March 13, 2019 / 3:20 AM / 5 months ago

Morning News Call - India, March 13

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    FACTORS TO WATCH
    9:00 am: Kotak Mahindra Bank Joint Managing Director Dipak Gupta at SAS
Forum India 2019 in Mumbai.
    
    LIVECHAT - FX FOCUS
    Jeffrey Halley, senior market analyst at Oanda, joins us to discuss the FX
markets and next cues to watch for including the Fed and Brexit. To join the
conversation at 9:30 am IST, click on the link: here
    
    
    INDIA TOP NEWS
    • India Feb inflation picks up slightly, but April rate cut still seen
India's consumer prices rose at a faster pace than anticipated in February, and
remained below the central bank's target for a seventh straight month, lending
weight to expectations that the bank could again cut the key interest rate in
April.
    • India to ground Boeing 737 MAX planes after Ethiopia crash
India is grounding U.S. planemaker Boeing's 737 MAX aircraft immediately, the
ministry of civil aviation said late on Tuesday, following the fatal crash of a
plane of the same type in Ethiopia on Sunday.
    • Bharti Airtel to transfer most of Infratel stake to unit
Bharti Infratel said on Tuesday mobile carrier and its majority shareholder
Bharti Airtel will lower its direct stake in the telecom tower company by more
than a half.
    • Indian IPO market sees greenshoots, but revival unlikely until elections
Indian firms are returning to equity markets to raise funds with two companies
opening subscriptions for initial public offerings (IPOs) this month, but
sentiment is expected to remain cautious ahead of national elections starting in
April.
    • Political pressures risk undermining central banks - Rajan
Rising political pressures on central banks around the world undermines
effective monetary management by risking kneejerk policies rather than
pre-emptive decision making, former Reserve Bank of India chief Raghuram Rajan
said on Tuesday.
    • Jet Airways grounds 4 more planes, taking total to 32
Jet Airways said on Tuesday it grounded four more aircraft, taking the number to
32 which is more than a fourth of its fleet, as the carrier failed to make
payments to its lessors.
    
    
    GLOBAL TOP NEWS
    • Britain in Brexit chaos: parliament crushes May's EU deal again
British lawmakers crushed Prime Minister Theresa May's European Union divorce
deal on Tuesday, thrusting Britain deeper into crisis and forcing parliament to
decide within days whether to back a no-deal Brexit or seek a last-minute delay.

    • U.S. will not suspend Boeing 737 MAX planes after Ethiopia crash
The U.S. aviation regulator said on Tuesday it would not ground Boeing 737 MAX
planes after a crash in Ethiopia that killed 157 people, bucking a trend of
countries around the world that have suspended the aircraft's operations.

    • Deal or no deal, U.S.-China trade talks may finish in weeks -Lighthizer
The United States and China may be in the final weeks of discussions to hammer
out a deal to ease their tit-for-tat tariffs dispute, U.S. Trade Representative
Robert Lighthizer said on Tuesday.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading down 0.2 percent at 11,312,
from its previous close.
    • The Indian rupee is expected to open little changed against the dollar,
after data showed consumer prices in the Asian nation rose at a
quicker-than-expected pace, while U.S. core retail inflation surprised on the
downside.
    • Indian government bonds are likely to open lower as local retail inflation
gained pace in February, while uncertainty over continuation of open market
purchases in March will further weigh on investor appetite. The yield on the
benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.52
percent-7.58 percent band today.
    
    
    GLOBAL MARKETS
    • The S&P 500 and Nasdaq rose on Tuesday after tame inflation data
underscored the Federal Reserve's dovish stance on rate hikes, but the Dow ended
down as Boeing's shares sank for a second day after one of its planes crashed in
Ethiopia.
    • Asian share markets were mostly in the red as a risk-off mood gripped
investors, while a frazzled pound awaited its fate ahead of yet another
make-or-break parliamentary vote on Brexit.
    • The pound stabilised in early Asian trade after turbulence following the
defeat of British Prime Minister Theresa May's European Union exit deal, but
investors braced for more volatility ahead of additional Brexit
proceedings.
    • U.S. Treasury yields tumbled on Tuesday, pressured by weak inflation data
for the world's largest economy, supporting expectations the Federal Reserve
will hold interest rates steady this year, as well as worries about Britain's
exit from the European Union.
    • Oil prices edged higher, supported by planned cuts to Saudi exports and a
reduced forecast for U.S crude output.
    • Gold rose to its highest level in nearly two weeks, after regaining the
key $1,300 level in prior session, buoyed by safe haven demand from Brexit chaos
and a fall in dollar after a softer U.S. data.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.59/69.62  March 12         $356.18 mln  -$284.62 mln
 10-yr bond yield  7.51 pct     Month-to-date    $1.33 bln    $531.41 mln
                                Year-to-date     $3.40 bln    -$1.64 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 = 69.5720 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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