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Market Ahead, August 19: All you need to know before the Opening Bell

A host of factors such as Global cues, hopes for govt measures to revive economy, foreign fund flows, oil prices and movement of rupee against the US dollar that are likely to guide markets this week

BS Web Team  |  New Delhi 

A host of factors such as global cues, hopes for government measures to revive economy, foreign fund flows, oil prices and movement of rupee against the US dollar are likely to guide this week.

According to a report, the government is speaking to banks as it considers a stimulus package to revive economy that has hurt credit demand in its slump, said Rajnish Kumar, chairman of State Bank of India (SBI), in Kolkata on Sunday.

Besides, foreign investors pulled out Rs 8,319 crore so far in August amid uncertainty over FPI tax and global trade worries.

Additionally, the Reserve Bank of India (RBI) is slated to release the minutes of its Monetary Policy meeting on Wednesday, (August, 21). The central bank lowered the repo rate by 35 basis points to 5.40 per cent during its August meeting.

On the global front, trade tensions between the US and China and fears of recession are likely to keep the investors on tenterhooks.

On Friday, the S&P BSE Sensex gained 39 points or 0.10 per cent to settle at 37,350 while the NSE's Nifty50 index ended at 11,048, up 18 points or 0.17 per cent. On a weekly basis, the Nifty and the Sensex shed 0.55 per cent and 0.61 per cent, respectively.

In stocks in focus, shares of auto companies such as Mahindra & Mahindra and Maruti are likely to trade actively. Mahindra & Mahindra's Managing Director Pawan Goenka said that the auto maker has retrenched about 1,500 temporary workers since April 1 this year, adding that if the slowdown continues it will be forced to lay off more employees.

That apart, India's largest carmaker Maruti Suzuki India (MSI) is pitching for tax relief for hybrid and CNG cars in addition to electric vehicles in order to promote green mobility in the country.

And, now let's focus on the global

Asian stocks rose on Monday as hopes of more stimulus from central banks around the world and steps being taken by major economies such as Germany and China soothed investors’ fears of a sharp global economic slump. In the commodities market, oil prices rose following a weekend attack on a Saudi oil facility by Yemeni separatists, but recession worries capped gains.

At 07:41 am Nifty futures on the Singapore Exchange (SGX) were trading 18 points or 0.16 per cent higher at 11,072, indicating a positive start for the Indian on Monday.

And, before we wrap-up, here's a look at the top headlines for the day -

>> In a move to relax punishment for fraud under the Companies Act, Govt to amend 65 sections in Companies Act;

>> M&M lays off 1,500 temporary workers, seeks govt stimulus for industry;

>> Credit rating agencies likely to get access to loan default details;

>> Banks may take majority stake in DHFL, convert part of debt into equity

That's all we have for you in today's pre-market podcast. For the latest on business, markets, and more, please log on to Business-Standard.com.

First Published: Mon, August 19 2019. 08:22 IST
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