 "10 things you should know before the opening bell")
Global cues:
US stocks lost ground on Monday, with each of the major indexes falling for a fourth straight session, as investors were hesitant to make new bets ahead of an expected shift in Federal Reserve policy that could lead to higher interest rates.
Asian stocks opened lower on Tuesday under a cloud of uncertainty about when the US Federal Reserve will start to reduce its stimulus, which pushed up yields on US Treasuries to two-year highs.
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The euro inched higher versus the yen on Tuesday, but stayed below a two-week high set the previous day as a retreat in risky assets lent support to the Japanese currency. The Indian rupee plummeted to a record low against the dollar on Monday, leading a rout by Brazil’s real and other emerging market currencies seen by investors as the most vulnerable to an exodus of foreign capital.
Gold fell on Monday, snapping a three-day winning streak, as rising U.S. bond yields signal the U.S. Federal Reserve could be moving closer to reducing monetary stimulus next month, analysts said.
strong>Business/ Stock news:
The INR weakness is feeding to equities and bonds with the Sensex and Nifty down by more than 4 percent each while the 10-year benchmark bond yield trades at over five-year highs. The BSE Sensex closed almost 300 points lower on Monday at 18,307. The BSE Sensex has lost 1000 points in the last two trading sessions alone.
The National Spot Exchange (NSEL) affair got murkier on Monday as regulator FMC cast doubts on its management and charged that the crisis-ridden spot exchange is not complying with its directions and providing wrong information in the case involving Rs 5,600 crore dues to investors. Meanwhile, investors hit by the payments crisis at the NSEL are keenly awaiting the first payout by the exchange on Tuesday before deciding on taking any legal action.
Companies will high foreign debt will be in focus today due to the falling rupee.
IT services major Infosys has appointed Ranganath D Mavinakere, Binod Hampapur Rangadore and Nithyanandan Radhakrishnan as members to its Executive Council, the high level body that frames business strategy for the company.
Economy news:
India is panicking on the rupee (INR) and that is feeding panic into the currency markets that, in turn, is taking the INR to all-time lows. The INR crossed all-time lows of Rs 63.13 to the US dollar post India’s actions on capital controls.
Moody’s reiterated its stable outlook on India’s Baa3 sovereign rating, Bloomberg said, citing analyst Atsi Sheth. India’s rating is supported by low levels of overseas government debt and adequate reserves for balance of payments needs in the near term, Sheth said in an email to Bloomberg.