10 things you need to know before the opening bell on October 12

SUMMARY

The Indian share market is expected to open higher on Monday after sentiment in US appears to reflect Trump administration's growing desire for some sort of fiscal aid ahead of the 2020 US elections. At 7:35 am, the SGX Nifty traded 65 points higher to 12,013, indicating positive start for the Sensex and the Nifty50.

By CNBCTV18.comOct 12, 2020 7:46:24 AM IST (Published)

1. Asia: Stocks in Asia-Pacific were mixed in Monday morning trade, as investors watch movements in the Chinese yuan. In Japan, the Nikkei 225 slipped 0.44 percent while the Topix index shed 0.43 percent. South Korea’s Kospi, on the other hand, rose 0.22 percent as shares returned to trade following a Friday holiday Meanwhile, shares in Australia were lower, with the S&P/ASX 200 down 0.11 percent. MSCI’s broadest index of Asia-Pacific shares outside Japan traded about 0.1 percent higher, reported CNBC International.

2. US: U.S. stock futures dipped on Sunday evening as investors prepared for a busy week of corporate earnings and monitored stimulus negotiations in Washington. Futures for the Dow Jones Industrial Average and the S&P 500 lost about 0.2 percent, while those for the Nasdaq 100 were flat. The weakness in futures follows a strong week for the stock market. The Dow jumped 3.3 percent to post its biggest one-week gain since August, while the S&P 500 and Nasdaq Composite gained 3.8 percent and 4.6 percent, respectively, for their best weeks since July, reported CNBC International.

3. Market At Close On Friday: Indian shares ended higher on Friday led by gains in financials after the Reserve Bank of India (RBI) kept interest rates unchanged at 4 percent in the face of high inflation, while also retaining its accommodative stance. The Sensex ended 327 points higher at 40,509 while the Nifty rose 79 points to settle at 11,914. For the week, the indices ended over 4 percent higher. Post the policy, the banking and financial indices surged on liquidity boosting measures. The Nifty Bank surged 2.8 percent while the Nifty Fin Services jumped 1.8 percent.

4. Crude Oil: Oil prices eased on Friday after an oil worker strike in Norway ended, which should boost output, even though production was still down in the United States ahead of a hurricane. Brent futures fell 49 cents, or 1.13 percent, to settle at $42.85 per barrel, while West Texas Intermediate crude settled 59 cents, or 1.4 percent, lower at $40.60 per barrel. Both contracts are on track for weekly gains of about 10 percent this week, the first rise in three weeks, reported CNBC International.

5. Rupee Close: Extending gains for the third straight day, the rupee ended higher on Friday after RBI maintained a status quo on key policy rates. The Indian rupee ended at 73.13 against the US dollar as compared to previous close of 73.24.

6. US NSA To India On LAC: China has attempted to "seize" control of the Line of Actual Control (LAC) with India by force as part of its territorial aggression, US' national security advisor has said, underlining that time has come to accept that dialogue and agreements will not persuade Beijing to change. "CCP's (Chinese Communist Party) territorial aggression is also apparent on its Indian border where China has attempted to seize control of the Line of Actual Control by force," US National Security Advisor Robert O'Brien said in a remark on China early this week in Utah. The India-China border dispute covers the 3,488-km-long LAC. China claims Arunachal Pradesh as part of southern Tibet, while India contests it. The Chinese territorial aggression is also true in the Taiwan Strait where the PLA (People's Liberation Army) Navy and Air Force continue to conduct threatening military drills, O'Brien said.

7. Centre On Waiver Plan Via Scheme: The Narendra Modi government on Friday has informed the Supreme Court that interest on interest waiver will be done via a scheme by the lenders which will be issued on or before November 15. However, the Centre told the Supreme Court that petitioners can’t seek any further interest waiver especially sector-specific relief as courts should be wary of judicially deciding discal management issues. In an affidavit filed by the union finance ministry on behalf of the union of India, it said the decision to waiver interest on interest can mature into an office memorandum, circular, and order after due process. Later, the lenders can give relief first in the account of the respective borrowers and then has to approach the Centre for reimbursement, the affidavit said.

8. RBI To SC On Moratorium: Aloan moratorium exceeding six months might result in vitiating the overall credit discipline, which will have a debilitating impact on the process of credit creation in the economy, the Reserve Bank of India (RBI) has told the Supreme Court (SC). In an affidavit filed in the apex court in the loan moratorium case, the RBI has said that a long moratorium period could impact credit behaviour of borrowers and increase the risks of delinquencies post resumption of scheduled payments. The banking regulator fled the affidavit in pursuance to the apex court's October 5 order asking the Centre and the RBI to place on record the K V Kamath committee recommendations on debt restructuring because of COVID-19 related stress on various sectors as well as the notifications and circulars issued so far on loan moratorium.

9. SEBI On Listed Companies' Audit: In order to address the gaps in availability of information, markets regulator Sebi has asked listed companies to make disclosures about initiation of forensic audit to stock exchanges. The move comes after Sebi’s board last month approved a proposal in this regard. The listed entities will make disclosures about the fact of initiation of forensic audit along with the name of the entity initiating such audit and reasons for the same, if available, to stock exchanges, Sebi said in a notification issued on Thursday. Further, the companies will be required to disclose about final forensic audit report, other than for forensic audit initiated by regulatory or enforcement agencies, on receipt by the listed entity, along with comments of the management, if any. In addition, Sebi has made certain changes in rules for listed entities, which list their non-convertible debt securities, with regard to maintenance of asset cover and intimation about documents to debenture trustees.

10. FPIs Buying In October: Foreign portfolio investors (FPI) have invested Rs 1,086 crore on a net basis so far in October in Indian markets, tracking encouraging factors including improved GST collection, acceleration in economic activity and positive global cues. According to the depositories data, overseas investors pumped in a net Rs 5,245 crore into equities and withdrew Rs 4,159 crore from the debt market during October 1-9. This translated into a total net inflow of Rs 1,086 crore. In September, FPIs were net sellers at Rs 3,419 crore.