 "10 things you should know before the opening bell")
Global cues:
Asian share markets got off to a soggy start on Tuesday while currencies dithered in recent ranges as a dearth of major economic news left investors to chew on the outlook for monetary policy in the United states and Europe. Taking its cue from a softer Wall Street, MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.4 percent. Returning from holiday, Tokyo’s Nikkei dipped 0.3 percent in very light volumes.
US stocks declined for a third straight session on Monday as Federal Reserve officials suggested the Fed could still begin scaling back its stimulus later this year. A looming political deadline in Washington added to pressure on the market, where losses over the past three sessions have erased the S&P 500’s 1.2 percent gain last Wednesday when the Fed decided against reducing its economic stimulus measures.
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Reuters[/caption]
The dollar slumped for a second straight session against the yen on Monday as an influential Federal Reserve policymaker defended the US central bank’s decision last week to continue its easy money policy. In afternoon trade, the dollar was down 0.4 percent to 98.86 yen. The dollar was flat against a basket of currencies at 80.410, holding above a seven-month low of 80.060 set last week after the Fed kept the pace of its bond-buying stimulus unchanged.
Business/Stock news:
The panel chaired by Economic Affairs Secretary Arvind Mayaram to probe the crisis in the National Spot Exchange Ltd (NSEL) has given its report to the finance minister. According to CNBC-TV18 sources, the report has recommended an inquiry by various bodies into violation of laws by various entities in NSEL - the need to do by the enforcement directorate (ED), income tax (I-T) department and Serious Fraud Investigation Office has been mentioned.
Global rating agency Moody’s today downgraded the senior unsecured debt and local currency deposit rating of country’s largest bank State Bank of India by a notch to ‘Baa3? from ‘Baa2?, citing asset quality and recapitalisation concerns.
Tata Sons rebutted claims that AirAsia had raised any objection to the Tata-SIA JV joint venture. Mukund Rajan, member of Tata Sons GEC and Board Member Tata-SIA JV said they had informed AirAsia about Tata-SIA JV and were were delighted to partner with Singapore Airlines. He told CNBC-TV18 that the question of selling AirAsia India JV stake does not arise.
Fitch Ratings has downgraded Indian Bank’s Long-Term (LT) Issuer Default Rating (IDR) to ‘BB+’ from ‘BBB-’ and its Viability Rating (VR) to ‘bb+’ from ‘bbb-’. Simultaneously, Fitch has downgraded Punjab National Bank’s ( PNB ) and Bank of Baroda’s ( BOB ) volatility ratinn (VR) by one notch to ‘bb+’ while affirming their long term (LT) Issuer Default Rating (IDRs) at ‘BBB-’.
Economy news:
The intrinsic value of the rupee is between 58 and 60 against the dollar, said on Monday, adding that overseas speculators were partly responsible for the sharp fall in the currency over the past few months.