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Morning News Call - India, July 10

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    FACTORS TO WATCH
    5:30 pm: Government to release May Industrial output data in New Delhi. 
    6:00 pm: State Bank of India Chairman Rajnish Kumar at the "SBI Banking &
Economics Conclave."
    
        
    
    INDIA TOP NEWS
    • TCS profit misses estimates, pandemic hits client spending
    Tata Consultancy Services posted a near 14% drop in first-quarter profit on
Thursday, that also missed estimates, as the COVID-19 pandemic forced its
clients to cut spending on IT services.
    • Reliance to load Venezuelan oil cargo under fuel swap deal - sources
    Reliance will load its first cargo of Venezuelan crude in three months this
week in exchange for diesel under a swap deal the parties say is permitted under
the U.S. sanctions regime on the Latin American country, according to a Reliance
source and a shipping document from state oil firm PDVSA.
    • U.S. in talks with India on market access, trade concessions - U.S. envoy
    The United States is in talks with India on market access for its goods in
exchange for reinstating New Delhi's trade concessions under the Generalised
System Of Preferences (GSP), U.S. ambassador to India Kenneth Juster said on
Thursday.
    • Indian bank PNB reports 36.89 billion rupees DHFL loans as fraud
    Punjab National Bank said on Thursday it had reported loans made to Dewan
Housing Finance Corporation worth 36.89 billion rupees to India's central bank
as "fraud."
    • A space odyssey: Britain rockets into unknown with OneWeb
Britain is betting that satellite operator OneWeb will help it boldly go into a
post-Brexit era. But it faces formidable challenges to complete a working
constellation and rebuild a collapsed venture that has proved a money pit for
investors. The British government and Indian telecoms conglomerate Bharti
Enterprises said last week they would together put up $1 billion to buy OneWeb,
which filed for bankruptcy after its biggest backer, SoftBank Group, declined to
provide fresh funding.
    • India's fuel demand recovered further in June
    India's fuel demand in June extended its recovery from a 13-year low hit in
April, lifted by a pickup in activity as the economy gradually reopens from
lockdown restrictions imposed to combat the coronavirus pandemic, government
data showed on Thursday.
    • Tata Sons in talks to buy out AirAsia India stake at steep discount -
report
    Indian conglomerate Tata Sons is in talks to buy out AirAsia Group's stake
in their airline joint venture in India at a steep discount, the Business
Standard newspaper reported on Thursday, citing banking sources.
    • POLL-India inflation likely slowed in June as output returns
    India's consumer price inflation likely eased in June from March, a Reuters
poll predicted, as loosened coronavirus-led restrictions in most of the country
drove a slight recovery in economic activity and helped reduce a supply crunch.

    
    
    GLOBAL TOP NEWS
    • U.S. sets one-day record with more than 60,500 COVID cases; Americans
divided
    More than 60,500 new COVID-19 infections were reported across the United
States on Thursday, according to a Reuters tally, setting a one-day record as
weary Americans were told to take new precautions and the pandemic becomes
increasingly politicized.
    • U.S. Supreme Court rebuffs Trump's immunity claim, lets prosecutor get
financial records
    The U.S. Supreme Court on Thursday firmly rejected President Donald Trump's
arguments for sweeping presidential immunity and ruled that a New York
prosecutor can obtain his financial records but prevented - at least for now -
Democratic-led House of Representatives committees from getting similar
documents.
    • Chinese banks prepare contingency plans over threat of U.S. sanctions,
sources say
Chinese state lenders are revamping contingency plans in anticipation of U.S.
legislation that could penalise banks for serving officials who implement the
new national security law for Hong Kong, sources at five state financial
institutions said.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.4% lower at 10,796.00.
    • The Indian rupee is expected to fall against the U.S. currency as rising
coronavirus cases and fatalities in the world’s largest economy lifted the
dollar index from one-month lows.
    • Indian government bond yields are likely to edge higher in early trade
ahead of a weekly auction today. The yield on the benchmark 5.79% bond maturing
in 2030 is likely to trade in a range of 5.76%-5.82% until the 300-billion-rupee
bond sale.
    
    
    GLOBAL MARKETS
    • The S&P 500 and Dow dropped on Thursday as investors worried about another
round of business shutdowns to contain a surge in coronavirus cases and began to
shift their focus to earnings, while the Nasdaq hit another record closing high.

    • Asian shares and U.S. stock futures fell as record-breaking new
coronavirus cases in several U.S. states stoked concerns that new lockdowns
could derail an economic recovery, while investors looked forward to earnings
season.
    • The dollar and other safe-haven currencies were well bid after a surge in
new coronavirus cases in the United States further undermined the case for a
quick economic recovery.
    • U.S. Treasury yields fell on Thursday as an auction of 30-year bonds
showed continued strong demand for the safe-haven government debt amid the
relentless COVID-19 pandemic.
    • Oil prices dipped after steep falls in the previous session and were set
for a weekly decline on worries renewed lockdowns following a surge in
coronavirus cases in the United States and elsewhere will suppress fuel demand.

    • Gold was set for a fifth straight weekly gain as the COVID-19 pandemic
showed no signs of abating, keeping the safe-haven metal above the key $1,800
level.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES           DEBT
 PNDF spot         74.97/75.00  July 9           (1,059.46) crores  256.62 crores
 10-yr bond yield  5.77%        Month-to-date    (5,588) crores     1,094 crores
                                Year-to-date     (24,101) crores    (1,05,865) crores
 
    
    (FII investment numbers are in Indian rupees. Source: National Securities
Depository Limited)​

    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 = 75.14 Indian rupees)


    

 (Compiled by Pranay Prakash in Bengaluru)
  
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