January 13, 2020 / 3:14 AM / 15 days ago

Morning News Call - India, January 13

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    FACTORS TO WATCH
    5:30 pm: Government to release December consumer price inflation data in New
Delhi.

LIVECHAT-MARKET FOCUS
Reuters EMEA Markets Editor Mike Dolan takes a look at the week ahead for
European markets at 3:30 pm IST. To join the conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Indian government to seek RBI dividend boost as revenue drops
India's government plans to push the central bank for a fiscal lifeline in the
form of another interim dividend, as it struggles to meet its expenditure
commitments amid a steep revenue shortfall, three sources directly aware of the
matter said.
• NMDC lined up to mine multibillion-dollar diamond deposit
State-owned Indian miner NMDC is poised to win a multibillion-dollar contract to
explore and mine diamonds at a large project abandoned by global miner Rio
Tinto, a leading local government official told Reuters.
• POLL-Battered Indian rupee to extend losing streak this year
The Indian rupee will extend its two-year-long weakening streak this year,
dragged down by an ongoing economic slump that has defied easing measures from
policymakers, as well as by bets for a stronger dollar, a Reuters poll showed.

• Infosys probe finds no evidence of misconduct after whistleblower complaint
Infosys said it found no evidence of financial misconduct by its executives
following a investigation into whistleblower complaints.
• Yes Bank woes deepen despite latest fundraising plan
Yes Bank has rejected $1.2 billion of outside investment and will launch a $1.4
billion share sale, it said on Friday after a board member's resignation cast
more doubt on the troubled lender's future and sent its stock down 5%.

• Big broadcasters in India warn new tariff rules could hit services
Some of the biggest television broadcasters operating in India joined forces on
Friday to criticise new government regulations that impose restrictions on
pay-TV charges, saying the move could put some channels out of business.

• India's oil demand growth set to overtake China by mid-2020s -IEA
India's oil demand growth is set to overtake China by mid-2020s, priming the
country for more refinery investment but making it more vulnerable to supply
disruption in the Middle East, the International Energy Agency (IEA) said on
Friday.
• Indian startup Zomato to raise $150 million from investor Ant Financial
India's Zomato is raising $150 million from investor Ant Financial, an Alibaba
affiliate, at a valuation of $3 billion for the food delivery startup.

    
    
    GLOBAL TOP NEWS
    • 'Our enemy is here': Iran protesters demand that leaders quit after plane
downed
Protests erupted across Iran for a second day on Sunday, increasing pressure on
the Islamic Republic's leadership after it admitted its military shot down a
Ukrainian airliner by accident, despite days of denials that Iranian forces were
to blame..
• China's U.S. trade deal commitments not changed in translation -Mnuchin
China's commitments in the Phase 1 trade deal with the United States were not
changed during a lengthy translation process and will be released this week as
the document is signed in Washington, U.S. Treasury Secretary Steven Mnuchin
said on Sunday.
• Pelosi says Republicans will pay price for denying impeachment witnesses
U.S. House Speaker Nancy Pelosi said House Democrats will determine on Tuesday
when to send formal impeachment charges against President Donald Trump to the
Senate and warned that Republicans will pay a political price for denying a
trial with witnesses.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.3% higher at 12,327.50.
• The Indian rupee is expected to open little changed against the U.S. currency
amid a weak jobs report from the world’s largest economy and anticipated dollar
demand by state-run banks. 
• Indian government bonds are likely to open little changed, as traders await
the country’s December retail inflation data for further cues on interest rates.
The yield on the benchmark 6.45% bond maturing in 2029 is likely to trade in a
range of 6.57%-6.62% today.
    
    
    GLOBAL MARKETS
    • U.S. stocks fell on Friday from record-high levels as investors took
profit and data showed slower-than-expected December U.S. jobs growth, but the
major indexes posted gains for the week.
    • Asian shares paused near 19-month peaks ahead of the expected signing on a
Sino-U.S. trade deal, though talks on a phase two package are likely to drag on
for months.
    • The U.S. dollar began the week supported by optimism on the Sino-U.S.
trade front, while the pound wobbled lower after weekend hints at an interest
rate cut from a Bank of England policymaker.
    • U.S. Treasury yields were lower on Friday after the Labor Department's
nonfarm payrolls report showed job growth slowed more than expected in December
and wages stagnated, limiting inflation risk.
    • Oil prices edged down as fears of conflict between the United States and
Iran eased, although the decline was checked by the planned signing of an
initial U.S.-China trade deal this week, which could boost demand.
    • Gold prices fell as expectations of an interim trade deal signing between
the United States and China boosted the dollar and dented some of bullion's
safe-haven appeal.
    

                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         71.04/71.07  January 10       156.51 crore  96.66 crore
 10-yr bond yield  6.59%        Month-to-date    (43) crore    (7,011) 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 = 70.95 Indian rupees)
 
    

 (Compiled by Siddharth Athreya V in Bengaluru)
  
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