May 4, 2020 / 3:03 AM / a month ago

Morning News Call - India, May 4

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    FACTORS TO WATCH
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    LIVECHAT - MARKETS UPDATE
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    INDIA TOP NEWS
    • India set to cap stimulus package at 4.5 trillion rupees to protect credit rating -sources
    The Indian government is likely to cap its overall spending on coronavirus-related relief at
around 4.5 trillion rupees, due to concerns that excess spending could trigger a sovereign
rating downgrade, two senior government officials said.
    • Indian bank bad debt could double in coronavirus crisis -sources
    India expects bad debts at its banks could double after the coronavirus crisis brought the
economy to a sudden halt, a senior government official and four top bankers told Reuters.

    • Reliance suffers worst profit fall in over 11 years on weak fuel demand
    Reliance Industries, operator of the world's biggest refining complex, reported a 39% slump
in its March quarter profit, the steepest drop since December 2008, as a sharp fall in oil
prices and lower fuel demand hammered its dominant energy businesses.
    • India extends nationwide lockdown, to allow relaxations in lower-risk zones
    India said on Friday it would extend its nationwide coronavirus lockdown for another two
weeks after May 4, but would allow "considerable relaxations" in lower-risk districts marked as
green and orange zones.
    • Maruti Suzuki records zero sales in April due to lockdown
    Maruti Suzuki on Friday reported zero monthly domestic sales for the first time ever in
April, as the country remained under lockdown to contain the spread of the coronavirus.

    • Coal India sales sink on lockdown demand drop
    Coal India's sales to customers fell by more than a quarter in April, the steepest rate of
decline in at least six years, it said on Friday, as a nationwide lockdown cut demand.

    • India's oil imports, product exports slow down in March
    India's March crude oil imports rose at the slowest pace this year, while refined product
exports also rose but at a lower rate as some refineries cut back crude processing as the
coronavirus outbreak crushed demand for fuel.
    • India orders coronavirus tracing app for all workers
    India has ordered all public and private sector employees use a government-backed contact
tracing app and maintain social distancing in offices as it begins easing some of its lockdown
measures in districts less affected by the coronavirus.
    
    
    GLOBAL TOP NEWS
    • Global coronavirus cases surpass 3.5 million, although rate slowing
    Global coronavirus cases surpassed 3.5 million, with deaths nearing a quarter of a million,
although the rate of fatalities and new cases has slowed from peaks reached last month, a
Reuters tally shows.
    • Pompeo says 'significant' evidence that new coronavirus emerged from Chinese lab
    Secretary of State Mike Pompeo said on Sunday there was "a significant amount of evidence"
that the new coronavirus emerged from a Chinese laboratory, but did not dispute U.S.
intelligence agencies' conclusion that it was not man-made.
    • North Korea's Kim did not have surgery, South says, as shots fired at DMZ
    North Korean leader Kim Jong Un did not undergo surgery during almost three weeks of absence
from public life, a South Korean official said on Sunday, as the two Koreas exchanged gunfire at
the Demilitarized Zone (DMZ) separating the two sides.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 4.7% lower at 9,356.50.
    • The Indian rupee is expected to fall against the dollar, tracking a Chinese yuan-led
decline in Asian currencies. Pullback in regional equities after last month’s surge is further
expected to weigh on the rupee.
    • Indian government bonds are likely to fall in early session, on fears of a fiscal
slippage, even as traders await the announcement of an economic package to mitigate the
coronavirus impact. The yield on the benchmark 6.45% bond maturing in 2029 is likely to trade in
a range of 6.10%-6.15%.
    
    
    GLOBAL MARKETS
    • Wall Street sold off sharply on Friday after President Donald Trump revived a threat of
new tariffs against China in response to the COVID-19 pandemic, which has brought global
economies to a grinding halt.
    • The dollar inched higher and stock markets struggled for traction as a U.S.-China spat
over the origin of the coronavirus put the brakes on optimism about an economic re-start as
countries around the world ease restrictions.
    • U.S. Treasury yields moved a little higher on Friday as the market looked ahead to next
week's projection for U.S. borrowing in the second quarter to finance enormous stimulus efforts
aimed at combating the economic fallout of the coronavirus outbreak.
    • Oil prices fell in early trade, paring last week's gains, on worries the global oil glut
may persist as U.S.-China trade tension could hold back an economic recovery even as coronavirus
pandemic lockdowns start to ease.
    • Gold prices climbed as risk sentiment was weakened by rising U.S.-China tensions over the
coronavirus, while a firmer dollar capped gains.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         75.13/75.16  April 30         785.30 crore    (4,032.91) crore
 10-yr bond yield  6.11 pct     Month-to-date    (6,884) crore   (12,552) crore
                                Year-to-date     (54,914) crore  (82,479) crore
 
    (FII investment numbers are in Indian rupees. Source: National Securities Depository
Limited)
    
    
    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 = 75.75 Indian rupees)
 
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