November 9, 2018 / 3:25 AM / 12 days ago

Morning News Call - India, November 9

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    FACTORS TO WATCH
    No major events are scheduled.
    
    
    INDIA TOP NEWS
    • Indian government set to turn up heat on central bank governor-sources
The Indian government intends to keep pressing demands for the country's central
bank to relax lending curbs and hand over surplus reserves even if it risks
provoking a resignation by the bank's governor, three sources familiar with the
government's thinking told Reuters. 
    • Flipkart and Amazon not abusing market position in India - competition
commission
Amazon and its rival in India, the Walmart-owned Flipkart, did not break
regulations through their selection of merchants and brands, the Competition
Commission of India (CCI) said in a ruling late on Tuesday. Also,
ride-sharing firms Uber and Ola did not break price-fixing rules, the CCI said
in a ruling issued late on Tuesday in response to a complaint about their
technological pricing strategy.   
    • India's finance minister says Mastercard, Visa losing out to local players
India's finance minister said on Thursday that Mastercard and Visa were losing
market share to domestic payments networks, months after Mastercard complained
to the U.S. government that Indian Prime Minister Narendra Modi was using
nationalism to promote a local rival.
    • India approves sale of state-owned dredging co - minister
India has approved the sale of its entire 73.44 percent stake in Dredging
Corporation of India to a consortium of four ports, government minister Ravi
Shankar Prasad said on Thursday.
    • FOCUS-Ford goes local in India, aims for bigger slice of competitive
market 
Ford Motor made a profit in India for the first time in a decade in the last
fiscal year, signalling that a strategy conceived two years ago by the U.S. car
manufacturer for one of the world's most competitive car markets is starting to
show some success.
    • India to continue procurement quota for ITI 
India will continue to force three state-owned telecoms companies to purchase 30
percent of their equipment orders from state-run telecom equipment manufacturer
ITI, the government said on Thursday.
    
    
    GLOBAL TOP NEWS
    • Fed leaves rates unchanged, says U.S. economy strong
The U.S. Federal Reserve held interest rates steady on Thursday but remained on
track to keep gradually tightening borrowing costs, as it pointed to a healthy
economy that was marred only by a dip in the growth of business investment.

    • Japanese firms see U.S. trade talks boosting exports despite Trump
rhetoric
Half of Japanese companies expect new trade talks with Washington to boost their
U.S.-bound exports, a Reuters poll found, despite President Donald Trump's
intensifying drive to cut the trade gap between the two major economies.

    • China's producer inflation slows again in Oct on ebbing domestic demand
China's factory-gate inflation slowed for the fourth month in October amid
cooling domestic demand for raw materials and ebbing manufacturing activity,
underscoring rising economic pressure in the face of simmering trade frictions
with the United States.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading at 0.2 percent lower at
10,594.50, from its previous close. 
    • The Indian rupee is expected to open higher against the dollar after crude
oil prices extended losses, helping offset a decline in regional currencies
following the U.S. Federal Reserve’s policy decision. 
    • Indian government bonds are likely to open higher, as continued fall in
crude oil prices eased local inflation concerns, while rupee is seen gaining
against the U.S. currency. The Federal Reserve’s policy decision as well as U.S.
mid-term election results were along the expected lines and are unlikely to have
any major impact. The yield on the benchmark 7.17 percent bond maturing in 2028
is expected to trade in a 7.76 percent - 7.81 percent band today. 
    
      
    GLOBAL MARKETS
    • The S&P 500 and Nasdaq closed slightly lower on Thursday after a Federal
Reserve statement, and energy stocks were the biggest drag on the S&P as U.S.
crude oil prices fell.
    • Asian stocks pulled back from a one-month high as the Federal Reserve
appeared poised to deliver another interest rate hike next month, paring gains
made earlier this week after U.S. midterm elections triggered a global equities
rally.
    • The dollar gained against its major peers as the U.S. Federal Reserve kept
interest rates steady but reaffirmed its monetary tightening stance, setting the
stage for a rate hike in December.
    • U.S. Treasury yields rose on Thursday with shorter-dated ones reaching
their highest levels in over a decade as the Federal Reserve hinted the U.S.
economic expansion remained on track, which warrants further interest rate
increases.
    • Oil markets remained weak as rising supply and concerns of an economic
slowdown pressured prices, with U.S. crude now down by 20 percent since early
October.
    • Gold prices inched lower as the dollar firmed after the U.S. Federal
Reserve kept interest rates steady with a fourth hike for this year expected
next month.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         72.98/73.01  November 6       -$60.09 mln  $14.93 mln
 10-yr bond yield  7.79 pct     Month-to-date    $120.01 mln  $529.50 mln
                                Year-to-date     -$5.80 bln   -$7.58 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 = 72.3700 Indian rupees)

 (Hrithik Kiran Bagade in Bengaluru)
  
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