December 14, 2016 / 3:19 AM / 9 months ago

Morning News Call - India, December 14

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    FACTORS TO WATCH
    11:00 am: Winter session of parliament continues in New Delhi.
    12:00 pm: Government to release November wholesale price inflation data in
New Delhi.
    1:00 pm: S&P to hold a webcast on India's demonetisation move in Mumbai.
    
    LIVECHAT- Thomson Reuters/INSEAD Asian Business Sentiment Survey 2016 Q4
    Confidence in Asia toward business conditions over the coming six months
dropped in the final quarter of 2016 to its lowest level in a year as firms
fretted about sluggish demand in a persistently low-growth economic environment,
a Thomson Reuters/INSEAD survey found. Reuters reporter Liz Lee will be taking
questions on the survey from 10:30 am in the Global Markets Forum and Trading
India community chatrooms. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
     India's current account gap widens in Q3 as imports rise
    India's current account deficit widened in July-September from the previous
quarter after an increase in imports but it remains well below levels posted in
2015, central bank data showed on Tuesday. 
     Modi's cash crackdown sends India's retail inflation to two-year low
    India's retail inflation cooled to a two-year low in November after Prime
Minister Narendra Modi's shock currency replacement programme dented consumer
spending, fuelling hopes of an interest rate cut by the central bank at its next
policy review. 
     TCS votes to oust Cyrus Mistry as director
Tata Consultancy Services Ltd shareholders voted to remove Cyrus Mistry, the
ousted chairman of Tata Sons, as a director, according to the results of an
extraordinary general meeting on Tuesday. 
     US FDA finds quality control problems at Sun Pharma's Halol plant
The U.S. Food and Drug Administration (FDA) has again raised concerns about the
quality control process at Indian drugmaker Sun Pharmceutical Industries' Halol
factory, an inspection report obtained by Reuters shows. 
     India takes back $184 billion of old notes, central bank says
    Indian banks have taken back 12.44 trillion rupees ($184.24 billion) of
high-value currency that the government abruptly abolished last month, Reserve
Bank of India Deputy Governor R Gandhi said on Tuesday. 
    
    
    GLOBAL TOP NEWS
     Syrian rebels prepare to withdraw from Aleppo as truce begins
    Syrian rebels prepared to withdraw from Aleppo on Wednesday after a
ceasefire agreement that ended years of fighting in the city and gave President
Bashar al-Assad his biggest victory yet after more than five years of war.
 
     Senate fight looms after Trump taps Exxon CEO as top U.S. diplomat 
    President-elect Donald Trump named the head of Exxon Mobil Corp, Rex
Tillerson, as his choice for U.S. secretary of state on Tuesday and won backing
from some Republican foreign policy figures ahead of a possible Senate fight
over the oilman's ties to Russia. 
     China to penalise U.S. automaker for monopolistic behaviour - China Daily
    China will soon slap a penalty on an un-named U.S. automaker for
monopolistic behaviour, the official China Daily newspaper reported, quoting a
senior state planning official. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures was trading at 8,224.50, up 0.10 pct from its
previous close.
     The Indian rupee will likely open little changed to slightly higher
against the U.S. dollar, even as investors prepare for a near-certain Federal
Reserve rate increase later today and await indications about the central bank's
future pace of rate hikes.  
     Indian government bonds will likely edge higher after retail inflation
decelerated to a two-year low, which may nudge the central bank to cut interest
rates going ahead. The yield on the benchmark 6.97 pct bond maturing in 2026 is
likely to trade in a 6.37 pct-6.44 pct band.
    
    
    GLOBAL MARKETS
     U.S. stocks racked up new all-time highs on Tuesday and the Dow Jones
industrial average ended fewer than 100 points away from the 20,000 mark as a
post-election rally showed no signs of fatigue. 
     Asia shares crept cautiously higher on Wednesday while a hush settled on
the U.S. dollar as investors felt certain the Federal Reserve would raise rates
for the first time in a year, but were less sure what it might herald for 2017.
 
     The dollar took a breather on Wednesday as investors looked to whether the
Federal Reserve will signal any acceleration in the pace of future rate
increases to deal with an expected ramp-up in fiscal spending under
President-elect Donald Trump. 
     Shorter-dated U.S. Treasury yields rose to their highest levels of the
year on Tuesday, with 2-year notes touching over 6-year highs, ahead of an
expected increase in U.S. overnight interest rates at Wednesday's Federal Open
Market Committee meeting. 
     Oil prices fell following a reported rise in U.S. crude inventories and an
estimate that OPEC may have produced more crude in November than previously
thought, potentially undermining a planned output cut. 
     Gold prices edged higher in Asian trade on Wednesday on a weaker dollar
and as markets waited for the outcome of the U.S. Federal Reserve's policy
meeting later in the day. 
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         67.38/67.41  December 13      -$323.09 mln  $21.32 mln
 10-yr bond yield  6.64 pct     Month-to-date    -$124.33 mln  -$2.41 mln
                                Year-to-date     -$4.28 bln    -$5.55 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 = 67.54 Indian rupees)

 (Compiled by Astha Rawat in Bengaluru)

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