July 20, 2018 / 3:08 AM / a month ago

Morning News Call - India, July 20

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    FACTORS TO WATCH
    11:00 am: Monsoon session of Parliament continues in New Delhi.
    3:00 pm: Interim Finance Minister Piyush Goyal at GST discussion in New
Delhi.
    
    
    INDIA TOP NEWS
    • India approves bill to prosecute fugitive tycoons
Indian authorities will be able to seize assets of fugitives accused of crimes
involving sums over 1 billion rupees, under a bill approved by the lower house
of parliament on Thursday.
    • Kotak's Q1 profit lags estimates as provisions surge
Kotak Mahindra Bank posted a smaller-than-expected 12.3 percent rise in fiscal
first-quarter net profit on higher provisions for treasury losses even as its
bad loan ratio improved.
    • Police charge former finmin Chidambaram over telecoms deal
India's federal police have charged former finance minister P. Chidambaram with
abuse of his official position and criminal conspiracy over the approval of a
telecoms deal in 2006, they said on Thursday.
    
    
    GLOBAL TOP NEWS
    • Bank of Japan's inflation target dims as prices barely budge
Japan's annual core consumer inflation quickened slightly in June but the rise
was due largely to recent gains in oil costs with prices of other goods barely
picking up, a setback for the Bank of Japan's mission to get inflation to 2
percent.
    • Trump criticizes Federal Reserve interest rate policy despite strong
economy
U.S. President Donald Trump on Thursday criticized Federal Reserve policy even
though most economists believe the highest inflation in seven years and lowest
unemployment in 40 years justify recent interest rate rises and a strong U.S.
dollar.
    • China boosts liquidity, set for more policy easing as trade war threatens
economy
Chinese policymakers are pumping more liquidity into the financial system and
channelling credit to small and medium-sized firms, and Beijing looks set to
further loosen monetary conditions to mitigate threats to growth from a heated
Sino-U.S. trade war.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading at 11,011.50, up 0.3 percent
from its previous close.
    • The Indian rupee is expected to open lower against the dollar, as the
Chinese yuan continued to lose ground, dragging down regional currencies and
equities.
    • Indian government bonds are likely to trade largely unchanged ahead of a
fresh supply of notes today, even as traders closely track the rupee's exchange
rate. The yield on the benchmark 7.17 percent bond maturing in 2028 is likely to
trade in a 7.76 percent-7.82 percent band till the auction result.
    
    
    GLOBAL MARKETS
    • U.S. stocks dropped on Thursday after earnings disappointed and trade
jitters escalated over worries that the European Union could slap retaliatory
tariffs on goods imported from the United States.
    • Most Asian stock markets retreated after China allowed its yuan currency
to slide further, stoking concerns Beijing's currency management could become
the next flash point in a fierce trade conflict with the United States.

    • The dollar was on the defensive against the yen and euro after U.S.
President Donald Trump expressed concern about the currency's strength and the
Federal Reserve's interest rate increases.
    • The U.S. yield curve flattened, close to levels not seen in 11 years, on
Thursday as upbeat data on the jobs market and business activity reinforced the
view of further interest rate increases from the Federal Reserve.
    • Oil prices gained after Saudi Arabia's OPEC governor said the kingdom's
exports are likely to fall next month and inventories may be squeezed in the
third quarter.
    • Gold eased for a sixth straight session, having slipped to a one-year low
in the previous session, as the U.S. dollar firmed.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.99/69.02  July 19          -$45.79 mln   -$70.02 mln
 10-yr bond yield  7.78 pct     Month-to-date    -$343.12 mln  -$296.05 mln
                                Year-to-date     -$1.13 bln    -$6.08 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 = 69.0100 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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