March 24, 2020 / 3:37 AM / 2 months ago

Morning News Call - India, March 24

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    Bjarne Schieldrop, Chief Analyst, Commodities at SEB, discusses the outlook
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    • Indian government asks banks to provide liquidity support to corporates
    The Indian government has asked all state-owned lenders to extend emergency
credit lines to corporate borrowers, three government and banking sources said,
as it rushes to tackle the fallout from the coronavirus outbreak that has
grounded business across the globe.
    • RBI to infuse 150 billion rupees via repos, advances bond purchase
    The Reserve Bank of India (RBI) stepped in to calm markets once again by
bringing forward its open market purchase of bonds worth up to 150 billion
rupees while also announcing a fresh round of fund infusion via variable rate
repos on Monday.
    • Coronavirus threatens retail jobs, Indian retailers see revenue hit
    The coronavirus pandemic amid an economic slowdown has hit revenue at Indian
retailers selling non essential items like clothes and jewelry by 75% so far and
is likely to cause widespread job losses, an industry body said on Monday.

    • India may soon allow repurchase operations in corporate bonds - sources
    Indian authorities are considering allowing corporate bonds as collateral
for repurchase operations as they seek to cool the recent spike in corporate
borrowing costs in the wake of the coronavirus outbreak, two sources told
    • India shuts down flights, big cities as coronavirus toll rises in region
    India on Monday announced a halt to domestic flights and said the majority
of the country was under complete lockdown to stop the spread of coronavirus as
the number of people dying of the disease ticked up across densely populated
South Asia.
    • E-commerce companies face disruption as India locks down to curb
    E-commerce and online groceries faced disruption to their warehouse and
delivery operations in India on Monday as dozens of cities including New Delhi
went into a lockdown to tackle the spread of coronavirus, industry executives
    • India faces spike in coronavirus cases, says study, in test for health
    India could face between around 100,000 and 1.3 million confirmed cases of
the disease caused by the new coronavirus by mid-May if it continues to spread
at its current pace, according to a team of scientists based mainly in the
United States.
    • Ford decides to halt production in India, South Africa on coronavirus
    Ford Motor said on Monday it has decided to temporarily halt vehicle and
engine production at its factories in India, South Africa, Thailand and Vietnam
in response to the growing impact of the coronavirus.
    • China's new coronavirus infections double due to imported cases
    Mainland China saw a doubling in new coronavirus cases driven by a jump in
infected travellers returning home from overseas, raising the risk of
transmissions in Chinese cities and provinces that had seen no new infections in
recent days.
    • Mnuchin expresses hope a deal is 'very close' on $2 trillion coronavirus
aid package in U.S. Senate
    A far-reaching coronavirus economic stimulus package remained stalled in the
U.S. Senate on Monday as lawmakers haggled over its provisions, but the U.S.
Treasury secretary voiced confidence a deal would be reached soon.
    • U.S. Fed aims 'bazooka' to backstop coronavirus-hit economy
    The U.S. Federal Reserve on Monday rolled out an extraordinary array of
programs to backstop an economy reeling from sweeping restrictions on commerce
that scientists say are needed to slow the coronavirus pandemic and ultimately
keep more people safe.
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 4.7% higher at 7,828.75.
    • The Indian rupee is expected to rise against the dollar after the U.S.
Federal Reserve announced unlimited bond purchases and more credit facilities to
counter the coronavirus pandemic.
    • Indian government bonds will likely open little changed ahead of the
central bank’s open market purchases scheduled today and Mar. 26, while trading
volume is expected to remain shallow on uncertainty amid the coronavirus
outbreak. The yield on the benchmark 6.45% bond maturing in 2029 is likely to
trade in a range of 6.34%-6.42% today, a trader with a private bank said.
    • Wall Street's slide deepened on Monday as an unprecedented moves by the
U.S. Federal Reserve to shore up credit across the economy proved insufficient
to sooth investors' fears about the swiftly-spreading coronavirus.
    • Asian stocks rebounded sharply as the U.S. Federal Reserve's promise of
bottomless dollar funding eased painful strains in financial markets, even if it
could not soften the immediate economic hit of the coronavirus.
    • The dollar eased but remained near a three-year high against a basket of
currencies as investors sought the world's main funding and settlement currency
ahead of a sharp anticipated fall in cashflow.
    • Treasury yields fell on Monday, with the two-year yield falling to a
seven-year low, as investors kept buying safe-haven assets like government bonds
even after the Federal Reserve announced enormous stimulus measures to combat
the blow dealt to the U.S. economy by the coronavirus pandemic.
    • U.S. crude oil futures climbed nearly 3% in light trading as the Trump
administration launched an effort to work with Saudi Arabia to stabilise oil
    • Gold prices rose, following a near 4% jump in the previous session after
the U.S. Federal Reserve announced unprecedented measures to support an economy
which is reeling from the coronavirus pandemic.
                     CLOSE        FII                EQUITIES            DEBT
 PNDF spot           76.01/76.04  March 23           (3,340.85)          (2,265.31)
                                                       crore               crore
 10-yr bond          6.38%        Month-to-date      (52,960)            (52,671)
   yield                                               crore               crore
                                  Year-to-date       (39,017)            (62,222)
                                                       crore               crore

    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 = 76.32 Indian rupees)

 (Compiled by Swathi Nair in Bengaluru)
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