July 18, 2019 / 3:19 AM / 2 months ago

Morning News Call - India, July 18

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    FACTORS TO WATCH
    LIVECHAT - BONDS UPDATE
Reuters European Government Bonds Correspondent Abhinav Ramnarayan delves into
sovereign bond markets at 5:00 pm IST. To join the conversation, click on the
link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Yes Bank profit slumps on higher provisions, asset quality hit
Yes Bank posted a 91% drop in quarterly profit on Wednesday, due to a nearly
three-fold rise in provisions for loan losses, while asset quality deteriorated
sharply.
    • Wipro tops profit forecast on demand from key clients
Software services exporter Wipro reported a 13% rise in first-quarter profit
thanks to robust demand from financial clients and said its main information
technology business could show modest growth in the current quarter.

    • India panel report on transfer of central bank funds to be submitted to
RBI "very soon"-source
A Reserve Bank of India (RBI) panel formulating guidelines for transfer of the
central bank's surplus funds to the government has finalized its recommendations
and will be submitting its long-delayed report "very soon," a source familiar
with the matter said on Wednesday.
    • U.S. FDA says Indian drugmaker was shredding, dumping key documents
A U.S. Food and Drug Administration (FDA) investigator discovered that India's
Strides Pharma Science, which exports to the U.S. market, was shredding drug
production, quality and laboratory documents and dumping others in a scrap yard.

    • Nine companies weighing bids for Vedanta's Zambian assets - minister
Zambia expects nine companies to submit bids for Konkola Copper Mines within
weeks, mines minister Richard Musukwa said on Wednesday, even as a court case
with Mumbai-listed Vedanta over its ownership was underway.
    • Allahabad Bank reports SEL Manufacturing's 6.89 billion rupees fraud
Allahabad Bank on Wednesday reported a 6.89 billion rupees fraud related to
textile company SEL Manufacturing to the Reserve Bank of India.
    • Punjab & Sind Bank flags fraud in Bhushan Power account
Punjab & Sind Bank said on Wednesday it has reported a 2.38 billion rupee fraud
to the country's central bank, relating to allegations of diversion of funds by
the indebted Bhushan Power & Steel Ltd.
    • Netflix to roll out cheaper mobile-only plan in India
Netflix said on Wednesday it would roll out a lower-priced mobile-only plan in
India, tapping into a price-sensitive market where data consumption on
smartphones is surging.
    
    
    GLOBAL TOP NEWS
    • Sliding Japan exports, manufacturing gloom heighten economic risks
Japan's exports fell for a seventh straight month in June, pressured by
Sino-U.S. trade frictions, slowing China growth and rising trade protectionism,
as manufacturers' business confidence hit a three-year low.
    • Japanese official says negotiators working hard on US-Japan trade deal
U.S. and Japanese officials are working hard to reach agreement on a bilateral
trade agreement, a senior Japanese official told Reuters on Wednesday, adding he
was looking forward to news on the deal in the near future.
    • South Korea's central bank surprises with rate cut as Japan row adds to
risks
South Korea's central bank unexpectedly cut its policy interest rate for the
first time in three years, as a trade dispute with Japan among other pressures
heightened risks for the already slowing economy.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.2% lower at 11,648.50.
    • The Indian rupee is expected to open little changed against the U.S.
currency amid losses on the dollar index and decline in equities.
    • Indian government bonds are likely to rise in early session, tracking a
fall in crude oil prices and lower U.S. Treasury yields. The yield on the
benchmark 7.26% bond maturing in 2029 is likely to trade in a range of
6.30%-6.36% today.
    
    
    GLOBAL MARKETS
    • U.S. stock indexes fell on Wednesday as weak results from CSX Corp stoked
concerns that the protracted trade war between the United States and China could
hurt corporate earnings.
    • Asian shares wobbled as Wall Street stocks dropped on early signs that the
U.S.-China trade war could hurt corporate earnings, helping to underpin solid
demand for safe-haven U.S. Treasuries.
    • The dollar nursed light losses, weighed down by lower U.S. yields and a
rebound in the pound from 27-month lows.
    • U.S. Treasury yields fell on Wednesday as concerns about the U.S.-China
trade war boosted demand for safe haven debt and after data showed weakness in
the U.S. housing market.
    • Oil prices fell, extending declines into a fourth day, after official data
showed U.S. stockpiles of products like gasoline rose sharply last week,
suggesting weak demand during the peak driving season.
    • Gold prices rose to their highest in two weeks, as the dollar eased after
weaker-than-expected U.S. housing data increased expectations for an interest
rate cut by the U.S. Federal Reserve.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.82/68.85  July 17          -$2.47 mln    $90.58 mln
 10-yr bond yield  6.34 pct     Month-to-date    -$822.15 mln  -$833.59 mln
                                Year-to-date     $10.52 bln    $567.17 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 = 68.7350 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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