July 17, 2019 / 3:18 AM / a month ago

Morning News Call - India, July 17

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    FACTORS TO WATCH
    4:00 pm: NITI Aayog CEO Amitabh Kant at India Innovation Growth Programme
event in New Delhi.
    
    
    INDIA TOP NEWS
    • Influential Hindu group says India should not issue foreign currency bonds
An influential Hindu nationalist group close to Indian Prime Minister Narendra
Modi's ruling party has demanded his government review its plan to raise money
by selling foreign currency bonds.
    • Lenders to India's DHFL ready for haircut in rescue - sources
Lenders to India's Dewan Housing Finance (DHFL) are ready to accept limited
haircuts in a restructuring plan being worked out for the troubled firm, sources
said.
    • Lenders of bankrupt Jet Airways to attempt to sell carrier again
Lenders to Jet Airways will open bids to sell the bankrupt airline on July 20,
as they look to recover about 85 billion rupees of loans, two sources familiar
with the matter said on Tuesday.
    • India to launch rules to end gas distributors' monopoly in 34 areas
The Indian government will introduce rules in six months that could lead to the
phase-out of monopolies controlled by natural gas distribution companies in 34
cities, including New Delhi and Mumbai, allowing consumers to choose a new
supplier, a senior regulatory official said.
    • Suzlon defaults on bond payment, sources say it's in talks to sell stake
Debt-laden Suzlon Energy said it defaulted on a $172 million bond payment on
Tuesday, as sources aware of the matter said the wind power equipment maker was
in talks with several global private equity funds to sell a majority stake.

    
    
    GLOBAL TOP NEWS
    • WTO opens way for Chinese sanctions against U.S. tariffs in Obama-era
dispute
The United States did not fully comply with a World Trade Organization ruling
and could face Chinese sanctions if it does not remove certain tariffs that
break WTO rules, the WTO's appeals judges said in a ruling on Tuesday.

    • U.S. retail sales ease fears over economy; rate cut still seen
U.S. retail sales increased more than expected in June, pointing to strong
consumer spending, which could help to blunt some of the drag on the economy
from weak business investment.
    • U.S., Iran send conflicting signals on their disputes
Iran and the United States sent mixed signals on Tuesday about resolving their
disputes as Iran's supreme leader threatened to further breach the 2015 nuclear
deal while the U.S. president cited "a lot of progress."
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were little changed at 11,638.50.
    • The Indian rupee is expected to edge higher against the dollar after the
biggest decline in Brent crude in two weeks overshadowed a surge in dollar index
on upbeat U.S. economic data.
    • Indian government bonds are likely to trade higher in early session, as
crude oil prices fell overnight and expectations of further monetary policy
easing persisted. The yield on the benchmark 7.26% bond maturing in 2029 is
likely to trade in a 6.28%-6.36% range today.
    
    
    GLOBAL MARKETS
    • U.S. stocks edged lower on Tuesday as quarterly results from banks added
to concerns about lower interest rates dampening their profits, while comments
from U.S. President Donald Trump on trade also dragged down Wall Street's major
indexes.
    • Japan's Nikkei edged lower after U.S. President Donald Trump's comments on
trade soured risk sentiment, while tech shares and chip-related stocks slid in
step with their U.S. counterparts.        
    • The dollar was firm after upbeat U.S. data tempered expectations of
aggressive policy easing by the Federal Reserve later this month, while the
struggling pound and euro also provided additional impetus to the greenback.

    • U.S. Treasury yields rose on Tuesday after data showed that U.S. retail
sales increased more than expected in June, adding to recent evidence that the
economy is improving.
    • Oil steadied after falling more than 3% overnight, with U.S. crude
trailing Brent after U.S. inventory data fell short of expectations, amid
conflicting signals from the U.S. and Iran over the disputes that have roiled
prices recently.
    • Gold prices edged lower, but still held above the psychological $1,400
level, as the dollar gained after robust U.S. retail sales tempered fears of a
sharp downturn in the world's largest economy.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.63/68.66  July 16          -$64.83 mln   $125.98 mln
 10-yr bond yield  6.33 pct     Month-to-date    -$769.87 mln  $924.17 mln
                                Year-to-date     $10.57 bln    -$476.59 mln
 
    
    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 = 68.6440 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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