- are expecting higher growth next year, markedly higher than global and Asian peers (79 percent and 77 percent, respectively).

8. Finance Minister Hints At Booster Dose For Realty: Finance minister Nirmala Sitharaman on Tuesday said the government and Reserve Bank are working to resolve the issues being faced by realty sector. Admitting that realty sector has been left out of the booster measures announced earlier, she said the sector has a spillover effect on many sectors, especially the core sector. "The government is very keen and is working very clearly together with the RBI to see how best we can, where necessary, tweak the existing norms to help the people who are affected in the realty sector," she said at an NSE event. She said many funds are ready to invest but want more policy support. (Image; Reuters)

9. India's Sugar Output Likely To Fall: India's sugar output has been pegged lower by 21.5 percent to 26 million tonnes for the ongoing marketing year considering possible fall in cane acreage in Maharasthra and Karnataka as well as a diversion to ethanol manufacturing, according to industry body ISMA. Mills will soon commence crushing operation, the industry body said and added that a better picture would emerge once the crushing starts fully and the actual trend of yields and sugar recoveries becomes available. According to the ISMA, mills produced 33.16 million tonne of sugar during the 2018-19 marketing year, of which sales were 25.5 million tonne. "The fact that we did not have normal rainfall, sugar production during the current 2019-20 is expected to be lower than what was expected about four months back," Indian Sugar Mills Association (ISMA) said while releasing the first estimate.

10. India To See 10 Percent Salary Hike: As the economy continues to falter, salaries in India are projected to rise 10 percent in 2020, says a report. In 2019, the effective wage increase was 9.9 percent which is projected to touch 10 percent next year. While salary increases are stabilizing around the 10 percent mark, they remain the highest in the Asia Pacific region, according to the Salary Budget Planning Report released by Willis Towers

Watson. Indonesia is projected at 8 percent, China at 6.5 percent, the Philippines at 6 percent, Hong Kong and Singapore both at 4 percent.