January 13, 2017 / 3:30 AM / a year ago

Morning News Call - India, January 13

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    FACTORS TO WATCH
    5:00 pm: Reserve Bank of India to release weekly foreign exchange data in
Mumbai.
    
    LIVECHAT-WEEKAHEAD
    Join Nigel Stephenson at 04:30 pm for the week ahead in Global Markets. To
join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
     Tata Sons names insider Chandrasekaran as new chairman
    India's $100 billion salt-to-software Tata conglomerate named veteran
insider Natarajan Chandrasekaran as the new chairman of its holding company on
Thursday, looking to soothe investors after a bruising public spat over the
ouster of his predecessor. 
     India's cash crunch tamps down retail inflation
    India's retail inflation hit a two-year low in December as businesses
resorted to price discounting to boost flagging sales following the government's
cash crackdown, fuelling hopes of an interest rate cut by the central bank.
 
     Flipkart reshuffle signals shift to margins over volume
    Even before he was appointed to run India's biggest e-commerce company,
Kalyan Krishnamurthy had signalled a change: as head of sales at Flipkart he
focused on profitable "big ticket" items, a shift away from the industry's
fixation on growth at all costs. 
     Tata Consultancy beats third-quarter profit estimates
    India's biggest software services exporter Tata Consultancy Services Ltd
said it would continue to focus on expanding its digital business after beating
analyst estimates with a 10.9 percent rise in profit for the quarter to
December. 
     SpiceJet to seal $10 billion deal with Boeing for 737 jets - sources
    India's SpiceJet is set to seal an order for at least 90 new 737 jets from
Boeing, two sources said on Thursday, as the low-cost carrier targets an
expansion to tap into the South Asian nation's booming air travel market.
 
     Supreme Court denies Sahara more time to make $88 million payment
    India's top court on Thursday rejected a request from the Sahara
conglomerate to be given more time to deposit 6 billion rupees by Feb. 6,
despite the group's argument that a shortage of cash in the country was making
it hard to raise the funds. 
     Bharti Airtel to spend $441 mln to set up payments bank
    Bharti Airtel Ltd, India's top wireless carrier, on Thursday unveiled a
so-called payments bank, committing an initial investment of 30 billion rupees
to build a nationwide network. 
     Louvre Hotels buys majority stake in India's Sarovar Hotels
    France's Louvre Hotels Group, part of Chinese hotel firm Jin Jiang
International, said on Thursday it bought a majority stake in Indian hotel chain
Sarovar Hotels for an undisclosed amount, further expanding its international
footprint. 
    
    
    GLOBAL TOP NEWS
     China Dec exports fall more than expected, cap dismal year, but imports
top forecasts
    China's December exports fell by a more-than-expected 6.1 percent from a
year earlier, while imports beat forecasts slightly, growing 3.1 percent on
strong demand for commodities from coal to iron ore, official data showed.
 
     Samsung leader quizzed for over 22 hours in S.Korea corruption scandal
    Samsung Group leader Jay Y. Lee left the South Korean special prosecutor's
office, more than 22 hours after arriving for questioning on bribery suspicions
in an influence-peddling scandal that could topple President Park Geun-hye.
 
     Takata to pay $1 bln to settle U.S. air bag probe -sources
    Japan's Takata Corp is expected to plead guilty to criminal wrongdoing as
early as Friday as part of a $1 billion settlement with the U.S. Justice
Department over its handling of air bag ruptures linked to 16 deaths worldwide,
sources said. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures was trading at 8,439.50, trading up 0.15 pct from
its previous close.
     The Indian rupee will likely open lower against the dollar, tracking its
Asian peers, as disappointing trade data from China renewed concerns about the
health of the world's second-largest economy.
     Indian sovereign bonds are poised to edge higher, as retail inflation
eased to an over two-year low, burnishing chances of monetary easing by the
nation's central bank. The yield on the benchmark 6.97 pct bond maturing in 2026
is likely to trade in a 6.34 pct-6.40 pct band today. The bond had closed at
104.25 rupees, yielding 6.37 pct, yesterday.
    
    
    GLOBAL MARKETS
     The three major U.S. stock indexes closed lower on Thursday as investors
waited for fourth-quarter corporate earnings and details of U.S. President-elect
Donald Trump's economic policy eight days ahead of his inauguration. 
     Asian shares dipped but remained on track for weekly gains while the
dollar was poised for a losing week, as investors weighed whether
President-elect Donald Trump would stress growth-boosting steps when he takes
office. 
     The dollar steadied after hitting a five-week low against the yen and the
broader basket of currencies, after U.S. President-elect Donald Trump's news
conference had disappointed some investors earlier in the week. 
     A weak $12 billion 30-year bond auction cooled a rally in the U.S.
Treasuries market on Thursday, lifting bond yields from their initial lows as
traders reduced their bets on inflation and federal borrowing under a Trump
administration. 
     Oil prices edged up, supported by reports on details of OPEC output cuts,
although lingering doubts over producer compliance with supply reduction targets
weighed on the market. 
     Gold fell after hitting a seven-week high in the previous session as the
dollar edged up and a technical correction set in, but the yellow metal was
still on track to end higher for a third straight week. 
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         68.12/68.15  January 12       -$1.88 mln  -$22.18 mln
 10-yr bond yield  6.64 pct     Month-to-date    -           $27.41 mln
                                Year-to-date     -           -
 
        
    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=68.09 Indian rupees)

 (Compiled by Sourav Bose in Bengaluru)

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