June 12, 2019 / 3:31 AM / 15 days ago

Morning News Call - India, June 12

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    FACTORS TO WATCH
    5:30 pm: Government to release May consumer price inflation data in New
Delhi
    5:30 pm: Government to release April Industrial production data New Delhi
    
    LIVECHAT - EQUITIES WATCH
    Join our Reuters correspondents in London and New York for a discussion on
the stock markets and company earnings at 6:30 pm IST. To join the conversation,
click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India defends methodology to measure economic growth
    The government on Tuesday defended its methodology of calculating the
country’s economic growth, countering the argument of a former top economic
advisor who said that Asia’s third-largest economy might be overestimating its
growth rate. 
    • EU regulators block Thyssenkrupp, Tata Steel joint venture
    Thyssenkrupp and Tata Steel's plan to form a landmark joint venture was
rejected by EU antitrust regulators on Tuesday, concerned that the deal would
have pushed up prices and reduced competition.
    • DHFL clears interest on NCDs, to seek rating upgrade
    Mortgage lender Dewan Housing Finance on Tuesday said it had cleared
interest of 9.61 billion rupees due on non-convertible debentures, a week after
it delayed payments and fanned fears of a liquidity crisis.
    • India seeks bans for Deloitte, KPMG arm for alleged auditing lapses
    India is seeking to ban Deloitte Haskins Sells and KPMG affiliate BSR &
Associates for five years, alleging lapses in their audits of a unit of
Infrastructure Leasing & Financial Services, which the government took control
of last year.
    • Dash for growth at company founded by Indian yoga guru leads to stumbles
    Three years ago, Indian yoga guru and entrepreneur Baba Ramdev was riding
high. The consumer goods empire he co-founded had tapped into a wave of Hindu
nationalism after the election of Prime Minister Narendra Modi.
    • Reliance Group's Anil Ambani says will make timely debt service payments
    Reliance Group chairman Anil Ambani said on Tuesday his diversified telecoms
to financial services and infrastructure group was fully committed to meet all
of its debt obligations in a timely manner.
    • Jet Airways slumps after report Hinduja, Etihad reconsider investment
    Shares of Jet Airways crashed to record lows on Tuesday, after a report that
Hinduja Group and Etihad Airways may not invest in the cash-strapped airline
which was forced to stop all flight operations nearly two months back.
 
    • Indiabulls Housing Finance slumps even as it rejects fraud allegations
    Shares in Indiabulls Housing Finance plummeted as much as 8.8% on Tuesday
even as the mortgage lender and its top management moved to quash allegations of
financial misconduct and money laundering within the company. 
   
    
    GLOBAL TOP NEWS
    • Trump defends tariff strategy, China says 'not afraid' of trade war
    U.S. President Donald Trump on Tuesday defended the use of tariffs as part
of his trade strategy while China vowed a tough response if the United States
insists on escalating trade tensions amid ongoing negotiations.
    • China's factory inflation slows as production eases but food prices surge
    China's factory gate inflation slowed amid sluggish commodity demand and
faltering manufacturing activity, slowing from a four-month high in the previous
month and fuelling worries growth in the world's second-largest economy is
slipping.
    • Thousands of protesters paralyse Hong Kong's financial hub over
extradition bill
    Chaotic scenes erupted in Hong Kong on Wednesday as tens of thousands of
demonstrators stormed key roads next to government offices to protest against a
proposed extradition bill that would allow people to be sent to mainland China
for trial.
    
    
    LOCAL MARKETS OUTLOOK
    • SGX Nifty nearest-month futures were 0.17% lower at 11,960.50. 
    • The Indian rupee is expected to open little changed against the dollar
amid a pullback in crude oil, which offsets lackluster regional cues. - NewsRise
    • Indian government bonds are likely to edge higher in early trade, tracking
an overnight fall in crude oil prices and as investors await the release of
retail inflation data for May, due later today. The yield on the benchmark 7.26%
bond maturing in 2029 is likely to trade in a range of 7.00%-7.05% today. -
NewsRise 

        
    GLOBAL MARKETS
    • U.S. stocks ended near flat and the Dow snapped a six-day winning streak
on Tuesday, as investors paused following a run of gains and fresh worries
emerged over the U.S. trade war with China.
    • Asian share markets were in a wary mood as the White House took a tough
line on trade talks with China, while a looming reading on U.S. inflation could
shuffle the odds for an early cut in interest rates there.
    • The dollar hung near an 11-week low against its peers, weighed by
expectations the U.S. Federal Reserve could cut interest rates some time in the
next few months.
    • An uptick in U.S. inflation and strong results from a $38 billion Treasury
auction on Tuesday drove short-dated yields higher, flattening the yield curve.

    • Oil prices fell, weighed down by a weaker demand outlook and a rise in
U.S. crude inventories despite growing expectations of ongoing OPEC-led supply
cuts.
    • Gold prices steadied after touching a one-week low in the previous
session, buoyed by concerns around U.S.-China trade relations amid expectations
of an interest rate cut by the U.S. Federal Reserve.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.44/69.47  June 11          $13.80 mln   -$1.87 mln
 10-yr bond yield  7.04%        Month-to-date    $122.94 mln  $924.14 mln
                                Year-to-date     $11.31 bln   -$1.20 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 = 69.41 Indian rupees)
    

 (Compiled by Hrithik Kiran Bagade in Bengaluru)
  
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