December 21, 2018 / 3:29 AM / 5 months ago

Morning News Call - India, December 21

(Morning News Call - India edition will not be published through the year-end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
    • 11:15 am: Bank of Baroda to brief media about key developments in the
banking sector in Mumbai.
    • 12:00 pm: ICICI Bank media briefing on currency and bond market outlook
for 2019 in Mumbai.
    • 5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
    
    GMF: LIVECHAT - MARKETS FOCUS
Chris Weston, head of research at Pepperstone, joins us at 9:30 pm IST to
dissect the recent bullish moves in the Asian equity markets, with China at the
heart of the move as traders gear towards this week’s China annual policy
conference, and the idea of further easing at a fiscal level to spur
consumption. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • India seeks parliament nod to inject $330 million in Air India
The Indian government has sought parliament's approval for an equity infusion of
$328.42 million in state-owned carrier Air India, according to a government
document released on Thursday.
    • Food delivery firm Swiggy raises $1 billion in Naspers-led funding round
Online food delivery company Swiggy said it had raised $1 billion in its latest
funding round, led by South African internet group Naspers.
    • Regulator orders J&J to stop using raw material to make Baby Powder in
India-source
India's drugs regulator has ordered Johnson & Johnson to stop manufacturing its
Baby Powder using raw materials in two of its Indian factories until test
results prove they are free of asbestos, a senior official said on Thursday.

    • Infosys appoints Nilanjan Roy as CFO
Infosys named Nilanjan Roy as its chief financial officer, the company said on
Thursday.
    • Delhi city government lifts ban on Bloomberg-funded tobacco control
charity
A small Indian non-profit group funded by Bloomberg Philanthropies can carry out
tobacco-control work in New Delhi after authorities lifted a ban on its
activities, according to a city official and government memo seen by Reuters.

    • INSIGHT-An online battle for 900 million hearts and minds: India braces
for election
When India votes in a general election next year, it will be the world's largest
democratic exercise, and the biggest ever test of the role of social media in an
election. As the ruling Bharatiya Janata Party readies for battle with the newly
energised Congress party-led opposition in the election that must be held by
May, the role of Facebook, Twitter and WhatsApp could be crucial in deciding who
wins.
    
    
    GLOBAL TOP NEWS
    • U.S. House passes funds for Trump wall; government shutdown looms
Republicans in the U.S. House of Representatives on Thursday added $5 billion to
a government spending bill to help President Donald Trump make good on a pledge
to build a border wall, a move that made a partial federal government shutdown
more likely this weekend.
    • Nissan's Ghosn re-arrested, chances of imminent bail dashed - media
Japanese prosecutors re-arrested Nissan Motor's ousted chairman Carlos Ghosn on
fresh allegations of aggravated breach of trust, dashing chances he would soon
be released on bail, media reported.
    • EXCLUSIVE-China hacked HPE, IBM and then attacked clients -sources
Hackers working on behalf of China's Ministry of State Security breached the
networks of Hewlett Packard Enterprise and IBM, then used the access to hack
into their clients' computers, according to five sources familiar with the
attacks.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading down 0.3 percent at 10,958,
from its previous close.
    • The Indian rupee is expected to open lower against the dollar after Wall
Street slipped to new year-to-date lows and regional risk assets extended
declines.
    • Indian government bonds will likely rise in early session, tracking a
sustained decline in crude oil prices. The yield on the benchmark 7.17 percent
bond maturing in 2028 is likely to trade in a 7.23 percent-7.29 percent band
today, a dealer with a state-run bank said.
    
    
    GLOBAL MARKETS
    • U.S. stocks slid on Thursday, with the Nasdaq on the cusp of confirming
bear market territory, as the Federal Reserve's plan to continue its balance
sheet reduction and the threat of a partial government shutdown fueled investor
anxieties.
    • Global stocks were sailing into Christmas on a sea of red, as the threat
of a U.S. government shutdown and of further hikes in U.S. borrowing costs
inflamed investor unease over the economic outlook.
    • The dollar hovered near a one-month low against its peers, weighed down by
a subdued outlook towards U.S. interest rates and the economy, while risk
aversion in the broader markets boosted the yen.
    • U.S. Treasury yields fell to more than eight-month lows on Thursday, and
the yield curve flattened, as investors evaluated the Federal Reserve's moves to
tighten monetary policy.
    • Oil prices climbed after tumbling 5 percent in the last session, with OPEC
production cuts that start next month seen being deeper then previously
expected.
    • Gold prices held firm, having climbed to a near six-month high in the
previous session, as investors shunned risky assets and the dollar lingered near
one-month lows.
    
                   CLOSE            FII            EQUITIES     DEBT
                                    INVESTMENTS                 
 PNDF spot         69.93/69.96      December 20    -$55.15 mln  $66 mln
 10-yr bond yield  7.28 pct         Month-to-date  $471.76 mln  $697.29 mln
                                    Year-to-date   -$4.58 bln   -$6.45 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 = 69.99 Indian rupees)

 (Compiled by Avina Ajit in Bengaluru)
  
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