Can a range of forward contracts end India's seasonal onion woes, which have become an annual affair? While reliable cold storages that can protect crops from the monsoon, floods, damp and mould are imperative, and efficient ways of food processing to preserve onions as paste, fried rings or desiccated bulbs can help; functional futures and options that can flag incipient signs of stress or attempts to corner the supply may be a smart way of letting market forces take care of the demand-supply pressures.That way, markets can then induce efficiency and offer incentives to produce more.
STREET PULSE: Where we stand Nifty futures on Singapore Exchange traded flat at 7 am (IST), signalling indecisiveness on Dalal Street. Elsewhere in Asia, equity markets were a tad lower on Tuesday as investors refrained from making major bets before Dec. 15, when the next round of U.S. tariffs on Chinese imports is due to take effect.
HERE'S WHAT TO WATCH  | MSCI index for Asia-Pacific shares outside Japan was down just 0.04% as the Asian trading day began on Tuesday. Australian shares were also 0.04% lower, while Japan's Nikkei lost 0.23%. |
| Tepid trade followed weakness on Wall Street overnight. The Dow fell 0.38% to 27,909, the S&P500 lost 0.32% to 3,135 and the Nasdaq dropped 0.4% to 8,621. |
| Oil prices fell on Monday after data showed Chinese exports declined for a fourth straight month, sending jitters through a market already concerned about damage to global demand by the trade war between Washington and Beijing. Brent futures settled 14 cents, or 0.22%, lower at $64.25 a barrel, while WTI crude futures fell 17 cents to $59.02 a barrel |
| The rupee pared initial losses and settled 16 paise higher at 71.04 against the US dollar on Monday amid softening crude oil prices and weakening of the greenback vis-a-vis other currencies overseas. |
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More FDI in Insurance?… The government may raise the overseas investment limit in insurance to 74% in the February budget, up from 49% now, possibly paving the way for foreign control of companies, said people with knowledge of the matter. The Insurance Regulatory and Development Authority of India (IRDAI) sought the views of various stakeholders on the matter in a December 2 letter at the direction of the government, they said. The letter to insurance companies and others has called for suggestions on raising the foreign direct investment (FDI) limit.
Read More No China Tariff on Dec 15… The US is unlikely to impose extra tariffs on a new $160 billion swath of Chinese goods including toys and smartphones come Sunday, Agriculture Secretary Sonny Perdue said. The looming December 15 deadline for new tariffs is just one of a number of events this week putting concerns over trade back at the forefront for investors and policy makers around the world.
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Sebi Crackdown… Sebi has asked exchanges to focus on client fund utilisation and share pledging by brokers in forthcoming annual inspections, two people with knowledge of the development said. Brokerages have come under enhanced scrutiny after Karvy Stock Broking allegedly broke the rules by pledging client shares. Brokers can't deploy the unused funds of their clients nor can they pledge their customers' shares as per Sebi rules put in place earlier this year. While most brokerages have complied with the new norms, detailed scrutiny of the books will help in detecting any wrongdoing at an early stage, market participants said.
Read More Export Scheme Jitters... A two percentage point cut in duty incentives under an existing export scheme effective January 1 has panicked electronics manufacturers, who say the reduction has the potential to derail the $3 billion mobile handset export segment, halting capacity expansion and leading to job losses. Ahead of a new export incentive scheme to be rolled out from next year, the DGFT on Saturday issued a notice that the additional 2% benefits given under the existing Merchandise Export from India Scheme for all sectors, except garments and made ups, and including electronics manufacturing, would end on December 31.
Read More Meanwhile... It's a firm no to AGR relief. The government has warned all telecom licence holders against any delays in the payment of dues related to adjusted gross revenue and has asked them to seek clarifications by December 13 on any doubts that may not have been covered in the recent Supreme Court judgment. DoT has asked all telecom licence holders, including non-telecom companies, to speed up the process of self-assessment of AGR-based dues and their payments in a letter written last week. Some 15 telcos need to pay over Rs 1.47 lakh crore, which could rise further, the government said.
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