June 20, 2018 / 3:17 AM / 5 months ago

Morning News Call - India, June 20

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    FACTORS TO WATCH
    10:00 am: Axis Bank annual meeting in Ahmedabad.
    11:00 am: Bank of Baroda to announce launch of two strategic alliances in
Mumbai.
    
    LIVECHAT - EQUITIES WATCH
    Join our Reuters correspondents in London and New York for a discussion on
the stock markets and company earnings at 1830 IST. To join the conversation,
click here. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    EXCLUSIVE-Lapses at many levels of bank led to PNB fraud, internal report
shows
    A $2 billion fraud at India's Punjab National Bank (PNB) may have been
orchestrated by a few rogue employees, but it escaped detection because of
widespread risk-control and monitoring lapses in many areas of the bank, the
bank's own internal probe has found.
    Government open to consider RBI demand for more powers - finance minister
    Interim Finance Minister Piyush Goyal said on Tuesday the Indian government
was open to discussing a central bank demand for greater powers to regulate
state banks, though he did not believe this was needed.
    India decides not to immediately revive Air India sale plan - Bloomberg
    India has virtually abandoned a plan to sell its ailing state carrier Air
India after failing to attract buyers, Bloomberg reported on Tuesday, citing
people familiar with the matter.
    Varroc Engineering $288 million IPO to open on June 26
    Auto parts manufacturer Varroc Engineering has set a price range of 965
rupees to 967 rupees a share for an initial public offering that will open on
June 26, according to a public notice on Tuesday.
    Brazil, India corporate debt most vulnerable to rate hikes - McKinsey
    A 200 basis-point increase in interest rates could spark a sharp rise in the
proportion of emerging market corporate debt issues at risk of default, with
Brazilian and Indian firms most vulnerable, a report from McKinsey Global
Institute showed.
    
    
    GLOBAL TOP NEWS
    White House piles pressure on China after Trump tariff threat
    China has underestimated U.S. President Donald Trump's resolve to impose
more tariffs unless it changes its "predatory" trade practices, a White House
trade adviser said on Tuesday, as Trump greatly expanded the amount of Chinese
imports possibly facing new duties.
    Japan's business mood mixed, underlines fragile recovery - Reuters Tankan
    Japanese manufacturers' confidence improved for a second straight month in
June but the service sector's mood slumped from May's record high level, a
Reuters poll found, suggesting some fragility in the outlook after a
first-quarter contraction.
    General Electric loses place in elite Dow Jones Industrial Average
    General Electric Co has lost its spot in the Dow Jones Industrial Average
after over a century in the blue chip stock index, a new blow to a company that
once towered over the American business landscape but is now struggling to
retain its standing as an industrial powerhouse.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading flat at 10,726. 
    • The Indian rupee is expected to open higher against the dollar as Asian
currencies managed a slight recovery after two days of losses caused by U.S. -
China trade tensions.
    • Indian government bonds are expected to rise after the central bank said
it will buy notes through a so-called open market operation this week. The yield
on the benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.78
percent - 7.83 percent band today.
    
    
    GLOBAL MARKETS
    • U.S. stocks fell on Tuesday as a sharp escalation in the trade dispute
between the United States and China rattled markets and put the Dow Jones
Industrial Average back in negative territory for the year.
    • Stocks in Asia rebounded from recent losses as investors sought bargains,
a day after the spectre of a U.S.-China trade war rattled global markets, but
significant uncertainty around the trade outlook is capping gains.
    • The dollar steadied against the yen, as U.S. yields pulled back from lows
hit on concerns about a worsening trade feud between Washington and Beijing,
although persistent worries about the trade rift are likely to cap any greenback
recovery.
    • U.S. Treasury yields retreated on Tuesday as trade tensions between China
and the United States intensified after President Donald Trump threatened to
impose a 10 percent tariff on $200 billion of Chinese goods while Beijing warned
it would fight back.
    • Oil prices rose in early Asian trading, supported by a drop in U.S.
commercial crude inventories reported by the American Petroleum Institute.
    • Gold prices were little changed, after slipping to a near six-month low in
the previous session, as the dollar hovered close to an 11-month peak and
equities rebounded.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.04/68.07  June 19          -$193.98 mln  -
 10-yr bond yield  8.07 pct     Month-to-date    -$346.11 mln  -
                                Year-to-date     -$590.76 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 = 68.3050 Indian rupees)

 (Compiled by Swathi Nair in Bengaluru)
  
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