December 1, 2016 / 3:21 AM / a year ago

Morning News Call - India, December 1

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    FACTORS TO WATCH
    11:00 am: Winter session of parliament continues in New Delhi.
    
    LIVECHAT - TRADING INDIA FORUM - Asset Classes for 2017 with Arpita Vinay,
Director, Centrum Wealth Management Limited
    2016 has been a roller-coaster year for investors, when logical themes for
disbanded and anti-establishment halo's prevailed over markets. How does 2017
look, and where should HNI and UHNI investors invest? We speak to Arpita Vinay,
who is part of the core team that set up Centrum Wealth Management, at 11:00
a.m.  To join the conversation, click on the link: here
    LIVECHAT - EMERGING MARKETS with Kaan Nazli, Senior Economist at Neuberger
Berman
    Kaan Nazli joins the forum at 3:30 p.m. to share his 2017 outlook for
emerging markets and Turkey. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
     Indian economy racing before Modi removed oxygen of cash
    India posted on Wednesday the world's fastest growth rate for a large
economy in the September quarter, yet that offered cold comfort after misery
inflicted by the government's unexpected move to remove high denomination
banknotes from circulation. 
     India central bank eases cash balance requirements for banks
    The Reserve Bank of India will allow banks to use all their cash to meet the
central bank's new cash reserve ratio requirements, not just a certain amount of
the money, in a technical but important move that could provide relief to the
country's banks. 
     Pakistan puts cotton imports from India on hold as tensions mount
    Pakistan has suspended cotton imports from its top supplier, India, saying
shipments failed to fulfil phyto-sanitary certification, threatening the $822
million-a-year trade, government and industry officials told Reuters.
 
     India's domestic investors stock up despite shock from cash crunch
    Indian domestic institutional investors bought about $2.6 billion in
equities this month, their biggest net purchases since at least 2007, showing
faith in Indian markets despite fears about a cash crunch. 
     BAE Systems says Indian, U.S. governments clear M777 artillery gun deal
    BAE Systems said on Wednesday it expected to sign a contract with the U.S.
Department of Defense to supply M777 Howitzers to the Indian Army after both
governments cleared the deal. 
    
    
    GLOBAL TOP NEWS
     OPEC in first joint oil cut with Russia since 2001, Saudis take "big hit"
    OPEC has agreed its first oil output cuts since 2008 after Saudi Arabia
accepted "a big hit" on its production and dropped its demand on arch-rival Iran
to slash output, pushing up crude prices by around 10 percent. 
     China manufacturing, services pick up speed in November - official PMI
    Activity in China's manufacturing sector grew more than expected in
November, expanding at its strongest pace in more than two years, as the world's
second-largest economy picks up momentum heading into what promises to be a
tumultuous 2017. 
     Trump says he will back away from business to focus on White House
    U.S. President-elect Donald Trump vowed on Wednesday to step back from
running his global business empire to avoid conflicts of interest but gave few
immediate details as concern over his dual role mounts ahead of his Jan. 20
inauguration. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures were trading at 8,261.50, up 0.24 pct from its
previous close.
     The Indian rupee will likely open lower against the dollar, as a jump in
oil prices lifted U.S. Treasury yields, while upbeat jobs data and hawkish
comments from Federal Reserve officials underpinned expectations of a rate
increase next month.
     Indian sovereign bonds will likely edge higher, as investors continue to
bet on a rate cut next week and bank deposits keeping pouring in, easing
liquidity concerns. However, gains may be capped amid a sharp rise in crude oil
prices after the OPEC reached a deal yesterday to cut output and ease a supply
glut. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to
trade in a 6.20 pct - 6.28 pct band.
    
    
    GLOBAL MARKETS
     U.S. stocks ended with big gains for November on Wednesday thanks to a
sharp post-election rally but finished the day mostly lower as drops in
utilities and technology offset energy's surge. 
     Oil prices, and energy shares swept higher on Thursday after OPEC agreed
to cut crude output to clear a glut, while the dollar and bond yields rose
sharply on prospects that resulting inflationary pressures will lead to higher
interest rates. 
     The U.S. dollar was broadly firm, hitting 9 1/2-month highs against the
yen as oil prices surged after OPEC agreed to output cuts - lifting inflation
expectations and U.S. bond yields. 
     U.S. Treasury yields rose on Wednesday as the Organization of the
Petroleum Exporting Countries (OPEC) agreed to its first output cuts since 2008,
sending oil prices more than 8 percent higher and boosting expectations of
higher inflation. 
     Oil shot up over 10 percent after producer club OPEC and Russia cut a deal
to reduce output to drain a global supply glut, but analysts warned prices could
recede as other producers stand ready to fill the gap. 
     Gold dropped to its lowest price in nearly 10 months as the dollar held
firm around 9-1/2 month highs against the yen, boosted by inflation
expectations, while growing odds of a U.S. interest rate hike also added
pressure. 
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         68.61/68.66  November 30      -$63.29 mln  $66.10 mln
 10-yr bond yield  6.42 pct     Month-to-date    -$2.56 bln   -$2.09 bln
                                Year-to-date     $4.20 bln    -$3.15 bln
 
    
    For additional data:
    India govt bond market volumes       
    Stock market reports                 
    Non-deliverable forwards data        
    Corporate debt stories               [IN CORPD]
    Local market closing/intraday levels [IN SNAPSHOT]
    Monthly inflows                      [INFLOWS RTRS TABLE IN]
 


($1 = 68.38 Indian rupees)

 (Compiled by Sai Sharanya Khosla in Bengaluru)

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