To access a PDF version of this newsletter, please click here here If you would like to receive this newsletter via email, please register at: here FACTORS TO WATCH 12:00 pm: Government to release December wholesale price inflation data in New Delhi. 7:00 pm: NITI Aayog CEO Amitabh Kant at Raisina Dialogue conference in New Delhi. LIVECHAT-BIOTECH IN FOCUS Patrick Healey, founder and president of Caliber Financial Partners, discusses trends, opportunities, and M&A in the biotech sector at 7:00 pm IST. To join the conversation, click here here INDIA TOP NEWS • India's inflation soars, likely putting rate cuts on hold India’s annual retail inflation has accelerated to its highest level in more than five years, increasing the likelihood of an extended pause in the central bank's rate cutting cycle. • India orders antitrust probe of Amazon, Walmart's Flipkart India ordered an investigation of Amazon.com and Walmart's Flipkart on Monday over alleged violations of competition law in the latest setback for U.S. e-commerce giants operating in the country. • Walmart sacks 56 executives in India as part of restructuring Walmart, the world's largest retailer, has fired 56 of its executives in India as it restructures in the country. • India urges boycott of Malaysian palm oil after diplomatic row – sources Indian palm oil importers have effectively stopped all purchases from top supplier Malaysia after the government privately urged them to boycott its product following a diplomatic spat, industry and government sources said. • Supreme Court asks crime fighting agency to seize local assets of JPMorgan - report India's Supreme Court on Monday directed the government's crime fighting agency to seize local assets of JPMorgan in relation to some transactions the bank engaged in with a local real estate company in 2010, according to a Press Trust of India report in Business Standard. • Air safety watchdog extends deadline for IndiGo to replace Pratt & Whitney engines India's aviation regulator has given IndiGo more time to replace the Pratt & Whitney engines on its fleet of Airbus A320neo planes which have been linked to in-flight engine shutdowns, a statement released by the watchdog said on Monday. • Indian broadcasters will ask court to halt new tariff rules - sources Indian broadcasters will on Tuesday ask a court to suspend new government regulations on pay-TV charges they say would put some channels out of business and stifle consumer choice, two sources told Reuters. GLOBAL TOP NEWS • U.S. Treasury drops China currency manipulator label ahead of trade deal signing The U.S. Treasury Department on Monday dropped its designation of China as a currency manipulator days before top officials of the world's two largest economies were due to sign a preliminary trade agreement to ease an 18-month-old tariff war. • 'Clerics get lost!': Iran protests rage after plane disaster Protesters took to the streets of Iran to denounce the country's clerical rulers and riot police deployed to face them in a third day of demonstrations on Monday after authorities acknowledged shooting down a passenger plane by mistake. • Republican senators say they will not vote to dismiss charges against Trump ahead of trial Republican members of the U.S Senate, poised to begin an impeachment trial against President Donald Trump in the coming days, voiced opposition on Monday to any attempt to dismiss the charges against him without a trial. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were 0.2% higher at 12,381.50. • The Indian rupee is expected to open higher against the dollar, boosted by the Chinese yuan’s climb to its highest since July after the U.S. removed China from the list of currency manipulators ahead of the signing a trade deal. • Indian government bonds are likely to open lower, as December’s retail inflation came in sharply above expectations and breached the central bank’s upper band, cementing bets of policy status quo in the near term. The yield on the benchmark 6.45% bond maturing in 2029 is likely to trade in a range of 6.64%-6.70% today. GLOBAL MARKETS • Apple, Alphabet and other tech favorites propelled Wall Street to record highs on Monday, fueled by optimism about the signing of a preliminary U.S.-China trade deal, as well upcoming fourth-quarter earnings reports. • Asian share markets rose and safe-haven assets slid as signs of goodwill between China and the United States supported optimism for global growth, with the world's two biggest economies preparing to formalise a trade-war truce. • The yen plumbed an eight-month low while the yuan climbed to its highest level since July on Tuesday, after the U.S. Treasury Department reversed its decision in August to designate China as a currency manipulator. • U.S. Treasury yields climbed on Monday as investors shifted their focus from Middle East tensions to the expected signing of a trade deal between the United States and China. • Oil prices edged lower as receding Middle East tensions took some heat out of the market, with both Tehran and Washington desisting from any further escalation after this month's clashes. • Gold prices fell, as investors opted for riskier assets after the United States dropped China's designation as a currency manipulator ahead of an interim deal between the two sides to ease their trade dispute. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 70.80/70.83 January 13 658.56 crore (271.58) crore 10-yr bond yield 6.59 pct Month-to-date 615 crore (7,282) 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 = 70.70 Indian rupees) (Compiled by Siddharth Athreya V in Bengaluru)
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