January 17, 2019 / 3:09 AM / a month ago

Morning News Call - India, January 17

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    FACTORS TO WATCH
    No major events are scheduled.
    
    LIVECHAT - COMMODITIES FOCUS
    Gavin Wendt, founding director and senior resource analyst at MineLife,
joins us at 9:30 am IST to discuss the recent moves in the oil markets, and the
impact on demand for commodities from a Chinese and global slowdown. To join the
conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India's e-commerce curbs could hit online sales by $46 billion by 2022
-PwC draft analysis
    India's new foreign investment restrictions for its e-commerce sector, which
includes giants such as Amazon.com and Walmart-owned Flipkart, could reduce
online sales by $46 billion by 2022, according to a draft analysis from global
consultants PwC seen by Reuters.
    • Modi's party wants expansionary economic policy ahead of India election 
    Indian Prime Minister Narendra Modi's ruling party is in favour of an
expansionary economic policy and does not consider the government's plan to keep
the fiscal deficit to 3.3 percent of GDP as "sacrosanct", a party spokesman told
Reuters.
    • Jet Airways in creditor talks over possible Etihad bailout 
    Jet Airways said on Wednesday it is in talks with its lenders to resolve its
debt problems, amid increasing prospects of a bailout by major shareholder
Etihad Airways.
    • RBI loosens curbs on companies' offshore borrowing, move seen supporting
rupee
    The Reserve Bank of India (RBI) relaxed offshore borrowing rules for
companies and financial institutions on Wednesday, a move that is likely to
boost the rupee exchange rate.
    • Netflix, local rival Hotstar to censor content in India - sources
    Netflix and home-grown rival Hotstar plan to adopt self-regulation
guidelines for content streamed on their platforms in India in an effort to
prevent potential government censorship, sources familiar with the matter told
Reuters.
    • Chevron, Total and Reliance join oil blockchain platform Vakt 
    Oil majors Chevron and Total, along with major Indian refiner Reliance
Industries, have joined the blockchain-based platform Vakt, London-based Vakt
said on Tuesday.
    • Carmaker JLR urges UK lawmakers to prevent a no-deal Brexit
    Britain's biggest carmaker Jaguar Land Rover (JLR) urged lawmakers to rule
out the possibility that the country leaves the European Union without a deal,
to prevent companies from having to make costly contingency planning.

    
    
    GLOBAL TOP NEWS
    • UK PM May seeks to end Brexit stalemate after winning confidence vote
    Prime Minister Theresa May won a confidence vote in the British parliament
on Wednesday and then appealed to lawmakers from across the political divide to
come together to try to break the impasse on a Brexit divorce agreement.

    • As shutdown lingers, Pelosi pushes Trump to delay State of Union speech
    With the partial U.S. government shutdown now in its 26th day, House Speaker
Nancy Pelosi on Wednesday urged President Donald Trump to reschedule his State
of the Union address - a move that could deny him the opportunity to use the
pageantry of the speech to attack Democrats in their own chamber over the
impasse.
    • U.S. lawmakers introduce bipartisan bills targeting China's Huawei and ZTE
    A bipartisan group of U.S. lawmakers introduced bills on Wednesday that
would ban the sale of U.S. chips or other components to Huawei Technologies, ZTE
or other Chinese telecommunications companies that violate U.S. sanctions or
export control laws.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.3 percent higher at
10,949.50 from its previous close. 
    • The Indian rupee is expected to edge higher against the dollar after the
Reserve Bank of India eased rules for companies’ overseas borrowing. Tepid
regional cues, however, will likely keep the currency’s advance in check.
    • Indian government bonds may edge higher in early trade on value buying and
ahead of the central bank's open market purchase of notes today. The yield on
the benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.52
percent -7.58 percent band today. 
        
    
    GLOBAL MARKETS
    • Wall Street's major indexes hit one-month highs on Wednesday as strong
earnings from Bank of America Corp and Goldman Sachs Group boosted investor
sentiment.
    • Asian share markets faltered as unease over China's economic outlook
eroded early gains, though an anti-climactic end to the latest chapter in the
Brexit saga did offer sterling a moment's peace.
    • The dollar took a breather following its recent strong gains against key
rivals, while sterling steadied after British Prime Minister Theresa May's
government won a no-confidence vote in parliament.
    • U.S. Treasury yields rose on Wednesday as stronger-than-forecast results
from two major U.S. banks lifted Wall Street to one-month highs and British
Prime Minister Theresa May's win of a confidence vote, reducing safety bids for
U.S. government debt.
    • Oil prices dipped as U.S. crude production quickly approached an
unprecedented 12 million barrels per day (bpd) just as worries about weakening
demand emerge.
    • Palladium prices hit record levels amid falling supply and growing demand,
while gold stood firm on expectations the U.S. Federal Reserve will hold off on
further interest rate hikes.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         71.09/71.12  January 16       -$12.70 mln   -$128.84 mln
 10-yr bond yield  7.56 pct     Month-to-date    -$398.48 mln  -$637.17 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 = 70.97 Indian rupees)
    
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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