June 4, 2020 / 3:07 AM / a month ago

Morning News Call - India, June 4

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    FACTORS TO WATCH
    11:30 am: Uday Kotak, CII president and MD & CEO of Kotak Mahindra Bank, at
a web conference in Mumbai.
    4:00 pm: Former member of Central Board of Direct Taxes Akhilesh Ranjan at
TIOL's Global Tax E-Summit in New Delhi.​
    4:00 pm: Health ministry likely to brief on COVID-19 situation in New Delhi.
  
    
    INDIA TOP NEWS
    • India's coronavirus cases cross 200,000, peak still weeks away
    India's coronavirus infections crossed 200,000, official figures showed on
Wednesday, and a peak could still be weeks away in the world's second-most
populous country, where the economy has begun re-opening after a lockdown
imposed in March.
    • Amid pandemic, investors bet on India's Jio and its giant-killer playbook
    From its Silicon Valley-like campus near Mumbai, Indian billionaire Mukesh
Ambani's Jio telecom carrier is emerging as a winner from changes in the way
Indian consumers plug into a digital economy made more urgent by the coronavirus
pandemic.
    • India's services sector slump stretched into May – PMI
India's enormous services industry endured another month of devastating
contraction in May as the coronavirus brought activity to a near halt, causing
steep job losses and cementing fears of a deep recession, a survey showed on
Wednesday.
    • U.S. probe into India's digital tax not a move of aggression, says Indian
govt source
    The U.S. government's move to launch a trade investigation into a digital
services tax adopted by several countries including India should not be
construed as a move of aggression against New Delhi, a senior Indian government
source said on Wednesday.
    • Google takes down Indian app that removed Chinese ones -spokesman
    Alphabet's Google has taken down an Indian mobile application from its app
store that allowed users to remove other Chinese apps from their phones as it
violated certain company policies, a spokesman said on Wednesday.
    • Facebook signs licensing deal with century-old Indian music label
    Facebook has signed a global licensing deal with one of India's largest
music labels, allowing users to choose from a large catalogue of Bollywood music
for their Facebook and Instagram posts, the music company said on Wednesday.

    • India to let farmers sell produce directly to traders, retailers
    India is to allow farmers to sell produce directly to bulk buyers such as
trading companies, food processors and large retailers, the farm minister said
on Wednesday.
    
    
    GLOBAL TOP NEWS
    • China eases flight curbs after U.S. order targeting Chinese carriers
    China said it will allow more foreign carriers to fly into the mainland,
shortly after Washington barred Chinese passenger carriers from flying to the
United States citing Beijing's restrictions on American airlines.
    • ECB prepares more aid for virus-stricken euro zone
    The European Central Bank is certain to give the ailing euro zone economy
another shot in the arm and the only question is the timing, with arguments
split between a move and holding out until July. 
    • All four Minneapolis police officers charged in George Floyd death
    Prosecutors on Wednesday leveled new criminal charges against four
Minneapolis police officers implicated in the death of an unarmed black man who
was pinned by his neck to the street during an arrest caught on video, sparking
nine days of nationwide protest and civil turmoil.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.1% lower at 10,077.50.
    • The Indian rupee is expected to remain little changed against the dollar
amid a Chinese yuan-led decline in Asian currencies after the U.S. banned
passenger flights from China, further hurting the relationship between the two
major economies.
    • Indian government bond yields will likely edge higher in early session
over a delay in the announcement of a widely anticipated open market calendar by
the central bank to alleviate supply concerns in the market. The yield on the
benchmark 6.45% bond maturing in 2029 is likely to trade in a 6.02%-6.08% range
today.
    
    
    GLOBAL MARKETS
    • Wall Street rallied broadly on Wednesday with the Nasdaq approaching
record highs as signs of an economic recovery from mandated shutdowns helped
investors look beyond U.S. social unrest and pandemic worries.
    • Asian shares rose to a two-month high as government stimulus expectations
supported investor confidence in an economic recovery from the global
coronavirus pandemic.
    • The euro held near multi-month highs against rival majors on expectations
the European Central Bank will expand its bond buying programme later in the day
to shore up the coronavirus-stricken economy.
    • U.S. Treasury yields rose on Wednesday while riskier assets gained favor
after a report showed that U.S. private payrolls fell much less than expected in
May as businesses reopened amid the coronavirus pandemic.
    • Oil prices fell, reversing gains in the previous session, on concerns that
supply will rise if major producers are unable to agree to extend the depth of
output cuts that have supported recent gains.
    • Gold prices gained from last session's fall on lingering political
tensions and a weaker dollar, but were still near their lowest in over a week as
equities were set to extend their gains on economic optimism.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES  DEBT
 PNDF spot         75.45/75.48  June 3           7,890.19  110.51
 10-yr bond yield  5.82%        Month-to-date    16,028    430
                                Year-to-date     (24,317)  (1,04,984)
 
(FII investment numbers are in Indian rupees. Source: National Securities
Depository Limited)
    
        
    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 = 75.47 Indian rupees)
 
    

 (Compiled by Sourav Bose)
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