 "10 things to know before the opening bell")
Global market cues
US stocks rose by the most in nearly two weeks on Tuesday after data showed business investment and the housing recovery continued apace, reassuring investors worried about the Federal Reserve’s plans to reduce its massive monetary stimulus. (Reuters)
Asian shares edged higher to reverse a four-day losing streak on Wednesday as investors took comfort from firm US data underscoring an American recovery, and assurances from China’s central bank to provide funds to institutions if needed.(Reuters)
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Reuters[/caption]
Gold fell for a seventh session out of eight on Wednesday as strong US economic data boosted stocks and supported the Federal Reserve’s plan to scale back its bond purchases in the next few months. Spot gold was down nearly 0.1 percent to $1,275.71 an ounce by 5:40 a.m, sitting near three-year lows seen on Friday. US gold rose slightly to $1,275.30.(Reuters)
Stock in the news
Bajaj Auto, after the company said that workers at its Chakan unit is striking following the management’s refusal to allot them shares at discounted price.
Jet Airways, after a report in the Economic Times that its deal with Etihad may be stuck as the Civil Aviation Ministry has opposed the large presence of foreigners on the domestic company’s board and key committees.
Telecom companies, as the empowered group of ministers is likely to consider todaylowering of reserve price for the next round of spectrum auction.
Gold loan companyMuthoot Financesaid it has got in-principle approval from the Reserve Bank to set up White-Label ATMs in the country.
Economy/ policy news
Terming the sudden outflow of $5 billion as “unfortunate”, Finance Minister P Chidambaram said there should, however, be no room for pessimism as fundamentals of the economy are intact and government is moving ahead on the reforms path. The Minister further said the government will take a call on revising the FDI caps in different sectors in the second or third week of July.
The Reserve Bank tightened norms for lending againstgoldcoins as well as units of gold ETFs and mutual funds by Regional Rural Banks (RRBs) in a bid to curb demand.
With an aim to attract a larger number of foreign investors to Indian capital markets, Sebi approved wide-ranging changes in the way they operate and made their registration and compliance requirements much simpler and easier. The Sebi board also approved merging different classes of investors such as FIIs, their sub accounts and qualified foreign investors (QFIs) into a new category, foreign portfolio investors (FPIs), to put in place a simplified and uniform set of entry norms for them.