August 23, 2018 / 3:16 AM / in 3 months

Morning News Call - India, August 23

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    FACTORS TO WATCH
    9:00 am: SEBI Chairman Ajay Tyagi and former RBI Deputy Governor Usha Thorat
at a Mutual Fund Summit in Mumbai.
    9:15 am: CreditAccess Grameen lists on exchanges in Mumbai.
    1:00 pm: Department of Telecommunications to release India’s 5G roadmap in
New Delhi.
    3:00 pm: Larsen & Toubro annual general meeting in Mumbai.
    
    LIVECHAT - BONDS UPDATE 
    Reuters interest rate reporter Dhara Ranasinghe delves into government bond
markets at 6:00 pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • India's small renewables firms fighting consolidation wave
    Small to mid-sized renewable energy companies in India are starting to look
like attractive takeover targets as lenders and investors withhold funds,
worried by the stiff competition, weak bond markets, low tariffs and high debt
besetting the sector.
    • India tells state oil firm ONGC to list overseas unit
    The Indian government has asked its biggest state-owned firm, Oil and
Natural Gas, to list its overseas unit ONGC Videsh, according to a letter seen
by Reuters.
    • Jet Airways to discuss turnaround at Monday board meeting 
    Cash-strapped Indian carrier Jet Airways will discuss ways to cut costs and
turn its business around when its board of directors meets on Monday, the
airline said on Wednesday.
    • WhatsApp to clamp down on "sinister" messages in India - IT minister
    India said Facebook-owned WhatsApp had pledged on Tuesday to develop tools
that would combat fake messages, to help the country crack down on people
whipping up public anger through mass message forwards on social media.

    
    
    GLOBAL TOP NEWS
    • U.S. and China officials meet as Thursday tariff deadline looms
    U.S. and Chinese officials met for the first time in more than two months to
try find a way out of their deepening trade conflict, but there was no evidence
that the low-key discussions would halt a new round of U.S. tariffs due today.

    • Fed officials suggest rates likely to rise soon, worry about trade war
    Federal Reserve officials discussed raising interest rates soon to counter
excessive economic strength but also examined how global trade disputes could
batter businesses and households, minutes of the U.S. central bank's last policy
meeting showed.
    • Australian PM tenure looks terminal, leadership crisis suspends parliament
    Australian Prime Minister Malcolm Turnbull's tenure looked doomed with his
government adjourning parliament to struggle with an internecine leadership
battle which saw ministers desert Turnbull and call for a second leadership
vote.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading at 11,621.50, almost little
changed from its previous close.
    • The Indian rupee will likely open lower against the dollar after Brent
crude jumped to near $75 a barrel. A fall in regional currencies following the
Federal Reserve’s latest meeting minutes and the impending U.S. tariffs on China
may also weigh on the rupee, dealers said.
    • Indian government bonds will likely open lower today, tracking a sharp
spike in global crude oil prices that will fan inflation concerns and as minutes
of the U.S. Federal Reserve’s latest meeting hinted at two more rate hikes this
year. Yield on the benchmark 7.17 percent bond maturing in 2028 may trade in a
7.80 percent - 7.86 percent band today.
    
    
    GLOBAL MARKETS
    • U.S. stocks were mixed on Wednesday, with the Nasdaq gaining on the
strength of tech stocks while the S&P 500 was little changed as it marked its
longest bull-market run.
    • Asian shares started cautiously as a deadline loomed for fresh U.S.
tariffs on China and amid speculation U.S. President Donald Trump's political
position could be threatened by the legal woes of two former advisers.

    • The U.S. dollar broadly rose against the euro and other currencies after
minutes of the Federal Reserve's latest policy meeting suggested the U.S.
central bank is on course to further raise interest rates.
    • Futures traders priced in a slightly higher chance that the Federal
Reserve will increase interest rates two more times this year, after minutes
from its latest meeting showed that U.S. central bankers discussed raising
interest rates soon to counter excessive economic strength.
    • U.S. oil edged up to extend gains from the previous session, lifted by a
decline in U.S. commercial crude inventories, while international crude markets
were weaker due to the trade dispute between the United States and China.
    • Gold prices edged down, after hitting their highest in over a week in the
previous session, as the dollar steadied on expectations of rising U.S. interest
rates.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         69.77/69.80  August 21        $36.24 mln    -$69.73 mln
 10-yr bond yield  7.83 pct     Month-to-date    $49.17 mln    $512.52 mln
                                Year-to-date     -$530.34 mln  -$5.24 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 = 70.0900 Indian rupees)
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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