June 23, 2017 / 3:33 AM / 4 months ago

Morning News Call - India, June 23

(India Morning Newsletter will not be published on Monday, June 26, as markets
are closed for Eid-Ul-Fitr)

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    FACTORS TO WATCH
    10:00 am: Urban Development Minister Venkaiah Naidu at an event in New
Delhi.
    11:00 am: Earth Sciences Minister Harshvardhan at an event in New Delhi.
    11:30 am: Union Bank of India holds annual shareholders meeting in Mumbai.
    11:45 am: Telecom Minister Manoj Sinha, External Affairs Minister Sushma
Swaraj at an event in New Delhi.
    1:30 pm: RBI Deputy Governor S.S. Mundra at an event in Mumbai.
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
    
    GMF: LIVECHAT - WEEKAHEAD
    Reuters EMEA markets editor Mike Dolan discusses the upcoming week's main
market inflection points at 3:30 pm IST. To join the conversation, click on the
link: here
    
    
    INDIA TOP NEWS
    • U.S. set to approve India's purchase of drones before Modi visit
    The United States is expected to approve India's purchase of a naval variant
of the Predator drone, a source familiar with the situation said, as Prime
Minister Narendra Modi tries to revitalize relations with Washington when he
meets President Donald Trump for the first time.
    • Uber hires law firm to probe how it handled India rape case-source
    Uber Technologies Inc has hired a law firm to investigate how it obtained
the medical records of an Indian woman who was raped by an Uber driver in 2014.
The review will focus in part on accusations from some current and former
employees that bribes were involved, two people familiar with the matter told
Reuters.
    • SEBI proposes stricter separation on investment products
    Indian market regulator the Securities and Exchange Board of India (SEBI) on
Thursday proposed to more clearly segregate entities advising on investment
products from those selling them in an effort to prevent conflicts of interest.

    • India farm protests push for rise in edible oils import tax
    India's government is facing mounting pressure to raise import duties on
edible oils after farmers staged mass protests in key farm states amid a slump
in oilseed prices to below government support levels.
    • India to take corrective steps to ensure telecoms growth - statement
    India's telecoms minister said on Thursday that the government would take
corrective steps to ensure growth in the sector, the world's second-biggest by
number of users, amid worries about financial stress.
    • India cenbank rejigs oversight panel for bad loan resolution
    India's central bank on Thursday reconstituted a panel to oversee
restructuring of troubled loans, as it strives to cut more than $150 billion of
bad debt banks in Asia's third-largest economy have accumulated over the past
years.
    • Thyssenkrupp signals steel merger decision by end Sept -works council
    Germany's Thyssenkrupp wants to decide by the end of September whether to
pursue a European steel merger with India's Tata Steel, the head of its steel
works council said on Thursday.
    • Indian IT sector lobby group sees export growth at 7-8 percent for 2017/18
    A leading lobby group for India's IT industry on Thursday forecast the
sector's export revenues to grow at 7-8 percent for the year to March, around
the growth levels seen last year, as the industry faces continued headwinds from
the U.S. market.
    
    
    GLOBAL TOP NEWS
    • North Korea tests rocket engine, possibly for ICBM - U.S. officials
    North Korea has carried out another test of a rocket engine that the United
States believes could be part of its program to develop an intercontinental
ballistic missile, a U.S. official told Reuters on Thursday.
    • Senate Republicans unveil Obamacare replacement bill, but fate uncertain
    U.S. Senate Republicans on Thursday unveiled legislation that would replace
Obamacare with a plan that scales back aid to the poor and kills a tax on the
wealthy, but the bill's fate was quickly thrown into question as several
senators voiced skepticism.
    • China Unicom counts Alibaba, Tencent among investors in drive to raise $10
billion -sources
    Chinese tech giants Alibaba Group Holdings and Tencent Holdings will be
among new investors pouring a total of around $10 billion into mobile carrier
China Unicom, sources said, part of efforts by Beijing to rejuvenate state
behemoths with private cash.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were trading at 9,630.50, little changed from its
previous close.
    • The Indian rupee is poised to open little changed against the dollar
tracking mixed Asian cues, even as a rebound in crude oil prices is expected to
aid risk sentiment.
    • Indian government bonds will likely edge lower ahead of a fresh supply of
notes through a weekly auction today. The yield on the benchmark 6.79 percent
bond maturing in 2027 is likely to trade in a 6.43 percent-6.48 percent band
today.
    
    
    GLOBAL MARKETS
    • The S&P healthcare index rose 1 percent on Thursday, hitting its fifth
consecutive record close following the release of Senate Republicans' bill to
replace Obamacare, while financial and consumer staple shares ended lower.
    • Asian shares baulked at the starting gate but remained on track for a
weekly gain, while crude oil prices pulled away from this week's 10-month lows.

    • The dollar was little changed as traders marked time ahead of next week's
U.S. inflation-linked indicators, while commodity currencies like the Canadian
dollar held to gains following a bounce in crude oil prices.
    • U.S. Treasury prices were stable to slightly lower on Thursday while the
yield curve was slightly steeper, suggesting the flattening of the yield curve
this week was stalling on a rise in oil prices.
    • Oil edged up, recovering slightly from steep falls earlier in the week,
but is set for the worst performing first-half in two decades despite ongoing
production cuts.
    • Gold held steady above a five-week low touched earlier this week,
supported by technicals, but the metal was still on track for a third weekly
fall.

   
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         64.53/64.56  June 22          --           $22.45 mln
 10-yr bond yield  6.82         Month-to-date    $254.49 mln  $3.84 bln
                                Year-to-date     $8.23 bln    $17.28 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 = 64.5900 Indian rupees)

 (Compiled by Nayyar Rasheed in Bengaluru)
  

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