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FACTORS TO WATCH
10:00 am: Power Minister Piyush Goyal at an event in New Delhi.
10:00 am: Junior Shipping Minister ML Mandavia at an event in New Delhi.
11:00 am: Budget session of parliament continues in New Delhi.
5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
GMF: LIVECHAT - TRUMP-XI MEETING AGENDA
As the historic meeting between Chinese president Xi Jinping and U.S.
President Donald Trump is on in Florida, Arthur Kroeber, Founding Partner and
Head of Research, Gavekal Research, assesses the preliminary outcomes from the
meeting at 9:00 am. To join the conversation, click on the link: here
INDIA TOP NEWS
• India central bank moves to cut system's excess cash to help contain
India's central bank surprised markets on Thursday by raising a secondary
rate while holding the key rate steady, a move to help mop up liquidity and
signal its worries about a potential spike in inflation.
• India's biggest tax reform nears fruition
India's marathon to overhaul its indirect taxes entered the last lap on
Thursday after the upper house of parliament approved key legislations, paving
the way for the rollout of a nationwide goods and services tax (GST) as early as
• India services activity expands again in March, index reaches five-month
India's services industry in March continued to recover from November's
shock big currency-note ban, with business activity expanding for a second month
and at a faster pace, a private business survey showed on Thursday.
• SocGen, BNP woo funds eyeing India with tax saving gambit -sources
Societe Generale and BNP Paribas are wooing hedge funds to invest in India
through France, noting a special treaty between the two countries that allows
investors to avoid paying tax in one of the world's hottest emerging markets.
• India's JSW Steel lines up $1 bln war chest for acquisitions, mines
India's biggest steelmaker JSW Steel said it could spend up to $1 billion on
capacity expansion or acquisitions this fiscal year, and will bid for iron ore
and coking coal mines in upcoming auctions to secure raw material supplies.
• India's Jindal Steel declares force majeure on Australian mine
India's Jindal Steel and Power suspended operations at its coking coal mine
in Australia last month due to heavy rains caused by Cyclone Debbie, forcing it
to declare force majeure, its chief executive said on Thursday.
GLOBAL TOP NEWS
• Trump orders military strikes against Assad airbase in Syria
U.S President Donald Trump said on Thursday he ordered missile strikes
against a Syrian airfield from which a deadly chemical weapons attack was
launched, declaring he acted in America's "national security interest" against
Syrian President Bashar al-Assad.
• Trump, China's Xi dine ahead of talks on security, trade
U.S. President Donald Trump and Chinese President Xi Jinping sat down
together to dine on pan-seared Dover sole and New York strip steak on Thursday,
spending some social time before digging into thorny bilateral security and
• Philippines' Duterte orders occupation of isles in disputed South China
Philippine President Rodrigo Duterte on Thursday ordered troops to occupy
uninhabited islands and shoals it claims in the disputed South China Sea,
asserting Philippine sovereignty in an apparent change of tack likely to anger
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
• The SGX Nifty Futures were trading at 9,200.50, trading down 0.7 pct from
its previous close.
• The Indian rupee will likely open lower against the dollar, as risk
appetite was rattled after the U.S. launched a missile strike on Syria following
a deadly poison gas attack in the nation’s rebel-held area.
• Indian government bonds will likely edge lower after the central bank said
it will use a variety of instruments to absorb excess liquidity in the banking
system. Overnight gains in crude oil prices, following American missile strikes
on a Syrian airbase in response to President Bashar al-Assad's forces' deadly
chemical attack in a rebel-held area, may also damp demand for notes. The yield
on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.74
pct-6.80 pct band till the result of a weekly auction of government debt today.
The bond closed at a two-week low of 101.38 rupees, yielding 6.77 pct,
• Wall Street's major indexes closed slightly higher on Thursday but
finished well off session highs as investors were nervous about upcoming talks
between China's President Xi Jinping and U.S. President Donald Trump.
• Stocks slumped and safe haven bonds and the yen jumped in Asia after the
United States launched cruise missiles against an air base in Syria, potentially
escalating the conflict and spooking investors globally.
• The dollar skidded against the perceived safe-haven Japanese yen after the
United States launched cruise missiles at an airbase in Syria in response to
Syrian forces' alleged use of chemical weapons on Thursday.
• U.S. Treasury yields edged lower on Thursday amid uncertainty ahead of a
key U.S. jobs report Friday and a meeting between U.S. President Donald Trump
and Chinese President Xi Jinping, and also over the fate of Trump's pro-growth
• Oil prices soared by around $1 per barrel after the United States launched
dozens of cruise missiles at an airbase in Syria.
• Gold hit a near five-month peak, rising over one percent on safe-haven
buying after the U.S. military launched cruise missile strikes against a Syrian
air base controlled by President Bashar al-Assad's forces.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 64.95/64.98 April 6 $22.1 mln $22.17 mln
10-yr bond yield 7.06 Month-to-date $164 mln $1.5 bln
Year-to-date $6.95 bln $6.97 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 = 64.6350 Indian rupees)
(Reporting by Nayyar Rasheed in Bengaluru)