Morning News Call - India, January 14

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:
    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
    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'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 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 -
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
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.
    • U.S. Treasury drops China currency manipulator label ahead of trade deal
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.
    (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. 
    • 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)