December 6, 2019 / 3:17 AM / 2 months ago

Morning News Call - India, December 6

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    No major events are scheduled for the day.
    • RBI pauses with dramatic effect, markets wobble
    The Reserve Bank of India kept its key lending rate on hold in a shock
decision that spooked markets on Thursday, even as it slashed its growth
forecast for the economy to its lowest level in over a decade.
    • Canada's CPPIB to invest up to $600 million in Indian infrastructure fund
    Canada's biggest public pension fund is investing up to $600 million in
India's National Investment and Infrastructure Fund (NIIF), as it seeks to grow
its infrastructure bets in Asia's third-largest economy.
    • RBI to tighten governance rules for urban co-operative banks
    India's central bank plans to raise governance rules to strengthen the more
than 1,500 urban co-operative banks after a scam at Punjab and Maharashtra
Co-operative Bank (PMC)exposed cracks in the system earlier this year.

    • ANALYSIS-Indian government's loan bonanza seen a temporary salve and a
long-term pain
    Reviving a practice not used in three decades, India's government in
September ordered state-run banks to hold more than 400 loan "melas" or fairs
across the country over the following month - a measure aimed at boosting
economic growth at six-year lows and lending growth at its weakest in three
    • India may force social media platforms to offer user verification-govt
    India's proposed new privacy bill may require large social media platforms
to offer an identity-verification option, a potentially precedent-setting effort
to rein in the spread of "fake news", two government sources told Reuters on
    • Trump upbeat on U.S.-China talks as Beijing underscores tariff-cut demands
    U.S.-China trade talks are "moving right along," President Donald Trump said
on Thursday, striking an upbeat tone even as Chinese officials held fast to
their line that existing tariffs must come off as part of an interim deal to
de-escalate the 17-month trade war between the two powers.
    • OPEC, allies agree to deepen oil output cuts
    Oil producers led by Saudi Arabia and Russia agreed on Thursday to cut
output by an extra 500,000 barrels a day in the first quarter of 2020 but
stopped short of pledging action beyond March.
    • U.S. trade deficit shrinks sharply; labor market tight
    The U.S. trade deficit dropped to its lowest level in nearly 1-1/2 years in
October, suggesting trade could contribute to economic growth in the fourth
quarter, though a broad decline in imports hinted at a slowdown in domestic
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.2% higher at 12,070.00.
    • The Indian rupee is expected to open higher against the U.S. currency
after the dollar index slipped to a one-month low ahead of employment data from
the world’s largest economy.
    • Indian government bonds are likely to open lower before today’s weekly
supply of notes, while the rate-setting panel’s unexpected decision to keep key
policy rate unchanged continues to impact sentiment. The yield on the benchmark
6.45% bond maturing in 2029 is likely to trade in a 6.60%-6.65% range till the
auction result today.
    • Wall Street eked out slight gains on Thursday as investors waited for
concrete news on a hoped-for interim trade deal between the United States and
China before a new round of tariffs scheduled to kick in on Dec. 15.
    • Asian stocks gained on Friday as investors took heart from U.S. President
Donald Trump saying trade talks with China were "moving right along".

    • The dollar nursed a week of losses, hit by nervousness on trade and mixed
signals about the U.S. economy, while the British pound stood tall as bets
firmed that Prime Minister Boris Johnson can win a commanding electoral victory.

    • U.S. Treasury yields rose on Thursday as a range of reports indicated
continued economic growth, then pared the gains in afternoon trading.
    • Oil edged up in early Asia trade, with U.S. crude trading near a two-month
high after OPEC agreed to increase output curbs by nearly 50% in early 2020,
although the cartel stopped short of promising any further steps after March.

    • Gold was flat due to rise in risk sentiment after U.S. President Donald
Trump's latest comments rekindled hopes of a trade deal with China, but dollar's
weakness kept the bullion on track for a weekly rise.
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         71.38/71.41  December 5       195.45 crore    47.26 crore
 10-yr bond yield  6.61%        Month-to-date    (2,106) crore   1,468 crore
                                Year-to-date     91,678 crore    31,966 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 Pranay Prakash in Bengaluru)
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