September 27, 2018 / 3:12 AM / 2 months ago

Morning News Call - India, September 27

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    FACTORS TO WATCH
    9:45 am: SBI Chairman Rajnish Kumar and HDFC Vice Chairman Keki Mistry at
Real Estate and Infrastructure Investors’ Summit in Mumbai.
    
    LIVECHAT - OIL OUTLOOK
    Reuters correspondents Amanda Cooper and Jessica Resnick-Ault take your
questions about energy markets in the rapid-fire, weekly segment "Lock, Stock
and Barrel" at 07:00 pm IST. To join the conversation, click here bit.ly/1kTxdKD

    
    INDIA TOP NEWS
    • India raises import tariffs on 19 items in bid to stem rupee slide
    India said on Wednesday it is raising import tariffs on 19 "non-essential
items," marking a further tilt toward protectionism as it tries to reduce its
widening current account deficit and tackle a sharp slide in the
rupee.
    • POLL-With an eye on faltering rupee, RBI to raise rates next week
    The Reserve Bank of India is likely to raise interest rates in early
October, despite relatively tame inflation, to prop up a retreating rupee,
according to a Reuters poll of economists who also trimmed their near-term
growth forecasts.
    • Supreme court imposes curbs on biometric identity system
    The Supreme Court on Wednesday upheld the validity of a controversial
biometric identity system, but flagged privacy concerns and reined in a
government push to make it mandatory for everything from banking to telecom
services.
    • FOCUS-Ford expands partnership talks with VW and Mahindra to cut costs
    With its stock trading near a 6-year low late last month, Ford Motor Co CEO
Jim Hackett gathered the automaker's top 300 executives near its headquarters in
Michigan for a global leadership meeting.
    • EU regulators to rule on Thyssenkrupp, Tata Steel venture by October 30 
    EU antitrust regulators will decide by October 30 whether to allow Germany's
Thyssenkrupp and India's Tata Steel to create Europe's No. 2 steelmaker, the
European Commission said on Wednesday.
    • State Bank of India's board gives nod to stake divestment in insurance arm
    State Bank of India, the country's top lender, said on Wednesday its board
approved a plan to divest 4 percent stake in its general insurance arm to funds
managed by Axis Bank Ltd and Premji Invest.
    • India expects $100 billion in telecom investments, approves new policy
    India expects to attract $100 billion in investments in the telecom sector,
a federal minister said on Wednesday after the cabinet approved a new policy for
the sector.
    • Talks on Air India bailout package at 'advanced stage' - official
    Discussions on a bailout package for embattled state-run carrier Air India
are at an "advanced stage", the country's junior aviation minister Jayant Sinha
said on Wednesday.
    
    
    GLOBAL TOP NEWS
    • Fed raises U.S. interest rates, sees at least three more years of growth
    The U.S. Federal Reserve raised interest rates on Wednesday and left intact
its plans to steadily tighten monetary policy, as it forecast that the U.S.
economy would enjoy at least three more years of growth.
    • Trump accuses China of 2018 election meddling; Beijing rejects charge
    U.S. President Donald Trump on Wednesday accused China of seeking to meddle
in the Nov. 6 U.S. congressional elections, saying Beijing did not want his
Republican Party to do well because of his pugnacious stance on
trade.
    • Trump, Abe agree two-way trade talks, Japan dodges U.S. auto tariffs
    U.S. President Donald Trump and Japanese Prime Minister Shinzo Abe agreed on
Wednesday to start trade talks in an arrangement that, for now, protects
Japanese automakers from further tariffs, seen as a major threat to the
export-dependent economy.

        
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading up 0.3 percent at 11,079.50,
from its previous close.
    • The Indian rupee is expected to open little changed against the dollar
after New Delhi raised import duties on non-essential items to control the
current account deficit, which will likely help offset a hawkish policy tilt by
the U.S. Federal Reserve.
    • Indian government bonds could edge higher in early trade ahead of the
Reserve Bank of India’s repurchase of notes today. The yield on the benchmark
7.17 percent bond maturing in 2028 may trade in a 8.04 percent-8.10 percent band
today, a dealer with a private bank said.
    
    
    GLOBAL MARKETS
    • A Wall Street rally collapsed and stocks turned negative shortly before
the market close on Wednesday after investors reassessed the Federal Reserve's
policy statement and reduced their risk as they weighed how long the U.S.
central bank would continue to raise interest rates.
    • Global equities ran out of steam and U.S. bond yields fell after the
Federal Reserve raised interest rates as expected, sticking to its script of
gradual policy tightening with forecasts of five more rate hikes by 2020.

    • The dollar steadied against its peers early as the small boost it received
from a U.S. Federal Reserve interest rate hike faded, with a decline in U.S.
Treasury yields reducing support for the greenback.
    • U.S. Treasury yields fell on Wednesday with the yield curve hitting its
flattest levels in over a week as the Federal Reserve signaled it would remain a
gradual rate-hike path in response to solid economic growth.
    • Oil prices rose by one percent as investors focused on the prospect of
tighter markets due to U.S. sanctions against major crude exporter Iran, which
are set to be implemented in November.
    • Gold prices edged up early, supported as investors looked for bargains
after the metal fell to a two-week low in the previous session following a U.S.
interest rate hike.
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         72.61/72.64  September 26     -$111.59 mln  -$87.32 mln
 10-yr bond yield  8.10 pct     Month-to-date    -$1.07 bln    -$1.42 bln
                                Year-to-date     -$1.93 bln    -$6.56 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 = 72.5900 Indian rupees)
    
    

 (Compiled by Siddharth Athreya V in Bengaluru)
  
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