May 12, 2017 / 3:22 AM / 2 months ago

Morning News Call - India, May 12

8 Min Read

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    FACTORS TO WATCH
    10:00 am: SEBI Member Madhabi Puri Buch at an event in Mumbai.
    12:00 pm: Chemicals & Fertilizer Minister Ananth Kumar to brief media in New
Delhi.
    2:30 pm: NITI Aayog Vice Chairman Arvind Panagariya to launch energy data
portal in New Delhi.
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
    5:00 pm: Chief Statistician TCA Anant and DIPP Secretary Ramesh Abhishek to
brief media on new series of IIP and WPI data in New Delhi.
    5:30 pm: Government to release April consumer price inflation data, March
industrial output data in New Delhi.

    
    LIVECHAT - QUIZ EAST
    The first of our Friday quizzes focuses on Asia and the week's top news.
Tests your wits and googling speed at 11:00 am. To join the conversation, click
on the link: here
    
    
    INDIA TOP NEWS
    • EXCLUSIVE-Rosneft's $12.9 bln Essar Oil deal held up over debt issues
    Russian state oil firm Rosneft is struggling to close its $12.9 billion
acquisition of India's Essar Oil Ltd because six of Essar's Indian creditors
have yet to approve the deal, sources close to the talks said.
    • India's regulator clears use of GM mustard, final approval awaited
    A government panel has formally cleared an application seeking approval for
commercial use of what would be India's first genetically modified (GM) food
crop and has now put the ball in politicians' court to give their final
approval.
    • Adani to decide on Australia mine in May even after Senate skips vote
    India's Adani Group still expects to make a final investment decision this
month on its Carmichael coal mine even after the Australian Senate left for a
break without voting on new land title laws, a company spokesman said on
Thursday.
    • India's first state-run company IPO in 5 years receives strong response
    An initial public offering of shares in India's Housing and Urban
Development Corp Ltd (HUDCO) to raise 12.2 billion rupees ($189.4 million) was
oversubscribed nearly 80 times in a strong response to the first IPO by a
state-run company since 2012.
    • INTERVIEW-India has no plans to allow extra sugar imports -food minister 
    India, the world's biggest sugar consumer, has no plans to allow extra
imports of the sweetener as stocks held in mills will suffice, Food Minister Ram
Vilas Paswan said on Thursday.
    • India pitches to private companies for help in defence drive
    India presented a long-delayed plan to industry officials on Thursday for
selecting private arms manufacturers to help build an indigenous defence
industry, a government document seen by Reuters showed.
    • India's Kotak Mahindra launches $900 mln share sale 
    India's Kotak Mahindra Bank Ltd is selling new shares worth as much as 58
billion Indian rupees ($900 million) to boost its capital strength and raise
funds for potential acquisitions.
    • Indian coal workers to strike against planned provident funds merger
    Five trade unions at top coal producers in India will go on a three-day
strike in June to protest against a proposed merger of the coal miners'
provident fund with the employees' provident fund, they said.

    
    
    GLOBAL TOP NEWS
    • Trump attacks on fired FBI chief meet resistance; Russia probe proceeds
    President Donald Trump on Thursday ran into resistance for calling ousted
FBI chief James Comey a "showboat," an attack that was swiftly contradicted by
top U.S. senators and the acting FBI leader, who pledged that an investigation
into possible Trump campaign ties to Russia would proceed with vigor.

    • Boeing must clear 737 MAX engines with US regulator to fly again
    The U.S. aviation regulator must reapprove the engines on Boeing Co's 737
MAX jetliner before it can take flight and begin deliveries, the engine maker
said on Thursday, after the new aircraft was grounded due to an engine problem.

    • South Korea urges 'parallel' talks, sanctions to rein in North
    South Korea's new president launched international efforts to defuse tension
over North Korea's weapons development on Thursday, urging both dialogue and
sanctions while also aiming to ease China's anger about a U.S. anti-missile
system.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    The SGX Nifty Futures were trading at 9,443.00, up 0.04 pct from its
previous close.
    The Indian rupee will likely open steady to lower against the dollar,
tracking muted moves in other Asian currencies, while the greenback headed for
its first weekly advance since early April amid expectations of a Federal
Reserve rate increase next month.
    Indian government bonds will likely rise ahead of an auction of a new
10-year paper, which is expected to see a robust demand from investors. The
yield on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a
6.92 pct-6.96 pct band today.

    
    
    GLOBAL MARKETS
    • U.S. stocks fell on Thursday after worse-than-expected sales drops at
Macy's and Kohl's sparked a selloff in shares of department stores and stirred
fears that consumers are not spending enough to drive strong economic growth.

    • Asian shares inched up, hobbled by a downbeat day on Wall Street but still
on track for weekly rises, while oil prices extended gains on hopes for output
cuts.
    • The dollar traded below an eight-week high against the yen, with the
near-term focus on whether forthcoming U.S. economic data would provide the
catalyst for further gains in the greenback.
    • U.S. Treasury yields were little changed for a second day on Thursday
after hitting their highest levels since March as losses in Wall Street stocks
offset an April jump in producer prices and a poorly received 30-year bond
auction.
    • Oil prices were stable as traders expected OPEC-led production cuts to
extend beyond the middle of this year, and as U.S. crude inventories fell to
their lowest levels since February.
    • Gold prices held firm on political uncertainty in the United States, but
were set for their fourth straight weekly loss due to expectations of an
interest rate hike by the U.S. Federal Reserve in June.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         64.39/64.42  May 11           $202.98 mln  $102.05 mln
 10-yr bond yield  7.20         Month-to-date    -$5.82 mln   $937 mln
                                Year-to-date     $6.43 bln    $10.33 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 =  64.38 Indian rupees)

 (Compiled by Pathikrit Bandyopadhyay in Bengaluru)
  

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