December 19, 2016 / 3:34 AM / 7 months ago

Morning News Call - India, December 19

7 Min Read

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season from December 26, 2016 to December 30, 2016. Normal service will resume
from January 2, 2017. Season's Greetings and Happy New Year.)
   
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    INDIA TOP NEWS
     ANALYSIS-Pain before gain for Indian banks after Modi's cash gamble
    India's shock move to abolish high-value banknotes was expected to deliver a
windfall to lenders, and banks have indeed seen coffers swell after people
deposited 12.4 trillion rupees in cash into the system. 
     India appoints new army, air force and intelligence chiefs
    The Indian government has appointed new heads of its army and air force
among a series of senior military and intelligence appointments, officials said,
two weeks before its two most senior defence force chiefs are due to
retire. 
     India's Aurobindo shares hit 9-mth low on US price-fixing lawsuit
    Indian drugmaker Aurobindo Pharma Ltd's shares hit their lowest in more than
nine months on Friday after the company was named in a lawsuit alleging it
colluded with other drugmakers to fix prices of two commonly used drugs in the
United States. 
     China's OnePlus to make 3T phone in India from early 2017
    China's OnePlus plans to make its 3T model in India from early next year to
meet growing demand in the world's second-biggest smartphone market by
users. 
     Tata patriarch plays down talk of imminent exit from Tata Trusts 
    Ratan Tata, patriarch of one of India's most prominent business families,
played down reports on Friday that he would step down soon as chairman of Tata
Trusts, the largest shareholder in the Tata conglomerate's holding
company. 
     India asks tax dodgers to come clean by March 2017
    The Indian government said on Friday that tax-dodgers have until the end of
March 2017 to come clean under a scheme announced by Finance Minister Arun
Jaitley last month. 
     INSIGHT-Indian PM's camp seeks support from unlikely quarter: Muslim women
    When Narendra Modi stood before faithful followers in October, on a stage
swathed in the saffron colours of his Hindu nationalist movement, the Indian
leader made an unexpected overture. 
     China upset as Dalai Lama meets Indian president
    China expressed dissatisfaction on Friday after exiled Tibetan spiritual
leader the Dalai Lama met Indian President Pranab Mukherjee, saying it hoped
India would recognise the Nobel Peace Prize winning monk as a separatist in
religious guise. 
    
    GLOBAL TOP NEWS
     Gunmen burn buses, Aleppo convoy goes through
    Armed men burned five buses that were supposed to be used for an evacuation
near Idlib in Syria on Sunday, stalling a deal to allow thousands to depart the
last rebel pocket in Aleppo, where evacuees crammed into buses for hours before
departing the city. 
     Trump aide plays down prospect of upending 'one China' policy
    President-elect Donald Trump's incoming White House chief of staff on Sunday
played down the prospect that Trump would revisit Washington's decades-old "one
China" policy, even though he suggested as much a week ago. 
     China November home prices rise 12.6 pct y/y, monthly growth halves
    Average new home prices in China's 70 major cities rose 12.6 percent in
November from a year earlier, accelerating slightly from a 12.3 percent increase
in October, an official survey showed. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures were trading at 8,128.50, down 0.2 pct from its
previous close.
     The Indian rupee will likely open slightly lower against the U.S. dollar
amid expectations that weakness regional shares will rub off on local indices,
even as trading volumes remain thin ahead of the holiday season.
     Indian government bonds will likely trade steady in the absence of fresh
triggers, but the underlying sentiment remains bearish after the U.S. Federal
Reserve increased its rate hike projections for 2017. The yield on the benchmark
6.97 pct bond maturing in 2026 is likely to trade in a 6.48 pct - 6.53 pct band.
    
    
    GLOBAL MARKETS
     U.S. stocks fell on Friday, weighed by a more than 4 percent drop in
Oracle shares, while recently battered stocks in the real estate and utilities
sectors posted the largest gains. 
     Asian shares steadied after China agreed to return a U.S. drone it had
seized, easing worries about rising diplomatic tensions between the world's two
biggest economic powers. 
     The dollar edged lower as some investors took profits after its rise last
week to a 14-year peak against a currency basket, though it remained underpinned
by expectations of more U.S. interest hikes in the coming year. 
     U.S. long-dated Treasury debt yields edged higher on Friday, continuing a
trend that has been in place for several weeks, with investors consolidating
some positions ahead of what is expected to be a quiet holiday period for
economic data. 
     Oil prices inched up in anticipation of tighter crude supply going into
2017 following the decision by OPEC and other producers to cut output to prop up
prices. 
     Gold prices edged up, rising above the lowest level touched in 10-1/2
months the previous week, as the U.S. dollar slipped against a basket of
currencies. 
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         67.81/67.84  December 16      -$13.32 mln   -$135.04 mln
 10-yr bond yield  6.75 pct     Month-to-date    -$114.55 mln  -$2.68 bln
                                Year-to-date     $4.04 bln     -$5.82 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 = 67.76 Indian rupees)

 (Compiled by Shradha Singh in Bengaluru)

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