10 things you need to know before the opening bell on September 18

SUMMARY

Indian shares are likely to open higher on Wednesday as falling crude oil prices eased inflationary and trade deficit concerns. At 7:00 am, the SGX Nifty futures traded higher by 0.43 percent, or 46.50 points, at 10,888.50, indicating a positive start for the Sensex and the Nifty.

By CNBC-TV18Sept 18, 2019 7:48:01 AM IST (Updated)

1. Asia: Oil prices cooled on Wednesday as Saudi Arabia said the kingdom had fully restored its oil supply following attacks on its crude facilities although caution ahead of an expected US interest rate cut kept wider financial markets in tight ranges. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.05 percent while Japan's Nikkei slid 0.03 percent.

2. US: Wall Street ended higher on Tuesday as the impact of weekend attacks on Saudi Arabia's biggest oil refinery faded and investors awaited a widely expected Fed interest rate cut on Wednesday. The Dow Jones Industrial Average edged up 0.12 percent to end at 27,109.03 points, while the S&P 500 gained 0.26 percent to 3,005.61. The Nasdaq Composite added 0.4 percent to 8,186.02.

3. Markets at close on Tuesday: Indian shares plummeted 642 points as investors weighed India's fiscal worries due to soaring crude prices in the wake of growing geopolitical tensions in the Middle East. The Sensex ended 642 points lower at 36,481, while the broader Nifty50 index lost 186 points to end the day at 10,818. Meanwhile, foreign institutional investors sold Rs 808 crore in the cash market while domestic institutional investors bought Rs 86 crore. The Indian rupee on Tuesday weakened by another 18 paise to settle at 71.78 against the US dollar as investors fretted over higher crude oil prices.

4. Crude Oil: Brent crude futures fell 0.64 percent to $64.14 a barrel while U.S. West Texas Intermediate (WTI) crude lost 0.78 percent to $58.88 per barrel.

5. GST Council Meeting On Friday: The GST Council will take up a host of issues when it meets on Friday and on top of the agenda will be recommendations made by the GST Council's Fitment Committee. According to sources, the committee has rejected the proposal to cut GST on biscuits and for the auto sector. CNBC-TV18 had reported earlier this month that the committee had expressed its reservations on such a move saying that this would reduce the government's revenues by Rs 50,000 crore every year. Now, the rate fitment committee has formally in writing expressed its view saying that they do not believe a cut is warranted. (Representational Image)

6. Finance Ministry On Reinvigorating Economy: The finance ministry is working on one more booster dose to give a leg-up to the economy that has hit over the six-year low of 5 percent, a senior finance ministry official said. Earlier this week, RBI Governor Shaktikanta Das had said the government has taken a number of measures to boost the economy in three phases and indicated that more steps are likely. "I think with right measures taken, things should improve. It's a positive trend that the government is responding fast and I don't think we have heard the last from the government with regard to dealing with the current economic situation... My expectation is that it will be a continuous process and they would definitely be dealing with other challenges," he had said.

7. Petrol, Diesel Prices Rise Post-Budget: Petrol and diesel prices on Tuesday saw the biggest hike since July 5 Budget as India voiced concern over a spike in global oil prices following attacks on Saudi Arabian crude oil facilities. Petrol price was increased by 14 paise per litre to Rs 72.17 and diesel by 15 paise to Rs 65.58 per litre in the national capital, according to price information available from state-owned oil firms. This increase is the biggest single-day hike since the July 5 maiden Budget of Finance Minister Nirmala Sitharaman that raised rates by almost Rs 2.50 a litre due to an increase in excise duty on fuel.

8. Mutual Funds Becomes Cheaper: Investing in mutual funds has become less expensive in India due to several investor-friendly measures taken by the markets regulator Sebi, including a ban on upfront commissions as well as front loads and a cap on expenses charged from investors, according to a report by Morningstar India. The steps taken by Sebi has helped in improving India's fees and expenses grade to 'average' from 'below average'. Average grade is driven by the combination of a globally competitive and relatively lower asset-weighted median for fixed-income funds, which reflects traction in commission-free share classes and relatively higher asset-weighted medians in allocation funds and equity schemes. (Representational Image)

9. NITI Aayog Chief On Agriculture: ) Structural reforms in agriculture and exports are needed to bring growth rate back to higher levels, Niti Aayog chief executive Amitabh Kant said Tuesday. He also said the fundamentals of the economy are intact which will help the government take back the economy to the higher growth trajectory soon despite the global slowdown. "If we have to grow at a higher rate of 9-10 percent for a long period, we need to take structural reforms in agriculture and exports," Kant told a function.

10. Government's Fund For Housing Sector: The Rs 20,000 crore fund created by the government may help in completion of up to 2.5 lakh housing units across seven major cities, property consultant Anarock on Tuesday said. In the fund, Rs 10,000 crore will be contributed by the central government and roughly the same amount will come from outside investors. The government had said that this fund will help complete an estimated 3.5 lakh units across the country. "After considering these caveats, nearly 2.5 lakh units...can avail relief from the government's aid in the top 7 cities alone. However, since data for projects under NPAs is not available, there could be a further dip in these numbers," Anarock Chairman Anuj Puri said in a statement. (Representational Image)