December 20, 2019 / 3:14 AM / a month ago

Morning News Call - India, December 20

(Morning News Call - India edition will not be published through the year-end
holiday season from December 23, 2019 to January 1, 2020. Normal service will
resume from January 2, 2020. Season’s Greetings and Happy New Year.)
    
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    FACTORS TO WATCH
    9:45 am: Finance Minister Nirmala Sitharaman to hold pre-budget
consultations with infrastructure, energy and climate change stakeholders in New
Delhi.
    10:30 am: Prime Minister Narendra Modi and Finance Minister Nirmala
Sitharaman at ASSOCHAM event in New Delhi.
    2:40 pm: Finance Minister Nirmala Sitharaman to hold pre-budget
consultations with economists in New Delhi.
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
              
    
    INDIA TOP NEWS
    • RBI sees room for rate cuts, await clarity on inflation, minutes show
    India has room to reduce interest rates further to arrest any further
weakening in growth, but rising food prices warranted a pause in December,
according to the minutes of the monetary policy committee meeting released on
Thursday.
    • NTPC snubs foreign emissions tech, shuts out GE, others from $2 billion
orders
    Top Indian electricity generator NTPC has rejected the emissions-cutting
technology of GE and other foreign firms for its coal-fired plants, documents
show, shutting them out of an estimated $2 billion in orders.
    • SoftBank's Yahoo Japan exits Oyo's Japan apartment venture
    SoftBank-controlled Yahoo Japan has pulled out of a Japanese apartment
rental venture with Oyo Hotels and Homes, in the latest setback for the
loss-making Indian startup.
    • AB InBev fails in latest bid to overturn New Delhi city ban 
    An Indian court dismissed Anheuser-Busch InBev's appeal against a New Delhi
city sales ban on Thursday, a blow to the world's largest brewer in one of its
key market.
    • India widens internet shutdown to parts of Delhi to curb protests
    Internet and text messaging services were suspended by government order in
parts of India's capital Delhi on Thursday, mobile carriers said, widening a
communications clampdown in restive areas stretching from disputed Kashmir to
the northeast.
    • Piramal Enterprises raises $246 mln from Canada's CDPQ
    Indian conglomerate Piramal Enterprises said on Thursday it raised 17.50
billion rupees via a preferential allotment of compulsory convertible debentures
to Canada's Caisse De Depot Et placement Du Quebec (CDPQ).    
    • IndiGo cancels 19 flights from Delhi because of protests in the city 
    IndiGo, India's biggest airline by market share, has cancelled 19 flights
from Delhi as road traffic disruption in the capital city has affected the
availability of its crew, a Delhi airport official said on Thursday. A further
16 flights are delayed.
    
    
    GLOBAL TOP NEWS
    • U.S. Democrats seek high-profile trial for Trump in Senate
    U.S. Democrats on Thursday pressed the Republican-controlled Senate to call
Donald Trump's top lieutenants to testify in its trial of the impeached
president, as they sought to focus attention on the trial ahead of the 2020
presidential election.
    • Japan's consumer inflation ticks up as shoppers pay more for sushi, ice
cream
    Japan's annual core consumer inflation ticked up in November and a key price
gauge hit a more than three-year high, suggesting that firms are gradually
passing on rising labour and tax hike costs to shoppers.
    • Three die in protests against new citizenship law in India 
    Three people died of injuries sustained in intensifying protests against a
new citizenship law in India on Thursday with thousands taking to the streets
nationwide in defiance of temporary bans on public gatherings.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • India's federal government bonds are likely to rise as the Reserve Bank of
India has announced special open market operations, under which it will
simultaneously buy the 10-year bond and sell one-year notes on Monday. The yield
on the benchmark 6.45% bond maturing in 2029 may trade in a range of 6.65%-6.70%
until the result of a weekly bond sale today.
    • The Indian rupee is expected to open lower against the dollar amid fresh
three-month highs on Brent crude oil.
    • India's federal government bonds are likely to rise as the Reserve Bank of
India has announced special open market operations, under which it will
simultaneously buy the 10-year bond and sell one-year notes on Monday. The yield
on the benchmark 6.45% bond maturing in 2029 may trade in a range of 6.65%-6.70%
until the result of a weekly bond sale today.
    
    
    GLOBAL MARKETS
    • Wall Street's major indexes resumed their rally with fresh records on
Thursday as U.S. Treasury Secretary Steven Mnuchin said an initial U.S.-China
trade deal would be signed in early January.
    • Asian shares snoozed near 18-month highs as trade thinned in the run-up to
Christmas and investors seemed content to digest the chunky gains already made
so far this month.
    • Sterling headed for its worst week in more than two years, hobbled by
familiar fears of a chaotic British exit from the European Union, while firm
data helped the dollar arrest its recent slide.
    • U.S. Treasury yields fell on Thursday as traders weighed mixed economic
signals on recent domestic labor market and business conditions.
    • Oil prices held steady near three-month highs, heading for a third
consecutive weekly rise, on the back of easing Sino-U.S. trade tensions that
have weighed on demand as well as the global economic growth outlook.
    • Gold prices inched lower due to increased risk appetite on hopes of an
interim Sino-U.S. deal being signed soon and as investors awaited the release of
U.S. gross domestic product data.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         71.16/71.19  December 19      1,852.60 crore  458.16 crore
 10-yr bond yield  6.78%        Month-to-date    2,630 crore     (2,216) crore
                                Year-to-date     96,414 crore    28,282 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 = 71.17 Indian rupees)
    

 (Compiled by Swathi Nair in Bengaluru)
  
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