September 19, 2018 / 3:39 AM / 3 months ago

Morning News Call - India, September 19

(Morning News Call - India edition will not be published on Thursday, September
20 as markets are closed for Muharam)
    
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    FACTORS TO WATCH
    No major events scheduled for the day.
    
    TRADING INDIA FORUM - INDIA CURRENCY, DEBT AND EQUITY MARKETS
    With the INR now the worst performing currency in Asia, suspicious eyes have
turned to the equity markets. How will they fare going forward into election
year? We speak to well-known market expert Venkatraman Anantha Nageswaran,
Independent Consultant at Vansinght Pvt. Ltd. To join the conversation at 11:00
pm IST, click here
    
    Thomson Reuters/INSEAD Asian Business Sentiment Survey 2018Q3
    Confidence among Asian companies slumped to the weakest in almost three
years in the third quarter as businesses feared blowback from a worsening global
trade war, a Thomson Reuters/INSEAD survey showed. To read more, click here.
 Reuters reporter Gayatri Suroyo will be taking questions on the survey from
1000 IST in the Global Markets Forum community chatroom. To join the
conversation, click here
        
    
    INDIA TOP NEWS
    • EXCLUSIVE-India, U.S. closing in on package deal to remove trade irritants
    Indian farmers and U.S. manufacturers of medical devices could be among the
main winners in a trade package under negotiation, as Washington and New Delhi
look to remove long-standing irritants to ties, sources familiar with the talks
said.
    • EXCLUSIVE-Indian police scrutinize major law firm in PNB fraud probe after
documents moved
    India's largest law firm, Cyril Amarchand Mangaldas (CAM), is being
scrutinized by federal agents after they seized documents related to the $2
billion fraud at state-run Punjab National Bank from CAM’s premises in February,
a lawyer representing the government and a police source told
Reuters.
    • India's struggle to defend rupee shifts focus to rate hikes
    Investors have increased bets that India's central bank will need to raise
interest rates at least two more times this year to shore up the battered rupee
after previous efforts to defend the currency failed to sway
markets.
    • EXCLUSIVE-Nestle, Unilever, Coke make bids in $4 bln-plus GSK India
sale-sources 
    Nestle, Unilever and Coca-Cola are among bidders for GlaxoSmithKline's
Indian Horlicks nutrition business, expected to fetch more than $4 billion, four
people familiar with the matter said.
    • India delays imposition of retaliatory tariffs on U.S. goods till November
2 
    India has delayed the implementation of higher tariffs on some goods
imported from the United States to Nov. 2, according to a government order that
put off for a second time retaliatory action against U.S. import tariffs on
steel and aluminium.
    • India sees rupee at 72-73 against dollar as "fair value" -finmin source 
    India sees rupee value of 72-73 against the U.S. dollar as "fair value," a
senior finance ministry source said on Tuesday, after the government announced a
raft of measures last week to stabilise the falling local currency.
    • CCI fines sugar mills for rigging bids in tender: govt
    India's antitrust regulator has imposed penalties on sugar mills for rigging
bids in a joint tender floated by state fuel retailers to buy ethanol for
blending with petrol, the finance ministry said on Tuesday.
    • India's Ola forays into New Zealand in latest overseas push 
    Indian ride-hailing platform Ola said on Tuesday it plans to launch
operations in New Zealand, and expand its overseas rivalry with U.S.-based peer
Uber.
    
    
    GLOBAL TOP NEWS
    • BOJ holds policy, sticks to modest economic growth view despite trade
perils
    The Bank of Japan kept monetary policy steady on Wednesday and maintained
its view the economy will continue to expand modestly, even as escalating global
trade frictions threaten to chill growth.
    • China will use trade war with U.S. to replace imports: state media
    China is not afraid of “extreme measures” the United States is taking in
their trade war and will use it as an opportunity to replace imports, promote
localization and accelerate the development of high-tech products, state media
said.
    • North Korea to allow international inspections for nuclear dismantlement,
if U.S. takes reciprocal measures
    North Korea agreed to allow internatonal inspectors to observe a "permanent
dismantlement" of its key missile facilities, and will take additional steps
such as closing its main Yongbyon nuclear complex if the United States takes
reciprocal measures, South Korea's President Moon Jae-in said on Wednesday.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading up 0.1 percent at 11,322.50,
from its previous close.
    • The Indian rupee is expected to rebound from record lows against the
dollar after China’s response to the latest U.S. tariffs did not have a major
impact on regional assets.
    • Indian government bonds may trade steady in early session today, as the
local currency is expected to appreciate against the dollar, even as U.S.
Treasury yields remain elevated. The yield on the benchmark 7.17 percent bond
maturing in 2028 may trade in a band of 8.12 percent-8.17 percent today, a
dealer with a private bank said. 
    
   
    GLOBAL MARKETS
    • Wall Street rebounded on Tuesday in a broad-based rally as investors
brushed aside intensifying trade rhetoric between the United States and
China.
    • Asian stocks rose and U.S. Treasury yields hovered near four-month highs,
as investors looked past the latest escalation in the U.S.-China trade conflict,
seen by some market participants as less severe than expected.
    • The Japanese yen weakened to near-two-month lows against the dollar as
financial markets took fresh U.S. tariffs on Chinese goods in their stride and
as U.S. bond yields shot up to four-month highs on fears of rising
inflation.
    • U.S. Treasury yields rose on Tuesday, as investors continued to price in
more interest rate increases by the Federal Reserve this year and next and amid
a heavy corporate bond schedule this week.
    • Oil prices pulled back from gains racked up the previous day, pushed down
amid a surprise climb in U.S. crude stockpiles.
    • Gold prices edged up as the dollar weakened despite another round of
tit-for-tat tariffs in the Sino-U.S. trade dispute.
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         72.72/72.75  September 18     -$157.36 mln  -$31.15 mln
 10-yr bond yield  8.14 pct     Month-to-date    -$79.78 mln   -$846.66 mln
                                Year-to-date     -$937.24 mln  -$5.99 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 = 72.70 Indian rupees)

 (Compiled by Siddharth Athreya V in Bengaluru)
  
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