October 22, 2019 / 3:22 AM / a month ago

Morning News Call - India, October 22

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    FACTORS TO WATCH
    10:15 am: NITI Aayog CEO Amitabh Kant at FICCI event in New Delhi.
    5:45 pm: Axis Bank earnings simulcast in Mumbai.
    
    LIVECHAT - ECB PREVIEW
    TS Lombard's managing director for Global Macro and Europe Economics, Shweta
Singh, discusses expectations for Thursday's ECB meeting and the outlook for the
Euro zone economy at 2.30 pm IST. To join the conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Shun Malaysia, India's palm oil buyers told amid Kashmir standoff
    Top vegetable oil trade body on Monday asked its members to stop buying palm
oil from Malaysia, an unprecedented call aimed at helping New Delhi punish the
country for criticising India over its policy towards Kashmir.
    • India minister says trade pact differences with U.S. broadly resolved
    Trade Minister Piyush Goyal said on Monday that the broad outline of a trade
deal with the United States has been worked out and suggested there could be an
announcement soon.
    • Infosys U.S. listed shares plunge after whistleblower complaints
    U.S.-listed shares of Infosys fell nearly 16% in premarket trading on Monday
after the Indian software services exporter said it had received whistleblower
complaints alleging "unethical practices" by the company's executives.

    • Reliance reaps record profit from consumer-facing growth
    Indian oil-to-telecoms conglomerate Reliance Industries said strong growth
in its consumer-facing businesses lifted second quarter net profit by 18.3%
year-on-year to a record total.
    • HDFC Bank quarterly net profit rises 27%
    HDFC Bank, India's largest private lender, said on Saturday its net profit
rose 27% in the second quarter of its financial year, helped by loan growth and
a higher net interest margin.
    • Apple starts selling locally assembled iPhone XR in India
    Apple has started selling its popular iPhone XR phones assembled in India,
as it looks to expand its share in the world's second-largest smartphone market
where it has struggled against cheaper products from rivals.
    • Indian cenbank signals scope for more rate cuts to get economy on track
    Central bank monetary policy committee favours cutting interest rates and
continuing with an accommodative stance until the economy is firmly on a
recovery path, its minutes showed.
    • India to take more steps to boost consumer demand, growth - chief econ
adviser 
    India plans to take more steps to boost consumer demand including injecting
liquidity through banks and simplifying personal taxes, a top government
economic adviser said on Friday, in a bid to raise economic growth from six-year
lows.

    
    GLOBAL TOP NEWS
    • Chinese vice foreign minister says progress made in trade talks with U.S.
    China and the United States have achieved some progress in their trade
talks, Vice Foreign Minister Le Yucheng said on Tuesday, and any problem could
be resolved as long as both sides respected each other.
    • Johnson faces perilous Brexit ratification after deal vote blocked
    Prime Minister Boris Johnson faces a potentially perilous ratification of
his Brexit divorce deal in the British parliament after the speaker refused to
allow a vote on it on Monday.
    • Trump exhorts Republicans to 'get tougher' against impeachment inquiry
    Donald Trump on Monday exhorted fellow Republicans to get tougher and fight
for his presidency, saying the Democratic-led U.S. House of Representatives
wants to impeach him "as quick as possible" over his request that Ukraine
investigate a political rival.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.5% lower at 11,642.00.
    • The Indian rupee is expected to open higher against the U.S. currency amid
signs of progress in U.S.-China talks to resolve a prolonged trade war between
the world’s two largest economies.
    • India government bonds are likely to fall in early trade tracking the
overnight gains in U.S. Treasury yields as demand for safe-haven assets eased on
hopes of a potential trade agreement between the U.S. and China. The yield on
the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of
6.68%-6.73% today.
    
    
    GLOBAL MARKETS
    • The benchmark S&P 500 stock index rose within striking distance of a
record high on Monday as further signs of progress toward resolution of the
U.S.-China trade war boosted shares in sectors sensitive to trade and the global
economy.
    • Asian share markets made guarded gains amid cheery chatter about the
chance of a Sino-U.S. trade deal, while investors were sanguine yet another vote
on Brexit would still avert a hard exit for the UK.
    • Signs that the U.S. and China were making progress in efforts to resolve
their trade dispute supported both the dollar and trade-exposed Asian
currencies, while the Canadian dollar rose as voters went to the polls in a
closely-fought election.
    • U.S. Treasury yields rose on Monday as investors sold safe-haven debt on
optimism about a potential U.S.-China trade deal and a resolution of some of the
major issues related to Britain's exit from the European Union.
    • Oil prices steadied a little, supported by signs of progress in talks on
resolving the U.S.-China trade dispute, but gains were contained by lingering
anxiety a slowdown in the global economy could hurt crude demand.
    • Gold prices eased as reports that trade talks between Washington and
Beijing were making progress cheered markets, but a dearth of concrete signs
kept investors on the edge.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         71.10/71.13  October 18       1,274.38 crore  283.72 crore
 10-yr bond yield  6.69%        Month-to-date    4,970 crore     102 crore
                                Year-to-date     61,155 crore    29,288 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 = 70.90 Indian rupees)
    
    

 (Compiled by Pooja Kesavan in Bengaluru)
  
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