August 31, 2018 / 3:25 AM / 3 months ago

Morning News Call - India, August 31

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    FACTORS TO WATCH
    10:30 am: RBI Deputy Governor B.P. Kanungo and SBI Chairman Rajnish Kumar at
Financial Market Conclave in Mumbai.
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
    5:00 pm: Government to release July Infrastructure output data in New Delhi.
    5:30 pm: Government to release April-June GDP data in New Delhi.

    LIVECHAT - G7 FX CHARTING
    Wilson Leung, chief market strategist at Trendsetter, joins us to discuss
technical charts for G7 currencies at 9:30 am IST. To join the conversation,
click on the link: here
    
    
    INDIA TOP NEWS
    • India's economy likely grew 7.6 percent y/y in April-June quarter
    India's economy likely sustained strong growth momentum for a second
straight quarter in April-June, but the depreciating rupee and monetary
tightening pose risks for coming periods.
    • Idea and Vodafone's India deal edges closer to completion - source 
    Idea Cellular and Vodafone have cleared the last regulatory hurdle to merge
their operations in India, a source told Reuters, opening the way for the
creation of a new market leader in the fiercely competitive country.
    
    • Diesel guzzler Indian Railways turns to natural gas to cut cost
    India's state railways on Thursday signed a preliminary deal with gas firm
GAIL (India) to use natural gas in some of its operations, part of a drive by
the world's third biggest oil consumer to gradually shift to cleaner fuels.

    • Congress raps Modi over "failed" ban on high-value notes
    India's main opposition Congress party on Thursday lashed out at Prime
Minister Narendra Modi after central bank data showed that his shock 2016 move
to ban high-value notes failed to meet his key objective of flushing out money
hidden from the tax man.
    
    
    GLOBAL TOP NEWS
    • Trump ready to ratchet up China trade war with more tariffs -report
    U.S. President Donald Trump is prepared to quickly ramp up a trade war with
China and has told aides he is ready to impose tariffs on $200 billion more in
Chinese imports as soon as a public comment period on the plan ends next week,
Bloomberg News reported on Thursday.
    • EXCLUSIVE-Fake photos in Myanmar army's "True News" book on the Rohingya
crisis
    The grainy black-and-white photo, printed in a new book on the Rohingya
crisis authored by Myanmar's army, shows a man standing over two bodies,
wielding a farming tool. "Bengalis killed local ethnics brutally", reads the
caption.
    • China August factory pick up surprises, but export orders fall again
    Growth in China's manufacturing sector unexpectedly picked up in August
after a two-month slide, offering some cushion for the slowing economy as the
United States rapidly ratchets up tariffs on Chinese goods.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading at 11,707.00, down 0.2
percent from its previous close.
    • The Indian rupee will likely fall to record lows against the dollar in the
wake of renewed pressure on emerging market currencies such as the Argentinean
peso and the Turkish lira. 
    • Indian government bonds will likely edge lower ahead of a fresh supply of
notes via auction today, while rising crude oil prices and expectation of
further depreciation in the rupee will further weigh on investor sentiment.
Yield on the benchmark 7.17 percent bond maturing in 2028 may trade in a 7.90
percent-7.96 percent band today. 
        
    
    GLOBAL MARKETS
    • U.S. stocks ended their four-day winning streak on Thursday as risk
reduction ahead of the long holiday weekend accelerated on growing trade
anxieties.
    • Asian shares came under renewed pressure on Friday as a report U.S.
President Donald Trump was preparing to step up a trade war with Beijing sent
Chinese stocks lower and partially erased gains made in this week's global
rally.
    • The dollar stood firm against its peers, finding support as the latest
round of U.S.-China trade tensions dulled investor risk appetite, with weakness
in emerging market currencies also helping lift the greenback.
    • U.S. Treasury yields hit session lows on Thursday afternoon in a
flight-to-quality sparked by a report that President Donald Trump planned to
impose tariffs on $200 billion worth of Chinese goods next week, and after
Argentina's central bank raised interest rates to 60 percent, roiling emerging
markets.
    • Oil prices dipped amid concerns the trade war between the United States
and China could intensify, although looming U.S. sanctions against Iran's oil
exports prevented markets from falling further.
    • Gold inched lower, as the dollar stayed firm on expectations of rising
interest rates amid lingering Sino-U.S. trade tensions, and the yellow metal was
headed for its fifth straight monthly decline.   
       
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         70.74/70.77  August 30        ---           -$175.57 mln
 10-yr bond yield  7.93 pct     Month-to-date    $18.04 mln    $677.63 mln
                                Year-to-date     -$561.47 mln  -$5.07 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 = 70.7400 Indian rupees)
    
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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