need2know: Catch up with 11 macros that may move markets today

Hello! Here’s a lowdown on top macro triggers that may move market on Monday. This report was compiled from agency feeds.


IDFC Bank, Capital First Announce Merger
IDFC Bank and Capital First on Saturday announced merger between the two to form a combined entity with assets under management of Rs 88,000 crore, branch network of 194 and customer base of over 5 million. As per the agreement, IDFC Bank will issue 139 shares for every 10 shares of Capital First. The boards of directors of IDFC Bank and Capital First at their respective meetings approved a merger of Capital First with IDFC Bank. V Vaidyanathan, currently Chairman and MD of Capital First, will succeed Rajiv Lall as MD and CEO of the combined entity.The proposed merger will require the merged entity to raise as much as ?4,000 crore to meet regulatory obligations on liquidity while the buyout firm may have to cut its stake by half a percentage point or so.

Auto Cos to Report Robust Profit Growth
Most auto companies and ancillaries are likely to report double-digit revenue growth of 14-51 per cent during the third quarter, says a weekend report by HDFC Securities. However, higher commodity prices and festive/year-end offers/marketing spends will shave off the margins of most players to the tune of 84 bps for the industry sequentially to 15.4 per cent, warns the report. Though passenger vehicles volume grew only 7 per cent despite favourable base in the reporting quarter, this will be compensated by better commercial vehicles volume which jumped 28 per cent, led by a revival in freight rates and pick-up in infra spending. Against this, two-wheeler volume soared 18 per cent driven by strong rural demand especially from Bihar, UP, Odisha and MP.

India 30th on Global Manufacturing Index
The World Economic Forum (WEF) has ranked India at 30th position on a global manufacturing index -- below China's 5th place but above other BRICS peers, Brazil, Russia and South Africa. Japan has been found to have the best structure of production in the Geneva-based WEF's first 'Readiness for the future of production report' and is followed by South Korea, Germany, Switzerland, China, Czech Republic, the US, Sweden, Austria and Ireland in the top 10. The 25 'leading' countries are in the best position to gain as production systems stand on the brink of exponential change. India has been placed in the 'Legacy' group along with Hungary, Mexico, Philippines, Russia, Thailand and Turkey, among others, countries which have strong current base, but are at risk for future.

India's First Agro Options Contract in Guar Seeds Launched
Finance Minister Arun Jaitley on Sunday launched options trading in guarseed on the commodity bourse NCDEX and asserted that the new initiative will benefit farmers and ensure better prices in the coming days. Higher production has led to fall in prices of some agri-commodities in some places, he said, adding that options trading is one of the major steps towards taking farmers out of this situation. NCDEX is the second exchange after MCX to launch options trading in commodities. In October 2017, MCX had launched gold options.

Land of sick PSEs for Affordable Housing?
In a bid to provide a big push to affordable housing ahead of the next elections, land available with six loss-making central public sector enterprises has been identified to give momentum to Prime Minister Narendra Modi's initiative for the urban poor. State-run construction company NBCCBSE 0.32 % Ltd. will develop some of the land under the Pradhan Mantri Awas Yojana. The six CPSEs, including IDPL, HMT, Hindustan Antibiotics and Tungabhadra Steel Products, have about 3,000 acres.

Indian MNCs Look to Align with New US Rules
Indian companies with a substantial presence in the US are making changes following new tax rules that came into effect after the passage of legislation late last year. Not doing so could mean a spike in taxes they have to pay in the US. Among those that will need to do so are Reliance Industries, Tata Motors, Mahindra and Mahindra, Wipro, Tata Consultancy Services, Infosys and Asian Paints, experts said. While impact of new rules will vary, most companies could tweak shareholding patterns and customer contracts besides reducing management fees, interest and royalty payments to India from the US. Indian multinationals that operate in the US could see an additional tax of about 10% in the form of Base Erosion and Anti Abuse Tax (BEAT) for which they won't even get a tax credit in India.

Finished Steel Exports Surge 29% in Dec
India's total export of finished steel in December last year jumped 28.9 per cent to 0.964 million tonnes (MT), official data showed. The country had shipped 0.748 MT finished steel in the same month in 2016. During April-December of 2017-18, the export of finished steel increased 52.9 per cent to 7.606 MT, from 4.975 MT in the year-ago period, the Joint Plant Committee (JPC) has said in its latest report. On the other hand, imports were down 26 per cent at 0.561 MT in December 2017 compared to 0.762 MT during the same month a year ago. The import of finished steel during April-December last year surged 10.9 per cent to 6.096 MT, as against 5.495 MT in the same period previous year.

P-notes Investment Drops in November
Overall investments into the Indian capital market through participatory notes (P-notes) fell to Rs 1.28 lakh crore at November-end after witnessing a rise in the previous month. P-notes are issued by registered foreign portfolio investors to overseas players who wish to invest in the Indian capital market without registering themselves directly. They, however, need to go through due diligence. P-note investments were on a decline since June and hit an over eight-year low in September; however, it climbed up in October.

Top Video
Autocar show: New cars for 2018 - Hatchbacks

Autocar show: New cars for 2018 - Hatchbacks

It's a new year and time for new beginnings. If you are looking to buy a new hatchback in 2018, don't sign on the dotted line before checking out our list of hatchbacks that will be launching soon.

Top Quote
"In 2018, We Will See Benefits of Demonetisation and GST Coming Through"


FUNDAMENTALS
Factory Output Up 8.4% in Nov: India's November factory output expanded at its fastest in just over two years, driven by robust growth in manufacturing and affirming expectations of stronger second-half growth in FY18. The index of industrial production (IIP) rose 8.4% from a year ago, data issued by the Central Statistics Office showed on Friday.

Retail Inflation Rises to 5.21%: India's retail inflation accelerated to a 17-month high of 5.2% in December as fuel and vegetable prices hardened, erasing chances of a monetary easing immediately after the Budget next month. Inflation hovering above the Reserve Bank of India's medium-term target of 4% for the second consecutive month, and increasing fuel prices, could lead to monetary tightening in the near future.

Rupee Up: The Indian rupee ended at 63.64 a dollar on Friday, up 0.04% from its Thursday’s close of 63.67.

Bonds Mixed: Government bonds (G-Secs) ended mixed in a quiet trade due to alternate bouts of buying and selling. The 6.68% 10-year benchmark bond maturing in 2031 declined to Rs 92.62 from Rs 92.79 previously, while its yield edged up to 7.56% from 7.53%. The 6.79% G-Secs maturing in 2027 slipped to Rs 95.57 from Rs 95.69 previously, while its yield edged up to 7.46% from 7.44%. The 7.17% G-Secs maturing in 2028 went down to Rs 99.2250 from Rs 99.34 previously, while its yield edged up to 7.28% from 7.26%. However, the 8.20% G-Secs maturing in 2022 and the 8.15% G-Secs maturing in 2022 were quoted higher to Rs 103.3275 and Rs 103.60 respectively.

Call Rates Up: Call money rates ended higher at 5.95% from Thursday's level 5.85%. It resumed higher at 6.00% and moved in a range 6.00% and 5.75%.

Liquidity: The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 3,255 crore in 5-bids at the 3-days repo operation at a fixed rate of 6.00% as on Friday, while it sold securities worth Rs 6,624 crore in 33-bids at the overnight reverse repo auction at a fixed rate of 5.75% as on January 11.