April 12, 2017 / 3:24 AM / 4 months ago

Morning News Call - India, April 12

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    FACTORS TO WATCH
    11:00 am: Budget session of Parliament continues in New Delhi.
    2:30 pm: ICRA webinar on banking sector outlook in Mumbai.
    3:15 pm: NITI Aayog member Ramesh Chand to speak on agricultural market
reforms in New Delhi.
    4:00 pm: Council of ministers likely to meet in New Delhi.
    5:30 pm: Government to release February industrial output data in New Delhi.
    5:30 pm: Government to release March consumer price inflation data in New
Delhi.
    6:00 pm: Federal cabinet to meet in New Delhi. Agenda not known.
    6:30 pm: EPFO Board meets in New Delhi.
    
    GMF: LIVECHAT - CHINA TRADE PREVIEW
    The first set of trade data since the historic meeting between Donald Trump
and Xi Jinping in Florida is pending to be released on April 13. Exports are
expected to grow 3.2 pct for March, reversing the drop from a month earlier,
while imports will probably climb 18 pct. DBS Bank economist Nathan Chow will
discuss what-to-watch items in the upcoming data and the trend going forward at
11:30 am. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • India's top court stops Adani Power from charging higher prices
    India's top court ruled on Tuesday that Adani Power Ltd cannot charge its
customers more to cover a surge in the cost of imported coal, overturning a
decision by a power regulator in December.
    • POLL-India March inflation seen edging up closer to RBI's mid-term target
    India's inflation is seen climbing to within touching distance of the
central bank's 4 percent medium-term target in March, driven by higher food
costs, a Reuters poll found, backing policymakers' decision last week to move to
a defacto tightening bias.
    • India's Strand Life Sciences launches blood test to detect cancer
    A small Indian company launched on Tuesday a blood test to detect a wide
range of cancers at a fraction of the cost of similar diagnostics available in
the United States.
    • Mahindra & Mahindra, SsangYong to develop electric SUVs by 2020
    Indian automaker Mahindra & Mahindra Ltd and its Korean unit SsangYong Motor
Co plan to jointly develop a platform to manufacture electric sport-utility
vehicles (SUV) by 2020, the companies said on Tuesday.
    • Mining group Vedanta completes buyout of Cairn India
    Indian metals and mining group Vedanta Limited said on Tuesday it had
completed its buyout of oil and gas explorer Cairn India Ltd, consummating a
deal that was delayed for months by investor opposition.
    • UAE's Aster DM Healthcare agrees $295 mln loan with Axis Bank
    United Arab Emirates-based Aster DM Healthcare has agreed a $295 million
credit facility with India's Axis Bank, the healthcare company said in a
statement.
    
    
    GLOBAL TOP NEWS
    • N.Korea warns of nuclear strike if provoked; Trump 'armada' steams on
    North Korean state media warned on Tuesday of a nuclear attack on the United
States at any sign of American aggression, as a U.S. Navy strike group steamed
toward the western Pacific - a force U.S. President Donald Trump described as an
"armada".
    • White House accuses Russia of Syria chemical attack 'cover up'
    President Donald Trump's administration accused Russia on Tuesday of trying
to shield Syria's government from blame for a deadly gas attack, as Secretary of
State Rex Tillerson brought a Western message to Moscow condemning its support
for President Bashar al-Assad.
    • Korea Inc's China troubles rattle local workers, suppliers
    South Korean companies in China have been clobbered by Beijing's angry
response to Seoul's decision to deploy a U.S. anti-missile system, but the
boycotts and regulatory pressure on firms like Hyundai and Lotte are rebounding
on their Chinese workers and suppliers.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were trading at 9,242.50, trading down 0.3 pct from
its previous close.
    • The Indian rupee is poised to open lower against the dollar, as mounting
worries about geopolitical risks stemming from North Korea and Syria thwarted
risk appetite. Other Asian currencies were mixed against the greenback.
    • Indian government bonds will likely edge higher tracking U.S. Treasuries,
as investors world over seek refuge in debt amid growing threats of a U.S.
military action against North Korea and Syria even as they contend with
uncertainties around presidential polls in France. The yield on the benchmark
6.97 pct bond maturing in 2026 is likely to trade in a 6.78 pct-6.83 pct band
today. The bond closed at 101.08 rupees, yielding 6.81 pct, yesterday.
    
    
    GLOBAL MARKETS
    • U.S. stocks ended down but well off the day's lows on Tuesday, with
concern over geopolitical risks weighing on sentiment as investors readied for
the start of U.S. corporate earnings reports.
    • Japanese stocks fell to their lowest in more than four months as rising
geopolitical tensions dragged all sectors into negative territory, with
exporters hit especially hard as the safe haven yen spiked to a five-month high.

    • The dollar languished at a five-month low versus the yen, as simmering
geopolitical tensions checked risk appetite and put the safe-haven Japanese
currency in favour.
    • The U.S. government debt market rallied on Tuesday with the 30-year yield
touching near three-month lows as fresh concerns about the French presidential
election and possible U.S. military action against Syria and North Korea spurred
safe-haven demand for Treasuries.
    • Oil prices rose, putting crude futures on track for their longest streak
of gains since August 2016, as Saudi Arabia was reported to be lobbying OPEC and
other producers to extend a production cut beyond the first half of 2017.
    • Gold hit a 5-month high after rising nearly 2 percent in the previous
session, with investors seeking refuge in safe-haven assets due to rising
tensions over U.S. relations with Russia and North Korea.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         64.51/64.54  April 11         -$116.3 mln  -$33.34 mln
 10-yr bond yield  7.17         Month-to-date    $111.1 mln   $2.78 bln
                                Year-to-date     $6.89 bln    $8.25 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 = 64.5500 Indian rupees)

 (Reporting by Nayyar Rasheed in Bengaluru)
  

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