May 18, 2020 / 3:57 AM / 11 days ago

Morning News Call - India, May 18

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    FACTORS TO WATCH
    4:00 pm: The Health ministry will brief on the COVID-19 situation in New
Delhi.
    
    LIVECHAT - MARKETS UPDATE
    Mike Dolan, Reuters Editor at Large, Finance & Markets, discusses the major
themes and factors in play for markets at 3:30 pm IST. To join the conversation,
click here refini.tv/2P8N0Wp

    
    INDIA TOP NEWS
    • India extends lockdown to May 31, to relax rules in some areas
    India on Sunday extended a nationwide lockdown to May 31, as cases exceeded
90,000 and further clashes erupted between police and stranded migrants.

    • Reliance in $870 million General Atlantic deal as Jio Platforms funding
tops $8 billion
    India's Reliance Industries on Sunday announced U.S. fund General Atlantic
will invest 65.98 billion rupees ($870 million) in Jio Platforms, a fourth deal
that takes investment in its digital unit to over $8 billion in less than a
month.
    • India to privatise state-run companies and halt fresh insolvencies amid
COVID-19 pandemic
    India said on Sunday it would privatise state-run companies in non-strategic
sectors and stop fresh insolvency cases for a year, as the country battles with
the economic fallout from the coronavirus pandemic.
    • India to ease restrictions on foreign ownership in defence ventures
    India will ease restrictions on the level of foreign ownership in defence
manufacturing, Finance Minister Nirmala Sitharaman said on Saturday, in a move
aimed at cutting down on imports.
    • India watchdog reviewing antitrust allegations against Facebook's WhatsApp
-sources
    India's antitrust watchdog is looking into allegations that Facebook's
WhatsApp is abusing its dominant position by offering payment services to its
vast base of messaging app users in the country, three sources told Reuters on
Friday.
    • Modi's stimulus package so far is all about liquidity, Indian officials
say
    India's Prime Minister Narendra Modi's $266 billion economic stimulus
programme to deal with the fallout from the coronavirus pandemic has been all
about liquidity measures, with negligible extra budget spending, according to
government officials.
    • Amazon Prime snags Bollywood premieres, angering theater owners
    Amazon Prime Video, Amazon's streaming service, will screen several new
Indian films originally meant for theatrical release this month, sparking
protests from cinema owners as the novel coronavirus outbreak upends Bollywood.


    
    GLOBAL TOP NEWS
    • Japan slips into recession, worst yet to come as pandemic wreaks havoc
    Japan's economy slipped into recession for the first time in 4-1/2 years,
GDP data showed, putting the nation on course for its deepest postwar slump as
the coronavirus crisis takes a heavy toll on businesses and
consumers.
    • SoftBank proposes three new board members as Alibaba's Jack Ma resigns
    SoftBank Group Corp said that Alibaba co-founder Jack Ma will resign from
its board, in the latest departure by a high-profile ally of CEO Masayoshi
Son.
    • China says opposed to latest U.S. rules against Huawei
    China's commerce ministry said on Sunday it is firmly opposed to the latest
rules by the United States against Huawei and will take all necessary measures
to safeguard Chinese firms' rights and interests.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.3% lower at 9,096.50.
    • The Indian rupee is expected to trade lower against the dollar after
Asia’s third-largest economy extended the nationwide lockdown to contain the
spread of the coronavirus.
    • Indian government bond yields will likely edge higher in early session
after New Delhi hiked the borrowing limit of states, raising worries of excess
supply in the debt market. A debt switch auction later today will also impact
yields, traders said. The yield on the benchmark 6.45% bond maturing in 2029 is
likely to trade in a range of 6.06%-6.12%.
    
    
    GLOBAL MARKETS
    • Wall Street's three major indexes closed higher after swinging between
gains and losses on Friday as investors weighed worries about Sino-U.S. trade
relations and weaker-than-expected U.S. economic data against growing optimism
that easing coronavirus restrictions would boost activity this month.
    • Asian shares were led higher by S&P 500 futures and oil prices hit a
five-week peak as countries' efforts to re-open their economies stirred hopes
the world was nearer to emerging from recession.
    • The dollar held its ground as concern about global tensions with China
overshadowed improving sentiment from easing coronavirus lockdowns, while talk
of negative interest rates pushed the pound to an almost two-month low.
    • U.S. Treasury yields were slightly higher on Friday as investors looked
for signs that public health steps have readied the economy to reopen.
    • Oil prices climbed by more than $1 a barrel to their highest in more than
a month, supported by ongoing output cuts and signs of gradual recovery in fuel
demand as more countries ease curbs imposed to stop the coronavirus pandemic
spreading.
    • Gold rose to its highest since October 2012 as worries regarding the
souring U.S.-China relations and bleak U.S. economic data underpinned the
safe-haven metal.
    
        
                   CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot         75.53/75.56  May 15           (2,368.71) crore  (5,632.01) crore
 10-yr bond yield  6.08 pct     Month-to-date    17,363 crore      (18,840) crore
                                Year-to-date     (37,551) crore    (1,01,319) 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 = 75.79 Indian rupees)
 
    

 (Compiled by Prajakta Gadgil and Sourav Bose in Bengaluru)
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