 "10 things you need to know before the opening bell")
Global cues:
Asian stocks rose and gold hit a near three-month high while the dollar nursed losses on Monday, extending a move started late last week when a steep drop in US new home sales tempered expectations the Federal Reserve will soon reduce stimulus.MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.3 percent, adding to Friday’s 0.8 percent gain. Tokyo’s Nikkeiclimbed 0.3 percent.
US stocks rose in light trading on Friday, led by a jump in Microsoft shares, as trading took place without interruption a day after the Nasdaq stock exchange suffered an unprecedented, three-hour trading halt.
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The dollar was broadly steady against its major counterparts in Asia on Monday and near enough to some long-lasting support levels that the decline of the past few weeks suggests a rebound is probably on the cards.
Economy news:
Finance Minister P Chidambaram and other top government officials yesterday held closed-door meetings with top bankers and foreign institutional investors to address their concerns about the country’s economy and explore ways to shore up foreign capital to bridge the widening current account gap.The FM has reassured them that interest rates will not increase and also that the government will come out with steps to attract foreign capital soon, media reports said.
Therupee’s near-term direction against the dollar will decide whether the stock markets would sustain their new-found resilience in the week ahead.
The Reserve Bank of India (RBI) on clarified further on its earlier measure, aimed at reducing bank financial losses due to fall in bond yields.The RBI had allowed banks to hold Statutory Liquidity Ratio (SLR) bonds in the Held to Maturity (HTM) category at 24.5 percent of their respective total deposits or net demand and time liabilities (NDTL). Earlier the RBI had mandated to bring it down to 23 percent from 25 percent “in a progressive manner in a prescribed time frame”.
In the backdrop of the declining value of Indian rupee, Montek Singh Ahluwaliasaid the government has not drawn any red line on the Indian rupee, which he felt has over depreciated.
Business news:
Reliance Jio Infocomm, the telecom arm ofReliance Industries, and a few other players have applied for Unified Licence.
After a Economic Times report that focus is on MCX as NSE has sold its stake and that Kotak Group maybe interested in Financial Technologies’ stake in the bourse.
Rohan Murty, son ofInfosyschairman NR Narayana Murthy who joined the company as an executive assistant to his father, will soon be designated as vice president.