May 21, 2019 / 3:24 AM / a month ago

Morning News Call - India, May 21

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    FACTORS TO WATCH
    No major events are scheduled for the day.
    
    GMF: LIVECHAT - POLICY FOCUS
    James Crabtree, Associate Professor of Practice at the Lee Kuan Yew School
of Public Policy and Author of The Billionaire Raj, joins us to discuss his
political and policy expectations after the Indian election results are out.
Crabtree will also take questions on what to expect from Chinese policy as
U.S.-China tensions re-escalate at 9:30 am IST. To join the conversation, click
on the link: here
    
    
    INDIA TOP NEWS
    • BJP prepares return to power as exit polls predict clear win: sources
India's ruling Bharatiya Janata Party is to meet coalition partners to discuss a
new government, two BJP sources said on Monday, after exit polls predicted a
clear general election victory for the party led by Prime Minister Narendra
Modi, to the delight of Hindu groups.
    • Tata Motors sees JLR back in profit this year as China sales recover
India's Tata Motors expects its luxury Jaguar Land Rover arm to return to profit
this financial year helped by cost cuts and a recovery in Chinese demand, it
said on Monday, after the group's fourth-quarter profit fell less than expected.

    • Adani stocks cheer incumbency wave in India, Australia
Shares in various Adani Group companies, including those of flagship Adani
Enterprises, surged on Monday after exit polls predicted Indian Prime Minister
Narendra Modi would return to power, even as Australian poll results also
spelled good news for the Indian conglomerate.
        
    
    GLOBAL TOP NEWS
    • Worries of longer, costlier U.S.-China trade war hits markets
Worries that the United States and China were digging in for a longer, costlier
trade war weighed on financial markets on Monday as Beijing accused Washington
of harboring "extravagant expectations" for a deal to end their dispute.

    • U.S. eases restrictions on China's Huawei to keep networks, phones
operating
The U.S. government on Monday temporarily eased some trade restrictions imposed
last week on China's Huawei, a move that sought to minimize disruption for the
telecom company's customers around the world.
    • T-Mobile's deal for Sprint gets big boost from FCC commission
T-Mobile's $26 billion acquisition of rival Sprint appeared to win the support
of a majority of the Federal Communications Commission on Monday, in a
significant step toward the deal's approval.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were up 0.1% at 11,882.00.
    • The Indian rupee is expected to open little changed against the dollar
amid mixed regional cues on U.S-China trade.
    • Indian government bonds are likely to rise in early trade, as investors
look to buy notes ahead of the results of the nation's general election. The
yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range
of 7.25%-7.30% today.
    
    
    GLOBAL MARKETS
    • U.S. stocks slid on Monday as the White House's restrictions on Chinese
telecoms equipment maker Huawei Technologies weighed on the technology sector
and raised concerns that the move would further inflame trade tensions between
the United States and China.
    • Asian shares wobbled near four-month lows on mounting worries the White
House's black-listing of Chinese telecom giant Huawei Technologies could further
inflame already tense relations between Washington and Beijing.
    • The dollar held near a 2-1/2-week high, supported by higher U.S.-yields
and as intensifying trade frictions between the United States and China boosted
appetite for the safe-haven greenback.
    • U.S. Treasury yields slipped on Monday, with long-dated debt falling for a
second straight session and Wall Street stocks weaker, as risk appetite
diminished amid ongoing trade tension between the United States and China.
    • Oil prices edged up on escalating tensions between the United States and
Iran and on signs that producer club OPEC will continue withholding supply this
year.
    • Gold eased after touching a more than two-week low in the previous
session, as a strong dollar diminished bullion's safe-haven appeal amid
heightening Sino-U.S. trade tensions.
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         69.50/69.53  May 20           $248.42 mln   -$11.17 mln
 10-yr bond yield  7.29%        Month-to-date    -$707.22 mln  -$169.05 mln
                                Year-to-date     $9.06 bln     -$2.73 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 = 69.80 Indian rupees)

 (Compiled by Karthick Arvinth in Bengaluru)
  
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