May 18, 2018 / 3:09 AM / 3 months ago

Morning News Call - India, May 18

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    FACTORS TO WATCH
    9:30 am: Health Minister J.P. Nadda at an event in New Delhi.
    11:30 am: Toyota Kirloskar Motor Deputy MD N. Raja at launch of sedan model
Yaris in New Delhi.
    2:00 pm: NITI Aayog CEO Amitabh Kant at an event in New Delhi.
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
    
    LIVECHAT - WEEKAHEAD 
    Reuters EMEA markets editor Mike Dolan discusses the upcoming week's main
market inflection points at 3:30 pm IST. To join the conversation, click on the
link: here
    
    
    INDIA TOP NEWS
    • Fraud-hit PNB rapped for not making timely regulatory disclosures
    Punjab National Bank has received a warning letter from the country's
markets regulator for failing to make timely disclosures to the stock exchanges
about a sprawling $2 billion fraud.
    • Google says India anti-trust ruling could cause "irreparable" harm -
document
    Alphabet's Google has said an Indian antitrust ruling that found it was
guilty of search bias could cause "irreparable" harm and reputational loss to
the company, according to a legal document reviewed by Reuters.
    • Land acquisition woes thwart India's mega refinery plan with Saudi Aramco 
    At the International Energy Forum in Delhi in April, the world's top oil
producer Saudi Aramco inked a preliminary deal to partner with a consortium of
Indian players to build a $44 billion refinery and petrochemical project on
India's west coast.
    • India's state power plants resume coal imports amid domestic shortages 
    State-run thermal power plants in India's coastal states have again begun
buying overseas coal due to domestic coal shortages, government and utility
officials said, in a setback for the country's long-term plans to eliminate
imports.
    • Vedanta's Indian copper smelter to remain shut until at least June 6
    Vedanta Resources'Thootukudi copper smelter, one of India's biggest, will
remain shut until at least June 6, a lawyer petitioning against the plant
reopening said on Thursday.
    
    
    GLOBAL TOP NEWS
    • Trump seeks to placate North Korea's Kim over uncertain summit
    U.S. President Donald Trump sought on Thursday to placate North Korea's
leader Kim Jong Un after Pyongyang threatened to scrap an unprecedented summit,
saying Kim's security would be guaranteed in any deal and his country would not
suffer the fate of Muammar Gaddafi's Libya, unless that could not be reached.

    • China offers Trump package to slash U.S. trade deficit -officials
    China has offered U.S. President Donald Trump a package of proposed
purchases of American goods and other measures aimed at reducing the U.S. trade
deficit with China by some $200 billion a year, U.S. officials familiar with the
proposal said.
    • CBS votes to end Redstone control but must take battle to court
    CBS Corp’s board on Thursday voted to end Shari Redstone’s control of the
media company, but the move will not take effect unless a Delaware judge sides
with CBS in its litigation to stop a potential merger with Viacom.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading down 0.3 percent at
10,670.00. 
    • The Indian rupee will likely open lower against the U.S. currency as
rising Treasury yields lifted the dollar index to four-month highs. 
    • Indian government bonds are likely to fall ahead of a weekly debt sale
today, even as higher U.S. Treasury yields will weigh on overall demand. The
yield on the benchmark 7.17 percent bond maturing in 2028 is likely to trade in
7.87 percent-7.93 percent band until auction outcome. 
    
    
    GLOBAL MARKETS
    • Wall Street ended a choppy trading session lower on Thursday, as investors
grappled with escalating trade tensions and rising oil prices.
    • Asian stocks edged up as investors kept a cautious watch on developments
in U.S.-China trade negotiations, while the dollar was perched near a five-month
peak against a basket of currencies thanks to the benchmark U.S. Treasury yield
topping a seven-year high.
    • The dollar edged higher against the yen and set a fresh four-month high,
buoyed by a rise in U.S. Treasury yields that suggests a more upbeat outlook for
the world's largest economy.
    • U.S. 10-year Treasury yields rose to a near seven-year peak on Thursday,
extending this week's bond market selloff, as traders and investors have not
reached a consensus on whether it was time to buy or if the market was
vulnerable to more selling.
    • Oil prices held firm on strong demand, ongoing supply cuts led by producer
cartel OPEC and looming U.S. sanctions against major crude exporter Iran.
    • Gold prices were flat in early trade after hitting a fresh 2018 low
overnight, as the dollar and U.S. bond yields held firm near their recent highs.

    
   
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         67.66/67.69  May 17           -$122.64 mln  -$57.61 mln
 10-yr bond yield  8.05 pct     Month-to-date    -$521.96 mln  -$1.64 bln
                                Year-to-date     $660.09 mln   -$3.31 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 = 67.7600 Indian rupees)

 (Compiled by Erum Khaled in Bengaluru)
  
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