July 8, 2019 / 3:12 AM / 9 days ago

Morning News Call - India, July 8

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    FACTORS TO WATCH
    4:00 pm: Finance Minister Nirmala Sitharaman to meet RBI board in New Delhi.
    
    
    INDIA TOP NEWS
    • India proposes higher minimum public shareholding in listed companies
India proposed raising the minimum public shareholding required in listed
companies to 35% from 25%, in a surprise move on Friday that triggered concerns
there will be a lot of enforced share sales.
    • PNB says detects 38 billion rupee fraud
Punjab National Bank (PNB) on Saturday said it had reported a borrowing fraud of
38.05 billion Indian rupees in Bhushan Power & Steel's account to the country's
central bank.
    • India hikes gold import duty, industry fears smuggling surge
India raised the import duties on gold and other precious metals on Friday in a
surprise move that industry officials say could dampen retail demand and boost
smuggling in the world's second-biggest bullion consumer.
    • India raises import tariffs, taxes on the super rich as it seeks growth
India raised import tariffs on nearly 75 items including gold and automobile
parts in its budget on Friday and increased taxes on the rich to help pay for
recapitalising banks and supporting small business in a bid to revive sagging
growth.
    • Mindtree top bosses exit days after L&T takes control
Mindtree said on Friday its top bosses, including Chief Executive Officer Rostow
Ravanan, have submitted their resignations to the board, days after conglomerate
Larsen & Toubro Ltd (L&T) took a controlling stake.
    • India proposes tax benefits for electric vehicles to promote sales
India proposed tax waivers on Friday on the purchase of electric vehicles and
removed import taxes on some auto components to help boost sales and reduce its
dependence on fossil fuels.
    • India to closely monitor shadow lending sector -minister
India will closely monitor its shadow lending sector, the finance minister said
on Saturday, a day after announcing the central bank would get much more
regulatory authority over non-banking financial companies.
    • Jaguar Land Rover to build electric cars at UK plant
Jaguar Land Rover is making a multi-million pound investment to build electric
vehicles in Britain, in a major boost for the UK government and a sector hit by
the slump in diesel sales and Brexit uncertainty.
    
    
    GLOBAL TOP NEWS
    • Deutsche Bank to cut 18,000 jobs in 7.4 billion euro overhaul
Deutsche Bank is to axe vast swathes of its trading desks in one of the biggest
overhauls to an investment bank since the aftermath of the financial crisis, in
a restructuring that will see 18,000 jobs go and cost 7.4 billion euros.

    • Japan machinery orders fall most in 8 months in worrying sign for economy
Japan's core machinery orders fell by the most in eight months in a worrying
sign that global trade tensions are taking a toll on corporate investment,
casting doubt that solid domestic demand can help offset external pressure on
the export-reliant economy.
    • Iran ratchets up tensions with higher enrichment, draws warnings
Iran said on Sunday it will shortly boost its uranium enrichment above a cap set
by a landmark 2015 nuclear deal, prompting a warning 'to be careful' from U.S.
President Donald Trump, who has pressured Tehran to renegotiate the pact.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.4 percent lower at
11,770.00, from its previous close.
    • The Indian rupee is expected to open lower against the dollar after a
buoyant U.S. jobs report cast doubts over the pace of potential interest rate
cuts by the Federal Reserve.
    • Indian government bonds are likely to rise in early session, after the
government in the federal budget announced plans to raise part of its borrowings
from overseas markets. The yield on the benchmark 7.26 percent bond maturing in
2029 is likely to trade in a range of 6.62 percent-6.70 percent today.
    
    
    GLOBAL MARKETS
    • U.S. stocks dipped on Friday, as the S&P 500 snapped a three-day streak of
record closes, following an unexpectedly strong U.S. payrolls report that led
investors to reassess how dovish a stance the Federal Reserve may take at its
next meeting.
    • Asian shares fell, after strong U.S. jobs data tempered expectations for a
Fed rate cut, while the Turkish lira hovered near two-week lows on worries about
central bank independence.
    • The dollar rose broadly after strong U.S. jobs growth in June suggested
the Federal Reserve will not aggressively cut interest rates later this month.

    • U.S. Treasury yields rose across the board on Friday, after data showed
the world's largest economy created far more jobs than expected in June,
suggesting that the Federal Reserve will not aggressively cut interest rates
later this month.
    • Crude prices rose, adding to gains in the previous session on
better-than-expected U.S. jobs data, although gains were tempered by worries
over the prolonged Sino-U.S. trade war.
    • Gold prices eased, following a sharp fall in the previous session, as a
strong U.S. jobs report tempered expectations of an aggressive interest rate cut
by the Federal Reserve later this month.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.44/68.47  July 5           -$13.06 mln   $276.66 mln
 10-yr bond yield  6.69 pct     Month-to-date    -$455.51 mln  $348.24 mln
                                Year-to-date     $10.88 bln    -$1.05 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 = 68.4400 Indian rupees)
    

 (Compiled by Yoganand KN in Bengaluru)
  
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