April 30, 2020 / 3:04 AM / a month ago

Morning News Call - India, April 30

    (Morning News Call - India edition will not be published on Friday, May 1,
as markets are closed for Maharashtra Day)

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    FACTORS TO WATCH
    11:00 am: NITI Aayog CEO Amitabh Kant will participate in a webinar on
issues related to COVID-19 in New Delhi.
    3:00 pm: SEBI Whole-Time Member Madhabi Puri Buch will participate in
ASSOCHAM’s webinar on “COVID-19 Relief & Impact on Corporate Bond Market.” in
Mumbai.
    3:00 pm: Director General of Foreign Trade Amit Yadav will participate in
FICCI’s videoconference in New Delhi.
    5:00 pm: Government will release March Infrastructure output data in New
Delhi.
     
    
    INDIA TOP NEWS
    • India has 1,000 coronavirus deaths but expert says no exponential rise
    India has recorded its 1,000th novel coronavirus death, but the head of a
government think-tank said on Wednesday that its 1.3 billion people, strained
from weeks of lockdown, were not experiencing the feared exponential surge in
infections.
    • Indians switch to bank deposits as concerns grow over debt funds
    Rattled by the shock closure of some high-profile domestic funds investing
in high-yielding debt, Indian investors are quickly moving their cash into the
safety of bank deposits.
    • Global lobbying groups call for delay to India's new digital tax
    Nine lobbying groups including the U.S. Chamber of Commerce have urged India
to delay a new digital tax that will hit firms such as Facebook and Google as
they are battling the fallout of the coronavirus, a letter seen by Reuters
showed.
    • SoftBank-backed Oyo to offload more loss-making hotels amid pandemic -
sources
    Oyo Hotels and Homes, backed by SoftBank, plans to offload more properties
around the world, three sources familiar with the matter said, as the
coronavirus pandemic prompts it to speed up a retreat from a rapid global
expansion.
    • GlaxoSmithKline plans to sell stake in Unilever's India unit - Bloomberg
News
    British drugmaker GlaxoSmithKline is planning a sale of its $3.7 billion
stake in Unilever's listed India unit, Bloomberg News reported on Wednesday,
citing people familiar with the matter.
    • Indians venture into U.S. stocks as markets slump at home
    More Indian investors are turning to U.S. stocks to escape tumbling markets
at home and pick up exposure to global technology giants that are rising through
the coronavirus-led market turmoil.
    • US panel on religious freedom urges targeted sanctions on India
    A U.S. government commission has criticised India for failing to protect
religious minorities and called for sanctions on government officials
responsible for violating religious freedoms enshrined in its constitution.

    
    
    GLOBAL TOP NEWS
    • Data on Gilead drug raises hopes in pandemic fight, Fauci calls it 'highly
significant'
    The top U.S. infectious disease official said Gilead's experimental
antiviral drug remdesivir will become the standard of care for COVID-19 after
early clinical trial results on Wednesday showed it helped patients recover more
quickly from the illness caused by the coronavirus.
    • Trump says China wants him to lose his bid for re-election
    President Donald Trump said on Wednesday he believes China's handling of the
coronavirus is proof that Beijing "will do anything they can" to make him lose
his re-election bid in November.
    • China's factory activity expands for 2nd month, but slump in export orders
deepens
    Factory activity in China expanded for a second straight month in April as
more businesses resumed work from the coronavirus-led shutdowns, but a worsening
slump in export orders pointed to a long road to recovery for the embattled
economy.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 2% higher at 9,740.50.
    • The Indian rupee will likely trade higher against the dollar, tracking
upbeat risk appetite after a closely followed antiviral drug showed promise in
treating coronavirus patients.
    • Indian government bonds are likely to fall in early trades ahead of a
weekly auction that will boost supply, even as broad market awaits New Delhi’s
likely fiscal stimulus package for further cues. The yield on the benchmark
6.45% bond maturing in 2029 is likely to trade in a range of 6.10%-6.16%.
    
    
    GLOBAL MARKETS
    • U.S. stocks surged on Wednesday as hopes for an effective COVID-19
treatment prompted a broad rally and helped investors shrug off bleak GDP data
and words of warning from U.S. Federal Reserve Chair Jerome Powell.
    • Asian stocks rose to a fresh seven-week high, lifted by encouraging early
results from a COVID-19 treatment trial, though bonds and currencies held
cautious ranges ahead of a European Central Bank meeting later in the day.

    • The dollar nursed losses after the U.S. Federal Reserve left the door open
to more monetary easing and dampened expectations for a quick economic recovery
from the coronavirus pandemic.
    • U.S. Treasury yields moved in mixed directions on Wednesday as the Federal
Reserve repeated its vow to use every tool in its toolbox to rescue the
coronavirus-ravaged economy.
    • Oil prices rose, building on big gains in the previous session on signs
the U.S. crude glut is not growing as fast as expected and that gasoline demand
battered by COVID-19 restrictions is starting to pick up.
    • Gold edged lower as risk appetite improved after positive trial results of
an experimental COVID-19 treatment and a jump in oil prices, while the U.S.
Federal Reserve's vow to support the battered economy underpinned the safe-haven
metal.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         75.66/75.69  April 29         49.21 crore     (629.05) crore
 10-yr bond yield  6.13 pct     Month-to-date    (7,669) crore   (8,519) crore
                                Year-to-date     (55,699) crore  (78,446) crore
 
    (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 = 75.40 Indian rupees)
 
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