May 31, 2017 / 3:27 AM / 3 months ago

Morning News Call - India, May 31

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    FACTORS TO WATCH
    9:30 am: Transport Minister Nitin Gadkari at an event in New Delhi.
    11:30 am: S&P's webcast on Indian banking sector outlook in Mumbai.
    5:00 pm: Jet Airways earnings conference call in Mumbai.
    5:00 pm: Government to release April infrastructure output data in New
Delhi.
    5:30 pm: Chief Statistician TCA Anant to brief media after release of
January-March GDP data in New Delhi.
    
    GMF: LIVECHAT - CHARTING FX
    Take a look at the FX charts with Reuters technical analyst Martin Miller at
4:00 pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • Deceptively quick, India's economy seen staying course as global
pacesetter
    India is set to hang onto its status as the world's fastest growing major
economy thanks to stronger consumer demand, if data due out later on Wednesday
matches economists expectations for a 7.1 percent year-on-year expansion in the
March quarter.
    • Ban on foreign funds for non-profit may hurt India health programmes
    India's ban on foreign funding for the Public Health Foundation of India, a
non-profit group backed by the Bill & Melinda Gates Foundation, may damage some
government health programmes, according to the group and a health ministry
official.
    • Adani says Carmichael mine decision on track after royalty agreement
    India's Adani Enterprises will move ahead with a final financing decision
for its Carmichael coal mine project in Australia after an end to negotiations
on how to pay government royalties, it said on Tuesday.
    • Aviation ministry to cooperate with probe into Air India deals
    India's civil aviation ministry will cooperate with a federal investigation
into alleged irregularities in the purchase of 111 aircraft by state-run carrier
Air India and into its merger with Indian Airlines, the civil aviation minister
said on Tuesday.
    • Indian court orders suspension of ban on trade in cattle for slaughter
    An Indian court suspended on Tuesday a government ban on the trade of cattle
for slaughter, a lawyer involved in the case said, giving some relief to
Muslim-dominated beef and leather industries that employ millions of poor
workers.
    • Mahindra & Mahindra Q4 profit rises about 20 percent, beats estimates
    Automaker Mahindra & Mahindra Ltd posted a nearly 20 percent rise in
fourth-quarter profit after tax on Tuesday, beating analysts' estimate.

    • Hindalco Industries Q4 profit rises 26 percent, tops estimates
    Hindalco Industries Ltd, India's biggest producer of aluminium and copper,
posted a 26 percent rise in fourth-quarter profit as revenue from operations
increased on higher base metal prices.
    • Jet Airways Q4 profit falls about 91 percent 
    India's second largest airline, Jet Airways Ltd, reported a 91 percent slump
in net profit for the March quarter, hurt by higher aircraft fuel
expenses.
  
    
    GLOBAL TOP NEWS
    • China factory PMI growth holds up in May, steel sector activity speeds up
    China manufacturing sector grew faster than expected in May as activity in
the steel industry rebounded sharply, an official survey showed, allaying
concerns of slowing economic momentum as Beijing cracks down on financial risks.

    • Departure of communications aide could be first in Trump shake-up
    U.S. President Donald Trump's communications director is leaving the job,
the White House said on Tuesday, as the president considers wider staff changes
to try to contain political damage from investigations into Russia and his
presidential campaign.
    • U.S. says expanding laptop ban 'still on the table'
    The U.S. Department of Homeland Security is still considering an expansion
of a ban on laptops and other large electronics in airline cabins after
Secretary John Kelly spoke to European officials on Tuesday, a department
spokesman said.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were trading at 9,631.00, up 0.11 percent from its
previous close.
    • The Indian rupee will likely edge higher against the dollar, tracking its
Asian peers, as the greenback and U.S. Treasury yields fell after April’s core
inflation eased year-on-year.
    • Indian government bonds will likely edge higher tracking gains in U.S.
Treasuries after a slow pace of price gains raised doubts about Federal
Reserve’s ability to meet its rate increase projection for the year. However,
the gains will likely be capped in the absence of any major domestic triggers.
The yield on the benchmark 6.79 percent bond maturing in 2027 is likely to trade
in a 6.65 percent-6.69 percent band today.
    
    
    GLOBAL MARKETS
    • U.S. stocks inched lower on Tuesday, with the S&P 500 retreating slightly
from a record, as weakness in the energy and financial sectors outweighed gains
in technology shares.
    • Asian stocks climbed, capping a fifth consecutive month of gains, as data
showed China's factory activity grew at a steady clip this month, bucking
expectations of a slowdown.
    • The British pound came under pressure after a new poll found that British
Prime Minister Theresa May's Conservative Party risks falling short of an
overall majority in next month's national election.
    • Yields on most U.S. Treasury bonds and notes fell to their lowest levels
in more than a week on Tuesday on month-end buying and after U.S. inflation data
reinforced doubts that the Federal Reserve would raise interest rates more than
one more time in 2017.
    • Oil prices fell, as rising output from Libya added to concerns about
increasing U.S. production which is undermining OPEC-led production cuts aimed
at tightening the market.
    • Gold edged lower, moving away from a one-month peak hit in the previous
session as U.S. economic data boosted the case for an interest rate hike by the
Federal Reserve next month.
        
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         64.61/64.64  May 30           -$33.59 mln  $113.36 mln
 10-yr bond yield  7.09         Month-to-date    $1.39 bln    $3.59 bln
                                Year-to-date     $7.83 bln    $12.98 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 = 64.66 Indian rupees)

 (Compiled by Benny Thomas in Bengaluru)
  

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