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    need2know: Taxing banks, swelling oil bills and other macro triggers for your day on D-Street

    Synopsis

    A lowdown on 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.

    Banks Taxed for "Free Services to Customers"
    The tax department has asked country’s top lenders including State Bank of India, HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank to pay tax that could run into thousands of crores, on ‘free services’ provided to customers maintaining a minimum account balance, with retrospective effect. Show cause notices have been issued by the Directorate General of Goods and Services Tax Intelligence (DGGST) and is likely to be made on other banks as well. The tax will be levied for the last five years, the period for which past service tax cases can be opened. Banks are likely to contest claims of the department and also take it up with the government.

    India's Oil Bill To Get 20% Fatter
    India’s crude oil import bill may increase 20% to $105 billion in this financial year from $88 billion in 2017-18, the petroleum and natural gas ministry has estimated, assuming average crude oil price of $65 per barrel for the year, about $9 a barrel less than the current rate. Meanwhile, US is looking to conquer the European market, reports oilprice.com. US crude oil and condensate exports to Europe are expected to hit an all-time high of around 550,000 bpd in April. Traders expect the record pace to continue this year as U.S. oil growd popular with European refiners, often at the expense of oil cargoes from OPEC nations and Russia.

    70% Mandatory Local EV Content Likely in 3 Years
    The government plans to double the mandatory local content in electric vehicles to 70% in three years and impose heavy duties on imports to ensure that domestic manufacturing gets a big boost from the Rs 8,730-crore proposal to shift public transport to battery-operated vehicles. This has huge implications for domestic car makers such as Tata Motors and Mahindra & Mahindra, which are facing competition from foreign players like China’s BYD, which recently won tenders with astonishingly low bids that seemed unviable to local rivals.

    Aluminium Prices Dive as US Extends Deadline for Rusal Sanctions
    The United States on Monday gave American customers of Russia’s biggest aluminium producer time till October 23 (June 5 earlier) to comply with sanctions, and said it would consider lifting them if United Company Rusal Plc’s major shareholder, Russian tycoon Oleg Deripaska, ceded control of the company. Aluminium prices on the London Metal Exchange CMAL3 tumbled 8.7% on the U.S. Treasury Department announcement, which gives Rusal longer time to sell off the aluminium it had been stockpiling in the wake of sanctions.

    Investment Reviving, Growth to Speed Up in FY19
    India's growth is expected to accelerate in the current fiscal, RBI governor Urjit Patel has said. Although the real GDP growth was moderated to 6.6% from 7.1% a year ago, there was a strong rebound in the second half of the year on the back of a turnaround in investment demand, the Reserve Bank of India governor said. Patel was addressing the International Monetary Finance Committee here on Saturday. In 2017-18, Indian economy was supported by an acceleration in manufacturing, rising sales growth, a pickup in capacity utilisation, strong activity in the services sector and a record agricultural harvest.

    Infra & Big Data
    Researchers from Indian Institutes of Technology (IIT)-Madras and Bombay along with Harvard University are using big data to build India’s first comprehensive database on infrastructure projects called Integrated Database on Infrastructure Projects (IDIP). The rollout of IDIP would help in ensuring better returns to taxpayers with increased transparency and accountability among all the stakeholders in the infrastructure projects.

    Modi-Xi Summit: A Template for Good Neighbours
    Prime Minister Narendra Modi and Chinese President Xi Jinping are expected to agree on a template for ‘Good Neighbourliness and Friendly Cooperation’ that set a new political framework for improving bilateral ties in keeping with rising global stature and achievements of both India and China at their historic but informal April 27-28 summit at Wuhan. both leaders will try to work out a new paradigm for the bilateral ties marked by differences as manifested last year through Doklam episode & Belt and Road Initiative Summit.

    Gold Shines, Silver Reverses Gains
    Both 24 karat and 22 karat gold traded on a positive note yesterday, despite global gold prices dropping to their lowest level in nearly two weeks as the dollar rose on the back of climbing US Treasury yields as global political concerns eased. On the other hand, silver metal reversed previous gains and recorded a negative trend.


    YOU ALSO NEED TO KNOW

    TCS First Indian IT Co in $100-bn M-cap Club
    IT bellwether TCS on Monday created history by becoming the first listed Indian IT company to hit the coveted $100 billion m-cap figure. The market value of the company stood at Rs 6.53 lakh crore on Monday.

    Fortis: IHH May File Binding Offer Before April 25
    Malaysia-based integrated healthcare provider IHH Healthcare Berhad is likely to file a binding offer before the April 25 deadline set by the Fortis board. IHH has already submitted its non-binding expression of interest to the board at a valuation of Rs 160 per share, offering to infuse Rs 4,000 crore via preferential allotment of equity.

    CEO Salil Parekh Wants 3 Years to Transform Infy
    Infosys chief executive Salil Parekh said the company has set a three-year transformation strategy that would start showing faster growth by financial year 2020-21. Part of the strategy will require the IT company to invest in sales to win the kind of large deals being announced by rival Tata Consultancy Services.

    India Top Recipient of $69 Bn Remittances from Diaspora
    India retained the top position as recipient of remittances with its diaspora sending about $69 billion back home last year, the World Bank said yesterday. Remittances to India picked up sharply by 9.9%, reversing the previous year's dip, but were still short of $70.4 billion received in 2014.

    Top Video
    Bhushan Power & Steel Sale: NCLT Asks Lenders to Consider Liberty House Bid

    Bhushan Power & Steel sale: NCLT asks lenders to consider Liberty House bid

    The National Company Law Tribunal (NCLT) today asked the lenders of Bhushan Power & Steel, led by PNB, to consider the bid submitted by UK-based Liberty House for the debt-ridden company. Allowing the plea of Liberty House, the tribunal has directed the committee of creditors (CoC) to complete its resolution proceedings by June 23.



    Top Quote
    "$100-bn M-cap: This is the Start of the Next Run for TCS"


    FUNDAMENTALS
    Rupee Plunges: The rupee on Monday plummeted by a staggering 36 paise to hit a fresh 13-month low of 66.48 against the US dollar as rising crude prices and sustained foreign fund outflows led to subdued forex market sentiment.

    Bonds Down: Government bonds (G-Secs) weakened further on heavy selling pressure from banks and corporates. The 7.17% 10-year benchmark bond maturing in 2028 went-down to Rs 96.14 from Rs 96.29 previously, while its yield marginal up to 7.74% from 7.72%. The 6.79% G-Secs maturing in 2027 slid to Rs 92.87 from Rs 92.92, while its yield inched up to 7.91% from 7.90%. The 6.68% G-Secs maturing in 2031 dipped to Rs 89.63 from Rs 89.7525, while its yield edged up to 7.95% from 7.93%. The 6.84% G-Secs maturing in 2022 and the 8.20% G-Secs maturing in 2022 were also quoted lower to Rs 96.6475 and Rs 101.58 respectively.

    Call Rates Stable: The overnight call money rates held stable at 5.95%, It resumed higher at 6.00% and moved in a range of 6.05% and 5.90%.

    Liquidity: The Reserve Bank of India, under the Liquidity Adjustment Facility, purchased securities worth Rs 12,010 crore in 9-bids at the overnight repo operation at a fixed rate of 6.00% as on yesteday, while it sold securities worth Rs 5,171 crore in 24-bids at the 2-days reverse repo auction at a fixed rate of 5.75% as on April 21.




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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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