November 29, 2018 / 3:19 AM / 17 days ago

Morning News Call - India, November 29

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    FACTORS TO WATCH
    10:00:  Finance Minister Arun Jaitley to attend CII Health Summit in New
Delhi.
    
    LIVECHAT - BONDS UPDATE
    Reuters bond reporter Virginia Furness delves into government bond markets
at 06:00 pm IST. To join the conversation, click here     
    
    
    INDIA TOP NEWS
    • Indian government to run power play at next central bank board
meeting-sources
    For all the cordiality on show at the end of Reserve Bank of India's last
board meeting, tensions could re-surface when it next gathers on December 14 as
the government aims to ramp up pressure for changes in the way the central bank
operates.
    • Angry farmers could upset India's Modi in major state elections test
    Weak farm prices are threatening to hurt Indian Prime Minister Narendra
Modi's Hindu nationalist party as it faces a critical test in three state
elections dominated by rural voters in the Hindi-speaking belt that is its
traditional stronghold.
    • Modi and Xi aim to build on thaw in ties at G20 meeting
    Indian Prime Minister Narendra Modi and Chinese President Xi Jinping will
meet on the sidelines of a G20 meeting this week, aiming to build on a thaw in
ties after a military standoff on their disputed border last year, officials
said.
    • Unilever in pole position to swallow GSK's Indian Horlicks business
    Unilever has emerged as the leading bidder in a tight contest for
GlaxoSmithKline's Indian Horlicks nutrition business, three people familiar with
the situation told Reuters on Wednesday.
    • Big Indian insurer bets on oil marketing companies for 2019
    Aditya Birla Sun Life Insurance plans to increase its holdings in oil
marketing companies as crude prices come under pressure and valuations in the
sector turn attractive ahead of general elections next year.
    • Yes Bank slumps after media report on transactions by CEO's investment
firms
    Yes Bank shares fell to close at a 20-month low on Wednesday, after a media
report said investment vehicles of the lender's chief executive made
transactions that could be questioned by investors and regulators.
    • Jet Airways shares jump on report Goyal to sell controlling stake
    Shares of India's Jet Airways rose sharply on Wednesday following a report
that founder Naresh Goyal has agreed to sell his controlling stake and give up
operational control of the struggling carrier.
    • NGT panel says Tamil Nadu government overreached by closing Vedanta
smelter
    An Indian court-appointed panel said on Wednesday that there were
insufficient grounds to permanently close Vedanta copper smelter and a
government decision to shut it amounted to administrative overreach.

   
    
    GLOBAL TOP NEWS
    • Fed's Powell, in apparent dovish shift, says rates near neutral
    U.S. Federal Reserve Chair Jerome Powell injected investors with a strong
dose of optimism on Wednesday, saying that the central bank's policy rate is now
"just below" estimates of a level that neither brakes nor boosts a healthy U.S.
economy, comments that many investors read as signaling the Fed's three-year
tightening cycle is drawing to a close.
    • Trump administration to examine tools to raise U.S. tariffs on Chinese
autos
    U.S. Trade Representative Robert Lighthizer said on Wednesday that he was
examining all available tools to raise U.S. tariffs on Chinese vehicles to the
40 percent duties that China is now charging on U.S.-produced
vehicles.
    • Japan retail sales rise most in 10 months, signal economic rebound
    Japan's retail sales grew the fastest in 10 months in October as consumers
shelled out more on fuel, cars, medicines and cosmetics, in a sign the world's
third-largest economy is likely returning to growth after a summer stumble.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    SGX Nifty nearest-month futures were trading up 0.9 percent at 10,812.00,
from its previous close.
    The Indian rupee is likely to open higher against the U.S. currency after
Federal Reserve Chairman Jerome Powell’s comments suggesting a slower pace of
rate increases triggered the biggest slide in the dollar index in a month.
    Indian government bonds are likely to open higher, as lower oil prices and
strength in the rupee following Fed chair’s comments indicating slower pace of
rate hikes are expected to add to the positive sentiment. The yield on the
benchmark 7.17 percent 2028 bond is likely to trade in a 7.60 percent -7.67
percent band today, a trader with a state-run bank said.
        
    
    GLOBAL MARKETS
    • Federal Reserve Chair Jerome Powell boosted U.S. stock markets on
Wednesday when he said the policy rate is now "just below" estimates of a level
that neither brakes nor boosts a healthy economy, comments that many took as
signaling the Fed's three-year tightening cycle is drawing to a close.
    • Asian stocks rose tracking a Wall Street rally as dovish comments from
Federal Reserve Chair Jerome Powell boosted investor sentiment towards riskier
assets.
    • The dollar extended its overnight losses after Federal Reserve Chairman
Jerome Powell said U.S. interest rates were just below neutral, taken by
investors as a tip that the rate hike cycle was nearing its end.
    • Yields on shorter-dated U.S. government bonds fell on Wednesday afternoon,
steepening the yield curve, after Federal Reserve Chair Jerome Powell delivered
a speech in which he signaled that an end to the bank's interest-rate hike cycle
may be closer than previously suggested.
    • Oil prices climbed 1 percent, clawing back some ground from losses in the
previous session, but an increase in U.S. crude inventories and uncertainty in
the run to an OPEC meeting next week kept markets under pressure.
    • Gold prices held firm after notching up their biggest daily percentage
gain in nearly two weeks in the previous session, with the dollar easing on
dovish comments from Federal Reserve Chair Jerome Powell.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         70.63/70.66  November 28      $136.06 mln  -$11.69 mln
 10-yr bond yield  7.64 pct     Month-to-date    $558.57 mln  $896.65 mln
                                Year-to-date     -$5.37 bln   -$7.21 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 = 70.63 Indian rupees)
    
    

 (Compiled by Siddharth Athreya V in Bengaluru)
  
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