July 22, 2019 / 3:18 AM / 2 months ago

Morning News Call - India, July 22

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    FACTORS TO WATCH
    No major events are scheduled for the day.
    
    LIVECHAT - MARKETS UPDATE
    Mike Dolan, Reuters EMEA markets editor, evaluated the state of European
markets at 3:30 pm IST. To join the conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Reliance mobile operator Jio to focus on subscriber numbers not tariffs
    Reliance Industries plans to remain focused on subscriber additions rather
than chase higher tariffs for its Jio telecoms business, a top company executive
said.
    • Rating agencies knew of stress at IL&FS, but gave good ratings: audit 
    Credit rating agencies for years assigned high ratings to India's
Infrastructure Leasing & Financial Services (IL&FS) and its group companies
despite its deteriorating finances, according to a special audit.
    • EXCLUSIVE-Indian govt seeks to tap foreign lenders for loans to its small
firms: sources
    India's government is in talks with foreign lenders to provide as much as
$14.5 billion in credit to millions of its small firms, two officials said, in a
sign the country's banking system may not be robust enough to do the job on its
own.
    • HDFC Bank net profit rises 21% in June quarter
    HDFC Bank registered a 21% net profit rise for the June quarter on the back
of strong retail lending, it said on Saturday.
    • Reliance Industries' profit rises as Jio, retail cushion refining hit
    Reliance Industries' June-quarter profit rose 7%, as double-digit growth in
the Indian conglomerate's retail and telecoms businesses helped offset its worst
oil refining margins in 18 quarters.
    • IndiGo owner sees more flyers after record profit, Jet collapse helps
    Interglobe Aviation, the operator of IndiGo, said on Friday it expected
passenger capacity to grow by nearly a third this fiscal year, as the company
posted a record quarterly profit, gaining from the collapse of Jet Airways.

    • Jet Airways' lenders approve interim finance plan for the carrier
    Lenders to Jet Airways agreed on Friday to provide some interim financing to
the bankrupt airline to help it cover legal and other costs, as resolution
experts look to find a potential buyer.
    • Oyo founder to buy back $2 billion worth stake in SoftBank-backed Indian
co
    Indian hospitality startup Oyo Founder Ritesh Agarwal raised his stake in
the company with a $2 billion buyback, in a move that will bring his ownership
closer to biggest investor SoftBank.    
    
    
    GLOBAL TOP NEWS
    • Britain weighs response to Iran Gulf crisis with few good options
    Britain was weighing its next moves in the Gulf tanker crisis on Sunday,
with few good options apparent as a recording emerged showing that the Iranian
military defied a British warship when it boarded and seized a ship three days
ago.
    • Most companies surge on first day of trade on China's STAR Market
    China's new Nasdaq-style board for homegrown technology firms started
trading, with most of the stocks surging in their debut.
    • Japan's pro-constitution reform forces fall short of 2/3 upper house
majority-NHK
    Japanese Prime Minister Shinzo Abe's ruling bloc won a solid majority in an
upper house election on Sunday but his coalition and allies fell short of a
two-thirds majority needed to begin revising the pacifist constitution, public
broadcaster NHK said.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.2% lower at 11,406.50. 
    • The Indian rupee is expected to open lower against the dollar as hopes of
an aggressive Fed rate cut were scaled back a following media report. 
    • Indian government bonds are likely to trade marginally lower in early
session amid consolidation, tracking a rise in crude oil prices. The yield on
the benchmark 7.26% bond maturing in 2029 is likely to trade in a 6.34%-6.39%
range today.
    
    
    GLOBAL MARKETS
    • Wall Street's main indexes fell on Friday following a report that the
Federal Reserve plans to cut interest rates by only a quarter-percentage point
at the end of the month.
    • Asian stocks eased as investors reduced expectations of an aggressive
interest rate cut by the Federal Reserve, while heightened Middle East tensions
following an Iranian seizure of a British tanker lifted crude oil prices.

    • The dollar held recent gains as investors tempered some of their
expectations for deep U.S. interest rate cuts this month and heightened Middle
East tensions supported safe-haven assets.
    • U.S. Treasury yields rose after the Wall Street Journal wrote that the
Federal Reserve is likely to cut rates by 25 basis points when it meets later
this month, after comments by a Fed official on Thursday raised expectations a
larger cut may be on the cards.
    • Gold prices inched lower, extending losses after the metal hit a six-year
peak on Friday, as investors rolled back expectations for a sharp interest rate
cut at the end of this month, while tensions in the Middle East limited losses
for the bullion.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.89/68.92  July 19          -$137.79 mln  $131.5 mln
 10-yr bond yield  6.36 pct     Month-to-date    -$1.04 bln    $814.8 mln
                                Year-to-date     $10.3 bln     -$585.92 mln
 
    
    
    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 = 68.9450 Indian rupees)
0 : 0
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