July 1, 2020 / 3:26 AM / 13 days ago

Morning News Call - India, July 1

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    FACTORS TO WATCH
    No major events are scheduled.

    
    LIVECHAT - REUTERS GLOBAL MARKETS FORUM
    Jim Wyckoff, senior analyst at Kitco Metals, joins the forum to discuss the
outlook for gold, silver, palladium, platinum, and more as markets hesitate
between economic optimism and fears over a second wave of COVID-19 infections.
To join the conversation at 8:30 pm IST, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Firms in India downplay Chinese links amid wave of anti-China sentiment
    Indian startups with Chinese funding and Chinese smartphone makers are
actively touting their Indian-ness to users as they seek to address a growing
wave of nationalism following a deadly border clash between the two countries
earlier this month.
    • Jindal Steel and Power to sell Oman unit for more than $1 billion to cut
debt
    Jindal Steel and Power said on Tuesday it is selling its Oman subsidiary to
Templar Investments Limited in a deal valued at over $1 billion, to ease the
group's debt burden.
    • Piramal Glass sees surge in vial demand due to COVID-19 - executive
    Piramal Glass has seen a 30% jump in sales of specialty vials used to bottle
medicines in the June quarter, led by a surge in demand as more drugs are being
made to combat the COVID-19 pandemic, a senior executive told Reuters.

    • U.S. charges generic drug firm Glenmark with price-fixing
    Glenmark Pharmaceuticals USA was charged on Tuesday with conspiring to fix
prices for generic drugs, the U.S. Justice Department said in a statement.

    • Indian private firms seen developing 15 million tonnes capacity coal mines
this year - minister
    India's private companies could start developing coal mines with an annual
capacity of 15 million tonnes by the end of March, the country's coal minister
told Reuters, a move that would end the near-monopoly of state-run Coal India.

    • The billionaire, Bollywood and the future of Indian soccer
    A storm could be brewing in India's top-flight soccer, a glamorous and
acrimonious world that encompasses Asia's richest man, the cream of Bollywood
and a self-styled former gangster.
    • Modi warns of coronavirus 'negligence' as some cities extend lockdowns
    India's prime minister on Tuesday warned citizens against flouting rules to
prevent the spread of the novel coronavirus, as he extended a vast social
security scheme until November.
    • Essar group places bid for Petrobras' Bahia refinery -sources
    Essar Group made a binding offer to Brazil's Petroleo Brasileiro SA to buy
the country's second largest oil refinery, two people with knowledge of the
matter said on Tuesday.
       
    
    GLOBAL TOP NEWS
    • Asia's factory pain eases as region emerges from pandemic
    Asia's factory pain showed signs of easing in June, as a rebound in China's
activity offered some hope the region may have passed the worst of the
devastation caused by the coronavirus pandemic.
    • U.S. coronavirus cases rise by 47,000, biggest one-day spike of pandemic
    New U.S. COVID-19 cases rose by more than 47,000 on Tuesday according to a
Reuters tally, the biggest one-day spike since the start of the pandemic, as the
government's top infectious disease expert warned that number could soon double.

    • Boeing kept FAA in the dark on key 737 MAX design changes -U.S. IG report
    Boeing failed to submit certification documents to the U.S. Federal Aviation
Administration (FAA) detailing changes to a key flight control system faulted in
two fatal crashes, a long-awaited government report seen by Reuters has found.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.3% lower at 10,232.30.
    • The Indian rupee is expected to trade little changed against the dollar
amid rangebound moves on Asian currencies despite regional equities beginning
the new quarter on a positive note. 
    • Indian government bond yields are seen lower in early trade, as state
governments will likely raise a lower-than-expected quantum of funds by selling
notes during July-September. The yield on the benchmark 5.79% bond maturing in
2030 is likely to trade in a 5.85%-5.92% range.
    
    
    GLOBAL MARKETS
    • The S&P 500 rallied on Tuesday to finish higher and secure its biggest
quarterly percentage gain in more than two decades as improving economic data
bolstered investor beliefs that a stimulus-backed rebound for the U.S. economy
was on the horizon.
    • Asian share markets began the second half of 2020 struggling for headway,
as consistently strong economic data was offset by worries that surging
coronavirus cases in the United States could derail the world's recovery before
it properly begins.
    • The dollar held gains against the yen ahead of data expected to show U.S.
manufacturing activity and hiring continued to recover from the economic shock
caused by the coronavirus pandemic.
    • U.S. Treasury yields on the longer rose on Tuesday as month-end
rebalancing injected a touch of volatility into the market.
    • Oil prices rose after an industry report showed crude inventories in the
United States fell much more than expected, suggesting demand is improving even
as the coronavirus outbreak spreads around the world.
    • Gold prices edged higher, hovering near an eight-year high, as a spike in
COVID-19 infections in the United States assuaged hopes of a swift economic
rebound, pushing investors towards the safety of bullion.
    
                   CLOSE        FII INVESTMENTS  EQUITIES         DEBT
 PNDF spot         75.51/75.54  June 30          (103.91) crores  975.72 crores
 10-yr bond yield  5.89%        Month-to-date    21,832 crores    (1,545) crores
                                Year-to-date     (18,513) crores  (1,06,959) crores
    
    (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 = 75.54 Indian rupees)
 

 (Compiled by Pranay Prakash in Bengaluru)
  
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