May 16, 2019 / 3:41 AM / a month ago

Morning News Call - India, May 16

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    FACTORS TO WATCH
    No major events are scheduled for the day.
    
    GMF: LIVECHAT - MARKETS FOCUS
    Arjen van Dijkhuizen, Chief Asia economist at ABN AMRO, will discuss the
expected impact of the U.S.-China trade escalation on China and other Asian
economies, how next central bank moves will likely impact markets and the fate
of the USD versus Asian currencies at 12:30 pm IST. To join the conversation,
click on the link: here
    
    
    INDIA TOP NEWS
    • SoftBank leads $200 million investment in Grofers
Japan's SoftBank Group has led an investment round of more than $200 million in
online grocery startup Grofers India through its Vision Fund, the New
Delhi-based company said on Wednesday, upping competition in a hotly chased
market in the country.
    • ANALYSIS-Next Indian government seen relying on RBI rate cuts to spur
growth
India's slowing economy will need a boost soon after the current election but
budget stresses mean New Delhi probably has to rely on the central bank to
provide it through more interest rate cuts, according to two senior finance
ministry officials.
    • April trade deficit widens to $15.33 billion: trade ministry
India's trade deficit widened to $15.33 billion in April from a year ago, the
trade ministry said in a statement on Wednesday.
    • Jet Airways sinks after top executives quit
Shares of Jet Airways fell on Wednesday, a day after its chief executive and two
other senior executives stepped down, raising serious doubts over the revival of
the debt-laden airline.
    • INSIGHT-In India election, a $14 software tool helps overcome WhatsApp
controls
WhatsApp clones and software tools that cost as little as $14 are helping Indian
digital marketers and political activists bypass anti-spam restrictions set up
by the world's most popular messaging app, Reuters has found.
    •  Monsoon to hit India on June 6: weather office
Monsoon rains are likely to enter India through the southern coast on June 6,
the weather office said on Wednesday, marking the start of the four-month rainy
season that is crucial for the country's farm-dependant economy.
    
    
    GLOBAL TOP NEWS
    •U.S. blacklists China's Huawei as trade dispute clouds global outlook
The Trump administration hit Chinese telecoms giant Huawei with severe sanctions
on Wednesday, adding another incendiary element to the U.S.-China trade dispute
just as Treasury Secretary Steven Mnuchin said he would visit China soon for
more talks.
    •Trump to propose plan to make U.S. immigration more merit-based
U.S. President Donald Trump will outline on Thursday a plan to harden border
security and overhaul the legal immigration system to favor applicants who speak
English, are well-educated and have job offers, senior administration officials
said.
    •Rebels hope to kill off May's Brexit deal in "last-chance" vote
Brexit-supporting rebels in British Prime Minister Theresa May's Conservative
Party said on Wednesday they would vote down her European Union divorce deal
when she brings it back to parliament next month.
    
        
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    •SGX Nifty nearest-month futures were up 0.2% at 11,184.50.
    •The Indian rupee is expected to open higher against the dollar after U.S.
equities extended their gains, helping mitigate the impact from rising crude oil
prices and a wider-than-expected trade deficit at home.
    •Indian government bonds are likely to trade lower in early session,
tracking an overnight rise in crude oil prices. The yield on the benchmark 7.26%
bond maturing in 2029 is likely to trade in a range of 7.36%-7.42% today, a
trader with a private bank said.
    
    
    GLOBAL MARKETS
    • U.S. stocks closed higher on Wednesday as reports that U.S. President
Donald Trump would hold off on imposing tariffs on imported cars and parts eased
growth concerns even as economic data disappointed investors.
    • Asian shares steadied on news that U.S. President Donald Trump is planning
to delay tariffs on auto imports, providing much needed relief to markets hit by
a flare-up in trade tensions and on weak U.S. and and Chinese economic data.

    • The euro was buoyant as trade concerns eased on expectations that U.S.
President Donald Trump will delay implementing tariffs on imported cars.
    • Treasury yields fell, with the two-year yield hitting its lowest in 15
months, after the United States reported that retail sales and industrial output
declined in April, raising expectations the Federal Reserve will cut interest
rates this year.
    • Oil prices edged up to extend gains into a third straight session, as
tensions in the Middle East stoked fears of potential disruptions to supply.

    • Gold prices marked time as an uptick in equities offset support from
doubts over trade talks between the United States and China.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         70.26/70.29  May 15           -$162.66 mln  $12.94 mln
 10-yr bond yield  7.38%        Month-to-date    -$265.77 mln  -$32.19 mln
                                Year-to-date     $9.50 bln     -$2.59 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 = 70.21 Indian rupees)

 (Compiled by Karthick Arvinth in Bengaluru.)
  
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