Procurement News Notice |
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| PNN | 6903 |
| Work Detail | The mystery behind Tuesday's surprise rally in the banking stocks has been cracked. It was because of an MSCI rebalancing. Will it sustain today? It may or it may not. For, the FPIs who were actually behind the rally seem to have a new worry about GAAR and the Singapore tax treaty. Plus, crude oil prices are falling again. All of these and more in today's digest of news, views and cues that would have changed your market while you were sleeping. Secret behind bank stocks rally: A strong rally in select bank stocks caught Dalal Street unawares on Tuesday. It was only later in the day that some analysts pointed out that the rally could be due to MSCI increasing weightage on a couple of bank stocks, which would have resulted in follow-up FII buying. Falling bond yields, too, boosted sentiment. Bank shares rose to their highest in 20 months on Tuesday as foreign investors bought them amid the rebalancing of MSCI indices. The Bank Nifty rose 2.73 per cent to close at 20,426.20 -- the highest since January 28, 2015. Oil rally fizzles out: After hitting a one-week high on Monday on a Saudi Arabia-Russia pact to talk output stabilisation, oil prices fell on Wednesday as market participants remained skeptical that producers will reach an agreement to freeze output to rein in a global supply glut. London Brent crude for November delivery was down 4 cents at $47.22 a barrel after settling down 37 cents on Tuesday. NYMEX crude for October delivery was down 8 cents at $44.75, after settling up 39 cents on Tuesday FPIs have new worry in India: Foreign portfolio investors appear to have a new worry. ET reported on Wednesday that they are lobbying the government to resolve problems related to the India-Singapore tax pact and general anti-avoidance rules (GAAR), worried about their investment in equities. FPIs fear after April 1, 2017, when both the renegotiated India-Singapore treaty and GAAR come into force, they will face challenges. Will it affect inflows? Well, you guess is as good as mine. Pulses to ease inflation: For a long time, pulses were the cuprits behind India's food inflation. That has eased now. India's production of summer-sown pulses is likely to surge to a record high this year, dragging down prices of the protein-rich food grains after last year's sharp rally that prompted farmers to increase area under cultivation, industry officials said. Higher output by the world's top consumer and importer of pulses could help Asia's No.3 economy rein in its headline inflation that hit a near two-year high in July on double-digit annual increases in prices of sugar, vegetables and pulses. US markets show strength: US stocks rose slightly in overnight trade on Tuesday, nudging the Nasdaq to a record high close, as economic data bolstered views the Federal Reserve may decide against raising interest rates in the near term. The S&P financial index, which tends to rise with expectations for higher rates, slipped 0.2 per cent, while the S&P utilities index, which tends to benefit from a lower rate environment, rose 1.1 per cent. A weaker-than-expected reading on the US services sector in August added to views the Fed will refrain from raising interest rates at its meeting this month. Brexit in the works: If at all, the pain will start showing now. British Finance Minister Philip Hammond will meet top British bankers on Wednesday to get a clearer idea of what the country's divorce from the European Union will mean for them. Hammond is to meet with executives from major banks and insurers, including Barclays, HSBC, Standard Life, Santander UK, the British arm of Spain's Banco Santander, according to sources. |
| Country | India , Southern Asia |
| Industry | Financial Services |
| Entry Date | 15 Oct 2016 |
| Source | http://economictimes.indiatimes.com/markets/stocks/news/six-important-factors-that-changed-your-market-while-you-were-sleeping/articleshow/54040468.cms |
