July 17, 2018 / 3:20 AM / a month ago

Morning News Call - India, July 17

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    FACTORS TO WATCH
    TRADING INDIA FORUM - TRADE WAR EFFECTS ON INDIA
    Trade wars have begun in earnest with President Trump firing 2nd shots over
China with proposed tariffs over imports of $200 billion. India stands at an
interesting position amidst all the firing. China and the U.S. are India's top 2
trading partners. How should India respond to President Trump while sharing a
complicated relationship with China? Atul Kaushik, former Joint Secretary of
Department of Justice (India), talks about it at 11:00am IST. To join the
conversation, click on the link: here
    
    LIVECHAT- TRADE WARS
    Rob Carnell, head of research and chief economist for Asia-Pacific at ING
Bank, joins us to discuss the fallouts of the United States’ protectionist
rhetoric, and how deep China could dig in its ammunition to retaliate. What
would this mean for the Chinese, U.S. and other economies, and also for the Fed
for its future rate path. To join the conversation at 12:00pm IST, click on the
link: here
    
    
    INDIA TOP NEWS
    • State insurer LIC to take majority stake in IDBI Bank
State-run Life Insurance Corp of India's board on Monday approved a proposal to
acquire a 51 percent stake in IDBI Bank, in a move that will provide the
embattled lender much-needed capital to set aside for bad loans.
    • Hindustan Unilever Q1 profit rises but lags estimates
Consumer goods maker Hindustan Unilever Ltd posted a 19 percent rise in its
first-quarter profit on Monday but slightly missed analysts' expectations as
cost of materials climbed.
    • Trade ministry urges duty on Chinese solar cells, modules
India's trade ministry on Monday recommended imposing a 25 percent duty on
imports of solar cells and modules from China for one year to try to counter
what it sees as a threat to domestic solar equipment manufacturing.
    • Spicejet in talks with planemakers over long-haul options
Indian budget airline Spicejet is in talks with aircraft makers over planes that
would help its ambitions to fly long-haul, the carrier's chairman said on
Monday.
    • Telecom regulator recommends stricter data security rules
India's telecom regulator on Monday said the existing framework for protection
of personal data by companies and service providers was insufficient and
recommended stricter rules to tackle data breaches.
    
    
    GLOBAL TOP NEWS
    • Trump backs Putin on election meddling at summit, stirs fierce criticism
Standing side by side with Vladimir Putin, U.S. President Donald Trump refused
on Monday to blame the Russian leader for meddling in the 2016 U.S. election,
casting doubt on the findings of his own intelligence agencies and sparking a
storm of criticism at home.
    • U.S. launches five WTO challenges to retaliatory tariffs
The United States launched five separate World Trade Organization dispute
actions on Monday challenging retaliatory tariffs imposed by China, the European
Union, Canada, Mexico and Turkey following U.S. duties on steel and aluminum.

    • Fed's 'good place' U.S. economy heads for congressional review
Federal Reserve Chairman Jerome Powell takes his upbeat view of the U.S. economy
to Capitol Hill, with markets and many of Powell's colleagues expecting two more
interest rate increases this year amid a continued economic expansion.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    SGX Nifty nearest-month futures were down 0.2 percent at 10,926.50.
    
    The Indian rupee is expected to open higher against the dollar after Brent
crude extended its fall, dropping to the lowest level since mid-April.
    
    Indian government bonds are likely to open higher tracking an overnight fall
in crude oil prices that eases some inflation concerns. The yield on the
benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.75
percent-7.81 percent band today.
    
    
    GLOBAL MARKETS
    • The S&P 500 ended slightly lower on Monday following a drop in oil prices
that weighed on energy shares and offset a jump in financials as Bank of
America's results reinforced expectations of a strong U.S. earnings season.
    • Asian stocks sagged, weighed by a sharp decline in crude oil prices as
Libyan ports reopened, while the dollar steadied ahead of Federal Reserve
Chairman Jerome Powell's first congressional testimony.
    • The dollar slightly gained against its major peers, as investors awaited
Federal Reserve Chairman Jerome Powell's first congressional testimony for any
clues on the pace of U.S. interest rate rises.
    • U.S. Treasury yields increased on Monday with the two-year yield hitting a
near decade peak as domestic retail sales recorded growth for a fifth straight
month in June, supporting the view of solid economic growth in the second
quarter.
    • Brent crude prices rose from a three-month low after more oil workers went
on strike in Norway, supporting a market that has been dominated by oversupply
issues in recent days.
    • Gold prices were steady as the U.S. dollar remained largely unchanged
ahead of the U.S. Federal Reserve Chairman Jerome Powell's first congressional
testimony.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.63/68.66  July 16          -$91.33 mln   -$15.32 mln
 10-yr bond yield  7.80 pct     Month-to-date    -$178.37 mln  -$288.32 mln
                                Year-to-date     -$965.80 mln  -$6.07 bln
 
    
    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 = 68.5400 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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