February 9, 2017 / 3:25 AM / in 5 months

Morning News Call - India, February 9

8 Min Read

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    FACTORS TO WATCH
    10:00 am: Finance Minister Arun Jaitley, Junior Finance Minister Arjun Ram
Meghwal and Economic Affairs Secretary Shaktikanta Das at ASSOCHAM annual
function in New Delhi.
    
    11:00 am: Budget session of parliament continues in New Delhi.
    
    3:15 pm: Bank of India media briefing after third-quarter earnings in
Mumbai.
    
    LIVECHAT- EURO CLEARING
    Colin Lloyd has been following the ebb and flow of financial markets for
more than 30 years. He writes regularly on commodities, money markets, capital
markets and foreign exchange. He joins the forum at 3:30 pm to discuss the
outlook for currency derivatives and euro clearing in this volatile political
climate. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
     RBI signals end to rate cuts as inflation risks rise
    The Reserve Bank of India kept its policy rate on hold on Wednesday and
unexpectedly signalled an end to its longest easing cycle since the global
financial crisis, saying inflation poses a bigger threat to the economy than a
crackdown on "black money." 
     Cipla looks to boost US business as Q3 profit beats estimates
    Cipla Ltd's third-quarter profit beat estimates due to higher sales in the
United States, and the company said it was looking for licensing deals and
acquisitions to build its speciality medicines pipeline in that market.
 
     National Stock Exchange names IDFC's Vikram Limaye as CEO
    National Stock Exchange named Vikram Limaye, the CEO of infrastructure
lender IDFC Ltd, as its new chief executive as the country's largest bourse
gears up for a much-awaited initial public offering this year. 
     Infosys defends decisions after media report of governance concerns 
Infosys Ltd, India's second-biggest software services exporter, on Wednesday
said it had already addressed concerns about executive pay after media reported
that its founders had complained about decisions including a pay hike for Chief
Executive Vishal Sikka. 
     RBI deputy says "bad bank" could help if designed right
    The Reserve Bank of India deputy governor on Wednesday joined the debate
over creating a so-called "bad bank" to handle record sour assets in the
nation's banks, saying it could help if "designed properly". 
     Indian airports face capacity crunch as market booms
India's aviation industry risks a capacity crunch as an expansion in landing
slots and terminals fails to keep pace with the number of jets entering the
market and rapid growth in demand from travellers, executives warned on
Wednesday. 
     MobiKwik in talks to raise funds, eyes $1 bln valuation -CEO
Mobile payments and digital wallet firm MobiKwik says it is in talks to raise
more funds at a level that would give the start-up a $1 billion valuation, as it
pushes to forge new ties with banks and offer new financial services on its
platform. 
     JSW Infrastructure aims to list shares in 2018/19
JSW Infrastructure Ltd, owned by billionaire Sajjan Jindal, plans to list its
shares on local bourses in 2018/19 as it draws an expansion plan to increase
operating profit and cargo-handling capacity, a company official said.
 
     India scraps funding ties with Gates Foundation on immunisation 
    A group backed by the Bill & Melinda Gates Foundation that works on India's
immunisation programmes will now be funded by the health ministry, a government
official said, a move in part prompted by fears foreign donors could influence
policy making. 

    
    GLOBAL TOP NEWS
     Sessions confirmed as U.S. attorney general after battle with Democrats
    A bitterly divided U.S. Senate confirmed Republican Senator Jeff Sessions on
Wednesday as the next attorney general of the United States after strong
pushback from Democrats concerned about his record on civil rights. 
     UK PM May quashes attempts to derail her Brexit plan in parliament
    Prime Minister Theresa May won approval from parliament's lower chamber on
Wednesday to trigger Britain's exit from the European Union, defeating attempts
by pro-EU lawmakers to attach extra conditions to her plan to start divorce
talks by March 31. 
     U.S. court blocks Anthem-Cigna deal, dealing blow to consolidation
    A federal judge on Wednesday ruled against U.S. health insurer Anthem Inc's
proposed $54 billion merger with smaller rival Cigna Corp, derailing an
unprecedented effort to consolidate the country's health insurance industry.
 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures were at 8,827.00, up 0.18 pct from its previous
close
     The Indian rupee is poised to open higher against the dollar, helped by
sustained greenback selling by markets participants, including exporters, even
global risk appetite remains jittery amid economic and political uncertainty. 
     Indian government bonds will likely edge lower, after the Monetary Policy
Committee kept the repurchase rate unchanged and shifted its policy stance to
neutral from accommodative. The yield on the benchmark 6.97 pct bond maturing in
2026 is likely to trade in a 6.70 pct-6.80 pct band today. The bond closed at
101.55 rupees, the lowest since Nov. 8, yielding 6.75 pct, yesterday. 
    
    
    GLOBAL MARKETS
     The S&P 500 ended slightly higher on Wednesday as investors digested mixed
earnings reports, while the Dow Jones Industrial Average slipped as bank stocks
weighed. 
     Asian stocks looked set to consolidate around four-month highs as a
cautious Wall Street close and growing political risks in Europe force investors
to the sidelines. 
     The dollar drooped against its peers hovering near a 10-week low versus
the yen, with a slide in U.S. Treasury yields amid investor flight to safety
taking a toll on the currency. 
     U.S. Treasury yields fell to their lowest levels in multiple weeks on
Wednesday with 5-year note yields hitting their lowest since Dec. 8 as a flight
to safety and technical positioning encouraged investors to buy U.S. government
debt. 
     Oil prices stabilised boosted by an unexpected draw in U.S. gasoline
inventories, although bloated crude supplies meant that fuel markets remained
under pressure. 
     Gold slipped from 3-month highs on profit taking, but political risks from
elections in Europe and worries over U.S. President Donald Trump's policies
supported safe haven demand for bullion. 
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         66.96/66.99  February 8       -$19.09 mln  -$123.98 mln
 10-yr bond yield  7.05 pct     Month-to-date    $181.68 mln   $585.55 mln
                                Year-to-date     $175.29 mln   $473.47 mln
    
    
    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 = 67.19 Indian rupees)
    
    

 (Erum Khaled in Bengaluru)

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