March 2, 2020 / 3:29 AM / 3 months ago

Morning News Call - India, March 2

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    FACTORS TO WATCH
    No major events scheduled for the day.
    
    GMF: Chris Cook, founder and president of Beacon Capital Management will
join us to discusses possible strategies for investos as fears over coronavirus
grip financial markets at 8:30 pm IST. To join the conversation, click on the
link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Indian economic growth slows, with coronavirus impact to come
    India's economy expanded at its slowest pace in more than six years in the
last three months of 2019, with analysts predicting further deceleration as the
global coronavirus outbreak stifles growth in Asia's third-largest economy.

    • Indian automakers say China coronavirus outbreak hitting parts supply
    Indian automakers Mahindra and Mahindra and Tata Motors said on Sunday their
supply of parts from China had been hit, as fallout from the coronavirus
outbreak mounts.
    • Indian refiners plan to wind down Venezuelan oil buys in April - sources
    Indian refiners Reliance Industries and Nayara Energy are planning to wind
down purchases of Venezuelan oil in April fearing future U.S. sanctions could
choke off all avenues to trade with state-run oil firm PDVSA, three sources with
knowledge of the matter said.
    • Airtel says $1.1 billion payment complies with top court's order on dues
    Bharti Airtel said it was complying with a Supreme Court order to pay dues,
after it paid more than $1.1 billion to the Department of Telecommunications on
Saturday.
    • Asia's garment industry sees lay-offs, factories closing due to
coronavirus
    Temporary factory closures and layoffs have already begun to hit low wage
workers across Asia as quarantines and travel restrictions from the new
coronavirus disrupt supply chains linked to China.
    
    
    GLOBAL TOP NEWS
    • China factory activity dives to worst on record as coronavirus paralyses
economy - PMI
    China's factories were dealt a devastating blow in February as the
coronavirus epidemic triggered the sharpest contraction in activity on record, a
private survey showed on Monday, with the health crisis paralysing large parts
of the economy.
    • Washington state confirms 2nd U.S. coronavirus death; New York reports
first case
    Health officials in Washington state said on Sunday a second person infected
with the coronavirus had died there, while New York's governor said his state
confirmed its first case of the illness.
    • 'Moment of truth:' Buttigieg drops out of Democratic race two days before
Super Tuesday
    Pete Buttigieg dropped out of the race for the Democratic presidential
nomination on Sunday, saying he no longer saw a chance of winning, the day after
fellow moderate Joe Biden won a big victory in South Carolina.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.6% higher at 11,237.50.
    • The Indian rupee is expected to fall against the U.S. currency, weighed by
dollar strength in offshore markets and weak local economic data.
    • Indian government bonds are likely to trade higher in early session, as
slowing economic growth in October-December cemented hopes of a policy rate cut
in the coming months. The yield on the benchmark 6.45% bond maturing in 2029 is
likely to trade in a range of 6.32%-6.38% today.
    
    
    GLOBAL MARKETS
    • The S&P 500 fell for the seventh straight day on Friday and the benchmark
index suffered its biggest weekly drop since the 2008 global financial crisis on
growing fears the fast-spreading coronavirus could push the economy into
recession, although stocks regained some ground right at the end of a volatile
session.
    • Asian shares steadied from early losses as investors placed their hopes on
a coordinated global monetary policy response to weather the damaging economic
impact of the coronavirus epidemic.
    • The yen and the euro rose against the dollar on growing expectations that
the U.S. Federal Reserve will cut interest rates at its policy review this month
to protect the economy from the rapid spread of the coronavirus.
    • Money continued to pour into U.S. Treasuries on Friday on coronavirus
concerns, sending the yield on the two-year note below 1% for the first time
since 2016 and adding to pressure on central bankers to cut interest rates.

    • Oil prices pared losses after earlier hitting multi-year lows as hopes
that a bigger than expected production cut from OPEC and stimulus from central
banks could offset economic gloom from the coronavirus outbreak.
    • Gold prices rose more than 1% following a steep fall across the precious
metals complex in the previous session, as worries that the coronavirus epidemic
could push the global economy into recession sent investors scurrying for safe
havens.
     
     
    
                   CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot         72.19/72.22  February 28      (3,064.85) crore  (1,939.84) crore
 10-yr bond yield  6.37 pct     Month-to-date    1,820 crore       2,097 crore
                                Year-to-date     13,943 crore      (9,551) crore
 
    
      
    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 = 72.52 Indian rupees)
 

 (Compiled by Pranay Prakash in Bengaluru)
  
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