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need2know: Lenders' plan on stressed power assets, rising oil prices and other macro cues for your day on D-Street

A lowdown on top macro triggers that may move market on Friday

Updated: May 04, 2018, 09.02 AM IST
Here’s a lowdown on top macro triggers that may move market on Friday. This report was compiled from agency feeds.

A Rescue Plan for Stressed Power Assets
Lenders to power sector projects have come up with a plan to prevent power generation projects from going into liquidation, receive better valuations and a speedy resolution. Bankers led by State Bank of India will float a fund to take over 14 stressed power plants of companies such as KSK Energy, IndiaBulls and RKM Powergen. Lenders will have to make investments according to their exposure in each power project with the lead lender putting in Rs 10 crore. The scheme provides for getting the debt of each project rated by credit rating agencies.

Oil Prices Inch Up on Iran Sanction Worries
Oil prices edged up on Friday, extending the previous session’s modest gains as looming geopolitical risks from possible new U.S. sanctions against Iran supported the market. U.S. West Texas Intermediate (WTI) crude futures added 3 cents to $68.46 per barrel by 0040 GMT while Brent crude oil futures were at $73.67 per barrel, up 5 cents, or 0.1%, from their last close.

Bank Deposits Growth at Five-decade Low
Bank deposit growth fell to a a five-decade low in FY18 as the demonetisation bonanza withered away and banks faced competition from other savings instruments such as mutual funds and insurance. RBI data shows aggregate deposits in the banking system grew a mere 6.7% in 2017-18, the lowest since fiscal 1963. Bankers say the reversal from the huge deposits collected in light of the November 2016 demonetisation together with the steady movement of savings away from bank deposits has hit growth.

2% of Capital Investment for Green Clearance
Want green clearance for your project? Cough up 2% of capital investment for Corporate Environment Responsibility (CER). That is the environment ministry's new guideline for all corporates, The norms make it mandatory for companies to set aside funds for CER over and above what is required for executing the environment management plan in a project-affected area.

GST Council Meeting Today
Today, the 27th meeting of the GST Council will take place to consider among other things the introduction of simplified tax return form and also decide on proposal for converting GST Network into a government company. The Union Finance Minister Arun Jaitley-chaired council, comprising state finance ministers, will meet through video conferencing. The government mopped up Rs 1.03 lakh crore in GST collections last month. The new indirect tax regime, which was rolled out on July 1 last year, had earned a revenue of Rs 7.41 lakh crore in entire 2017-18.

More Pension Funds For Equity Markets
In what could be a bonanza for stock markets, the pension fund regulator has allowed non-government subscribers to invest up to 75% in equities. In an interview to ET Now, Hemant G Contractor, Chairman, Pension Fund Regulatory & Development Authority, said that for government subscribers, talks are on with government to raise equity component to 50% from 15% at present. For non-government subscribers, after the age of 50, the equity part will taper down every year, till one reached the age of 60.


Tata Motors Offloads Defence, Aerospace Biz Portfolios
As part of its effort to reduce debt and monetise non-core assets, Tata Motors on Thursday sold its defence and aerospace portfolio to Tata Advanced Systems Limited to unlock their full potential. The move is likely to bring in proceeds in excess of Rs 700 crore on the Tata Motors books, subject to regulatory and other approvals.

Bharti Airtel May Sell 25% in Africa Unit to Raise Up to $1.5 Bn
Bharti Airtel plans to raise as much as $1.5 billion by diluting about a fourth of its stake when it lists the holding company for Africa operations, Bharti Airtel International (Netherlands) BV (BAIN BV), in early 2019, said people with knowledge of the matter.

4 FMCG giants including Godrej, Patanjali Bid for Ruchi Soya
Patanjali, Adani Wilmar, Emami Agrotech and Godrej Agrovet have put in bids to acquire debt-ridden edible oil firm Ruchi Soya. Patanjali Ayurveda, which already has a tie-up with Ruchi Soya for edible oil refining and packaging, as well as Godrej Agrovet and Emami Agrotech confirmed that they have put in bids for Ruchi Soya but did not disclose the value. Indore-based Ruchi Soya, which is facing insolvency proceedings, has a debt of about Rs 10,000 crore.

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Rupee Up: The Indian rupee ended at 66.65 against US dollar on Thursday, up 0.03% from its Wednesday’s close of 66.67.

Bonds Mixed: Government bonds (G-Secs) ended mixed in a quitrade following alternate bouts of buying and selling. The 7.17% 10-year benchmark bond maturing in 2028 eased to Rs 96.19 from Rs 96.20, while its yield held stable to 7.73%. The 6.68% G-Secs maturing in 2031 dipped to Rs 89.4050 from Rs 89.47, while its yield inched up to 7.98% from 7.97%. The 6.79% G-Secs maturing in 2027 slipped to Rs 93.21 from Rs 93.24, while its yield ruled steady to 7.85%. The 7.80% G-Secs maturing in 2020 declined to Rs 100.76 from Rs 100.88, while its yield moved up to 7.38% from 7.32%. However, the 6.84% G-Secs maturing in 2022 gained to Rs 96.49 from Rs 96.4475, while its yield edged down to 7.75% from 7.77%. The 7.37% G-Secs maturing in 2023 rose to Rs 98.42 from Rs 98.4150, while its yield held stable to 7.76%.

Call Rates Down: The overnight call money rates ended lower to 5.80% from Wednesday's level of 6.00%. It resumed steady to 6.00% and moved in a range 6.00% and 5.70%.

Liquidity: The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 4735 crore in 6-bids at the overnight repo operation at a fixed rate of 6.00% as on Thursday, while it sold securities worth Rs 11,148 crore in 48-bids at the overnight reverse repo auction at a fixed rate of 5.75% as on May 02.

Gold, Silver : Precious metals gold and silver were trading flat in the morning deals. MCX Gold futures were trading 0.05 per cent, or Rs 15 lower at Rs 30,940 per 10 grams at 11:13 am (IST), while MCX Silver futures were down 0.27 per cent, or Rs 105, at Rs 38,914 per 1 kg at the same time. SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings stood at 866.77 tonnes, remain unchanged from the previous business day.

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