April 17, 2017 / 3:20 AM / 4 months ago

Morning News Call - India, April 17

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    FACTORS TO WATCH
    12:00 pm: Government releases March wholesale price inflation data in New
Delhi.
    12:30 pm: Consumer Affairs, Food and Public Distribution Minister Ram Vilas
Paswan to brief media in New Delhi.
          
    
    INDIA TOP NEWS
    • Infosys to return $2 bln to shareholders, appoints co-chairman
    Infosys set a $2 billion cash return to shareholders and appointed an
independent director as co-chairman, moves that may placate a group of founders
and former executives who have criticised India's second-biggest software
services exporter.
    • India's exports revival picks up speed in March
    A recovery in Indian exports gathered steam in March with a pick-up in
demand for engineering and petroleum products, bolstering an economy still
recovering from the government's cash clampdown.
    • State Bank of India sees profit boost in 3 years after bank units merged
    The head of State Bank of India, the country's largest lender, said she
expects a boost to annual profit of as much as 30 billion rupees in three years
on cost and efficiency gains from the absorption of associate banks.

    • India cenbank tweaks rules for regulatory action on banks
    The Reserve Bank of India on Thursday tweaked rules that trigger regulatory
action against lenders who overshoot the limit on bad loans or fail to comply
with capital ratios.
    
    
    GLOBAL TOP NEWS
    • Pence lands at Korean DMZ day after North Korea's failed missile test
    U.S. Vice President Mike Pence, pledging an "unshakeable" commitment to
South Korea, landed at a U.S. military base next to the demilitarised border
with North Korea, a day after a failed missile launch by the North.
    • China Q1 GDP grows faster than expected 6.9 percent, steel output hits
record
    China's economy grew 6.9 percent in the first quarter from a year earlier,
slightly faster than expected, supported by a government infrastructure spending
spree and a frenzied housing market that is showing signs of overheating.

    • Turkey's Erdogan declares referendum victory, opponents plan challenge
    President Tayyip Erdogan declared victory in a referendum on Sunday to grant
him sweeping powers in the biggest overhaul of modern Turkish politics, but
opponents said the vote was marred by irregularities and they would challenge
its result.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were trading at 9,153.50, little changed from its
previous close.
    • The Indian rupee will likely open little changed against the dollar, as
mounting tensions over North Korea keep investors on edge, even as
softer-than-expected U.S. economic data hurt demand for the greenback. Indian
financial markets were shut on April 14 for a public holiday. Other Asian
currencies traded mixed.
    • Indian government bonds will likely edge lower in early trade after the
Reserve Bank of India announced it will auction long-duration Treasury Bills
over the next four weeks, starting today. However, a relentless fall in U.S.
Treasury yields amid ongoing geopolitical uncertainty may support demand for
debt. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to
trade in a 6.81 pct-6.87 pct band today. The bond closed at 101.01 rupees,
yielding 6.82 pct, on April 13.
    
    
    GLOBAL MARKETS
    • Major U.S. stock indexes fell on Thursday for a third straight day as
investors weighed earnings reports from big U.S. banks and geopolitical
tensions, while the tech sector fell for a tenth consecutive session.
    • Shares dipped while the dollar and U.S. bond yields fell after soft U.S.
economic data hurt investor sentiment already frayed by worries over North Korea
and upcoming French elections.
    • The dollar dipped to a five-month low against the yen as rising tensions
over North Korea kept the safe-haven Japanese currency in demand.
    • U.S. Treasury yields fell on Thursday, with benchmark yields hitting near
five-month lows as President Donald Trump's favorable view of low interest rates
intensified a bond market rally that was underpinned by geopolitical worries.

    • Crude oil futures fell slightly in quiet trading, after a three-day Easter
break, as investors digested a third consecutive weekly gain in prices along
with North Korea's failed missile launch on Sunday.
    • Gold prices hit a five-month high as the dollar weakened with investors
taking refuge in safe-haven assets in the wake of rising geopolitical tensions
over North Korea.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         64.41/64.44  April 13         -$63.3 mln   $575.38 mln
 10-yr bond yield  7.13         Month-to-date    -$77.81 mln  $3.47 bln
                                Year-to-date     $6.7 bln     $8.94 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 = 64.4600 Indian rupees)

 (Reporting by Nayyar Rasheed in Bengaluru)
  

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