for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

Morning News Call - India, August 6

    To access a PDF version of this newsletter, please click here here
    
    If you would like to receive this newsletter via email, please register at: here
    
    
 
    FACTORS TO WATCH
    Monetary Policy Committee to announce interest rate decision in Mumbai.
        
    
 
    INDIA TOP NEWS
    • India's services activity contracted for fifth straight month in July - PMI
    India’s dominant services industry, a key driver of economic growth, shrank for a fifth
straight month in July as restraining measures to stop the spread of the coronavirus hurt
business activity and led to record job cuts, a survey showed.
    • Zydus Cadila's COVID-19 vaccine candidate found safe in early-stage human trial
    India’s Zydus Cadila said on Wednesday its COVID-19 vaccine candidate was found to be safe
and well-tolerated in an early-stage human trial.
    • India widens China app ban to cover more from Xiaomi, Baidu
    India has banned some mobile apps of Chinese companies such as Xiaomi and Baidu, three
sources told Reuters on Wednesday, in New Delhi’s latest move to hit Chinese companies following
a border clash between the neighbours.
    • Novavax signs COVID-19 vaccine supply deal with India's Serum Institute
    Novavax said it has entered a supply and license agreement with the Serum Institute of India
for the development and commercialization of its COVID-19 vaccine candidate.
    • Total's Indian JV to seek fuel retailing license 
    A joint-venture by India's Adani Gas and France's Total will soon seek government permission
to open retail fuel stations in India, Adani's chief executive said on Wednesday.
    • Bharti Airtel partners with Amazon to grow cloud business
    Bharti Airtel and Amazon Web Services will join forces to develop the Indian telecoms firm’s
cloud business, allowing it to offer a wider range of products to its enterprise clients, the
two companies said on Wednesday.
    • Telkom Kenya pulls the plug on merger with Bharti Airtel
    Telkom Kenya said on Wednesday it was no longer looking to merge its business with the
Kenyan unit of India’s Bharti Airtel, citing challenges of securing the required regulatory
approvals for the deal.
    • Lupin to sell generic COVID-19 drug favipiravir
    Lupin on Wednesday became the latest Indian drugmaker to launch a version of the antiviral
drug favipiravir to treat COVID-19 in the world’s third most affected country.

        
 
    GLOBAL TOP NEWS
    • U.S. steps up campaign to purge 'untrusted' Chinese apps
    The Trump administration said on Wednesday it was stepping up efforts to purge “untrusted”
Chinese apps from U.S. digital networks and called the Chinese-owned short-video app TikTok and
messenger app WeChat “significant threats.”
    • Fauci says regulators promise politics will not guide vaccine timing
    U.S. regulators have assured scientists that political pressure will not determine when a
coronavirus vaccine is approved even as the White House hopes to have one ready ahead of the
November presidential election, the country's leading infectious diseases expert Anthony Fauci
said.
    • White House, congressional Democrats harden stances on coronavirus relief
    Top congressional Democrats and White House officials appeared to harden their stances on
new coronavirus relief legislation on Wednesday, as negotiations headed toward an end-of-week
deadline with no sign of an agreement.
    
        
 
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading up 0.1% at 11,126.80. 
    • The rupee is expected to trade higher against the U.S. currency following a further
decline on the dollar amid uncertainty over the outlook of the world’s largest economy.
    • Indian government bond yields will likely trade little changed in early session ahead of
the rate-setting panel’s crucial interest rate decision, due later today. The yield on the
benchmark 5.79% bond maturing in 2030 is likely to trade in a 5.80%-5.85% range.
 
        
    GLOBAL MARKETS
    • U.S. stocks climbed on Wednesday on the heels of a surprise quarterly profit from Disney
and as investors stayed optimistic that a deal was near for a U.S. coronavirus fiscal aid
package.
    • The dollar languished and just about everything else rose on Thursday, as markets took
patchy U.S. economic data as a harbinger of ever more stimulus and brinkmanship on Capitol Hill
as a sign that a deal on a new U.S. stimulus package is close.
    • The U.S. government bond yield curve steepened as prices fell on the prospect of increased
supply in longer-dated debt after the Treasury Department said it would borrow more in the third
quarter than previously anticipated.
    • Oil prices were unchanged, struggling to hold onto five-month highs reached in the
previous session, as fuel demand worries caused by a second wave of coronavirus infections
outweighed declines in the U.S. dollar.
    • Gold prices held steady near record highs as a weaker U.S. dollar and hopes of more
stimulus measures to mitigate the economic fallout from the pandemic underpinned the metal's
safe-haven appeal.
    
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         74.89/74.92  August 5         875.78 crores   122.36 crores
 10-yr bond yield  5.83%        Month-to-date    7,485 crores    534 crores
                                Year-to-date     (3,465) crores  (1,08,901) crores
 
    (FII investment numbers are in Indian rupees. Source: National Securities Depository
Limited)
    
    
    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 = 74.80 Indian rupees)
    
    

 (Compiled by Archak Sengupta in Bengaluru)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up