May 31, 2018 / 3:32 AM / 3 months ago

Morning News Call - India, May 31

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    FACTORS TO WATCH
    12:30 pm: Power Finance Corp. to brief media in Mumbai.
    12:45 pm: Food Minister Ram Vilas Paswan to brief media in New Delhi.
    5:00 pm: Government to release April Infrastructure output data in New
Delhi.
    5:30 pm: Government to release FY18 and January-March GDP data in New Delhi.
    6:00 pm: Commerce Secretary Rita Teaotia and Junior Commerce Minister C.R.
Chaudhary at EEPC India awards event in New Delhi.
    7:00 pm: Oil & Natural Gas Corp. post results press conference in New Delhi.

   
    GMF: LIVECHAT - BONDS UPDATE
Reuters interest rate reporter Dhara Ranasinghe delves into government bond
markets at 6:00 pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    India's growth likely topped 7 percent again in January-March quarter
India likely retained the position of world's fastest growing major economy in
the January-March quarter, surpassing China's growth of 6.8 percent, driven by
gains in manufacturing and consumer spending.
    
    POLL-Political worries set to check Indian stock market bulls
Indian stocks are expected to erase recent losses and rise a little this year,
but an array of political developments at home and overseas along with just a
steady economic growth outlook will likely restrain the market, a Reuters poll
showed.
    
    Reliance to halt oil imports from Iran - sources
India's Reliance Industries, owner of the world's biggest refining complex,
plans to halt oil imports from Iran, two sources familiar with the matter said,
in a sign that new U.S. sanctions are forcing buyers to shun oil purchases from
Tehran.
    
    India's RCom plans $2.68 billion asset sale to Jio, Brookfield in next few
weeks
India's Reliance Communications (RCom) said on Wednesday it expects to complete
its asset sale to Reliance Jio Infocomm and Canada's Brookfield in coming weeks,
after the bankruptcy appeals court halted insolvency proceedings against the
debt-laden company.
    
    AirAsia shares tumble as India probe threatens IPO plans
AirAsia Group shares plunged on Wednesday after federal police in India filed a
case against the airline accusing it of corruption - a probe that threatens to
delay its India unit's IPO plans and international expansion.
    
    ANALYSIS-India's e-commerce wars to be reshaped by private label brands
With nearly 500 million Indians using the internet in 2018 and many just dipping
their toes into online shopping, private labels will woo price-sensitive
customers and create loyalty and higher margins, say retail analysts.

    
    ONGC fourth-quarter profit up 36 percent, misses estimates
India's top explorer Oil and Natural Gas Corp posted a 36 percent rise in
fourth-quarter profit on Wednesday, but missed analysts' expectations.

    
    ICICI Bank to probe allegations against CEO
ICICI Bank said on Wednesday it will institute an inquiry into the allegations
raised by an anonymous whistleblower against Chief Executive Chanda Kochhar.

    
    
    GLOBAL TOP NEWS
    High-level U.S.-North Korea nuclear talks get underway in New York
High-ranking officials of the United States and North Korea met in New York late
on Wednesday in the first of two days of talks about the future of Pyongyang's
nuclear weapons program and a possible summit between U.S. President Donald
Trump and North Korean leader Kim Jung Un.
    
    China May factory growth at 8-month high, but tight funding hits smaller
firms
China's vast manufacturing sector grew at the fastest pace in eight months in
May, blowing past expectations and easing concerns about an economic slowdown
even as risks from trade tensions with the United States and a crackdown on debt
point to a bumpy ride ahead.
    
    Italy's Cottarelli opens door to possible eurosceptic government
Italy's two main anti-establishment parties could yet form a government, after
the man nominated as interim prime minister said politicians, rather than
technocrats like himself, might be able to steer the country out of deadlock.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    SGX Nifty nearest-month futures trading up 0.2 percent at 10,656.50.
    
    The Indian rupee will likely open little changed against the dollar as crude
oil prices rose, offsetting a recovery in risk asset demand from a selloff
caused by Italian political impasse.
    
    Indian government bonds are likely to ease in early trade tracking overnight
gains in crude oil prices, even as investors await India’s gross domestic
product data for the January-March quarter. The yield on the benchmark 7.17
percent bond maturing in 2028 is likely to trade in 7.77-7.82 percent band
today.
    
    
    GLOBAL MARKETS
    • U.S. stocks ended higher on Wednesday, and the S&P 500 and Dow registered
their biggest daily percentage gains since May 4, on signs of easing political
turmoil in Italy and as a surge in oil prices boosted energy stocks.
    • Asian stocks rebounded from a two-month trough, while the euro enjoyed a
respite after sinking to its lowest in 10 months as political turmoil in Italy
that had roiled global financial markets showed signs of easing.
    • The euro won a reprieve, holding on to the strong gains it made on
Wednesday, as Italian leaders moved to mitigate political turbulence and avoid a
potentially disruptive early election.
    • U.S. Treasury yields rose, reversing sharp losses the previous session
fueled by the Italian political crisis, as financial markets stabilized after
Italy sought to end its turmoil with a plan for a new government.
    • Oil prices dropped, weighed down by a surprise rise in U.S. crude
inventories and by expectations that OPEC and other producers could increase
output at a meeting in June.
    • Gold prices edged up, as the dollar eased from 6-1/2 month highs hit
earlier this week on a weaker-than-expected U.S. economic data, with prices
further supported by concerns about the trade war.
    
    
 CLOSE             FII INVESTMENTS  EQUITIES       DEBT         
 PNDF spot         67.45/67.48      May 30         -$190.9 mln  -$113.01 mln
 10-yr bond yield  7.95 pct         Month-to-date  -$1.19 bln   -$2.59 bln
                                    Year-to-date   -$8.39 mln   -$4.25 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 = 67.4300 Indian rupees)

 (Compiled by Nayyar Rasheed in Bengaluru)
  
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