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Morning News Call - India, February 12
February 12, 2016 / 3:21 AM / 2 years ago

Morning News Call - India, February 12

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   FACTORS TO WATCH
   
   3:15 pm: IDBI Bank Chief Executive Kishor Kharat briefs media after
third-quarter earnings in Mumbai.
   5:00 pm: RBI to release weekly foreign exchange data in Mumbai. 
   5:30 pm: Government to release January consumer price inflation data in New
Delhi. 
   5:30 pm: Government to release December industrial output data in New Delhi. 
    
    
   INDIA TOP NEWS
    
     Tata's profit dented by drop in Jaguar Land Rover's Chinese sales

Tata Motors reported on Thursday strong sales by its British Jaguar Land Rover
subsidiary in Europe and North America in the last three months of last year,
offsetting a drop in China, once its fastest-growing market. 

     State Bank of India Q3 net plunges, bad loans rise less than expected

State Bank of India, the nation's top lender by assets, reported a 62 percent
fall in quarterly profit although its bad loans rose less than expected.
 

     India c.bank chief Rajan says banks will be restored to health

Reserve Bank of India Governor Raghuram Rajan on Thursday said central bank and
government efforts to clean up banks' balance sheets would be successful, and
warned analysts against "scare-mongering" about the level of stressed assets in
the sector. 

     Union Bank of India Q3 net profit plunges on higher bad loans 

State-run Union Bank of India reported a 74 percent drop in its quarterly net
profit due to sharply higher bad loans and provisions as lenders comply with a
regulatory order to treat some troubled loans as bad in a clean-up
drive. 

     Coal India Q3 net profit up 14 pct, beats estimates 

Coal India Ltd, the world's biggest coal miner by output, reported a
higher-than-expected 14 percent rise in its consolidated quarterly net profit on
higher sales. 

     Low crude price dents India's ONGC profit 

India's biggest explorer Oil and Natural Gas Corporation Ltd posted a 64 percent
drop in quarterly profit, hit by a a 40 billion rupees ($584.62 million)
one-time impairment charge on producing assets due to a sharp fall in the crude
price. 

     INSIGHT-Mission incomplete: Rajan's overhaul of India's central bank

In a video conference in mid-2014, Indian central bank governor Raghuram Rajan
told employees that he wanted to hire talented external candidates and improve
the quality of research at the 81-year-old central bank.The proposals, described
to Reuters by three officials who heard Rajan speak, would hardly seem out of
place in any major institution on the planet. 

     India to link savings deposit terms to market rates

India will link the interest paid to millions of small savers in a $137-billion
federal deposit scheme to market rates that will be revised every quarter, a top
finance ministry official said on Thursday. 
    
    GLOBAL TOP NEWS
    
     Fed's Yellen sticks to her guns as global market rout worsens

Federal Reserve Chair Janet Yellen returned to Congress on Thursday and again
stressed that the U.S. central bank was not on a "pre-set" path to return policy
to "normal" given a worsening meltdown in global stock markets. 

     BOJ's Kuroda says market rout not caused by negative rates

Bank of Japan Governor Haruhiko Kuroda blamed investors' "excessive" risk
aversion for pushing down global stock prices, shrugging off criticism that his
decision to adopt negative interest rates was partly behind the recent market
rout.   

     Major powers agree to plan for 'cessation of hostilities' in Syria

Major powers agreed on Friday to a cessation of hostilities in Syria set to
begin in a week and to provide rapid humanitarian access to besieged Syrian
towns, but failed to secure a complete ceasefire or an end to Russian bombing.
  
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures was trading at 7,006.00, up 1.28 pct from its
previous close.
     The Indian rupee will likely open lower against the U.S. dollar, tracking
its Asian peers, as risk assets across the world continued to take a beating
amid growing concerns of a global downturn and persistent market volatility 
     Indian government bonds will likely edge lower in early trade, on
speculation that the rupee may fall further against the U.S. dollar and caution
ahead of key local economic data later today. The yield on the benchmark 7.59
pct bond maturing in 2026 is likely to trade in a 7.70 pct-7.75 pct range 
    
    
    GLOBAL MARKETS
     Bank shares dragged Wall Street lower on Thursday on concerns the slowing
global economy will continue to pressure interest rates, while energy shares
helped pare losses late in the session. 
     Asian shares slid as mounting concerns about the health of European banks
further threatened a global economic outlook already under strain from falling
oil prices and slowdown in China and other emerging markets. 
     The dollar fell headed for steep weekly losses, as investors braced for
another day of cratering sentiment and waited to see whether Japan would act to
stem its currency's slid. 
     U.S. Treasury prices rose sharply, with long-dated yields plunging to
record lows as worries over global economic growth and the effectiveness of
central bank policy fueled demand for safe haven assets. 
     Crude oil prices jumped after comments by an OPEC energy minister sparked
hopes of a coordinated production cut, yet analysts said such a move remained
unlikely and that oversupply would persist. 
     Gold clung to sharp overnight gains that pushed the metal to a one-year
high, and looked set to post its best week in over four years as stock market
turmoil stoked safe haven demand. 

    
 MARKETS            CLOSE          FII INVESTMENTS  EQUITIES       DEBT
 PNDF spot          68.47/68.50    February 11      -$162.53 mln   -$81.42 mln
 10-yr bond yield   7.82 pct       Month-to-date    -$265.32 mln   $90.64 mln 
                                   Year-to-date     -$1.97 bln     $279.05 mln
      
    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 =  68.29 Indian rupees)

 (Reporting by Nivedita Balu in Bengaluru)

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