December 13, 2016 / 3:25 AM / 9 months ago

Morning News Call - India, December 13

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    FACTORS TO WATCH
    5:30 pm: Government to release November consumer price inflation data.
    
    LIVECHAT - COMMODITIES OUTLOOK with Jonathan Barratt, Economist, CIO Ayers
Alliance and Principal at Celsiuspro.com
    Commodity prices are going through the roof, giving some stunning returns
for those brave and patient enough to have ventured against the bear market in
base metals that has dominated since 2011. Meanwhile, oil prices are settling
down as doubts emerge over OPEC's implementation of the agreed output cut. With
expectations running high of rate cut by the Fed on December 14, Jonathan joins
us to discuss his 2017 outlook on commodities at 9:30 am. To join the
conversation, click on the link: here
    
    
    INDIA TOP NEWS
     Cyclone batters south India coast killing four 
    A cyclone barrelled into the southeast coast of India on Monday, killing at
least four people and bringing down trees and power lines as authorities moved
tens of thousands of people from low-lying areas. 
     Central bank says no move to cancel Axis Bank licence 
    The Reserve Bank of India on Monday denied a media report that authorities
were preparing to cancel the licence of Axis Bank Ltd over irregularities in
transactions relating to the exchange of high-value bank notes. 
     Top gold import bank suspends bullion dealers accounts
    Axis Bank Ltd, India's top importer of gold, has suspended the bank accounts
of some bullion dealers and jewellers after two of its executives at a branch
were arrested over alleged money laundering. 
     Morgan Stanley opens book for Tata Motors' shares worth up to $371 million
- termsheet 
    Morgan Stanley has started the process for an undisclosed buyer to for up to
50 million shares of Tata Motors Ltd from the market in a potential 24.99
billion-rupee ($370.8 million) deal, according to a termsheet seen by Reuters on
Monday. 
     Generic copy of Roche flu pill Tamiflu hits U.S. market
    The first generic copy of Roche's top-selling flu pill Tamiflu hit the U.S.
market on Monday. Alvogen, which developed the cut-price version with India's
Natco Pharma, said it expected the cheaper product to save the U.S. healthcare
system up to $500 million in the upcoming flu season. 
    
    
    GLOBAL TOP NEWS
     Exxon CEO could face struggle getting confirmed as Trump secretary of
state
    Exxon Mobil Chief Executive Rex Tillerson, the front-runner to be named
secretary of state in President-elect Donald Trump's administration, faces a
struggle getting confirmed by U.S. senators concerned about his close ties to
Russia. 
     EXCLUSIVE-Fox nears firm bid for Sky via scheme of arrangement - sources
    Rupert Murdoch's Twenty-First Century Fox aims to table a firm cash bid
valuing British broadcaster Sky at 10.75 pounds per share as early as Wednesday
for the 61 percent of the company it does not already own, four people familiar
with the matter said. 
     EXCLUSIVE-Some Bangladesh Bank officials involved in heist -investigator 
    Some Bangladesh central bank officials deliberately exposed its computer
systems and enabled hackers to steal $81 million from its account at the Federal
Reserve Bank of New York in February, a top police investigator in Dhaka told
Reuters on Monday. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures was trading at 8,197.50, up 0.21 pct from previous
close.
     The Indian rupee will likely open little changed to lower against the
dollar, tracking lacklustre trade across Asian currencies, as investors stay on
the sidelines ahead of the Federal Reserve's policy review that begins today. 
     Indian government bonds will likely open higher amid value buying, as the
central bank's move to revoke the temporary mandate for lenders to maintain
incremental reserve on deposits will free up cash, which may course its way to
debt. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to
trade in a 6.39 pct-6.45 pct band.
    
    
    GLOBAL MARKETS
     The S&P 500 and Nasdaq Composite fell on Monday after six sessions of
gains, weighed by tech sector stocks, while a rally in energy shares petered out
as crude oil gains withered. 
     Asian shares were on tenterhooks as investors awaited the Federal
Reserve's meeting that begins later in session for clues on the outlook for U.S.
monetary policy, while crude oil prices pulled back after their surge to
18-month highs. 
     The dollar eased against the yen, coming off a 10-month high, as a surge
in Treasury yields was tempered for the time being. 
     U.S. Treasury yields rose on Monday, with benchmark 10-year notes climbing
to more than two-year peaks, after oil prices increased and as investors braced
for a widely expected interest rate increase from the Federal Reserve this week.
 
     Oil prices were firm as the first signs of a crude production cut
organised by OPEC and other exporters materialised, tightening a market that has
been grappling with ballooning oversupply for over two years. 
     Gold held gains after inching up in the previous session, with U.S.
Treasury yields coming off their highs and the U.S. dollar falling ahead of the
start of a two-day Federal Reserve meeting.
 
    
                   CLOSE        FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         67.46/67.49  December 9       -           -$54.29 mln
 10-yr bond yield  6.65 pct     Month-to-date    $74.91 mln  -$2.43 mln
                                Year-to-date     $4.23 bln   -$5.57 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 = 67.42 Indian rupees)

 (Compiled by Astha Rawat in Bengaluru)

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