December 5, 2018 / 3:30 AM / 10 days ago

Morning News Call - India, December 5

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    FACTORS TO WATCH
    • 2:30 pm: Monetary Policy Committee to announce interest rate decision in
Mumbai.
    • 2:45 pm: RBI Governor Urjit Patel to brief media post policy decision in
Mumbai.
    • 5:00 pm: RBI conference call with analysts post policy decision in Mumbai.
    
    
    INDIA TOP NEWS
    • India seen holding rates steady as inflation, growth soften
Analysts expect India's central bank to support an economy that is losing
momentum by leaving interest rates unchanged at a policy meeting on Wednesday,
when just over a month ago most of them had predicted a hike.
    • Key accused in Agusta Westland chopper scam extradited to India
A key accused and alleged middleman in India's abortive, scandal-tainted
helicopter deal with Anglo-Italian firm Agusta Westland was extradited to India
from Dubai late on Tuesday, according to local media.
    • Etihad, Jet Airways in talks on rescue deal - sources
Etihad Airways is holding talks with Jet Airways and its bankers on a rescue
plan for the debt-laden Indian carrier, two sources aware of the matter told
Reuters.
    • S&P cuts credit rating of Tata Motors on JLR weakness
S&P Global Ratings on Tuesday lowered the credit rating of Tata Motors and its
luxury car unit Jaguar Land Rover Automotive (JLR), citing weaker-than-expected
profitability at JLR.
    • UAE and India sign 35 billion rupees currency swap agreement
India and the United Arab Emirates on Tuesday signed a currency swap agreement
to boost investment and enable direct trade without using dollars or other
international currencies.
    • Indian Oil Corp issues 5-year tanker tender to import Iraqi oil: document
Indian Oil has issued a global tender to charter scrubber-fitted oil tankers for
at least five years to import Iraqi oil, a tender document seen by Reuters
showed.
    
    
    GLOBAL TOP NEWS
    • China confident it can clinch U.S. trade pact as Trump demands "real deal"
China expressed confidence that it can reach a trade deal with the United
States, despite fresh warnings from President Donald Trump that he would revert
to more tariffs if the two sides cannot resolve their differences.
    • British PM suffers setbacks as Brexit debate starts in parliament
British Prime Minister Theresa May suffered embarrassing defeats on Tuesday at
the start of five days of debate over her plans to leave the European Union that
could determine the future of Brexit and the fate of her government.

    • Top U.S. senators briefed by CIA blame Saudi prince for Khashoggi death
Senior U.S. senators said on Tuesday they were more certain than ever that Saudi
Arabia's crown prince, Mohammed bin Salman, was responsible for the killing of
journalist Jamal Khashoggi after receiving a CIA briefing on the matter.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading down 0.4 percent at
10,864.50, from the previous close.
    • The Indian rupee is expected to open lower against the dollar after growth
and trade worries prompted a selloff in U.S. equities, dimming demand for
regional assets.
    • Indian government bonds will likely open higher in early session amid
expectations of a dovish commentary by the nation’s rate-setting panel today,
while fall in U.S. Treasury yields will also improve investor appetite. Yield on
the benchmark 7.17 percent 2028 bond is likely to trade in a 7.55 percent-7.60
percent band till the policy decision today. 
    
    
    GLOBAL MARKETS
    • Wall Street tumbled more than 3 percent on Tuesday, led lower by bank and
industrial shares, as the U.S. bond market sent unsettling signs about economic
growth and investors worried anew about global trade.
    • Asian stocks slid, dragged down by Wall Street's tumble as sharp declines
in long-term U.S. Treasury yields and resurgent trade concerns stoked investor
worries about global economic growth.
    • The dollar remained under pressure after the U.S. bond market sent
worrisome signs about economic growth overnight, adding to fears that the
Federal Reserve could put its rate-hike cycle on hold.
    • The difference between short-dated and long-dated U.S. Treasury yields
narrowed further on Tuesday as the inversion of the yield curve spread between
more maturities, prompted by worries about a slowdown in U.S. economic growth.

    • Oil prices fell, weighed down by swelling U.S. inventories and a plunge in
global stock markets as China's government warned of increasing economic
headwinds.
    • Gold prices were steady as the dollar edged up, while palladium dipped
from record highs touched in the previous session but was in close proximity to
the bullion.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES   DEBT
 PNDF spot         70.53/70.56  December 4       -7.93 mln  -218.91 mln
 10-yr bond yield  7.57 pct     Month-to-date       --      -$239.84 mln
                                Year-to-date     -5.08 bln  -7.39 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 = 70.5200 Indian rupees)

 (Compiled by Hrithik Kiran Bagade in Bengaluru)
  
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