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Market Movers: Uptick in residential realty sales, Trump signals hope of a trade deal

Good morning! Here’s a lowdown on top macro triggers that may move market on February 14, 2019. This report was compiled from agency feeds.

Trump: China trade talks going ‘very well’
US President Donald Trump said on Wednesday trade talks with China were “going along very well” as the world’s two largest economies try to resolve their seven-month tariff war ahead of a March 1 deadline for a deal. US tariffs on $200 billion worth of imports from China are scheduled to rise to 25% from 10% if the two sides don’t reach a deal by then, increasing pain and costs in sectors from consumer electronics to agriculture. President Trump had earlier said he’s open to extending a March 1 deadline to raise tariffs on Chinese products if the two sides are near an agreement. “But generally speaking I’m not inclined” to delay raising tariffs, he added.

CAG report on Rafale a mixed bag for oppn, govt
The Comptroller and Auditor General (CAG) has found the government’s 7.87-billion euro Rafale fighter jet deal 2.86% cheaper than the one United Progressive Alliance was negotiating, less than the defence ministry’s 9% claim but just enough for BJP to counter the Congress’ charges of corruption ahead of elections. The report, however, does give the Opposition some fodder, especially on the issue of sovereign guarantee, where it notes that the Indian side could not persuade France to provide one.

Sourcing norms for single brand retailers may be eased

The Cabinet is expected to soon consider a proposal of FDI-linked relaxation for mandatory 30% local sourcing norms for foreign single brand retailers by allowing them more time to comply with regulations, PTI reports.

Criteria rejig

Residential property sales jump 5% in Q3
Third-quarter residential property sales saw 5% jump in year-on-year basis across top tier I cities in the country with southern cities leading the growth. The residential sales was recorded at 69,886 units in Q3 of FY19 as compared to the same period last year, mainly driven by affordable housing segments, said a recent report by Liases Foras report. Higher sales was led by Chennai, which saw 22% jump in sales and Hyderabad at 18%. Pune witnessed a growth of 14% in sales followed by Bangalore and Ahmedabad at 11% each and at Kolkata 10% and MMR 9%. However, NCR is the only city that saw sales dropping by 17% compared to last year.

Oil up
on hopes for trade talk

Oil prices rose on Thursday, buoyed by hopes that potential progress in the latest Sino-US tariff talks would improve the global economic outlook. US West Texas Intermediate (WTI) crude futures were at $54.15 per barrel at 0204 GMT, up 25 cents, or 0.5%, from their last settlement. They closed up 1.5% on Wednesday, having touched their highest since Feb. 5 at $54.60 a barrel. International Brent crude oil futures were up 29 cents, or 0.5%, at $63.90 a barrel.

PM-KISAN first instalment on Feb 24

The Centre will start paying farmers the first instalment of Rs 2,000 on February 24 at a high-profile event where Prime Minister Narendra Modi is likely to formally kick off the implementation of the PM-KISAN scheme. The second instalment of the PM Kisan Samman Nidhi scheme, which BJP hopes will cheer rural voters on the eve of the general elections, will be due on April 1, immediately after all beneficiaries get the first payment by March 31.

US warns countries against buying Venezuelan oil
America’s tough-talking National Security Adviser John Bolton has warned countries, including India, against buying Venezuelan oil, saying nations and firms that support the embattled President Nicolas Maduro’s “theft” will “not be forgotten”. Bolton’s warning through a tweet on Tuesday came a day after Venezuelan Oil Minister and President of the Latin American state-run oil company PDVSA Manuel Quevedo told reporters in Greater Noida that his sanctions-hit country wants to sell more crude oil to India.

New business model on cards for rating cos
The Securities and Exchange Board of India (Sebi) is planning to overhaul the manner in which the credit rating business works — scrapping the issuer-pays model that’s prevalent across the world and moving to one where the investor pays, said people aware of the matter. The immediate trigger for the move is the Infrastructure Leasing & Financial Services (IL&FS) default — which the rating agencies missed — that sparked a crisis in the non-banking finance sector.

SC reserves order on Anil Ambani contempt case
The Supreme Court Wednesday reserved its verdict on Ericsson India’s plea seeking contempt action against Reliance Communications chairman Anil Ambani and two others for non-clearance of its Rs 550-crore dues. A bench of justices R F Nariman and Vineet Saran said it is reserving its verdict. Ambani, Reliance Telecom chairman Satish Seth and Reliance Infratel chairperson Chhaya Virani, were present in the courtroom.

RBI clears Yes Bank of divergence
The Reserve Bank of India (RBI) has cleared Yes Bank of any disparity in reporting bad loans, known as divergence in market parlance, the private-sector lender said late evening Wednesday. The banking regulator assesses compliance by banks with extant prudential norms on income recognition, asset classification and provisioning (IRACP) as part of its supervisory processes. YES Bank has received the Risk Assessment Report for FY18 as an outcome of the IRACP process.


  • DHFL on Wednesday said its CEO Harshil Mehta has decided to resign from his position with immediate effect. However, he would continue to be associated with the company and shall hold the designation of Executive President -Retail Business with effect from February 14, 2019.
  • R Venkataramanan, the managing trustee of the Tata Trusts, a string of non-profits that own 66% of the diversified Tata Sons, has resigned. Venkataramanan’s Rs 2.66-crore annual compensation has been under the income tax scanner and led it to withdraw tax exemption to the Sir Dorabji Tata Trust-the largest of all the trusts–in December 2018.
  • Both bank credit as well as deposits growth marginally declined on a fortnightly basis, clipping at 14.5% at Rs 94.29 lakh crore deposits grew at a tepid 9.63% to Rs 121.22 lakh crore for the fortnight ending February 1, according to the latest RBI data.


Top sectors Gautam Shroff is bullish on


‘Either you make money or you make a lot of money, but I want to move volume’


Rupee down: Snapping its six-day winning run, the rupee Wednesday settled 10 paise lower at 70.80 against the US dollar amid rising crude prices and heavy foreign fund outflows.

10-yr bond yields down: India 10-year bonds’ yields fell 0.07% to 7.47% on Wednesday from 7.54% in the previous trading session, according to RBI data.

Call rate: The overnight call money rate weighted average was 6.27% on Wednesday, according to RBI data. It moved in a range of 4.80-6.45%.

Source: Economic Times