May 6, 2019 / 3:29 AM / 15 days ago

Morning News Call - India, May 6

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    FACTORS TO WATCH
    4:00 pm: ICICI Bank earnings conference call in Mumbai.

    
    GMF: LIVECHAT - FUND FLOWS
    Lipper analysts discuss sectoral churn and indications of where the smart
money is headed at 8:00 pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • India sees little scope for Jet Airways revival -government sources
    India's government sees little hope of a bidder emerging for debt-laden Jet
Airways, two senior finance ministry officials said, even as thousands of
employees plead with the government for a rescue.
    
    • U.S. lawmakers urge Trump administration to not end India's trade
privileges
    Twenty-four U.S. members of Congress sent a letter on Friday to U.S. Trade
Representative Robert Lighthizer, urging him not to end a vital trade concession
for India, a day before the Trump administration is likely to announce a
decision on it.
    
    • Cyclone Fani kills at least 33, hundreds of thousands homeless
    Hundreds of thousands of people were left homeless after a cyclone packing
winds of about 200 km per hour slammed into eastern India, ripping out tin roofs
and destroying power and telecom lines, officials said on Sunday.
    
    • ThyssenKrupp sees room for EU agreement on Tata Steel deal
    ThyssenKrupp said on Sunday it still saw scope for agreement with European
antitrust regulators on a planned joint venture with Tata Steel despite a
Financial Times report that Brussels was likely to block the deal.
    
    • Politics to decide rupee's near-term fate: Reuters poll
    The outlook for India's rupee has deteriorated from just a month ago as the
outcome of a more than month-long national election draws near, according to
foreign exchange strategists polled by Reuters.
    
    • INSIGHT-India's rural pain goes beyond farmers, and it may be a problem
for Modi
    Three years ago, brick mason Pundlik Bhandekar was always busy as farmers in
his tiny hamlet in western India commissioned new houses and nearby towns were
undergoing rapid urbanisation. Now, as the rural economy sinks and the pace of
construction slows, Bhandekar is struggling to get work.
    
    • India's LPG use to surge from record as government promotes cleaner fuel
    India's demand for liquefied petroleum gas (LPG) rose to a record in the
fiscal year ended in March amid government measures to provide cleaner cooking
fuel to rural households, and analysts expect consumption to keep rising.

    
    
    GLOBAL TOP NEWS
    • Trump vows new tariff hike on Chinese goods, escalating tension in trade
talks 
    President Donald Trump dramatically increased pressure on China to reach a
trade deal on Sunday by saying he would hike U.S. tariffs on $200 billion worth
of Chinese goods this week and target hundreds of billions more soon.

    
    • Boeing did not disclose 737 MAX alert issue to FAA for 13 months
    Boeing did not tell U.S. regulators for more than a year that it
inadvertently made an alarm alerting pilots to a mismatch of flight data
optional on the 737 MAX, instead of standard as on earlier 737s, but insisted on
Sunday the missing display represented no safety risk.
    
    • China April services sector expands further on strong export sales -
Caixin PMI
    Activity in China's services sector further improved in April, with export
sales rising at a record pace, a private business survey showed, although the
longer-term outlook for new orders stayed subdued due to global economic
uncertainties.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were down 0.5 percent at 11,704.
    • The Indian rupee is expected to open lower against the dollar in the wake
of a selloff in Asian assets after U.S. President Donald Trump said tariffs on
Chinese goods will increase this Friday and threatened to levy duties on
additional imports. 
    • Indian government bonds are likely to open higher, as Brent crude oil
prices fell below $70 per barrel, easing inflation concerns. The yield on the
benchmark 7.26 percent bond maturing in 2029 is likely to trade in a range of
7.36 percent - 7.41 percent today, a trader with a state-run bank said. 
    
    
    GLOBAL MARKETS
    • U.S. stocks rose in a broad-based rally on Friday as
stronger-than-expected job growth in April coupled with muted wage gains left
investors upbeat about the outlook for the economy and interest rates.
    • Asian equities tumbled, oil prices plunged and the safe-haven yen
strengthened early on Monday as trade negotiations between China and the United
States deteriorated suddenly, reversing apparent progress made in recent months.

    • The safe-haven yen climbed and the yuan slid on Monday after U.S.
President Donald Trump threatened to increase tariffs on China, sending riskier
assets into a spin and slamming stock futures.
    • U.S. Treasury yields fell from 1-1/2-week highs on Friday as government
data showed strong jobs growth in April that matched what many traders had
expected, while wage gains were muted.
    • Oil prices tumbled by more than 2 percent on Monday after U.S. President
Donald Trump on Sunday said he would sharply hike tariffs on Chinese goods this
week, risking derailing months of trade talks between the world's two biggest
economies.
    • Gold rose on Monday after U.S. President Donald Trump threatened to impose
tariffs on Chinese goods, indicating a dramatic deterioration in Sino-U.S. trade
talks and prompting a sharp downturn in riskier assets.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.25/69.28  May 3            -$58.05 mln  -$163.62 mln
 10-yr bond yield  7.39 pct     Month-to-date    ---          -$244.76 mln
                                Year-to-date     $9.85 bln    -$2.80 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 = 69.08 Indian rupees)
0 : 0
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