August 2, 2018 / 3:08 AM / 2 months ago

Morning News Call - India, August 2

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    FACTORS TO WATCH
    10:00 am: Trade Minister Suresh Prabhu to inaugurate 4th edition of India
International Footwear Fair 2018 in New Delhi.
    10:30 am: S&P Global Ratings conducts seminar- ‘India credit spotlight 2018’
in Mumbai
    11:00 am: Monsoon session of parliament continues in New Delhi.
    
    LIVECHAT - CENBANKS FOCUS
    Neeraj Seth, head of Asian credit at Blackrock, joins us to discuss the
central bank meetings over the last week, and the road ahead for the Fed, BOJ,
BOE and ECB, as well as his outlook on China and other emerging markets in this
changing credit environment.
    To join the conversation at 12:30 pm IST, click on the link: here
    
    
    INDIA TOP NEWS
    • India central bank hikes key rate for second straight meet; 'neutral'
stance kept
The Reserve Bank of India raised interest rates for the second straight meeting
on Wednesday, but retained its "neutral" stance as it aimed to contain inflation
while not choking growth.
    • India's factory growth eases in July on weaker demand - PMI
Growth in India's manufacturing industry slowed last month, largely pressured by
a modest weakening in demand and output, though overall conditions remained
solid, a private survey showed on Wednesday.
    • Cabinet approves planned takeover of IDBI Bank by LIC
India's federal cabinet on Wednesday approved a planned takeover of state-run
IDBI Bank by state-run Life Insurance Corp through sale of new shares in the
lender, Finance Minister Piyush Goyal said.
    • Flipkart unveils loyalty programme to counter Amazon Prime
Online retailer Flipkart will be launching its second loyalty programme later
this month, a move aimed at boosting customer retention and rivalling
Amazon.com's Prime benefit plan.
    • Cabinet approves uniform licensing policy for oil, gas exploration
India cabinet on Wednesday allowed oil and gas producers to explore for shale
oil and gas and coal bed methane under the existing contracts, a move aimed at
unlocking the unconventional hydrocarbon potential of the world's third-biggest
oil importer.
    
    
    GLOBAL TOP NEWS
    • Trump administration adds to China trade pressure with higher tariff plan
U.S. President Donald Trump sought to ratchet up pressure on China for trade
concessions by proposing a higher 25 percent tariff on $200 billion worth of
Chinese imports, his administration said on Wednesday.
    • Fed leaves rates unchanged, stays on course for September hike
The U.S. Federal Reserve kept interest rates unchanged on Wednesday but
characterized the economy as strong, keeping the central bank on track to
increase borrowing costs in September.
    • Nissan close to settling dispute with India over unpaid incentives
Nissan Motor and authorities in an Indian state are close to settling a dispute
over which the Japanese carmaker initiated international arbitration seeking
more than $729 million in unpaid dues and damages, sources told Reuters.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading at 11,366.50, up 0.1 percent
from its previous close.
    • The Indian rupee is likely to extend its gains against the dollar, helped
by the subdued reaction of regional currencies to the Federal Reserve’s policy
decision.
    • Indian government bonds will likely open higher, as investors led by
foreign banks may continue to add positions as most of them do not expect a rate
hike in this calendar year, while lower crude oil prices will further aid
sentiment. Yield on the benchmark 7.17 percent bond maturing in 2028 is likely
to trade in a 7.66 percent-7.74 percent band today.
    
    
    GLOBAL MARKETS
    • The S&P 500 and Dow slipped on Wednesday as gains in Apple shares were
offset by a drop in energy and industrial companies, while the U.S. Federal
Reserve remained on course for an expected interest rate hike in September.
    • Asian stocks were little changed, with sentiment fragile after the latest
escalation in Sino-U.S. trade war while global bond markets were rattled by
Washington's increased borrowing and Japan's new tolerance for higher yields.

    • The U.S. dollar held onto most of its gains against major peers after the
Federal Reserve gave an upbeat assessment of the world's biggest economy and
stayed on course to gradually lift interest rates.
    • The benchmark 10-year U.S. Treasury note's yield reached its highest in
2-1/2 months on Wednesday, breaking above 3 percent after the government said it
intended to boost borrowing in the bond market in the coming quarter to fund
spending and debt obligations.
    • Oil prices rose, recouping a portion of the losses of the last two days
that were driven by reports showing surprise gains in U.S. inventories of crude,
along with mounting concern over trade friction between the U.S. and China.

    • Gold inched higher, recovering from its fall in the previous session when
the U.S. Federal Reserve kept interest rates steady, as the dollar held steady.

    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.54/68.57  August 1         -$14.04 mln   $206.93 mln
 10-yr bond yield  7.70 pct     Month-to-date    -$14.04 mln   $206.93 mln
                                Year-to-date     -$579.51 mln  -$5.54 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 = 68.3400 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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