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 8:30 am: DIPAM Joint Secretary Anuradha Thakur at listing ceremony of Bharat Bond ETF in Mumbai. INDIA TOP NEWS • Coal-fired plants around New Delhi running despite missing emissions deadline Coal-fired utilities around New Delhi were still operating on Wednesday despite threats from the Indian authorities to close them down if they had not installed equipment to cut emissions of sulphur oxides by the end of the year. • EXCLUSIVE-Indian PM Modi's office proposes waiving carbon tax on coal Indian Prime Minister Narendra Modi's office has proposed waiving a tax on coal to help finance pollution-curbing equipment, according to documents, but the move would also make coal more competitive in price with solar and wind energy. • India's current account improves as trade deficit shrinks India's current account deficit narrowed in the September quarter of the fiscal year as the trade deficit shrank, central bank data showed on Tuesday, but the momentum may not be sustainable. • India cuts tax on palm oil imports, could lift shipments India has cut import taxes on crude and refined palm oil from Southeast Asian (ASEAN) countries after a request from suppliers, a government notification said on Tuesday. • Karvy Group names new head for financial services arm Karvy Group said on Tuesday it has appointed a new head of its financial services unit as part of corporate restructuring, a month after the country's market regulator slapped a ban on its stock broking arm for alleged misuse of client funds. • Rattanindia resolves debt with lenders through one-time settlement Rattanindia Power said it had reached a one-time settlement of 40.50 billion rupees with its lenders for a debt transfer in the largest resolution of stressed assets outside the National Company Law Tribunal's framework. GLOBAL TOP NEWS • China December factory activity expands more slowly but confidence jumps-Caixin PMI China's factory activity expanded at a slower clip in December, pulling back from a three-year high the previous month as new orders softened, a private survey showed. • Ghosn met Lebanese president after fleeing Japan-sources Fugitive former Nissan chairman Carlos Ghosn met Lebanon's president after fleeing from Japan, where he was smuggled out of house arrest by a private security company, two sources close to Ghosn said on Wednesday. • Rock-throwing Iraqi militias quit U.S. Embassy after protests Supporters of Iranian-backed Iraqi paramilitary groups who stormed the U.S. Embassy's perimeter and hurled rocks in two days of protests withdrew on Wednesday after Washington dispatched extra troops and threatened reprisals against Tehran. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures little changed at 12,249.00. • The Indian rupee is expected to open lower against the dollar tracking decline in most Asian currencies amid weaker-than-expected China manufacturing data. • Indian government bonds will likely trade largely unchanged after rallying yesterday, as traders await the central bank’s next round of special open market operation. The yield on the benchmark 6.45% bond maturing in 2029 is likely to trade in a range of 6.48%-6.53% today, a trader with a state-run bank said. GLOBAL MARKETS • Wall Street's major indexes edged higher on Tuesday on a renewed rally fueled by trade optimism, capping off a decade of handsome returns in which the benchmark S&P 500 rose nearly 190%. • Asian shares kicked off the new decade higher, after global stocks ended the previous one at record highs, and buoyed by Chinese markets after Beijing eased monetary policy to support slowing growth. • The dollar started the new year where it left the old one, under pressure as investors wagered U.S. economic outperformance could be coming to an end as optimism on trade brightens the outlook for growth globally. • Longer-dated U.S. Treasuries look set to post their best return since 2014 on Tuesday, after concerns about the slowing U.S. economy prompted the Federal Reserve to cut interest rates three times this year. • Oil prices rose on the first trading day of 2020 as warming trade relations between the United States and China eased demand concerns, and rising tensions in the Middle East raised worries about supply. • Gold prices rose slightly as the dollar remained on the back foot on signs of progress in trade ties between the United States and China. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 71.26/71.29 January 1 (1,972.18) (543.38) crore crore 10-yr bond yield 6.8% Month-to-date (1,972) (543) crore crore Year-to-date (1,972) (543) crore 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 = 71.22 Indian rupees) (Compiled by Siddharth Athreya V in Bengaluru)
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