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ETMarkets Morning Podcast (ETMarkets.com)

FM offers no relief to FPIs; Fed officials cement rate cut hopes & more

04:54 Min | July 19, 2019, 9:08 AM IST
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Transcript
Hello There! Good Morning. This is Tanisha Sharma from ETMarkets.com, and here is all the news you need to start your day

The Headlines:

> Sebi throws a spanner in minimum public float proposal

> ADB cuts India's FY20 growth estimate for second time

> Fed officials almost cement rate cut hope

> FM says firm no to withdrawal of I-T surcharge on FPIs

And We have more. Stay with us.

Let’s first have a quick glance at how the markets are looking like...it does look like a promising start is on the cards today.

> Asian stocks gained this morning. Australian stocks added 0.4%, KOSPI rose 0.8% and Nikkei advanced 1%

> In overnight trade, US stocks finished stronger on Thursday, snapping a two-day losing streak. The Dow closed just 3 points higher. The S&P 500 and the Nasdaq finished 0.4% and 0.3% higher.

> BACK HOME, LOOKS LIKE NIFTY IS HEADING FOR A GOOD START

Nifty futures on Singapore Exchange traded 40 points higher at 7 am (IST), signalling a positive start for Dalal Street.

>> IN THE CURRENCY MART

The rupee depreciated by 15 paise to close at 68.97 against the US dollar on Thursday, amid heavy selling in domestic equities and rising crude oil prices.

LET ME NOW quickly GO OVER the top news we are tracking this morning.

Sebi has told the government that it would be difficult to implement the Budget proposal to raise minimum public shareholding of listed companies to 35 per cent from 25 per cent when PSU companies have been laggards in meeting even the current 25% norm. It could lead to a conflict of interest with the regulator having to enforce the shareholding cap and PSUs seeking delays and exemptions for various reasons

A top Fed official on Thursday all but cemented expectations of a US interest rate cut later this month. New York Fed President John Williams said policymakers need to add stimulus early to deal with too-low inflation and cannot wait for economic disaster to unfold

Finance minister Nirmala Sitharaman stuck to her Budget proposal and declined to relent on the demand by foreign portfolio investors structured as trusts that they be exempted from a higher surcharge. She said they should adopt a company structure in order to avoid the surcharge.

The Asian Development Bank has trimmed India’s growth forecast for the current financial year to 7% from 7.2% estimated earlier, as the fiscal 2018 outturn fell short. In April, the bank had lowered India’s growth forecast for 2019-20 to 7.2% from 7.6%, owing to moderation in global demand and likely shortfall in revenue on the domestic front.

Hope springs for the auto industry which has been going through a long slump. Even as carmakers witnessed a 10% decline in sales between January and June this year, SUV sales have shrunk by a much more modest at 1.8 per cent. New launches of MG Hector, Hyundai Venue, Kia Seltos, Mahindra XUV 300 and Tata Harrier have been greeted with enthusiasm by prospective customers.

NOW, LET’S HAVE A QUICK LOOK AT SOME OF THE TOP CORPORATE NEWS THIS MORNING

>> The resolution professional in charge of Jet Airways has received claims worth close to Rs 25,000 crore, and has so far accepted only about one-third of the claims from financial creditors

>> Mindtree founders have assured AM Naik, who took charge as Mindtree’s non-executive chairman on Wednesday, to stay on to stabilise and grow the business at the mid-tier IT firm

>> Brokerages have slashed target prices on Yes Bank by as much as 60% after the private sector lender reported weak asset quality for the June quarter.

>> Vodafone Idea has hired Bank of America and Morgan Stanley to help sell its fibre assets as India’s largest mobile carrier by users seeks to bolster its finances

>> Toothpaste giant Colgate Palmolive posted a 4% rise in new sales in April-June quarter at Rs 1075.9 crore while net profit grew 5% to Rs 169.1 crore.

LASTLY,

Crude oil prices rose more than 1% on Friday after the US Navy destroyed an Iranian drone in the Strait of Hormuz. Brent futures rose 82 cents to $62.75 while WTI futures firmed 61 cents at 55.91.

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