October 11, 2018 / 3:36 AM / 2 months ago

Morning News Call - India, October 11

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    FACTORS TO WATCH
    10:00 am: Principal Economic Adviser Sanjeev Sanyal to attend ICRIER's
Annual International G20 Conference in New Delhi.
    3:00 pm: Prime Minister Narendra Modi to attend the India-Russia business
forum in New Delhi.
    4:30 pm: Prime Minister Narendra Modi to attend a World Economic Forum
function in New Delhi.
    5:00 pm: Finance Minister Arun Jaitley to attend the Accountants General
Conference in New Delhi.
    
    GMF: BONDS UPDATE 
    Reuters fixed income reporter Richard Leong delves into government bond
markets at 06:00 pm IST. To join the conversation, click here: here
    
    
    INDIA TOP NEWS
    • Saudi Arabia to supply extra oil cargoes to India in Nov as Iran sanctions
loom
    Saudi Arabia, the world's biggest oil exporter, will supply Indian buyers
with an additional 4 million barrels of crude oil in November, several sources
familiar with the matter said on Wednesday.
    • Frauds investigator probes five IL&FS firms for fund diversion - ET
    The Serious Fraud Investigation Office (SFIO) has narrowed on five arms of
Infrastructure Leasing & Financial Services (IL&FS) that may have been involved
in fund diversion and mismanagement, the Economic Times reported on Wednesday.

    • RBI sticking with plan to force payments firms to store data locally-
sources
    The Reserve Bank of India will implement in full its directive that forces
global payment companies to store data locally from this month, four sources
told Reuters, a blow to the firms who had lobbied to dilute the measure.

    • Bandhan Bank Q2 profit jumps 47 percent
    Bandhan Bank posted a 47.3 percent jump in second-quarter profit on
Wednesday, helped by higher interest earned, and reports said the bank was
looking at options to comply with the central bank norms on shareholder stake.

    • Garden Reach Shipbuilders falls nearly 13 percent on market debut
    Shares of Garden Reach Shipbuilders and Engineers fell on their market debut
on Wednesday after the company raised 3.4 billion rupees at its initial public
offering earlier this month.
    • AirAsia India close to appointing new head - sources
    AirAsia India is close to appointing an executive from Tata Steel to head
the troubled low-cost carrier as its local partner, Tata Sons, moves to take
greater control of the company, two sources aware of the matter told Reuters on
Wednesday.
    • India cuts jet fuel tax to 11 percent from 14 percent 'in public interest'
    India said on Wednesday it would cut the factory gate tax on jet fuel to 11
percent from 14 percent, a move that would bring down fuel prices for the
country's ailing aviation industry.
    • INSIGHT-Did Kerala's dams exacerbate India's once-in-century floods?
    Joby Pathrose, a farmer living a kilometre away from the usually languid
Periyar river in southern India, was woken in the night by the sound of rushing
waters. Hours later his plantations and everything he owned were completely
submerged.
    
    
    GLOBAL TOP NEWS
    • China taps brakes on outbound investment, betrays capital flow fears
    China is suspending approvals for a niche overseas investment product in
Shanghai known as the QDLP scheme and urging licence holders, such as JPMorgan
Asset Management and Aberdeen Standard Investments, to be "low profile" in
marketing it, sources said.
    • BMW to gain control of China venture for $4.2 billion in milestone deal
    Germany's BMW said it will take majority control of its main China joint
venture for $4.2 billion, the first such move by a global carmaker as Beijing
starts to relax ownership rules for the world's biggest auto market.

    • FT says Murdoch in line for Tesla chair. Musk reply: incorrect
Outgoing Twenty-First Century Fox Chief Executive James Murdoch is the lead
candidate to replace Elon Musk as Tesla chairman, the Financial Times reported
on Wednesday, but Musk in a tweeted reply to the newspaper said, "This is
incorrect."
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were down 2.5 percent at 10,214.50, from
its previous close. - NewsRise
    • The Indian rupee is expected to open lower against the dollar amid a
broad-based selloff in Asian assets, triggered by the biggest decline in U.S.
equities in eight months. - NewsRise
    • Indian government bonds will likely fall today tracking a fall in the
rupee to another record low even as an open market purchase of bonds by the
central bank may cap the fall. The yield on the benchmark 7.17 percent bond
maturing in 2028 may trade in a 7.99 percent-8.06 percent band today.
    
    
    GLOBAL MARKETS
    • U.S. stocks tumbled on Wednesday, with the S&P 500 and the Dow marking
their biggest daily declines since Feb. 8, and technology stocks were at the
center of the carnage as rising U.S. Treasury yields sent investors fleeing from
risky assets.
    • Asian share markets sank in a sea of red after Wall Street suffered its
worst drubbing in eight months, a conflagration of wealth that could threaten
business confidence and investment across the globe.
    • The dollar was steady against a basket of currencies after spooked
investors drove U.S. stocks to their worst fall in nearly eight months
overnight.
    • U.S. Treasury yields fell late on Wednesday in a flight to quality as
investors snapped up government bonds in the midst of a sharp sell-off in U.S.
stocks.
    • Oil prices fell to two-week lows as they extended big losses from the
previous session amid a rout in global stock markets, with oil also taking a hit
from an industry report showing U.S. crude inventories rose more than
expected.
    • Gold prices inched down as robust U.S. data potentially bolstered the
chances of multiple U.S. interest rate hikes over the next year.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         74.20/74.23  October 10       -$147.63 mln  -$268.97 mln
 10-yr bond yield  8.03 pct     Month-to-date    -$1.69 bln    -$1.06 bln
                                Year-to-date     -$3.86 bln    -$7.81 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 = 74.2400 Indian rupees)

 (Compiled by Debanjan Bose in Bengaluru)
  
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