need2know: Five macro triggers that may see your market move today

Concerned over food inflation, Finance Minister Arun Jaitley will review the situation on Wednesday and discuss steps to keep prices of essential commodities, including pulses, in check. According to the Wholesale Price Index data released on Tuesday, vegetable inflation rose sharply to 12.94%, from 2.21% a month earlier. The GST juggernaut has started moving with the government sidestepping Congress altogether and sharing the model GST law with state finance ministers.

Meanwhile, here are the five macro triggers that may impact the market today

GST to be levied at first point of transaction, says model law: Sale of goods and services and all online purchases will attract GST at the first point of transaction with the likely rollout of uniform Goods and Services Tax (GST) regime from April 2017. The model GST law, approved by the state finance ministers yesterday, pegged threshold annual turnover for levy of the tax at Rs 10 lakh. The limit will be Rs 5 lakh in North East and Sikkim. The model GST law, which has 162 clauses and 4 schedules, has also suggested a jail terms of up to 5 years and fine for violation of the provisions of the statute.

Niti Aayog singles out 32 loss-making companies for strategic sale: Niti Aayog has identified 32 loss-making companies for strategic disinvestment, including central public sector enterprises (CPSEs) such as Bharat Pumps & Compressors, Tyre Corporation of India, Central Inland Water Transport Corporation and Bengal Chemicals & Pharmaceuticals, among others. Of the 32 companies, 10 could see strategic disinvestment right away while for the other 22 the suggestion is to revive while retaining a subsequent option for strategic disinvestment.

Wholesale pices up for second month: Wholesale inflation accelerated for the second straight month in May because of pricier food articles, explaining a spike in retail inflation that has dented the chances of a rate cut this year. The Wholesale Price Index rose 0.79% in May , higher than the previous month's 0.34%, data from the commerce and industry ministry showed on Tuesday . Food inflation jumped to 7.88%, led by potatoes and pulses which became dearer by 60.01% and 35.56%, respectively.

India taking lead to create alliance of gas importers: The country is taking the lead for creating an alliance of gas importers across the world for “reasonable and affordable” pricing of the fuel, Union Oil Minister Dharmendra Pradhan today said. Calling gas as an important fuel for the next two decades which will be an important constituent of the country’s energy basket, Pradhan said the state-run Gail is taking the lead in the company-to-company negotiations at the international level.

Government not to hike urea prices for next three years: Government has decided not to increase the prices of urea for the next three years, Union Minister of State for Chemical and Fertilizer Hansraj Gangaram Ahir said yesterday. “We have decided not to increase the urea price in the next three years,” the union minister told reporters here.

...And in the financial markets yesterday

Rupee down: Continuing its weakening trend for the fourth straight session, the rupee on Tuesday fell by another 13 paise to end at 67.27 per dollar on persistent demand for the American currency from banks and importers on the back of higher greenback in the overseas market.

Call rates down: The inter-bank call money rates slipped at the moneymarket due to lack of demand from borrowing banks on ample liquidity in the banking system. The overnight call money rates ended lower at 6.35 percent from Monday's closing level of 6.50 per cent after movingin a range of 6.60 and 6.20 per cent during the day.

Bonds recover: Government bonds (G-Secs) recovered following fresh buying support from banks and corporates. The 7.59% G-Secs maturing in 2026rose to Rs 100.4750 from Rs 100.43 previously, while itsyield ruled steady at 7.52%. The 7.59% G-Secs maturing in 2029climbed to Rs 98.83 as against Rs 98.76, while its yieldedged-down to 7.73% from 7.74%. The 7.88% G-Secs maturing in 2030gained to Rs 100.82 from Rs 100.7050, while its yield inched-down to 7.78% from 7.79%. The 8.27% G-Secs maturing in 2020,the 7.68% G-Secs maturing in 2023 and the7.80% G-Secs maturing in 2021 also quotedhigher to Rs 103.21, Rs 100.32 and Rs 101.33, respectively.

Liquidity: The Reserve Bank of India (RBI), under the Liquidity Adjustment Facility (LAF), purchased securities worth Rs 1860 crore in 5-bids at the overnight repo auction at a fixed rate of 6.50 per cent this evening. It sold securities worth Rs 2168 crore from 18-bids at the 1-day reverse repo auction at a fixed rate of 6.00 percent as on June 13.