June 23, 2020 / 3:30 AM / 2 months ago

Morning News Call - India, June 23

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
    6:00 pm: Bank of Baroda’s fourth quarter earnings conference call.
    
    LIVECHAT - REUTERS GLOBAL MARKETS FORUM
Peter Cardillo, Chief Market Economist at Spartan Capital in New York, joins us
to discuss here to discuss equity markets, and what to expect next, with worries
of a second wave of COVID-19 infections taking over sentiment.To join the
conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India, China commanders meet after border clash amid calls for boycott of
Chinese goods
    Indian and Chinese military commanders met on Monday to try to ease tensions
at their disputed Himalayan border as the public mood hardened in India for a
military and economic riposte following the worst clash in more than five
decades. Major Indian traders called for a boycott of Chinese goods and the
state of Maharashtra, home to India's financial capital of Mumbai, put three
initial investment proposals from Chinese companies worth 50 billion rupees on
hold, just days after signing the agreements.
    • India reports record coronavirus cases, embassies warn on stretched
hospitals
    India reported a record number of new coronavirus cases on Monday and a
death toll of more than 400 people in the past 24 hours as foreign embassies
warned their citizens in the country that hospitals might not have beds for
them.
    • India's top court rejects power companies' bid to extend emissions
deadline
    India's Supreme Court rejected a request by power producers to extend a
deadline to install equipment to cut emissions by two years to 2024, according
to an order uploaded on the court's website late on Monday.
    • Indian state stalls Great Wall Motor's investment plan after China border
clash
    A state in India has stalled a proposal by China's Great Wall Motor to
invest nearly $500 million, days after a deadly border clash between the two
nations, potentially delaying the company's plan to tap one of the world's
biggest car markets.
    • Indian refiners crude processing in May recovers, up 7.3% from April
    Indian crude oil processing gathered momentum in May, rising by some 7.3%
from April to around 3.87 million barrels per day (bpd) as an easing of
restrictions on transport and industrial activity boosted fuel demand.

    • U.S. accuses India of unfair practices on charter flights
    The U.S. Transportation Department on Monday accused the Indian government
of engaging in "unfair and discriminatory practices" on charter air
transportation services to and from India and issued an order requiring Indian
air carriers to apply for authorization prior to conducting charter flights.

    
    
    GLOBAL TOP NEWS
    • Trump suspends entry of certain foreign workers despite business
opposition
    U.S. President Donald Trump suspended the entry into the United States of
certain foreign workers on Monday, a move the White House said would help the
coronavirus-battered economy, but which business groups strongly oppose.

    • White House adviser Navarro walks back comments China trade deal 'over'
    White House trade adviser Peter Navarro said on Monday the trade deal with
China "continues in place', adding that his earlier comments that the pact was
"over" were taken out of context.
    • Pandemic keeps Japan's June manufacturing activity pinned at 11-year low -
PMI
    Japan's factory activity remained stuck at an 11-year low in June, in a sign
the coronavirus pandemic is taking a toll on manufacturers even as
services-sector sentiment picks up.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.5% higher at 10,353.50.
    • The Indian rupee is expected to trade higher against the U.S. currency
tracking dollar’s decline in the offshore markets.
    • Indian government bond yields are likely to edge higher in early session,
ahead of fresh supply of state debt and as traders still await likely steps from
the central bank to tackle concerns of excess supply. The yield on the benchmark
5.79% bond maturing in 2030 is likely to trade in a range of 5.86%-5.92% today.
    
    
    GLOBAL MARKETS
    • Wall Street's three major indexes closed higher on Monday with the biggest
gains in technology stocks as investors focused on the potential for more
government stimulus measures even as they worried about an increase in
coronavirus cases in the United States and other countries.
    • Asian shares see-sawed in a wild ride following confusing statements from
the White House over the U.S.-China trade deal, with President Donald Trump
later clarifying the pact was "fully intact."
    • The Australian and New Zealand dollars rebounded as a top White House
official walked back comments that seemed to imply the Sino-U.S. trade deal
might be over and triggered a wave of risk aversion in Asian markets.
    • U.S. Treasury yields were stable on Monday, as investors awaited details
on what a continuing increase in COVID-19 cases could mean for the U.S. economy.

    • Oil prices were volatile after markets were spooked by surprise comments
from White House trade adviser Peter Navarro saying a hard-won U.S-China trade
deal was "over", though he later said his comments had been taken out of
context.
    • Gold prices edged up after notching a more than one-month high in the
previous session, as coronavirus cases around the world surged and nervous
investors opted for safe-haven assets.
    
                   CLOSE        FII INVESTMENTS  EQUITIES         DEBT
 PNDF spot         76.00/76.03  June 22          1,236.67 crores  475.16 crores
 10-yr bond yield  5.88%        Month-to-date    21,764 crores    (3,350) crores
                                Year-to-date     (18,581) crores  (1,08,764) 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 = 75.82 Indian rupees)
 
    

 (Compiled by Pranay Prakash in Bengaluru)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below