April 4, 2019 / 3:20 AM / 2 months ago

Morning News Call - India, April 4

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    FACTORS TO WATCH
    10:00 am: The Finance Commission, in partnership with the World Bank, the
OECD and the ADB, organizes a round table conference on 'Fiscal Relations Across
Levels of Government' in New Delhi.
    
    11:00 am: Finance Minister Arun Jaitley at CII Annual Session in New Delhi.

    11:45 am: Monetary Policy Committee to announce interest rate decision in
Mumbai.

    3:00 pm: RBI analyst conference call following interest rate decision in
Mumbai.
    
    LIVECHAT - BONDS UPDATE 
    Reuters interest rate reporter Dhara Ranasinghe delves into government bond
markets at 5:00 pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • Jet grounds much of its fleet as it awaits bailout funds
Jet Airways has been forced to ground more than three quarters of its fleet
after failing to pay lessors as it awaits bailout funds promised by state-run
banks.
    
    • State court asks government to ban 'inappropriate' video app TikTok
A court in the southern Indian state of Tamil Nadu on Wednesday asked the
federal government to ban Chinese video app TikTok, saying it was "encouraging
pornography".
    
    • Reddit, Telegram among websites blocked in India -internet groups
Websites like Reddit and Telegram are being blocked in India by internet service
providers, throwing into question the enforcement of net neutrality rules,
advocacy groups said on Wednesday.

    • Thyssenkrupp workers want guarantees should Tata Steel deal dissolve
Steel workers at Thyssenkrupp expect substantial guarantees for jobs and plants
even if a planned joint venture with India's Tata Steel falls apart, the head of
Thyssenkrupp Steel Europe's works council said on Wednesday.

    • IL&FS unit has 90 percent non-performing assets - company
The flagship lending unit of India's Infrastructure Leasing & Financial Services
 (IL&FS) has seen 90 percent of its loans go sour, a company executive said on
Wednesday, as the current management tries to recover dues from external
agencies to pay its debt.

    • Rail Vikas Nigam IPO fully subscribed
State-owned Rail Vikas Nigam's initial public offering (IPO) to raise 4.82
billion rupees was fully subscribed at the end of the book-running process,
stock exchange data showed on Wednesday.

    • Raymond to enter real estate business to monetise land bank
Raymond is venturing into real estate business to monetise its land bank, the
textile and branded apparel company said on Wednesday, at a time when the sector
is reeling from rising debt and funding crunch.

    • The government may direct state banks on debt resolution - finmin source
The India government could issue directions to state-run banks to resolve
corporate default cases and ensure there is no tampering with the pace of
cleaning up bad debt, a finance ministry source said on Wednesday.
    
    
    GLOBAL TOP NEWS
    • White House's Kudlow says U.S.-China talks making progress, could extend
Trade talks between the United States and China made "good headway" last week in
Beijing and the two sides aim to bridge differences during talks that could
extend beyond three days this week, White House economic adviser Larry Kudlow
said.

    • Brexit delay law approved by UK's House of Commons
The lower house of the British parliament on Wednesday approved legislation
which would force Prime Minister Theresa May to seek a Brexit delay to prevent a
potentially disorderly departure on April 12 without a deal.

    • Ethiopia to issue first Boeing investigation report on Thursday
Investigators will release on Thursday a keenly awaited report on the deadly
crash of an Ethiopian Airlines jet, Ethiopia's Transport Ministry said, giving
the first official clues to the second crash of a new Boeing 737 MAX in five
months.

  
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.2 percent higher at
11,738.00, from its previous close. 

    • The Indian rupee is expected to open little changed against the dollar
ahead of a likely interest rate cut by the nation’s monetary policy committee.
   
     • Indian sovereign bonds will likely open little changed, as traders await
the rate-setting Monetary Policy Committee’s crucial interest rate decision,
wherein a rate cut has already been factored in. The yield on the benchmark 7.26
percent bond maturing in 2029 is likely to trade in a 7.25 percent-7.29 percent
band till the policy decision today.

        
    GLOBAL MARKETS
    • U.S. stocks edged higher on Wednesday, extending a strong start to the
quarter as a rally among chipmaker shares provided a boost to the broader market
on growing hopes of a trade deal between Washington and Beijing.
    • Asian shares held near an eight-month peak as investors awaited
developments on Sino-U.S. trade talks, with both sides appearing closer to
signing a deal and improved risk appetite weighing on safe-haven assets like the
yen.
    • The euro held firm against the dollar as hopes of a trade deal between the
United States and China bolstered risk appetite globally, while the British
pound was buoyed after the UK parliament approved legislation to seek a Brexit
delay.
    • U.S. Treasury yields rose on Wednesday to their highest in a week and a
half, as hopes for a trade deal between China and the United States and a
breakthrough for Brexit triggered a sell-off in the bond market.
    • Oil prices were mixed, with Brent edging higher towards the
psychologically important $70 level after easing in the previous session on data
showing a surprise build in U.S. inventories.
    • Gold prices inched up as the dollar eased and a rally in equities paused,
while investors kept a close watch on Sino-U.S. trade talks.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.44/68.47  April 3          -$151.96 mln  -$346.98 mln
 10-yr bond yield  7.27 pct     Month-to-date    $1.45 bln     -$719.21 mln
                                Year-to-date     $8.29 bln     -$1.17 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 = 68.44 Indian rupees)

 (Compiled by Avina Ajit in Bengaluru)
  
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