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Morning News Call - India, December 2
December 2, 2016 / 3:20 AM / 10 months ago

Morning News Call - India, December 2

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    FACTORS TO WATCH
    10:00 am: Finance Minister Arun Jaitley at Hindustan Times leadership summit
in New Delhi.
    11:00 am: Winter session of parliament continues in New Delhi.
    3:00 pm: GST council meets in New Delhi.
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
    
    LIVECHAT - QUIZ EAST
    The first of our Friday quizzes focuses on Asia and the week's top news.
Test your wits and googling speed at 11:00 a.m. To join the conversation, click
on the link: here
    
    
    INDIA TOP NEWS
     EXCLUSIVE-Indian government officials propose break up of Coal India
    Senior Indian government officials tasked by Prime Minister Narendra Modi
with reviewing energy security are recommending the break up of the country's
coal monopoly, Coal India Ltd, within a year. 
     Alibaba is not buying Snapdeal
    China's Alibaba Group Holding is not buying Indian e-commerce company
Snapdeal and is not in talks to do so, a person familiar with the matter said,
dampening talk that an acquisition was in the works. 
     Sales at India's auto makers plunge as cash crunch grips country
    Indian auto makers' monthly domestic sales plunged in November from the
previous month as an intense cash crunch in the country brought a recent
recovery in consumer demand to a screeching halt, especially in rural areas.
 
     Indian manufacturing activity cools in November on cash crunch - PMI
    Indian factory activity decelerated sharply last month after Prime Minister
Narendra Modi's currency crackdown led to a rationing of cash and cooled
domestic consumption, new orders and production. 
     Reliance Jio extends free services, as telecoms price war intensifies
    India's Reliance Industries announced a three-month extension to an offer of
free data and voice services by its telecoms unit Jio, signalling that a brutal
price war in India's mobile sector that has already hurt its rivals is
intensifying. 
     Vedanta to invest up to $2.9 billion over 3 years in key India plants
    Vedanta Resources Plc plans to invest as much as 200 billion rupees over
three years to expand its alumina and aluminium producing capacity in eastern
India's Odisha state, its chairman Anil Agarwal said. 
     Flipkart's fashion unit Myntra bets on artificial intelligence to drive
growth
    Fashion portal Myntra, part of India's top e-commerce group Flipkart, aims
to use smart technology such as artificial intelligence to enhance consumer
experience as it looks to drive growth and turn profitable in the next fiscal
year. 
     Indian court quashes govt ban on 344 drugs after industry petitions
    India's Delhi High Court stayed on Thursday a government ban on 344 drugs
that it deemed lacked therapeutic efficacy, after over six months of hearing
more than 300 petitions filed by drugmakers against it. 
    
    
    GLOBAL TOP NEWS
     Trump warns of consequences for U.S. firms sending jobs abroad
    President-elect Donald Trump warned on Thursday that U.S. companies would
face "consequences" for outsourcing jobs abroad, as he touted his early success
in persuading an air conditioner maker to keep about 1,000 jobs in the United
States rather than move them to Mexico. 
     Starbucks CEO steps down to focus on high-end coffee, shares fall
    Starbucks Corp co-founder Howard Schultz will step down as chief executive
to focus on new high-end coffee shops, handing the top job to Chief Operating
Officer Kevin Johnson, a long-time technology executive. 
     Australia begins sale of third power grid, restricts foreign offers
    An Australian state government kicked off the A$4 billion sale of a major
stake in electricity network Endeavour Energy, with one source saying no single
foreign investor will be able to own more than half of that stake. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures were trading at 8,156.50, down 0.64 pct from its
previous close.
     The Indian rupee will likely open little changed to slightly higher
against the dollar, tracking broad weakness in the greenback ahead of U.S.
monthly jobs data due later today.
     Indian sovereign bonds will likely open steady, as investors await a fresh
supply of notes while keeping an eye out for the crucial U.S. nonfarm payrolls
data, which, if strong, will further solidify bets of a Federal Reserve rate
increase this month. The underlying sentiment, however, remains positive on bets
the Reserve Bank of India will deliver a rate cut next week. The yield on the
benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.18 pct - 6.25
pct band.
    
    
    GLOBAL MARKETS
     A sharp decline in technology stocks pulled both the Nasdaq and the S&P
500 indexes into the red on Thursday, while the Dow managed to notch a record
closing high with a lift from bank and energy shares. 
     Asian shares lost some of their recent gains, after lacklustre sessions on
Wall Street and Europe, while 10-year U.S. Treasury yields and crude futures
pulled back from multi-month highs hit overnight. 
     The dollar sagged against its peers as investors were cautious ahead of a
looming U.S. jobs report that could set the tone in coming days. 
     U.S. Treasury yields surged on Thursday with benchmark yields touching
their highest levels in roughly a year and a half on expectations that gains in
oil prices and U.S. President-elect Donald Trump's policies would fuel higher
inflation. 
     Oil prices slipped as some investors opted to cash out after Brent touched
16-month a high on Thursday, with optimism over this week's OPEC-Russia accord
on cutting output giving way to questions on the "sticking point" of
implementing the deal. 
     Gold recovered from its lowest since early February as the dollar drifted
lower ahead of U.S. jobs data, but the metal is still on track for a fourth
consecutive weekly decline. 
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         68.21/68.24  December 1       -$59.04 mln  -$110.48 mln
 10-yr bond yield  6.34 pct     Month-to-date    -            -
                                Year-to-date     -            -$3.26 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 = 68.34 Indian rupees)

 (Compiled by Sai Sharanya Khosla in Bengaluru)

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