January 8, 2020 / 3:14 AM / 19 days ago

Morning News Call - India, January 8

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    FACTORS TO WATCH
    9:30 am: Finance Minister Nirmala Sitharaman at Global Intellectual Property
Convention in New Delhi.
5:00 pm: State Bank of India Chairman Rajnish Kumar to brief media in Mumbai on
launch of new product in real estate sector.

    
    LIVECHAT-EQUITIES WATCH
    Reuters stocks correspondents in London and New York discuss what 2020 has
in store for European and American equities at 7:30 pm IST.To join the
conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India predicts slower 5% growth, likely prompting budget stimulus
India on Tuesday forecast 5% growth for the current financial year, the slowest
pace in 11 years, which will likely prompt the finance minister to opt for extra
fiscal stimulus when she presents the annual budget next month.
• Adani, NTPC sought extension of deadlines to curb coal plant emissions
-documents 
Top Indian coal-fired power generators Adani Power and NTPC have sought
two-to-three-year extensions of deadlines to install emissions-cutting equipment
at some plants, according to documents reviewed by Reuters, even as the country
battles rampant pollution. 
• India asks refiners to stop buying Malaysian palm oil after political row
-sources
India has informally asked palm oil refiners and traders to avoid buying
Malaysian palm oil, government and industry sources said on Tuesday, following
Malaysian criticism of India's actions in the Kashmir region and its new
citizenship law.
• Coal India output to be affected by strike on Wednesday -official
Coal India output could be affected by a planned strike on Wednesday, a senior
official at the state-run company told Reuters.
• Indian companies seek LNG cargoes for February -sources
Indian companies are seeking liquefied natural gas (LNG) cargoes for delivery in
February in the spot market, industry sources said on Tuesday.
    
    
    GLOBAL TOP NEWS
    • Iran attacks U.S. forces in Iraq in retaliation for killing of commander
Iran launched a missile attack on U.S.-led forces in Iraq in the early hours of
Wednesday in retaliation for the U.S. drone strike on an Iranian commander whose
killing has raised fears of a wider war in the Middle East.
• Senate Republicans close ranks on rules for Trump impeachment trial
Senate Majority Leader Mitch McConnell said on Tuesday he had enough support
from his fellow Republicans to set the rules for President Donald Trump's
impeachment trial, dealing a blow to Democrats' efforts to call new witnesses
against the president.
• Samsung Electronics flags smaller-than-expected profit fall as chip market
bottoms out
Samsung Electronics flagged a smaller-than-expected fall in quarterly operating
profit, indicating that memory chip prices bottomed out quicker than analysts
had anticipated, strengthening hopes of a recovery.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 1.3% lower at 11,960.00.
• The Indian rupee is expected to open lower against the dollar as crude oil
prices soared and equities tumbled after Iran targeted U.S. troops in Iraq in
response to the killing of a top Iranian commander last week.
• Indian government bonds are likely to open lower, tracking a sharp jump in
crude oil prices as Middle East tensions escalated after Iran attacked American
forces in Iraq. The yield on the benchmark 6.45% bond maturing in 2029 is likely
to trade in a range of 6.54%-6.60% today.
    
    
    GLOBAL MARKETS
    • Wall Street's major indexes declined on Tuesday as investor caution
persisted amid a dispute between the United States and Iran, while energy shares
fell as oil prices gave back some recent gains.
    • Asian shares and U.S. treasury yields tumbled, while the yen, gold and oil
shot higher after Iran fired rockets at Iraqi airbases hosting U.S. military
forces, stoking fears of a wider conflict in the Middle East.
    • The safe-haven Japanese yen jumped and gold shot higher after a rocket
attack on a base hosting U.S. troops in Iraq renewed fears of a broader conflict
breaking out in the Middle East and sent investors rushing to safety.
    • The U.S. yield curve was steeper on Tuesday in the wake of good economic
data, while 10-year Treasury Inflation-Protected Securities real yields moved
back above zero and five-year TIPS rose, though remained in negative
territory.
    • Oil prices jumped to their highest in months after Iran attacked American
forces in Iraq in response to a U.S. strike that killed an Iranian general last
week, raising the spectre of a spiralling conflict and disrupted oil
supplies.
    • Gold prices surged more than 2%, crossing the key $1,600 mark, as
investors sought cover in the safe-haven metal after Iran fired rockets at Iraqi
airbase which hosts U.S. forces.
    
  
                   CLOSE        FII INVESTMENTS  EQUITIES       DEBT
 PNDF spot         71.77/71.80  January 7        (18.99) crore  (3417.59) crore
 10-yr bond yield  6.55%        Month-to-date    758 crore      (6610) 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 = 71.84 Indian rupees)
 

 (Siddharth Athreya V in Bengaluru)
  
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