June 24, 2019 / 3:05 AM / 2 months ago

Morning News Call - India, June 24

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    FACTORS TO WATCH
    No major events are scheduled for the day.
    
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    INDIA TOP NEWS
    • Pompeo to seek stronger strategic ties with India despite trade tensions
    U.S. Secretary of State Mike Pompeo will seek to further strengthen
strategic ties with India during a visit next week despite increasing frictions
over trade, data flows and arms from Russia, officials said.
    • RBI Deputy Governor Acharya resigns 6 months before term ends - Business
Standard
    Reserve Bank of India Deputy Governor Viral Acharya has resigned six months
before the scheduled end of his term in office, the Business Standard newspaper
reported, citing people familiar with the matter.
    • India likely to let budget deficit rise as tax receipts fall short 
    India's government is likely to overshoot the budget deficit target
previously set for the current fiscal year, three officials have warned, as a
slowing economy creates a big shortfall in tax collections and prompts new
stimulus plans.
    • India asks scooter, bike makers to draw up plan for EVs - sources
    India's federal think-tank has asked scooter and motorbike manufacturers to
draw up a plan to switch to electric vehicles, days after they publicly opposed
the government's proposals saying they would disrupt the sector, two sources
told Reuters.
    • India becomes investment darling for sovereign wealth and pension funds
    Sovereign wealth funds are piling into India, buying stakes in everything
from airports to renewable energy, attracted by political stability, a growing
middle class and reforms making it more enticing for foreigners to
invest.
    • India steel ministry seeks higher duties to deter Chinese imports
-document
    India's steel ministry has sought an immediate increase in import duties on
finished steel products to 15% from a range of 7.5% to 12.5%, citing a threat
from Chinese imports and excess global capacity, an internal note reviewed by
Reuters showed.
    • India's space startups ignite investor interest
    From companies building palm-sized satellites to those aiming to propel
satellites into space using cleaner fuels, a new wave of space technology
startups are mushrooming in India, catching the attention of investors keen to
join the space race.
    • Southeast Asian leaders emphasise economic strength in face of U.S.-China
tensions
    Southeast Asian leaders agreed on Sunday to work together on the region's
economy and security to strengthen their position to face growing U.S.-China
tensions, as they wrapped up their summit in Bangkok.
    
    
    GLOBAL TOP NEWS
    • U.S. prods Iran for talks to ease Gulf tensions; Tehran dismisses
sanctions threat
    U.S. President Donald Trump said on Sunday he was not seeking war with
Tehran after a senior Iranian military commander warned any conflict in the Gulf
region could spread uncontrollably and threaten the lives of U.S. troops.

    • China says U.S., China should make compromises in trade talks 
    China and the United States should be willing to make compromises in trade
talks and not insist only on what each side wants, Chinese Vice Commerce
Minister Wang Shouwen said.
    • Turkey's opposition strikes blow to Erdogan with Istanbul mayoral win
    Turkey's opposition has dealt President Tayyip Erdogan a stinging blow by
winning control of Istanbul in a re-run mayoral election, breaking his aura of
invincibility and delivering a message from voters unhappy over his policies.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were little changed at 11,766.00.
    • The Indian rupee is expected to open lower against the U.S. currency amid
rising crude oil prices, which offset broad-based losses in the dollar. 
    • Indian government bonds could fall in early trade tracking gains in crude
oil prices, traders said. However, the losses could be capped on media report
that Viral Acharya, Reserve Bank of India’s deputy governor and a member of the
Monetary Policy Committee, has resigned, they added. The yield on the benchmark
7.26% bond maturing in 2029 is likely to trade in a range of 6.83% - 6.90%
today.
    
    
    GLOBAL MARKETS
    • Wall Street edged lower on Friday, as U.S. Vice President Mike Pence's
decision to defer a speech on China policy increased optimism on upcoming trade
talks between Washington and Beijing, while tensions between the United States
and Iran undercut sentiment.
    • Asian shares were off to a cautious start as investors pinned their hopes
on any signs of a thaw in Sino-U.S. trade negotiations.
    • The euro rose to a three-month high against the dollar, as bearish bets on
the U.S. currency remained solid on prospects of a near-term interest rate cut
by the Federal Reserve.
    • U.S. Treasury prices fell sharply on Friday, as investors cashed in on
steep gains the last two days that saw yields drop to multi-year lows in the
wake of a Federal Reserve statement that flagged interest rate cuts this year.

    • Oil prices climbed as tensions remain high between Iran and the United
States, with U.S. Secretary of State Mike Pompeo saying "significant" sanctions
on Tehran would be announced.
    • Gold prices extended gains in early Asian trade, hovering near a six-year
peak touched in the previous session, as a weaker dollar and heightened tensions
between the United States and Iran underpinned the precious metal.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         69.58/69.61  June 21          -$105.01 mln  $111.80 mln
 10-yr bond yield  6.86%        Month-to-date    -$17.30  mln  $750.12 mln
                                Year-to-date     $11.17 bln    -$1.38 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 = 69.61 Indian rupees)
    
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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