19 Sep While you were Asleep – Your Market Changed with 7 Important Triggers…
Global markets await, with bathed breath on the even of the US Fed’s Rate Setting Meeting. Dalal Street bites its nails; the much awaited ICICI Prudential IPO creates a buzz. SEBI (Securities & Exchange Board of India) is said to be considering permitting Foreign Portfolio Investors hold multiple DMAT Accounts. In the meanwhile, Crude Oil Prices have shown a rebound. We live in exciting times.
All of these would have provoked a market change – while you were asleep!
India – the Sole Bright Spot
Jamie Dinon, Chairman, JP-Morgan, says that India is the one bright spot – an island of stable growth amidst global uncertainties; he has said that Interest Rates Increase indicate strengthening of the US Economy, and will cause a temporary market-blip only.
Surplus Current Account Deficit soon
Citigroup says that India’s Current Account is likely to be in the surplus in the First Quarter of this Financial Year. It has also indicated that trade deficit is settling down to lower levels. Data from August seems to indicate a broadly balanced Current Account scenario. “Following a moderate Current Account Deficit of $0.4 Billion or 0.1% of GDP in the January-March Quarter, we expect Current Account to come in at a surplus of $2 Billion or 0.4% of GDP in the April-June Quarter”, the Citigroup has said in a Research Note.
US Federal Reserve Worries Market
A Rate Hike at tomorrow’s Rate Setting Hike meeting at the US Federal Reserve doesn’t seem very likely, if one were to look at it rationally. But Markets don’t take matters at face value; Asian Markets were cautious on Monday, ahead of Central Bank Meetings in the US and in Japan – and we expect Dalal Street to show equal caution, too. The New York and New Jersey bombings, which have been declared as “likely terror events”, and a stabbing at a Minnesota Mall have contributed to a general feeling of Risk-Aversion.
ICICI Prudential IPO – And it’s set to go Tropical
ICICI Prudential Life’s Mega IPO is set to hit our Markets today; and it will set alight both Primary and Secondary Markets. This will be India’s biggest offering in six years, ever since the Coal India Issue in 2010. The ICICI Prudential Life IPO aims to raise as much as Rs. 6057 Crores, and will see the Insurer’s Parent ICICI Bank selling a 12.63% stake. The Insurer has raised Rs. 1,635 Crores by selling Shares to 38 Anchor Investors as part of this IPO, which will remain open till Wednesday.
Crude Oil Prices Rebound
Talk of an OPEC Deal on Output and fighting around Libyan Oil Ports caused Crude Oil prices bounce upwards on today. Eastern Libyan Forces said that they had to re-establish control over two Oil Ports, where an ousted faction launched a counter attack yesterday, briefly seizing a terminal. Brest Crude rose by 66 Cents to $46.43 per Barrel, while US Crude added 65 Cents to $43.68. Venezuelan President Nicholas Madura has been reported as having said that a deal between OPEC and non-OPEC Members was close.
Double DMAT Accounts for Foreign Portfolio Investors
The Securities & Exchange Board of India (SEBI), which is the nation’s Capital Regulator, is said to be in consideration of a proposal that permits Foreign Portfolio Investors (FPIs) to hold Multiple DMAT Accounts as a follow-up of recent changes made to Tax-Treaties related to Capital-Gains. This is in addition to considering granting Permanent Registration to Market intermediaries. Each FPI will represent the Interest of each Offshore Derivative Instrument Subscriber separately through multiple Accounts.
Grand Highway on the Roadmap
India has approved a mega $1.04 Billion project to construct and upgrade 530 Kilometers of Roads to link it with Bangladesh, Bhutan and Nepal. This move is seen to substantially ease movement of both passenger and cargo as part of a larger effort to increase inter-regional Trade by as much as 60%. This new Project has been given an official go-ahead by India’s Department of Economic Affairs with 50% funding from the Asian Development Bank (ADB) as per officials, who also told INAS that the project, as of now, will also cover West Bengal and Manipur on the Indian side.
Author: Anamitra Dasgupta with NextLevel-Education