December 7, 2016 / 3:27 AM / 10 months ago

Morning News Call - India, December 7

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    FACTORS TO WATCH
    11:00 am: Winter session of parliament continues in New Delhi.
    2:30 pm: Monetary policy statement to be released in Mumbai. RBI media
interaction at 2:45 pm and analysts call at 4:30 pm.
    3:30 pm: Finance Minister Arun Jaitley to speak at Petrotech conference in
New Delhi.
    6:00 pm: Federal cabinet likely to meet in New Delhi. Agenda not given.
    
    LIVECHAT - SOUTH KOREA PRESIDENTIAL SCANDAL with Bruce Klingner, Senior
Research Fellow for Northeast Asia, Heritage Foundation
    In her televised speech last week, South Korean President Park Geun-hye
agreed to relinquish power, leaving to the Parliament all affairs including when
she should step down from the presidency. She also asked the Parliament to
devise ways to safely transfer power. Former CIA analyst Bruce Klingner joins
GMF at 11:30 a.m. to discuss the scandal and fallouts from here. To join the
conversation, click on the link: here
    
    
    INDIA TOP NEWS
     Modi's cash clampdown gamble may force India cenbank to cut rates
    An intense cash shortage in India could force the central bank to cut
interest rates to a six-year low on Wednesday as Prime Minister Narendra Modi's
currency gamble threatens to hit nearly every aspect of the economy, from
consumers to supply chains. 
     Indian regional leader buried, successor named to unite party
    Masses of grieving supporters wailed, beat their chests and cast flowers on
Tuesday as actress-turned-politician Jayaram Jayalalithaa, one of India's most
powerful leaders, was buried on the shorefront in Chennai. 
     As Indian rate cut hopes grow, some warn of going too far
    The Reserve Bank of India is widely expected to cut interest rates on
Wednesday as the economy reels from an unexpected clampdown on cash, but foreign
investors will be looking for some assurance that new Reserve Bank Governor
Urjit Patel has firm control over monetary policy. 
     India's NSE listing on track after resignation of CEO - sources
    India's National Stock Exchange will pursue plans to raise up to $1 billion
via a public listing after Chief Executive Chitra Ramkrishna's decision to step
down last week, said four sources familiar with the matter. 
     India gas demand growth stymied by slow infrastructure development
    India, the world's third-biggest energy consumer, is striving to grow its
natural gas use and shift away from oil and coal for power and industry, but its
lack of gas import infrastructure is stymieing faster adoption of the
cleaner-burning fuel. 
     RasGas says seeing preference for short term LNG contracts in India
    Qatar's RasGas is seeing preference for short-term LNG contracts from
customers in India, its chief executive said on Tuesday at the Petrotech energy
conference in New Delhi. 
    
    
    GLOBAL TOP NEWS
     Trump claims $50 billion SoftBank investment due to his election win
    The head of Japan's SoftBank Group Corp, which in October set up a $100
billion fund for technology investments, said on Tuesday he would invest $50
billion in U.S. businesses, a move President-elect Donald Trump claimed was a
direct result of his election win. 
     U.S. Supreme Court backs Samsung in smartphone fight with Apple
    The U.S. Supreme Court on Tuesday sided with Samsung in its big-money
smartphone patent fight with Apple, throwing out an appeals court ruling that
the South Korean company had to pay a $399 million penalty to its American rival
for copying key iPhone designs. 
     Japan business mood brightens as yen weakens - Reuters Tankan
    Japanese manufacturers' confidence rose for a fourth straight month to a
16-month high in December and the service sector's mood also rose, a Reuters
poll showed, with a weaker yen brightening prospects for exporters. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures were trading at 8,185.00, up 0.17 pct from its
previous close.
     The Indian rupee is poised to open higher against the dollar amid
expectations local shares will track gains in global equities, and as hopes of a
rate cut at home will likely boost domestic sentiment.
     Indian government bonds will likely edge higher in early trade amid bets
that the nation's Monetary Policy Committee will deliver a rate cut today and
the central bank will roll back the requirement for lenders to maintain
incremental cash reserve ratio. The yield on the benchmark 6.97 pct bond
maturing in 2026 is likely to trade in a 6.17 pct - 6.23 pct band till the
monetary policy decision.
    
    
    GLOBAL MARKETS
     Wall Street climbed on Tuesday as telecom stalwarts AT&T and Verizon
gained and bank shares added to their torrid post-election rally, helping the
Dow set another record closing high. 
     Asian shares edged up as investors covered short positions in European
equities as they pondered the ramifications of Italy's referendum and looked to
the upcoming policy meeting of the European Central Bank. 
     The euro and dollar drifted sideways as a wait-and-see mood prevailed
ahead of Thursday's European Central Bank policy meeting, which may set the tone
in a post-Trump rally currency market. 
     Most U.S. Treasury yields were little changed on Tuesday, holding in
narrow ranges as traders awaited possible clues from the European Central Bank
on its bond purchase program following its policy meeting on Thursday. 
     Oil prices fell on persistent doubts a planned crude production cut led by
OPEC and Russia would be deep enough to end a supply overhang that has dogged
markets for over two years. 
     Gold edged down ahead of an expected U.S. Federal Reserve rate hike next
week and as markets waited for clues on the future of the European Central
Bank's asset purchase program. 
   
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         67.94/67.97  December 6       $23.91 mln    -$325.63 mln
 10-yr bond yield  6.38 pct     Month-to-date    -$117.82 mln  -$1.81 bln
                                Year-to-date     $4.03 bln     -$4.95 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 = 67.90 Indian rupees)

 (Compiled by Sai Sharanya Khosla in Bengaluru)

Our Standards:The Thomson Reuters Trust Principles.
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