December 18, 2018 / 3:29 AM / a month ago

Morning News Call - India, December 18

(Morning News Call - India edition will not be published through the year-end
holiday season from December 24, 2018 to January 1, 2019. Normal service will
resume from January 2, 2019. Season’s Greetings and Happy New Year.) 
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    FACTORS TO WATCH
    9:40 am: Finance Minister Arun Jaitley at Insolvency and Bankruptcy Board of
India-Vidhi Conference in New Delhi.
    
    GMF: LIVECHAT - FX FOCUS 
Stephen Innes, head of APAC trading at Oanda, joins us to talk about markets and
cues to watch and what next to expect from central banks at 9:30 am IST. To join
the conversation, click on the link: here
    
    
    Thomson Reuters/INSEAD Asian Business Sentiment Survey 2018Q4
Thomson Reuters and graduate business school INSEAD ask Asia-Pacific companies
to rate their six-month business outlook, in a survey which in Q3 yielded an
optimistic sentiment index of 58. The latest survey will be released at 8:30 am
IST on Wednesday, December 19, followed by a Q&A at 10:00 am IST with Reuters
reporter John Geddie in the Global Markets Forum community chatroom. To join,
please click here
    
    
    INDIA TOP NEWS
    • Thyssenkrupp steel boss Goss to lead joint venture with Tata Steel
Germany's Thyssenkrupp and India's Tata Steel on Monday named the top management
of their planned European joint venture, ending months of uncertainty over who
will join the entity's leadership.
    • IL&FS to sell domestic road assets held by ITNL
India's Infrastructure Leasing and Financial Services said on Monday it had
begun the sale of its domestic road assets within its IL&FS Transportation
Networks subsidiary.
    • Court refuses to lift deadline for Kotak Mahindra stake dilution
An Indian court refused to stay the central bank order forcing Kotak Mahindra
Bank Chief Executive Uday Kotak to dilute his stake in the company he founded,
news channel CNBC TV18 reported on Monday, sending shares of the lender sliding
nearly 4 percent.
    • Malaysia's IHH Healthcare halts open offer for Fortis after court ruling
Malaysia's IHH Healthcare said on Monday its open offer to buy an additional 26
percent stake in India's Fortis Healthcare will not proceed as per the timeline
following a court ruling.
    • EXCLUSIVE-Dubai's DP World seeks to quash India antitrust probe over
Mumbai port-court filing
Dubai's DP World has approached an Indian court to quash an antitrust
investigation recently ordered into its alleged anti-competitive behaviour at
the country's largest container port in Mumbai, a legal document reviewed by
Reuters showed.
    • South Africa's Naspers leads $540 million investment in Indian tech
startup
Naspers and Canada's state pension fund have invested $540 million in Indian
educational technology startup Byju's, the South African internet giant said on
Monday.
    • Samana Group to launch $560 million alternative investment fund 
Samana Global Business Solutions will launch its first-ever category II
alternative investment fund in India, and is keen to mobilise about $560 million
through its first scheme, the company said.
    • Miner NMDC challenges state demand for higher iron ore revenue
India's biggest iron ore miner NMDC on Monday sued the southern state of
Karnataka to block demands for a bigger share of revenue from the sale of iron
ore from a local mine, said a senior state-level official.
    
        
    GLOBAL TOP NEWS
    • Japan cuts GDP, CPI forecasts on disasters and trade war
Japan’s government revised down its forecasts for economic growth and consumer
prices for the current and next fiscal years as natural disasters and weakening
export demand weighed on the economy, the Cabinet Office said.
    • J&J moves to limit impact of Reuters report on asbestos in Baby Powder
Johnson & Johnson on Monday scrambled to contain fallout from a Reuters report
that the healthcare conglomerate knew for decades that cancer-causing asbestos
lurked in its Baby Powder, taking out full-page newspaper ads defending its
product and practices, and readying its chief executive for his first television
interview since investors erased tens of billions of dollars from the company’s
market value.
    • Facing opposition, UK's May will bring Brexit deal back to parliament
Prime Minister Theresa May said on Monday she would bring her Brexit deal back
to parliament for a mid-January vote, pledging to get assurances from the
European Union before then to break a deadlock over Britain's fraught efforts to
quit the bloc.
  
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading down 0.3 percent at
10,877.50, from its previous close. 
    • The Indian rupee is expected to open higher against the dollar, helped by
weak U.S. housing and manufacturing data and crude oil’s decline to below $50 a
barrel. 
    • Indian government bonds will likely rise in early session, tracking
consistent fall in crude oil prices, while the rupee is also expected to
appreciate. The yield on the benchmark 7.17 percent bond maturing in 2028 is
likely to trade in a 7.42 percent-7.48 percent band today, a dealer with a
state-run bank said. 
    
    
    GLOBAL MARKETS
    • Wall Street's major indexes all slid more than 2 percent on Monday, with
the benchmark S&P 500 closing at its lowest in 14 months, on concerns about
slowing economic growth ahead of a highly anticipated decision from the Federal
Reserve this week on the course of U.S. interest-rate hikes.
    • Asian share markets slumped as heightened concerns about a slowing global
economy sent Wall Street stocks skidding to their lowest levels in more than a
year.
    • The dollar remained under pressure as markets counted down to a crucial
Federal Reserve meeting amid speculation it will soon hit the pause button to
its monetary tightening cycle in the face of rising risks to global
growth.
    • U.S. Treasury prices gained on Monday as weak stocks boosted demand for
the low-risk debt ahead of Wednesday's conclusion of the Federal Reserve's
two-day meeting at which the U.S. central bank is widely expected to raise
interest rates.
    • Oil prices dropped 1 percent, extending losses from the previous session
as reports of a big climb in U.S. inventories and forecasts of record shale
output stoked worries about oversupply.
    • Gold prices were largely steady ahead of a U.S. Federal Reserve meeting
that starts later in the day, with investors looking for clues on the central
bank's outlook for next year.
    
    
                   CLOSE            FII            EQUITIES     DEBT
                                    INVESTMENTS                 
 PNDF spot         71.59/71.62      December 17    -$85.13 mln  $63.54 mln
 10-yr bond yield  7.46 pct         Month-to-date  $402.99 mln  $428.51 mln
                                    Year-to-date   -$4.65 bln   -$6.72 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 = 71.60 Indian rupees)

 (Compiled by Avina Ajit in Bengaluru)
  
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