January 22, 2018 / 3:40 AM / a month ago

Morning News Call - India, January 22

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    FACTORS TO WATCH
    12:00 pm: Energy Efficiency Services MD Saurabh Kumar at a media roundtable
in New Delhi.
    3:30 pm: Axis Bank post-earnings conference call in Mumbai.
    4:00 pm: Commerce & Industry Minister Suresh Prabhu and Commerce Secretary
Rita Teaotia at ASEAN-India Business and Investment Meet and Expo in New Delhi.
    4:00 pm: Havells India post-earnings analyst conference call in Mumbai.
    
    GMF:LIVECHAT- FX WEEK AHEAD
    FX Buzz analyst Jeremy Boulton analyses G7 currencies at 04:30 pm IST. To
join the conversation, click on the link: here
    INDIA TOP NEWS
    • India sends tax notices to cryptocurrency investors as trading hits $3.5
billion
    India has sent tax notices to tens of thousands of people dealing in
cryptocurrency after a nationwide survey showed more than $3.5 billion worth of
transactions have been conducted over a 17-month period, the income tax
department said.
    • India's proposed investment treaty terms leave foreign partners cold
    Having cancelled investment treaties with about 50 foreign governments last
year, India is struggling to convince some to accept new terms that make it
harder to seek international arbitration for disputes, sources familiar with the
talks said.
    • Reliance expects earnings boost as telecoms arm turns a profit
    Reliance Industries Ltd expects its earnings to increase further in the
coming quarters after they hit a record in the third quarter, helped by the
first-ever profit at its Jio telecoms business.
    • HDFC Bank, Kotak report strong profit growth in Q3
    Two of India's biggest private-sector lenders - HDFC Bank Ltd and Kotak
Mahindra Bank Ltd - each reported a 20 percent rise in third-quarter net profit
on Friday due to strong lending growth and as bad loans remained stable.

    • INTERVIEW-Xiaomi to expand store network in Indian tussle with Samsung
    China's Xiaomi plans to expand its Indian store network as it attempts to
grab the lead in a smartphone market which Korea's Samsung has dominated for
more than five years.
    • Wipro upbeat on 2018 after quarterly profit dip
    India's third-largest software services exporter Wipro expects significant
growth in its high-margin digital business this year, it said on Friday after
reporting a quarterly profit dip on one-off provisions.
    • ONGC to buy majority stake in refiner HPCL for $5.78 billion 
India's biggest explorer Oil and Natural Gas Corp (ONGC) has agreed to buy the
government's majority stake in state-refiner Hindustan Petroleum Corp for 369
billion rupees ($5.78 billion), ONGC said on Saturday.
    • Indian tribunal refuses to lift Price Waterhouse audit ban
    India's Securities Appellate Tribunal (SAT) said on Friday that Price
Waterhouse can continue to service existing clients whose financial year started
on Jan. 1 2018, but refused to grant a stay on a two-year audit ban ordered by
the market regulator.
    • India to allot Coal India 11 new mines to boost production by two-fifths
    India will allow Coal India to build 11 new coal mines, the government said,
a move that could increase annual production of the world's largest coal miner
by two-fifths.
    • India regulator recommends allowing in-flight internet connectivity
    The Telecom Regulatory Authority of India (TRAI) on Friday recommended that
internet services like wi-fi and mobile connectivity should be permitted on
domestic and international flights in India.
    
        GLOBAL TOP NEWS
    • U.S. government to remain closed on Monday as Senate still short of deal
    A U.S. government shutdown will enter its third day on Monday as Senate
negotiators failed to reach a deal late on Sunday on Democrats' demand for
legislation protecting "Dreamers," young people brought to the country illegally
as children.
    • Japan manufacturers' mood jumps to 11-year high
    Confidence among Japanese manufacturers jumped in January to an 11-year
high, the Reuters Tankan poll showed on Monday, highlighting corporate optimism
driven by nearly two years of uninterrupted economic expansion and a buoyant
stock market.
    • Ski lift: North Korea may capitalise on joint Olympics training visit
    South Korea's offer to send athletes to a North Korean ski resort for joint
training ahead of next month's Olympics risks giving leader Kim Jong Un's regime
legitimacy and some much needed cash, North Korean defectors and experts say.

        LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were trading at 10,823.00, trading up 0.1pct from
its previous close.
    • The Indian rupee will likely open steady-to-lower against the dollar amid
weak Asian cues, even as the greenback edged lower after the U.S. Senate failed
to approve an extension of federal funding through Feb. 16, forcing a government
shutdown on Friday midnight. 
    • Indian government bonds are likely to edge lower in early trade as
investors may sell notes tracking higher U.S. Treasury yields amid bets that the
political impasse leading to a U.S. government shutdown would be brief. The
yield on the 7.17 pct bond maturing in 2028 is likely to trade in a 7.28
pct-7.32 pct band today.
    
    GLOBAL MARKETS
    • Stock investors gave a muted reaction to the second day of a U.S.
government shutdown on Sunday, with U.S. stock index futures dipping only
slightly on expectations that the political impasse will not hurt the U.S.
economy.
    • Financial markets in the United States and Asian stocks took a knock early
after the U.S. government was forced to shut down amid a dispute between
President Donald Trump and Democrats over immigration.
    • The dollar sagged against its peers as a U.S. government shutdown dented
sentiment, although losses were limited for now as investors took a wait-and-see
stance on developments in Washington.
    • Bond investors mostly shrugged off the second day of a government shutdown
in the United States on Sunday, with prices of U.S. Treasury debt futures easing
as the market bet that the political impasse would be brief.
    • Oil prices climbed, pushed higher by comments from Saudi Arabia that
cooperation between oil producers who are currently withholding supplies in an
effort to prop up the market would continue beyond 2018.
    • Gold prices edged up amid a softer dollar as investors sought safe haven
assets after the U.S. government shutdown due to a funding impasse.
    
    
              CLOSE   FII           EQUITIES   DEBT
                      INVESTMENTS              
 PNDF spot    63.70/  January 19    $154.81ml  $279.14ml
              63.73                 n          n
 10-yr bond   7.46    Month-to-dat  $822.43ml  $894.31ml
 yield        pct     e             n          n
                      Year-to-date  $822.43ml  $894.31ml
                                    n          n
 
    
    
    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 = 63.82 Indian rupees)
    

 (Compiled by Nishit Kunal in Bengaluru)
  
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