May 2, 2019 / 3:21 AM / in 19 days

Morning News Call - India, May 2

To access a PDF version of this newsletter, please click here here
    
    If you would like to receive this newsletter via email, please register at:
here
    
    
    FACTORS TO WATCH
    No events are scheduled for the day.  
    
    GMF: LIVECHAT - BONDS UPDATE 
    Reuters interest rate reporters delve into government bond markets at 5:00
pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • OYO to buy @Leisure for 370 million euros - source
    Indian hotel startup OYO will buy European vacation rental group @Leisure
for about 370 million euros from German media company Axel Springer and other
shareholders, said a source familiar with the matter.
    
    • SEBI fines NSE over unfair broker access 
    India's market regulator on Tuesday fined the National Stock Exchange over
$90 million and barred it from raising money on securities markets for six
months after finding it had failed to ensure equal access for all brokers to the
exchange's network servers.
    
    • Hindustan Zinc  sees output rebounding in 2019/20 financial year
    Hindustan Zinc, the world's second largest zinc miner, expects its output to
grow in 2019/20 after a drop in the previous financial year, a senior executive
said, a move that could put pressure on global prices.
    
    • Walmart-owned Flipkart in talks to buy Indian grocery chain - report
    Walmart-owned e-commerce firm Flipkart is in talks to buy Indian grocery
chain Namdhari's Fresh, CNBC-TV18 reported on Wednesday, citing sources.

    
    • INSIGHT-Modi's war chest leaves India election rivals in the dust
    Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) is flush with
cash, giving his Hindu nationalist bloc a massive advantage over the main
opposition Congress party as he seeks to win a second term in India's general
election.
    
    • Yes Bank shares sink after shock quarterly loss, rising bad loans
    Investors sold out of Indian lender Yes Bank on Tuesday after rising bad
loans triggered its first quarterly loss and brokerage Macquarie Research set a
rare double-downgrade on the company's stock.

    • Nayara Energy closes $750 million pre-pay with Trafigura, BP
    Russian-backed Indian refiner Nayara Energy has completed a long-term
pre-payment deal with BP and global commodities trader Trafigura for $750
million, Nayara's chief executive said on Wednesday.
    
    • KKR, GIC betting on India's power sector with $400 million investment
    Global investment firm KKR is leading a deal to acquire a controlling stake
in India Grid Trust, in a bet on the country's rapidly growing power sector,
people familiar with the transaction told Reuters.

    
    
    GLOBAL TOP NEWS
    • U.S. Fed sees no strong case for hiking or cutting rates
The U.S. Federal Reserve on Wednesday held interest rates steady and signaled
little appetite to adjust them any time soon, taking heart in continued job
gains and economic growth and the likelihood that weak inflation will edge
higher.
    
    • Maduro hangs on as Venezuelan protests peter out
    Venezuelans heeded opposition leader Juan Guaido's call to take to the
streets on Wednesday in a bid to force President Nicolas Maduro from power, but
there was little concrete sign of change in a crisis that increasingly looks
like a political stalemate.
    
    • U.S., China reported near deal to end some tariffs; talks 'productive'
    The United States and China are nearing a trade deal that would roll back a
portion of the $250 billion in U.S. tariffs on Chinese goods, Politico reported
on Wednesday after U.S. Treasury Secretary Steven Mnuchin said the two countries
completed "productive" talks in Beijing.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were down 0.5 percent at 11,792.50. 
    • The Indian rupee is expected to open lower against the dollar after the
Federal Reserve reiterated its patience stance, but clipped expectations for a
rate cut.
    • Indian government bonds are likely to trade little changed in early
session as the U.S. Federal Reserve kept its key policy rates unchanged as
expected. The yield on the benchmark 7.26 percent bond maturing in 2029 is
likely to trade in a range of 7.35 percent - 7.40 percent today, a trader with a
state-run bank said.
    
    
    GLOBAL MARKETS
    • U.S. stocks ended lower on Wednesday and the S&P 500 snapped a three-day
streak of record high closes as comments from Federal Reserve Chairman Jerome
Powell appeared to dampen hopes the central bank could move later this year to
cut interest rates.
    • Asian markets marked time with two major centres - Japan and China - shut
for holidays while the dollar held on to overnight gains after the U.S. central
bank poured cold water on rate cut expectations.
    • The dollar took a breather in Asia after recovering from a brief spill
overnight when markets were whipsawed by mixed messages on policy from the
Federal Reserve.
    • U.S. Treasury yields rose on Wednesday after Federal Reserve Chairman
Jerome Powell said a decline in inflation this year could be due to transitory
factors, after the U.S. central bank’s meeting statement struck a cautious tone
on inflation.
    • Oil prices were caught between opposing forces, squeezed by record U.S.
crude oil output and surging stockpiles, but supported by global market tensions
as all exemptions to U.S. sanctions on Iran expired, Venezuela's crisis
escalated, and producer club OPEC withheld supply.
    • Gold steadied, holding just above a one-week low touched in the previous
session after comments from U.S. Federal Reserve Chairman Jerome Powell dashed
hopes of a near-term rate cut, boosting the dollar.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         69.75/69.78  April 30         $16.54 mln  $56.44 mln
 10-yr bond yield  7.41 pct     Month-to-date    ---         $2.11 bln
                                Year-to-date     ---         $2.56 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 = 69.52 Indian rupees)

 (Compiled by Nachiket Tekawade in Bengaluru)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below