need2know: Five macro cues before you start trading

Vowing to keep inflation under control, Prime Minister Narendra Modi yesterday said he has tried to stay away from populism of past regimes to get recognition while "emptying the exchequer". Stating that his government's moto was transparent and accountable good governance, he said steps are being taken with a view to 'reform, perform and transform'.

Here's a look at five macro triggers that are likely to impact the market today



GDP back series data to be scrutinised before public release: A high-profile committee will scrutinise GDP back series data before the statistics office puts it out in the public domain, hoping to avoid further controversy over the national accounting numbers. The statistics ministry plans to have a consultative meeting with finance ministry officials including chief economic advisor Arvind Subramanian, Niti Aayog members and others associated with the new methodology, said an official aware of the development. The back series will align GDP numbers from past years with the new internationally accepted methodology put in place by the Central Statistical Office (CSO) last year to facilitate comparisons.

Govt tweaking annual filing form to include CSR data: The government is amending the form for furnishing annual financial statements under the companies law as part of efforts to ensure that CSR spending figures are reported in a proper manner. The Corporate Affairs Ministry, which is implementing the Companies Act, is in the process of making amendments to AOC-4 XBRL form -- which is used to submit annual financial statements. Companies would be required to submit their financial statements in the revised form, expected to be made available next month, in respect of financial years starting on or after April 1, 2014.

DoT may push back auction date from September 29: Telecom companies today sought deferment of the mega spectrum auction by a day or two so as to provide more gap between the trial session and the actual start of bidding. The Department of Telecommunications (DoT) has said it will consider the suggestion favourably. According to the auction timetable outlined in the bid document called the NIA, the mock auction is slated for September 26 and 27, while the auction commences from September 29, leaving only a day between the two events.

Revised tax treaty with Mauritius notified: Government has notified the revised tax treaty with Mauritius under which India will impose capital gains tax on investments routed through the island nation from April 1 next year in a bid to curb tax evasion. The protocol amending the agreement between India and Mauritius, signed on August 24, 1982 for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains and for the encouragement of mutual trade and investment, was signed at Mauritius on May 10, 2016.

Pain for SBI's associate banks to stay in Q2: Associate banks of State Bank of India (SBI) will experience another painful quarter as they align asset quality review accounts with that of the parent, to make way for smoother integration later this financial year. Four out of the five associate banks posted net losses in the first quarter ended June 2016 (Q1 FY17). Only State Bank of Hyderabad posted net profit at Rs 28 crore.


...and in the financial markets last Friday

Rupee down: The Indian rupee closed lower against the US dollar ahead of the macroeconomic data due later on Friday. The home currency closed at 66.89 a dollar, down 0.06% from its Thursday’s close of 66.84.

Bonds down: After rallying for three straight trading sessions, government bonds (G-Secs) dropped modestly following renewed selling pressure from corporates as well as foreign funds. The benchmark 7.59% G-Secs maturing in 2026 declined to Rs 103.2975 from Rs 103.43 on Thursday, while its yield rose to 7.10% from 7.08%. The 7.59% G-Secs maturing in 2029 slipped to Rs 103.67 as against Rs 103.7350 previously, while its yield inched up to 7.14% from 7.13%. The 7.88% G-Secs maturing in 2030 fell to Rs 106.3725 from Rs 106.50, while its yield moved up to to 7.14% from 7.12%. The 7.61% G-Secs maturing in 2030, the 7.68% G-Secs maturing in 2023 and the 7.72% G-Secs maturing in 2025 were also quoted lower at Rs 104.43, Rs 103.3050 and Rs 103.6750, respectively.

Call rates up: The overnight borrowing rate ended higher at 6.35 per cent from Thursday's closing value of 6.20 per cent. It moved in a range of 6.65 per cent and 6.30 per cent during the day.

Liquidity: The Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 3206 crore in 7-bids at four-day overnight repo auction at a fixed rate of 6.50% on Friday evening. It sold securities worth Rs 2347 crore from 20-bids at the reverse repo auction at a fixed rate of 6% late Thursday.