February 6, 2020 / 3:20 AM / 2 months ago

Morning News Call - India, February 6

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    FACTORS TO WATCH
    11:00 am: Budget session of Parliament continues in New Delhi.
    11:45 am: Monetary Policy Committee is set to announce interest rate
decision in Mumbai.
    
    LIVECHAT- BONDS FOCUS
    Dhara Ranasinghe, Reuters senior European government bonds correspondent,
takes questions on European govvies. To join the conversation at 05:00 pm IST,
click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    •Kia in talks over moving $1.1 billion plant to another Indian state
-sources
    South Korea's Kia Motors is discussing with the Indian state of Tamil Nadu
the possibility of moving a $1.1 billion plant out of neighbouring Andhra
Pradesh only months after it fully opened, due to policy changes last year,
sources close to the talks told Reuters.
    •Disney's weapon against Netflix and Amazon in India: Hotstar 
    When Walt Disney Disney+ streaming service makes its debut in India on March
29, it will enjoy the luxury of home-court advantage: Hotstar.
    •Solid demand lifts India services activity to 7 year high in January
    India's dominant service industry began 2020 in a buoyant mood as activity
accelerated in January at the fastest pace in seven years on strong domestic
demand, a private survey showed on Wednesday.
    •India aims to double defence exports in 5 years amid resource crunch
    India wants to double defence exports over the next five years, Prime
Minister Narendra Modi said on Wednesday, as the country seeks to cut its import
bill amid a funding crunch that has forced successive governments to go slow on
new orders.
    •India's pollution regulator threatens to shut 14 coal-fired power plants
    India's federal pollution regulator has warned 14 coal-fired power plants
that they could be shut down and penalized for failing to comply with
environmental standards, according to documents reviewed by Reuters.
    •India guards against virus at car show dominated by Chinese firms
    India will press ahead with its biennial auto show this week with local
staff replacing representatives of Chinese automakers that will showcase
cutting-edge electric vehicles and connected cars despite travel disruption from
the caronavirus outbreak.
    •India's IOC signs annual deal on option to buy crude from Russia's Rosneft
    State-owned Indian Oil has signed a deal with Russian oil major Rosneft
giving it an option to buy up to 2 million tonnes, or 40,000 barrels per day
(bpd) of crude in 2020, the Indian oil minister said on Wednesday.

    
    
    GLOBAL TOP NEWS
    •China virus toll jumps past 500 as more cases found on cruise ship off
Japan
    The death toll from a new coronavirus in mainland China jumped by 73 to 563,
its third consecutive record daily rise, as experts intensified efforts to find
a vaccine for a disease that has shut down Chinese cities and forced thousands
more into quarantine around the world.
    •U.S. Senate acquits Trump in historic vote as re-election campaign looms
    President Donald Trump was acquitted on Wednesday in his U.S. Senate
impeachment trial, saved by fellow Republicans who rallied to protect him nine
months before he asks voters in a deeply divided America to give him a second
White House term.
    •U.S. trade deficit narrows in 2019 for first time in six years
    The U.S. trade deficit fell for the first time in six years in 2019 as the
White House's trade war with China curbed the import bill, keeping the economy
on a moderate growth path despite a slowdown in consumer spending and weak
business investment.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    •SGX Nifty nearest-month futures were trading 0.2% lower at 12,073.50. 
    •The Indian rupee is expected to remain little changed against the dollar in
early trades amid a rebound in crude oil prices and U.S. equities hitting record
highs. 
    •Indian federal government bonds are expected to trade largely unchanged
ahead of the Monetary Policy Committee’s decision, where the panel is expected
to maintain interest rates at their current level. The yield on the benchmark
6.45% bond maturing in 2029 is likely to trade in a range of 6.48%-6.53% until
the MPC outcome. 
    
    
    GLOBAL MARKETS
    • The benchmark S&P 500 posted a record closing high on Wednesday as U.S.
stocks rallied for a third straight day on encouraging U.S. economic data and
waning fears of the financial fallout from the corona virus in China.
    • Asian stocks edged up, a day after U.S. S&P 500 hit a record peak
following encouraging economic data, while investors keep a wary eye on the
impact of the coronavirus outbreak.
    • The U.S. dollar stood tall, supported by firm domestic data and hopes the
coronavirus' economic impact could be limited, even as the human toll continued
to climb.
    • U.S Treasury yields rose on Wednesday as traders reacted to positive
reports on efforts to counter the coronavirus and a strong private-sector jobs
report.
    • Oil futures rose for a second day as investors took optimism around
unconfirmed reports of possible medical advances to combat the coronavirus
outbreak in China as a sign fuel demand could rebound in the world's biggest oil
importer.
    • Gold prices were little changed as strong U.S. economic data was offset by
fears over a rapidly spreading coronavirus outbreak and its impact on the global
economy.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES       DEBT
 PNDF spot         71.20/71.23  February 5       922.96 crore   (3,884.21) crore
 10-yr bond yield  6.50 pct     Month-to-date    (1,602) crore  (3,791) crore
                                Year-to-date     10,521 crore   (15,439) 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 = 71.18 Indian rupees)
 


 (Compiled by Prajakta Gadgil in Bengaluru)
  
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