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    need2know: Boiling oil, falling gold price and other macro triggers for your day on D-Street

    Synopsis

    A look at top macro triggers that may move market on Tuesday.

    ETMarkets.com
    Here’s a lowdown on top macro triggers that may move market on Tuesday. This report was compiled from agency feeds.


    The Cost of Rising Crude Price
    India is looking at ways to keep rising fuel prices in check, oil minister Dharmendra Pradhan said on Monday. Spiralling petrol prices touched fresh record levels in Delhi and Mumbai on Monday, at Rs 76.57 and Rs 84.40 per litre respectively. Globally, Venezula worries lifted U.S. crude CLc1 1.8% to $72.56 per barrel and Brent LCOc1 at $79.52, was up 1.29%. Rising crude oil prices may worsen the current account deficit (CAD) to 2.5% of the GDP in the current financial year, says a SBI report. According to SBI Ecowrap, every USD 10/barrel increase in oil price results in additional import bill of $8 billion. This in turn will decrease GDP by 16bps, increase fiscal deficit by 8bps, CAD by 27bps and inflation by 30bps.

    US Comes Up With Steep Demands For Treaty with Iran
    The United States on Monday issued a steep list of demands to be included in a nuclear treaty with Iran to replace the deal scuttled by President Donald Trump and threatened ``the strongest sanctions in in history'' if Iran doesn't change course. Drawing sharp contrasts with the 2015 deal, Secretary of State Mike Pompeo said a stronger pact should require that Iran stop enrichment of uranium, which was allowed within strict limitations under the previous deal. Iran would also have to walk away from core pillars of its foreign policy, including its involvement in Syria, Yemen, Lebanon and Afghanistan.

    US-China Trade Confrontation Fizzles Out
    President Donald Trump yesterday said that the "barriers and tariffs" with China will "come down for first time" and that it had agreed to buy massive amounts of American farm products. Trump's remarks come after China said it would "significantly increase" purchases from the US and Treasury Secretary Steven Mnuchin declared a "hold" on the trade war while negotiations over various trade matters continue. "China has agreed to buy massive amounts of ADDITIONAL Farm/Agricultural Products - would be one of the best things to happen to our farmers in many years!" Trump tweeted.

    Gold at New Low For the Year
    Gold on Monday marked a new low for the year to date after U.S. Treasury Secretary Steven Mnuchin’s declaration that a trade war between China and the United States was “on hold” helped boost appetite for higher-risk assets, such as stocks. Spot gold fell to its lowest since late December at $1,281.76 an ounce, and was down 0.03% at $1,291.1 per ounce. U.S. gold futures for June delivery settled down 40 cents, or 0.03%, at $1,290.90 per ounce. Gold prices dropped below Rs 31,900 per 10 grams mark in Delhi yesterday. Gold prices slipped by Rs. 75 to Rs. 31,875 per 10 grams at the bullion market.


    I-T Dept to Recover Tax Dues From Shell Cos
    The Income Tax (I-T) Department will petition the National Company Law Tribunal (NCLT) to recover tax dues of crores of rupees many de-registered shell companies. The Central Board of Direct Taxes (CBDT) has directed the I-T Department to form a special team of officers for filing these petitions in various NCLT benches across the country by this month-end, and has written to the Ministry of Corporate Affairs seeking its help. All regional directors and Registrar of Companies have been asked to extend cooperation to the tax department while filing applications for restoration of name of struck off/de-registered companies before the NCLT bench.

    YOU ALSO NEED TO KNOW

    Former MD of PNB Misled RBI on Nirav Modi Fraud:CBI
    Former MD and CEO of the Punjab National Bank Usha Ananthasubramanian and some other senior bank officials were aware of the "fraudulent" dealings with diamond merchant Nirav Modi but kept "misleading" the RBI, the CBI has alleged in its charge sheet. The 12,000-page charge sheet further claimed that a similar fraud was detected in 2016 following which the RBI took up the issue and issued circulars to all banks.

    RCom, Arms Move NCLAT to Halt Insolvency Proceedings
    Reliance Communications and its subsidiaries filed pleas in the appellate tribunal to set aside the National Company Law Tribunal’s decision to start insolvency proceedings against them on a petition filed by network vendor Ericsson. The move comes as the Anil Ambani-controlled companies are in talks with Ericsson to settle a long-pending dispute over unpaid dues worth more than Rs 1,000 crore owed to the Swedish telecom equipment maker.

    Fortis: 3 Independent Directors Quit
    Three independent directors of India’s Fortis Healthcare have quit ahead of a shareholder vote on Tuesday to decide their future, the company said, the latest twist in a prolonged takeover for one of the country’s largest hospital operators. Harpal Singh, Tejinder Singh Shergill and Sabina Vaisoha cited personal reasons for their resignations.

    Softbank Agrees to Sell Flipkart Stake
    SoftBank has agreed to sell its entire 21% stake in Flipkart to US retail giant Walmart, ending the uncertainty created after the Japanese telecom and Internet giant’s head Masayoshi Son last week said he was still undecided on the sale, said one source familiar with the matter.

    Employees Under Lens for Leaking Earnings Data
    Internal investigations by two banks and more than half a dozen companies have revealed that a few employees may have been aware about unpublished price sensitive information (UPSI) leaked before the quarterly results of these banks and companies were released, reports ET. The regulator has so far asked Axis Bank, HDFC Bank, Tata Motors and Bata India to conduct internal inquiries and strengthen their systems.

    Top Video
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    Top Quote
    'Largecaps Will Do a Good Job but Others Won't be As Lucky'

    FUNDAMENTALS

    Rupee Down: The rupee closed at 68.12 against the US dollar on Monday, down 0.17% from its previous close of 68.01.

    Bonds Up: Government bonds (G-Secs) surged following sustained demand from corporates and banks. The 7.17% 10-year benchmark bond maturing in 2028 climbed to Rs 95.72 from Rs 95.55 previously, while its yield edged down to 7.81% from 7.83%. The 6.68% G-Secs maturing in 2031 went-up to Rs 88.93 from Rs 88.78, while its yield softened to 8.05% from 8.07%. The 6.84% G-Secs maturing in 2022 gained to Rs 96.52 from Rs 96.48, while its yield inched down to 7.76% from 7.77%. The 7.59% G-Secs maturing in 2026 and the 8.20% G-Secs maturing in 2022 were also quoted higher at Rs 97.35 and Rs 101.39 respectively. However, the 6.79% G-Secs in 2027 slipped to Rs 92.8875 from Rs 92.95, while its yield inched up to 7.91% from 7.90%.

    Call Rates Up: The overnight call money rates ended higher at 6.10% from last Friday's level of 6.00%. It resumed higher at 6.05% and moved in a range of 6.15% and 5.70%.

    Liquidity: The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 10,668 crore in 13-bids at the overnight repo operations at a fixed rate of 6.00% as on Monday, while, its sold securities worth Rs 4,330 crore in 25-bids at the 2-days reverse repo auction at a fixed rate of 5.75% as on May 19.




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    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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