May 13, 2020 / 3:11 AM / 23 days ago

Morning News Call - India, May 13

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    FACTORS TO WATCH
    No major events are scheduled.
    
    LIVECHAT- CORONAVIRUS ECONOMIC IMPACT
    Vishnu Varathan, head of economics and strategy at Mizuho Bank in Singapore,
discusses the economic impact of the novel coronavirus.To join the conversation
at 09:30 am IST, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India to provide 20 trillion rupees to boost pandemic-hit economy 
    Prime Minister Narendra Modi said on Tuesday that India would provide 20
trillion rupees in fiscal and monetary measures to support an economy battered
by a sweeping weeks-long lockdown to fight the novel coronavirus. 
    • India's March manufacturing output contracts by more than a fifth
    India's manufacturing output contracted by more than a fifth in March from a
year earlier, fanning hopes that the central bank will ease rates further to
kick-start the economy amid the coronavirus outbreak. 
    • South Korea's LG Chem sends delegation to India to probe deadly gas leak 
    South Korea's LG Chem said that it had sent a delegation to India to
investigate the cause of a toxic gas leak at its chemical plant there that
killed 11 people and forced 800 into hospital for treatment from poisoning.
 
    • Gilead ties up with generic drugmakers for COVID-19 drug supply 
    Gilead Sciences said on Tuesday it has signed non-exclusive licensing pacts
with five generic drugmakers based in India and Pakistan to expand the supply of
its experimental COVID-19 treatment remdesivir.
    • Indian lenders pitch for government-funded 'bad bank' - sources 
    Indian lenders want the government to provide up to $2 billion to set up a
"bad bank" at a time when their heavy pile of soured debt is expected to double
in size due to the COVID-19 pandemic, according to two sources with knowledge of
the matter. 
    • Vedanta Resources to take Indian unit private as virus crisis deepens 
    Miner Vedanta Resources on Tuesday confirmed that it would take its Indian
unit Vedanta Ltd private, as it looks to accelerate simplification of its
corporate structure amid the coronavirus crisis. 
    • U.S. proposes divestiture as condition for Novelis purchase of Aleris 
    The U.S. Justice Department proposed on Tuesday that Novelis divest Aleris
Corp's entire North American aluminum auto body sheet operations as a condition
of its acquisition.
    • India's packed trains ready to roll again despite rising coronavirus cases
    Tens of thousands of people have booked out seats on Indian trains that are
due to restart on Tuesday after a near seven-week lockdown, raising concerns of
spreading the coronavirus in the absence of social distancing.
    
    
    GLOBAL TOP NEWS
    • Trump pressures federal pension to halt planned Chinese stock purchases 
    The Trump administration is pressing an independent board charged with
overseeing billions in federal retirement dollars to freeze plans to invest in
Chinese companies that Washington suspects of abusing human rights or
threatening U.S. security.
    • U.S. House Democrats float $3 trillion coronavirus bill, Republicans
reject it 
    Democrats in the U.S. House of Representatives on Tuesday unveiled a $3
trillion-plus coronavirus relief package with funding for states, businesses,
food support and families, only to see the measure flatly rejected by Senate
Republicans. 
   •  A tale of two Japanese drugs in tests to fight COVID-19 
    In the global hunt for coronavirus treatments, a Japanese antiviral medicine
known as Avigan has won plaudits from Prime Minister Shinzo Abe and $128 million
in government funding. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 2.2% higher at 9,432.50.
    • The Indian rupee is expected to trade higher against the dollar after
Prime Minister Narendra Modi announced plans for a 20-trillion-rupee stimulus
package to revive an economy crippled by the coronavirus outbreak.
    • India’s federal bond yields are expected to spike in early session amid
worries of additional borrowing after the government announced a massive fiscal
stimulus package yesterday to cushion the impact of the coronavirus pandemic.The
yield on the benchmark 6.45% bond maturing in 2029 is likely to trade in a range
of 6.15%-6.25%. 
    
    
    GLOBAL MARKETS
    • The S&P 500 dropped 2% on Tuesday as investors took profits following a
warning from the top U.S. infectious disease expert that premature moves to
reopen the nation's economy could lead to novel coronavirus outbreaks and set
back economic recovery.
    • Asian shares and U.S. stock futures fell as heightened concerns about a
second wave of coronavirus infections hit investor sentiment.
    • The dollar was on the defensive against its rivals as traders looked to
Federal Reserve Chairman Jerome Powell's speech amid rising speculation the
United States could one day adopt negative interest rates.
    • Investors looking for safety as the economy sputters amid the COVID-19
pandemic sent U.S. Treasury yields lower on Tuesday, with strong demand for
10-year notes at an auction.
    • Oil prices fell on worries about a possible second wave of coronavirus
cases in countries starting to ease lockdowns, while industry data showed a rise
in U.S. crude inventories.
    • Gold gained as concerns that a second wave of coronavirus infections may
be emerging in many countries weighed on riskier assets. 
    
    
                   CLOSE      FII             EQUITIES        DEBT
                                INVESTMENTS                   
 PNDF spot         75.53/75.  May 12          648.97 crore    (3,276.76) crore
                   56                                         
 10-yr bond yield  6.16 pct   Month-to-date   21,440 crore    (8,542) crore
                              Year-to-date    (33,474) crore  (91,021) crore
 
    (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 = 75.30 Indian rupees Indian rupees)
    
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