October 16, 2019 / 3:23 AM / a month ago

Morning News Call - India, October 16

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    FACTORS TO WATCH
    9:00 am: Indian Banks' Association Chief Executive V.G. Kannan at IBA
Banking HR Conclave 2019 in Mumbai.
    10:30 am: Chief Economic Advisor Krishnamurthy Subramanian and NITI Aayog
CEO Amitabh Kant at Massmerize 2019 - Retail, FMCG & E-Commerce Conference in
New Delhi
    5:30 pm: Cabinet Committee on Parliamentary Affairs (CCPA) meeting in New
Delhi.
    
    LIVECHAT- EQUITIES FOCUS 
    Reuters stock correspondents in London and New York discuss the upcoming
corporate results season and how it could play out on bourses in each region at
6.30 pm IST. To join the conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India cannot sacrifice economic strength to comply with U.S. sanctions
-FinMin 
    India wants to comply with global sanctions, including U.S. sanctions on
Venezuela and Russia, but also needs to maintain its own strength and strategic
interests, Finance Minister Nirmala Sitharaman said in an interview on
Tuesday.
    • India's tax unions irked by Modi's switch to faceless assessment 
    Tax officials are pushing back against Prime Minister Narendra Modi's new
faceless tax assessment program, complaining about a lack of consultation and
inadequate resources to implement the changes, a letter reviewed by Reuters
shows.
    • India's September trade deficit narrows to $10.86 billion
Trade deficit in September narrowed to $10.86 billion from $14.95 billion a year
ago, the trade ministry said in a statement on Tuesday, helped by lower oil
imports.
    • Wipro Sept-quarter profit beats estimates
    Software exporter Wipro reported a better-than-expected September-quarter
profit on Tuesday, as the company managed to withstand a global spending squeeze
among its financial clients that has hurt the sector overall.
    • Malaysia offers to increase imports from India after Kashmir row
    Malaysia is considering raising imports of raw sugar and buffalo meat from
India, potentially easing trade tensions after reports New Delhi could restrict
Malaysian palm oil imports following the country's criticism of India's actions
in Kashmir.
    • India looks into Flipkart, Amazon festive discounts after retailer
complaints
    The government is looking into whether hefty discounts offered on
Walmart-owned Flipkart and Amazon.com during their online festive sales violate
foreign investment rules, a commerce ministry official told Reuters.

    • India's Nayara supplying fuel to Rosneft in exchange for Venezuelan oil
-sources 
    Nayara Energy has been using Russian giant Rosneft as an intermediary to
acquire Venezuelan oil, paying it in fuel rather than cash to avoid violating
U.S. sanctions, three sources with knowledge of the transactions said.

    • India readies policy to attract foreign investment in coal mining
    India expects to have formulated a policy within the next two weeks to
attract foreign investment to its coal mining industry, the country's Coal
Minister Pralhad Joshi said on Tuesday.
    
    
    GLOBAL TOP NEWS
    • Brexit deal within reach in last-ditch talks, but doubts remain
    Last-ditch talks between Britain and the European Union to get a Brexit deal
ahead of a summit of the bloc's leaders this week went on past midnight to
Wednesday, but it was still unclear if London could avoid postponing its
departure due on Oct. 31.
    • Big banks say U.S. consumers sturdy as businesses quiver with growth fears
    Quarterly results from four of the largest U.S. banks on Tuesday showed that
American consumers are helping to prop up the economy, even as recession fears
have led businesses to pull back on spending and borrowing.
    • Pence, Giuliani will not cooperate in U.S. House impeachment inquiry
    U.S. Vice President Mike Pence and President Donald Trump's personal lawyer
Rudy Giuliani said on Tuesday they will not cooperate with a U.S. House of
Representatives impeachment inquiry, prompting a leading Democrat to say that
would strengthen the case against the president.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.4% higher at 11,474.50. 
    • The Indian rupee is expected to open little changed against the dollar
amid further weakness in the Chinese yuan and a larger-than-expected fall in the
trade deficit at home.
    • Indian government bonds will likely open largely unchanged as traders
awaited fresh cues while eyeing the rupee’s movement for direction. The yield on
the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of
6.64%-6.70% today. 
    
    
    GLOBAL MARKETS
    • Wall Street advanced on Tuesday as third-quarter reporting season hit with
a spate of upbeat earnings reports that brought buyers back to the equities
market.
    • Asian shares inched higher while sterling came off five-month highs in
volatile trade as investors looked to whether Britain can secure a deal to avoid
a disorderly exit from the European Union.
    • The pound pulled back from its highest level in almost five months versus
the dollar, erasing some of the rally sparked by signs Britain is closing in on
a deal to leave the European Union.
    • U.S. Treasury yields rose to a three-week high on Tuesday on a report that
British and European Union negotiators were close to a deal for Britain to exit
the European Union, spurring an increase in risk taking and reducing demand for
safe haven debt.
    • Oil prices rose tracking gains in equities, as investors pinned hopes on a
potential Brexit deal between Britain and the European Union and on signals from
OPEC and its allies that further supply curbs could be possible.
    • Gold prices edged higher after shedding nearly 1% in the previous session,
as it remained unclear if Britain could avoid postponing its departure from the
EU beyond Oct. 31.
     
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         71.44/71.47  October 15       6,153.26 crore  (56.65) crore
 10-yr bond yield  6.66%        Month-to-date    630 crore       (118) crore
                                Year-to-date     56,815 crore    29,068 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 = 71.49 Indian rupees)
    
    

 (Compiled by Pooja Kesavan in Bengaluru)
  
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