October 26, 2018 / 3:17 AM / 2 months ago

Morning News Call - India, October 26

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    FACTORS TO WATCH
     10:00 am: Finance Minister Arun Jaitley to attend Small Industries
Development Bank of India’s National Microfinance Congress in New Delhi.
    6:15 pm: RBI Deputy Governor Viral Acharya to deliver the A.D. Shroff
Memorial Lecture in Mumbai.
    
    
    INDIA TOP NEWS
    • Carmaker Maruti Suzuki may struggle to hit sales target as profits slide
    Maruti Suzuki India may find it tough to meet its 10 percent sales growth
target for the current fiscal year, its chairman said, after the carmaker
reported a fall in quarterly profit for the first time in more than four years.

    • Bharti Airtel September-quarter profit plunges on pricing pressure
    Bharti Airtel posted a 65.4 percent fall in quarterly profit on Thursday, as
it faces pricing pressure amid aggressive competition in the country's telecom
sector.
    • JSW Steel Q2 profit beats forecasts on higher output, prices
    Indian steelmaker JSW Steel said on Thursday net profit more than doubled in
the second quarter, handily beating market estimates on the back of higher steel
prices and strong production growth.
    • InterGlobe shares drop after first quarterly loss since debut 
    Shares of InterGlobe Aviation, owner of India's largest domestic carrier by
market share - IndiGo, fell as much as 3.7 percent on Thursday, a day after the
company posted first-ever quarterly loss since its market debut in 2015.

    • Essar Steel India proposes $7.42 billion settlement to creditors
    Essar Steel India said its board and shareholders have offered to pay 543.89
billion rupees to creditors to settle their claims, allowing the company to exit
from a bankruptcy process.
    • Biocon Q2 profit surges on one-off gain
    Indian biotechnology company Biocon posted an over five-fold rise in
second-quarter profit on Thursday, as the company recorded a one-off gain of
1.89 billion rupees.
    • Yes Bank Q2 profit misses estimates as provisions surge
    Yes Bank missed second-quarter profit estimates by a wide berth on Thursday
as provisions for bad loans and mark-to-market losses more than doubled,
exacerbating woes at the bank in search of a new CEO.
    • BHEL Q2 profit soars, but lags forecast
    State-run power plant equipment manufacturer Bharat Heavy Electricals Ltd
posted on Thursday a 60 percent surge in second-quarter profit, but missed
analysts' estimates.
    
    
    GLOBAL TOP NEWS
    • FBI searches Florida mail center in hunt for sender of package bombs
    Federal agents searched a U.S. mail facility near Miami on Thursday night
racing to find who sent 10 pipe bombs to prominent Democrats and critics of U.S.
President Donald Trump as leads pointed to Florida as the possible origin of the
packages.
    • INSIGHT-AB InBev told Indian authorities about cartel, triggering
anti-trust probe
    An Indian anti-trust probe into beer price-fixing allegations was initiated
after the world's largest brewer Anheuser-Busch InBev told the authorities last
year it had detected an industry cartel, three people familiar with the matter
told Reuters.
    • Amazon's holiday season sales outlook misses views; shares sink
    Amazon.com forecast holiday season sales and profit that missed Wall Street
targets on Thursday, projecting revenue growth that would be the slowest in
years, sending shares of the world's largest online retailer down 8 percent in
after-hours trade.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.2 percent lower at 10,166.50, from
its previous close.
    • The Indian rupee is expected to open lower against the dollar as the
Chinese yuan’s fall to near-two-year lows adds pressure on regional currencies.
    • Indian government bonds are likely to edge lower tracking losses in the
local currency ahead of a weekly auction of notes. The yield on the benchmark
7.17 percent bond maturing in 2028 may trade in a 7.84 percent-7.90 percent band
today.
    
    
    GLOBAL MARKETS
    • U.S. stocks jumped on Thursday, giving the Nasdaq its biggest daily gain
since March, as Microsoft's upbeat earnings spurred a rebound in technology
names and investors snapped up oversold shares.
    • Asian shares wobbled in early trade, struggling to shake off the previous
day's global markets rout, after weak results from tech giants Alphabet and
Amazon.com heightened concerns over world trade and economic growth.
    • The dollar traded in tight ranges against most of its peers as investor
appetite for riskier assets remained shaky while the euro stayed near two-month
lows after the European Central Bank failed to convince markets that rates would
rise.
    • U.S. Treasury yields rose from three-week lows on Thursday as equities
gained, though anxiety about ongoing stock volatility was seen supporting a bid
for safe-haven U.S. government debt
    • Oil prices eased and were heading for a third weekly loss after Saudi
Arabia's OPEC governor said the market could be heading into oversupply, as
growth concerns took a hit with a slump in global equities this week.
    • Gold prices held steady as a bounce back in U.S. stocks failed to
stimulate its Asian counterparts, with the metal on track to rise for the fourth
straight week, its longest string of weekly gains since January.
    

                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         73.20/73.23  October 25       -$204.32 mln  $161.41 mln
 10-yr bond yield  7.87 pct     Month-to-date    -$2.87 bln    -$1.57 bln
                                Year-to-date     -$5.04 bln    -$8.32 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 = 73.2200 Indian rupees)

 (Compiled by Debanjan Bose in Bengaluru)
  
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