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

Morning News Call - India, June 18

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    FACTORS TO WATCH
    No major events are scheduled for the day.
    
    LIVECHAT - FED WATCH 
    Reuters reporters and editors tracking the Federal Reserve take questions on
the economics, politics, trade matters and rates policies facing America's
central bank and others whose decisions drive markets day in and day out at 7:00
pm IST. To join the conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Lenders seek Jet Airways bankruptcy in last-ditch sale effort
    Jet Airways' creditors said on Monday they plan to begin insolvency
proceedings against the Indian airline in a last-ditch bid to find a buyer for
the carrier or its remaining assets and recover some of what they are owed.

    • RBI may cut rates by another 25 bps in 2019 - Fitch Ratings
    The Reserve Bank of India (RBI) is likely to cut interest rates by another
25 basis points in 2019, following three cuts of a similar quantum so far, due
to weak growth momentum and inflation remaining within targeted limits, Fitch
Ratings said on Monday.
    • IndiGo drops Pratt for CFM's jet engines in $20 billion order
    India's biggest airline IndiGo said on Monday it had placed a $20 billion
jet engine order from CFM International, a move that marks a shift away from
Pratt & Whitney towards its French-American rival.
    • Trump and Modi's lavish farm payouts prompt questions at WTO
    Massive farm-support plans in the United States and India are being
scrutinised by other World Trade Organization members, questions submitted to
the WTO's quarterly agriculture committee meeting showed on Monday.
    • Summer crop sowing lags in India on slow monsoon progress
    Planting of summer-sown crops in India such as soybean, cotton, rice and
corn has been delayed by at least two weeks because of the slow progress of
monsoon rains in central and western parts of the country, raising concerns over
lower production.
    • Reliance Infrastructure falls as auditors raise red flags on Q4 results
    Shares in Reliance Infrastructure closed nearly 5% lower on Monday, after
its auditors raised red flags around its latest financial results and cast
doubts over the manner in which the firm had accounted for several transactions.

    • Airtel Africa expects London IPO to be priced between 80-100 pence share
    Airtel Africa, a unit of India's Bharti Airtel, on Monday set a price range
of 80 to 100 pence per share for its planned initial public offering on the
London Stock Exchange.
    • Singapore's Sembcorp defers India energy IPO to inject capital
    Singaporean industrial conglomerate Sembcorp Industries said it has
withdrawn a draft prospectus for listing its Indian energy arm, as it was
injecting new equity into the business, and intended to submit papers later this
year.
    
    
    GLOBAL TOP NEWS
    • U.S. says to send more troops to the Middle East, cites Iran threats 
    Acting U.S. Defense Secretary Patrick Shanahan announced on Monday the
deployment of about 1,000 more troops to the Middle East for what he said were
defensive purposes, citing concerns about a threat from Iran.
    • U.S. firms say China tariffs will raise costs, see few sourcing
alternatives
    A wide range of U.S. companies told a hearing in Washington on Monday that
they have few alternatives other than China for producing clothing, electronics
and other consumer goods as the Trump administration prepares new tariffs on
remaining U.S.-China trade.
    • China's home prices growth fastest in 5 months, raises policy challenge
New home prices in China rose at their fastest pace in five months in May,
complicating government efforts to keep frothy housing markets under control as
it rolls out more stimulus for the slowing economy.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.2% higher at 11,720.00.
    • The Indian rupee is expected to open higher against the U.S. currency amid
a pullback in the dollar ahead of the beginning of the two-day Federal Reserve
meeting. 
    • Indian government bonds are likely to trade largely unchanged in early
session as the U.S. Federal Reserve’s crucial two-day meeting starts later
today. The yield on the benchmark 7.26% bond maturing in 2029 is seen in a range
of 6.90% - 6.95% today. 
    
    
    GLOBAL MARKETS
    • Wall Street edged higher on Monday, supported by Facebook, Amazon and
Apple, as investors awaited a key Federal Reserve meeting that is expected to
lay the groundwork for an interest rate cut later this year.
    • Investor caution ahead of the Federal Reserve's interest rate meeting
capped Asian stocks.
    • The British pound languished near this year's low on rising worries Boris
Johnson, the front-runner to replace UK Prime Minister Theresa May, could put
Britain on a path towards a dreaded no-deal Brexit.
    • U.S. Treasury yields fell on Monday in choppy trading, weighed down by
softer-than-expected U.S. economic data and persistent pressure from the trade
conflict with China, as investors brace for this week's Federal Reserve monetary
policy meeting.
    • Oil prices were falling for a second day, after more signs that global
economic growth is being hit by U.S.-China trade tensions, although losses were
limited amid tensions in the Middle East after tanker attacks last week.
    • Gold held steady in early Asian trade as investors awaited the start of a
two-day monetary policy meeting of the U.S. Federal Reserve for clues on
interest rates.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.84/69.87  June 17          -$47.42 mln  -$51.59 mln
 10-yr bond yield  6.93%        Month-to-date    $48.46 mln   $419.98 mln
                                Year-to-date     $11.24 bln   -$1.71 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 = 69.8090 Indian rupees)
    
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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