June 7, 2019 / 3:26 AM / 3 months ago

Morning News Call - India, June 7

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    FACTORS TO WATCH
    10:30 am: CBIC Principal Commissioner for GST Upender Gupta at GST conclave
in New Delhi.
    
        
        
    INDIA TOP NEWS
    • Reserve Bank cuts rates, turns "accommodative" as economy slows
    The Reserve Bank of India cut its policy interest rate by 25 basis points in
a widely expected move on Thursday, while also changing its policy stance to
"accommodative," after latest data showed the economy growing at its slowest in
over four years.
    • DHFL shares tank on rating cuts, fan fears of shadow banking crisis in
India
    Shares of mortgage lender Dewan Housing Finance Corp Ltd (DHFL) plunged as
much as 18% on Thursday after two major credit ratings agencies categorised the
company's commercial paper at default levels, fanning fears of growing distress
in the country's shadow banking sector.
    • Wipro founder Azim Premji to retire, son to take over as executive
chairman
    Software services exporter Wipro said on Thursday founder Azim H Premji
would retire as executive chairman and managing director by the end of July and
named Chief Executive Officer Abidali Z Neemuchwala as its new MD.
    • India plans to order taxi aggregators like Uber, Ola to go electric - docs
    India plans to order taxi aggregators like Uber and Ola to convert 40% of
their fleet of cars to electric by April 2026, according to a source and records
of government meetings to discuss new rules for clean mobility.
    • After dismal data, India sets up cabinet panels on jobs, economy
    Prime Minister Narendra Modi's new government has set up two cabinet
committees to find ways to spur job creation and investment, it said on
Thursday, after data showed a leap in unemployment and sharp fall in economic
growth.
    • Indian exporters face higher interest, tax rates - trade minister
    Indian exporters and manufacturers are facing a cost disadvantage due to
higher borrowing costs and tax rates, the trade minister said on Thursday, after
economic growth slipped to a more than four-year low of 5.8% in the
January-March quarter.
    • State Bank of India "very closely" monitoring exposure to shadow banks
    State Bank of India said on Thursday it was "very closely" monitoring its
exposure to the country's shadow banks, amid concerns of distress in the sector.
 
    
        
    GLOBAL TOP NEWS
    • As Mexico-U.S. talks progress, markets rise on hopes a deal could be close
    Mexican and U.S. officials held a second day of talks on trade and migration
on Thursday, with markets rebounding on optimism a deal could be close, although
it was unclear if Mexican pledges to curb migration flows were enough to
persuade the Trump administration to postpone tariffs.
    • Huawei CFO extradition hearing to begin in January 2020
Huawei Chief Financial Officer Meng Wanzhou will challenge her extradition to
the United States on fraud charges at hearings set to begin Jan. 20, 2020, court
records showed, after her legal team appeared before a Canadian judge.

    • U.S. House Democrats move to fight Trump's stonewalling in court
    U.S. congressional Democrats moved closer on Thursday to suing in federal
court for access to the unredacted Mueller report on Russian election meddling,
and its underlying evidence, taking a step bound to intensify their clash with
President Donald Trump.
   
 
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.2% lower at 11,864.50. 
    • The Indian rupee is expected to trade higher against the dollar ahead of
the U.S. non-farm payroll data, which will be closely watched amid Federal
Reserve rate cut bets.
    • Indian government bonds may rise today as the country’s rate-setting panel
changed the policy stance to ‘accommodative’ from ‘neutral,’ raising hopes of
further rate cuts in the coming months. The yield on the benchmark 7.26% bond
maturing in 2029 is likely to trade in a range of 6.90%-6.95% today. 
    
    
    GLOBAL MARKETS
    • Wall Street's main indexes closed higher after a choppy session on
Thursday as investors grew more optimistic on trade after reports that the
United States is considering a delay in imposing tariffs on Mexican imports.

    • Asian share markets dithered as investors waited for concrete signs of
progress in the U.S.-Mexican trade standoff, while bracing for a U.S. jobs
report that could sway the course of interest rates there.
    • The dollar was under pressure and was poised for its worst weekly
performance for the year, as investors waited on a key U.S. jobs report that is
expected to back expectations for a near-term Federal Reserve rate cut to
support a slowing economy.
    • The U.S. Treasury yield curve flattened on Thursday as the European
Central Bank committed to leaving interest rates alone into the first half of
2020, disappointing traders who had bet on a rate cut.
    • Oil prices rose to move further away from five-month lows hit earlier in
the week, buoyed by a report that Washington could postpone trade tariffs on
Mexico and signs OPEC and other producers may extend crude supply cuts.
    • Gold prices steadied, ahead of a U.S. jobs report later in the day, while
a festering trade war and hopes of a Fed interest rate cut stoked demand for the
safe-haven bullion.
    
        
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         69.25/69.28  June 6           -$209.70 mln  $267.91 mln
 10-yr bond yield  6.93%        Month-to-date    $358.22 mln   $609.89 mln
                                Year-to-date     $11.55 bln    -$1.52 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 = 69.10 Indian rupees)
    

 (Compiled by Hrithik Kiran Bagade in Bengaluru)
  
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