July 31, 2019 / 3:05 AM / 4 months ago

Morning News Call - India, July 31

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FACTORS TO WATCH

3:30 pm: CARE Ratings webinar on cost of borrowing for corporates from the Indian debt market in Mumbai.

5:00 pm: Government to release June Infrastructure output data in New Delhi.

LIVECHAT - PHARMA FOCUS

Katherine Eban, investigative journalist and author of 'Bottle of Lies', joins us at 8pm IST for a peek into the generic drug boom. To join the conversation, click on the link: refini.tv/2P8N0Wp

INDIA TOP NEWS

• RBI relaxes external commercial borrowing norms for corporates, NBFCs

The Reserve Bank of India on Tuesday relaxed norms on end-use of funds raised via external commercial borrowings, making it more attractive and viable for corporates including non-banking finance companies to raise cheaper offshore funds.

• Indian coffee tycoon Siddhartha’s body found: police Indian authorities confirmed they have recovered the body of coffee baron V.G. Siddhartha, who was missing since Monday night, from the Nethravathi river near Mangaluru in the southern Karnataka state.

• Delhi city government bans AB InBev for 3 years for alleged tax evasion

India’s capital city has banned the world’s largest brewer, Anheuser-Busch InBev, from selling its products in the key New Delhi market for 3 years for allegedly evading local taxes, government orders seen by Reuters showed.

• DHFL submits debt restructuring plan to core lenders

India’s debt-laden shadow bank Dewan Housing Finance has submitted a restructuring plan to its core committee of creditors (CoC), two sources involved in the matter said, adding that lead lenders were deliberating over the plan.

• Police open probe into Rolls-Royce’s dealings with three state firms

Indian federal police have opened an investigation into Rolls-Royce, alleging the UK-based engine maker and its Indian arm improperly used a third-party to conduct business with three Indian state-owned companies.

• Bosnian court grants bail to Indian businessman Pramod Mittal

A Bosnian court on Tuesday granted bail to Pramod Mittal, the younger brother of steel magnate Lakshmi Mittal, and two other executives suspected of involvement with organised crime, a prosecutor said.

GLOBAL TOP NEWS

• China, U.S. officials meet for trade talks in Shanghai

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin shook hands with Chinese Vice Premier Liu He before beginning trade talks in Shanghai in a bid to end a year-long trade war.

• Trade war keeps China’s factories in reverse gear for third month

China’s factory activity shrank for the third month in a row in July, an official survey showed, underlining the growing strains on the world’s second-biggest economy as the Sino-U.S. trade war hits business profits, confidence and investment.

• Apple’s services, wearables shore up results as iPhone drops below half of sales

Apple iPhone sales dropped to less than half of quarterly revenue for the first time in seven years, but CEO Tim Cook on Tuesday described the change as successfully diversifying away from a single product and forecast results above Wall Street targets.

LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

• SGX Nifty nearest-month futures were trading 0.4% lower at 11,054.00.

• The Indian rupee is expected to open little changed against the dollar as investors await a likely first Federal Reserve rate cut in more than a decade.

• Indian government bonds are likely to fall in early session tracking a consistent rise in crude oil prices, while investors await the outcome of the Federal Reserve’s policy review later today. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.37%-6.43% today​.

GLOBAL MARKETS

• Wall Street lost ground on Tuesday after a warning from President Donald Trump to China amid ongoing trade negotiations pressured technology shares, while investors looked to an expected Federal Reserve interest rate cut at the conclusion of its monetary policy meeting.

• Asian shares weakened in early trade, rattled by fresh trade war concerns following threats from President Donald Trump to Beijing, while increasing worries about a no-deal Brexit kept the pound under pressure.

• The dollar held steady, largely in a wait-and-see mode as traders looked ahead to the outcome of the Federal Reserve’s meeting later in the day when policymakers are expected to cut interest rates for the first time since 2008.

• U.S. Treasury yields edged up on Tuesday on encouraging data as Federal Reserve policy-makers began meeting on whether to lower key lending rates for the first time in a decade to prolong the longest-ever U.S. economic expansion.

• Oil prices rose for a fifth day, buoyed by a bigger than expected drop in U.S. inventories and as investors awaited a widely expected cut in interest rates by the Federal Reserve, the first in more than 10 years.

• Gold was mostly unchanged in early Asian trade as investors awaited the outcome of a U.S. Federal Reserve meeting at which policymakers are expected to cut interest rates for the first time since the financial crisis.

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 = 68.8322 Indian rupees Compiled by Swathi Nair in Bengaluru

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