May 14, 2019 / 3:34 AM / 9 days ago

Morning News Call - India, May 14

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    FACTORS TO WATCH
    12:00 pm: Government to release April wholesale price inflation data in New
Delhi.
    
    GMF: LIVECHAT - FED WATCH
    Reuters reporters and editors tracking the Federal Reserve take questions on
the economics, politics, trade matters and rates policies facing America's
central bank and others whose decisions drive markets day in and day out at 7:00
pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    •April inflation hits 6-month high; keeps rate cut hopes alive
The retail inflation rate hit a six-month high in April, due to bigger increases
in food prices, but remained below the central bank's target for a ninth month,
keeping hopes alive for a June cut in the key interest rate.
    •Congress party vows to "clean up" economic data gathering if wins election
The main opposition Congress party will review how economic data is collected
and interpreted if it wins a general election this month, a senior party
official said, amid doubts over the reliability of official data.
    •Jet Airways slumps after reports of Etihad's non-binding offer
Shares of Jet Airways fell on Monday after media reports said a buyout offer
from Middle Eastern carrier Etihad Airways was non-binding and might not
guarantee a deal for the struggling Indian carrier.
    •Only one Indian client of Iran takes up extra Saudi oil for June: sources
Only one Indian buyer of Iranian oil has taken up Saudi Arabia's offer of
additional oil to make up for the loss of supplies from Tehran due to U.S.
sanctions, taking an extra 2 million barrels from the Kingdom for June shipment,
industry sources said.
    •Wholesale sales of Indian passenger vehicles drop most in nearly 8 years
Wholesale sales of passenger vehicles in India fell 17% year-on-year in April,
their steepest decline since October 2011, data from the country's auto industry
body showed on Monday, as weak consumer confidence and a liquidity crunch hit
demand.
    
    
    GLOBAL TOP NEWS
    •Trump and Xi to meet after defiant China hits U.S. with new tariffs
U.S. President Donald Trump said on Monday he would meet Chinese President Xi
Jinping next month as the trade war between the world's two largest economies
intensified, sending shivers through global markets.
    •Saudi oil tankers among those attacked off UAE amid Iran tensions
Saudi Arabia said on Monday that two of its oil tankers were among those
attacked off the coast of the United Arab Emirates and described it as an
attempt to undermine the security of crude supplies amid tensions between the
United States and Iran.
    •In setback for Apple, U.S. Supreme Court lets App Store antitrust suit
proceed
A divided U.S. Supreme Court on Monday gave the go-ahead to an antitrust lawsuit
accusing Apple of forcing consumers to overpay for iPhone software applications,
a decision that could lead to billions of dollars in damages and put at risk the
company's lucrative way of selling apps.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    •SGX Nifty nearest-month futures were down 0.4% at 11,143.50.
    •The Indian rupee is expected to open little changed against the dollar,
after China responded to the U.S. move to increase tariffs with higher duties on
American goods.
    •Indian government bonds are likely to rise in early trade as core inflation
eased in April, raising bets of a policy rate cut in June. The yield on the
benchmark 7.26% bond maturing in 2029 is likely to trade in a range of
7.35%-7.40% today, a trader with a state-run bank said.
    
    
    GLOBAL MARKETS
    • Wall Street sank on Monday after China defied Washington by announcing
retaliatory tariffs, the latest salvo in the two countries' increasingly
belligerent trade war, sending investors fleeing equities for less risky
assets.
    • Asian shares deepened losses amid a fresh deterioration in the Sino-U.S.
tariff war, although comments from U.S. President Donald Trump that he expected
trade negotiations to be successful helped stabilise sentiment.
    • China's offshore yuan hit a fresh 2019 low early in Asia and the
safe-haven yen remained supported as a fresh escalation in Sino-U.S. trade
tensions hit sentiment, with each country raising tariffs on the other's goods.

    • U.S. Treasury yields fell to six-week lows on Monday as investors piled
into low-risk assets after China announced plans to impose additional tariffs on
U.S.-made goods in retaliation for a U.S. increase in duties on Chinese imports
on Friday.
    • Oil prices inched higher, though gains were checked amid an escalation in
the trade war between the United States and China.
    • Gold steadied, having recouped the key $1,300-level in the previous
session, after Beijing's announcement of a retaliatory tariff-hike to counter
Washington rocked risk sentiment, embellishing appetite for safe-haven assets.

    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         70.31/70.34  May 13           -$149.63 mln  -$37.15 mln
 10-yr bond yield  7.39%        Month-to-date    --            -$224.93 mln
                                Year-to-date     --            -$2.78 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 = 70.57 Indian rupees)

 (Compiled by Karthick Arvinth in Bengaluru.)
  
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