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Morning News Call - India, December 13

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    FACTORS TO WATCH
    10:30 am: Prime Minister's Economic Advisory Council Member Ashima Goyal and
SBI Group Chief Economic Advisor Soumya Kanti Ghosh at a conference in Mumbai.
    2:00 pm: Parliamentary Affairs Minister Pralhad Joshi media briefing post
conclusion of Parliament session in New Delhi.
    
    
    INDIA TOP NEWS
    • India's rising retail prices stokes worries of stagflation
    India's retail price inflation in November jumped to a 40-month high, at a
time when growth in Asia's third largest economy has slowed to a six-year low,
prompting some economists to warn that the country could be entering into a
stagflationary phase.
    • Deloitte Haskins failed to meet standards in IL&FS unit audit - Indian
watchdog
    Deloitte Haskins and Sells failed to meet auditing standards when it vetted
the books of India's IL&FS Financial Services for the 2017/2018 financial year,
the audit watchdog said on Thursday.
    
    
    GLOBAL TOP NEWS
    • China to buy $50 billion in U.S. farm products in return for tariff
concessions-U.S. sources
    The White House has agreed to suspend some tariffs on Chinese goods and
reduce others in return for Beijing's pledge to hike purchases of U.S. farm
products in 2020, sources said on Thursday, taking a step towards de-escalating
the trade war between the world's two biggest economies.
    • UK on track for Brexit as election landslide looms for Johnson
    Prime Minister Boris Johnson's Conservative Party was on course for a
resounding victory in Britain's election after voters backed his bid to deliver
Brexit on Jan. 31, the country's most significant geopolitical move in 70 years.

    • Japan business mood gloomiest in nearly 7 years as trade war bites
    Japanese big manufacturers' business mood sank to a near seven year low in
the fourth quarter, a closely watched central bank survey showed, as the
U.S.-China trade war and soft global demand weighed on the export-reliant
economy.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.3% higher at 12,056.50.
    • The Indian rupee is expected to open higher against the dollar after U.S.
President Donald Trump reportedly signed off on a trade deal with China,
triggering the biggest advance on the yuan in a year.
    • Indian federal government bonds are likely to fall as a
higher-than-expected inflation print has quashed hopes of policy easing early
next year. The yield on the benchmark 6.45% bond maturing in 2029 is likely to
trade in a range of 6.78%-6.85% today, a trader with a private bank said.
    
    
    GLOBAL MARKETS
    • Wall Street's main indexes hit record highs on Thursday following news
that the United States had reached a "deal in principle" with China to resolve a
trade war that has rattled markets for nearly two years.
    • Asian share markets jumped as a last-gasp Sino-U.S. trade deal and a
likely major election win by Britain's Conservative Party looked to have cleared
a couple of dark clouds from the global horizon.
    • The pound rose to a three-and-a-half year high versus the euro and the
highest in more than a year versus the dollar after exit polls suggested a win
for the Conservatives, which should help ensure the UK's smooth exit from the
European Union.
    • U.S. Treasury yields spiked on Thursday, with most maturities hitting
four-week highs, after the United States offered to cut tariffs on existing
Chinese goods and suspend those scheduled to take effect on Dec. 15, a precursor
to a possible trade deal.
    • Oil prices extended gains, scaling three-month highs as the United States
and China moved closer to a resolution to the 18-month trade war between the
world's two biggest economies that has raised big questions about global demand
for crude.
    • Gold prices fell after sources said Washington and Beijing had reached an
interim trade deal and averted a fresh round of U.S. tariffs, boosting appetite
for riskier assets.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         70.61/70.64  December 12      384.09 crore  555.51 crore
 10-yr bond yield  6.77%        Month-to-date    (807) crore   (1,446) crore
                                Year-to-date     92,977 crore  29,052 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 = 71.77 Indian rupees) 
 


 (Compiled by Nidhi C Sai in Bengaluru)
  
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