August 22, 2016 / 3:51 AM / a year ago

Morning News Call - India, August 22

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    FACTORS TO WATCH
    11:45 am: State Bank of India Chairman Arundhati Bhattacharya and Bank of
Baroda MD P.S Jayakumar at Indo-American Chamber of Commerce event in Mumbai.
    3:25 pm: Transport Minister Nitin Gadkari to speak at Indo-American Chamber
of Commerce event in Mumbai.
        
    GMF EMEA LIVECHAT- FX WEEK AHEAD with Reuters FX analyst Jeremy Boulton
Join Reuters FX analyst Jeremy Boulton at 1530 IST for a look at the week's top
topics and implications for the FX market.To join the Global Markets Forum,click
on the link: here
    
    
    INDIA TOP NEWS
     New Indian cenbank head's arduous task: getting banks to lower rates
    One of the biggest challenges for India's incoming central bank chief is a
problem he and his predecessor have long grappled with - how to spur stubborn
state banks to cut borrowing costs more aggressively to boost the
economy. 
     Patel's naming as India cbank chief to comfort markets as continuity seen 
    India's incoming central bank governor Urjit Patel will aggressively fight
inflation and continue a policy of a stable rupee and cash injections into the
financial system, investors said, offering a comforting degree of continuity to
his predecessor's policies. 
     Naming of new RBI chief shows Modi government regains composure after
Rajan shock
    Raghuram Rajan's abrupt announcement of his departure as governor of the
Reserve Bank of India came as a nasty surprise to many, especially his fans in
the investment community, but the way Urjit Patel was chosen as his successor
has been anything but. 
     SBI says will gain $120 billion in assets from takeover of units
    State Bank of India, the nation's biggest lender by assets, will gain $120
billion in assets following its merger with associate banks and Bhartiya Mahila
Bank, the lender said in a statement. 
     Indian commodity bourses can offer additional limit to hedgers
    India's market regulator, Securities and Exchange Board of India, asked
bourses to allow hedgers additional position limits for trading in commodity
derivatives and ensure such policies are properly conveyed to
participants. 
     Vedanta CEO says response from Cairn India shareholders to sweetened bid
positive
    Vedanta Ltd's chief executive said the diversified Indian miner received
"constructive feedback" from minority shareholders in Cairn India Ltd to a
sweetened buyout offer, and was hopeful it can clinch the long-delayed
deal. 

    
    GLOBAL TOP NEWS
     Japan Inc unenthused over Abe's stimulus, BOJ easing -Reuters poll
    Japanese companies overwhelmingly say the government's latest stimulus will
do little to boost the economy and the Bank of Japan should not ease further, a
Reuters poll showed, a setback for policymakers' efforts to overcome deflation
and stagnation. 
     EXCLUSIVE-ChemChina's Syngenta acquisition close to clearing U.S.
review-sources
    ChemChina's $43 billion acquisition of Syngenta AG is in the final stages of
being cleared by the Committee on Foreign Investment in the United States, which
scrutinizes deals for national security implications, people familiar with the
matter said. 
     Rainy Rio wraps up challenging Games on upbeat tropical note
    A blustery storm, a touch of melancholy and a sense of pride converged at
the closing ceremony of the 2016 Olympics on Sunday as Brazil breathed a
collective sigh of relief athaving pulled off South America's first
Games. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures were trading at 8,706.50, up 0.19 pct from previous
close.
     The Indian rupee will likely edge lower against the dollar, in line with
most Asian peers, on sustained gains in the greenback after several U.S. Federal
Reserve officials voiced their support for an early rate increase.
     Indian government bonds are likely to open sharply lower after the federal
government named Urjit Patel as the next central bank governor.The yield on the
benchmark 7.59 pct bond maturing in 2026 is likely to trade in a 7.10 pct-7.18
pct band.
    
    
    GLOBAL MARKETS
     U.S. stocks edged lower on Friday, led by declines in utility shares as
investors weighed prospects for an interest rate increase in the coming months.
 
     Asian shares slipped and the dollar pulled away from last week's lows on
expectations that a signal might emerge from a Federal Reserve gathering this
week in Jackson Hole, Wyoming that the U.S. central bank is gearing up to hike
interest rates. 
     The dollar extended modest gains against the yen and euro after it
rebounded in recent days as U.S. Federal Reserve policymakers took an upbeat
tone on the economy and expressed support for a near-term U.S. interest rate
hike. 
     U.S. Treasury prices fell on Friday as traders booked profits in advance
of government debt auctions next week and a marquee annual meeting of global
central bankers at which Federal Reserve Chair Janet Yellen is scheduled to
speak. 
     Oil prices fell as analysts doubted upcoming producer talks would be able
to rein in oversupply, saying that Brent would likely fall back below $50 a
barrel as August's more than 20-percent crude rally looks overblown. 
     Gold fell to its lowest in over a week as the dollar strengthened after
comments from U.S. Federal Reserve officials increased bets on a U.S. rate hike
this year. 
    
                   CLOSE        FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         67.12/67.15  August 19        $ 61.1 mln  -$69.19 mln
 10-yr bond yield  7.15 pct     Month-to-date    $ 1.12 bln  -$251.38 mln
                                Year-to-date     $ 5.77 bln  -$ 1.35 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 = 67.06 Indian rupees)
    

 (Compiled by Shradha Singh in Bengaluru)

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