January 11, 2019 / 3:09 AM / 9 days ago

Morning News Call - India, January 11

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    FACTORS TO WATCH
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
    5:30 pm: Government to release November industrial production data in New
Delhi.
    
    LIVECHAT - CHARTS & CHAT 
    Reuters Stocks Buzz writer and Chartist Terence Gabriel calls out risks and
opportunities in global markets via the charts at 8:00 pm IST. To join the
conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Modi's 'Make in India' a casualty as steel, auto firms spar over sourcing
    India's steel ministry is putting pressure on automakers to use locally made
steel by refusing to back down on tougher import rules despite warnings that the
new regulations could disrupt the production of cars, government and industry
sources said.
    • Ford, Jaguar slash thousands of jobs across Europe
    Ford and Jaguar Land Rover unveiled sweeping job cuts across Europe on
Thursday as carmakers struggle with a slump in demand for diesel vehicles,
tougher emissions rules and a global economic slowdown led by China.

    • RBI to eye December quarter results before easing lending curbs on some
banks
    Eleven Indian state-owned banks will have to wait for about a month before
knowing which of them will have lending curbs eased after a Reserve Bank of
India (RBI) panel reviews their December quarter results, an official with
direct knowledge of the matter told Reuters on Thursday.
    • POLL-India's inflation in December likely hit lowest since June 2017
    India's December retail inflation is expected to have eased to its lowest
since June 2017 as food costs fell and fuel prices rose at a slower pace, a
Reuters poll showed, giving the central bank breathing space to keep policy on
hold.
    • Reserve Bank of India accountable to government, says reserves panel
chairman
    The Reserve Bank of India is accountable to the government and should make
policies within the framework set by the government, according to a former
central bank chief now heading a panel tasked with framing guidelines for the
transfer of the RBI's surplus funds to the government.
    • After Monsanto patent ruling, Indian farmers hope for next-gen GM seeds
    A court ruling in India this week that upheld a Monsanto patent on
genetically modified (GM) cotton seeds has raised hopes among farmers that the
company would now launch its next-generation seeds, the application for which it
pulled two years ago.
    • India offers tax sops to small businesses ahead of election
    India's government announced a change in national sales tax rules on
Thursday that would exempt an additional two million small businesses, in a move
that could help garner support ahead of a general election that must be called
by May.
    • Tata Consultancy highlights strong deal pipeline, after record quarter
    Tata Consultancy Services, India's top software services exporter, on
Thursday reported a record quarterly profit helped by gains in its key banking,
financial services and insurance division and said it was well positioned for
2019 with a strong pipeline of client orders.
    
    
    GLOBAL TOP NEWS
    • U.S. expects China's top trade negotiator to visit 'most likely' this
month
    U.S. officials expect China's top trade negotiator may visit Washington this
month, signaling that higher-level discussions are likely to follow this week's
talks with mid-level officials in Beijing as the world's two largest economies
try to hammer out a deal to end a tit-for-tat tariff war.
    • Fed's Powell again stresses patience as U.S. economy's 'narrative' unfolds
    Federal Reserve Chairman Jerome Powell on Thursday stressed again that the
U.S. central bank can be patient in approving any further rate increases as
officials gauge whether the U.S. economy will slow this year, as some in
financial markets worry, or continue motoring ahead as the Fed itself expects.

    • Trump threatens to use emergency power to build wall, end shutdown
    Flanked by border agents who are going without paychecks during a government
shutdown, U.S. President Donald Trump threatened on Thursday to use emergency
powers to bypass Congress to pay for a wall on the U.S.-Mexico border.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.3 percent higher at
10,887.50 from its previous close. 
    • The Indian rupee is expected to open little changed against the dollar
mirroring the quiet performance of its regional peers after Federal Reserve
Chairman Jerome Powell once again said muted inflation allows the U.S. central
bank to be patient on interest rates. The rupee will trade around 70.44-70.46 at
opening versus its previous close of 70.42, according to a private bank dealer.
    • The Indian rupee is expected to open little changed against the dollar
mirroring the quiet performance of its regional peers after Federal Reserve
Chairman Jerome Powell once again said muted inflation allows the U.S. central
bank to be patient on interest rates. The rupee will trade around 70.44-70.46 at
opening versus its previous close of 70.42, according to a private bank dealer.
    
    
    GLOBAL MARKETS
    • Wall Street extended its rally into a fifth straight day on Thursday in a
session of whipsaw trading as investors responded to mixed comments by Federal
Reserve Chairman Jerome Powell, while a warning from Macy's pummeled retail
stocks.
    • Asian stocks inched higher to one-month highs, after Federal Reserve
Chairman Jerome Powell reiterated the U.S. central bank can be patient on
raising interest rates further.
    • The dollar held a soft tone versus its peers, on rising expectations the
U.S. Federal Reserve may hit the pause button on monetary tightening if the
economy slows this year.
    • U.S. Treasury prices rose on Thursday as stocks weakened in choppy
trading, but pared price gains after a soft 30-year bond auction and as Federal
Reserve Chairman Jerome Powell said the U.S. central bank will "substantially"
reduce the size of its balance sheet.
    • Oil prices slipped as concerns over economic growth were rekindled after
talks fell short of offering concrete steps to end the Sino-U.S. trade conflict,
although OPEC-led production cuts bolstered sentiment in crude markets.
    • Gold prices edged up as the dollar softened a touch on expectations the
U.S. central bank will keep interest rates steady if the economy slows this
year, while the Sino-U.S. trade spat also remained in focus.
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         70.54/70.57  January 10       -$48.97 mln   -$97.93 mln
 10-yr bond yield  7.48 pct     Month-to-date    -$194.53 mln  -$194.60 mln
                                Year-to-date     ---           ---
    
    
    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 = 70.4530 Indian rupees)
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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