August 1, 2018 / 3:12 AM / 5 months ago

Morning News Call - India, August 1

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    FACTORS TO WATCH
    11:00 am: Monsoon session of parliament continues in New Delhi.
    2:30 pm: Monetary Policy Committee to announce interest rate decision in
Mumbai.
    2:45 pm: RBI Governor Urjit Patel briefs media post release of monetary
policy statement in Mumbai.
    1:00 pm: Federal cabinet meets in New Delhi. Agenda not known.
    
    LIVECHAT - BOJ FOCUS 
Hiroshi Ugai, Chief Economist for Japan at JPMorgan; Former BOJ official, joins
us to dissect Bank of Japan policy announced on Tuesday on the heels of reports
that it was planning to discuss a more flexible approach to guiding Interest
rates, and his outlook on BOJ's policy normalisation.
    To join the conversation at 09:30 am IST, click on the link: here
    
    
    INDIA TOP NEWS
    • India's central bank, in a tight spot, is expected to raise rates again
The Reserve Bank of India is likely to raise interest rates while retaining a
neutral policy stance as it aims to strike a balance between rising inflationary
pressures and still recovering growth.
    • Tata Motors skids to first quarterly loss in three years
Tata Motors reported its first quarterly loss in nearly three years on Tuesday
as its British unit Jaguar Land Rover sold fewer of its luxury cars to
dealerships in China and expenses rose.
    • India's April-June fiscal deficit at 68.7 percent of FY target
India reported on Tuesday a fiscal deficit of 4.29 trillion rupees for
April-June, or 68.7 percent of the budgeted target for the current fiscal year
compared with 80.8 percent a year ago.
    • Smelter closure hurts Vedanta, Q1 profit lags estimate
Vedanta on Tuesday reported a 2 percent rise in first-quarter profit, but missed
analysts' estimates, as closure of its copper smelter in South India offset
higher volumes at its aluminium and oil & gas businesses.
    • India's June infrastructure output growth hits 7-month high of 6.7 percent
India's annual infrastructure output grew 6.7 percent in June from a year ago,
government data showed on Tuesday, its fastest pace in seven months.

    • Vedanta chairman offers $1 billion to take miner private
Vedanta Resources Chairman Anil Agarwal's family trust on Tuesday offered about
$1 billion in cash to take the London-listed miner private.
    • Govt seeks parliament nod for $143 million capital injection in Air India
The Indian government on Tuesday sought parliament approval to inject 9.8
billion rupees in ailing national carrier Air India during the current fiscal
year, after efforts to find a buyer for its 76 percent stake in the carrier
failed.
    • Bank of India June-quarter profit rises 8.4 percent on tax write-back
Bank of India said on Tuesday quarterly profit rose 8.4 percent as the state-run
bank recomputed tax provisions made a year earlier.
    
    
    GLOBAL TOP NEWS
    • Trump to propose 25-percent tariff on $200 billion of Chinese imports
-source
The Trump administration plans to propose slapping a 25-percent tariff on $200
billion of imported Chinese goods after initially setting them at 10 percent, a
source familiar with the plan said on Tuesday.
    • China July manufacturing growth slowest in 8 months, export orders shrink
- Caixin PMI
China's manufacturing sector grew at the slowest pace in eight months in July as
export orders declined yet again in a sign of a darkening outlook for the
economy and businesses amid an intensifying trade dispute with the United
States, a private survey showed.
    • Apple's pricey iPhone X, subscriptions deliver earnings beat
Apple sales led by the pricey iPhone X pushed quarterly results far beyond Wall
Street targets on Tuesday, with subscriptions from App Store, Apple Music and
iCloud services bolstering business.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading at 11,396.50, up 0.2 percent
from its previous close.
    • The Indian rupee is expected to open almost unchanged against the dollar
before a decision by the country’s interest-rate setting panel on whether to
raise rates for a second time this year.
    • Indian government bonds are likely to open little changed ahead of outcome
from the rate-setting Monetary Policy Committee’s review later today. Yield on
the benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.75
percent-7.79 percent band till the policy decision.
    
    
    GLOBAL MARKETS
    • U.S. stocks rebounded on Tuesday, boosted by gains in industrial shares
following reports of renewed trade negotiations between the United States and
China.
    • Asian shares were higher, tracking the firmer Wall Street finish though
reports that Washington plans to raise tariffs on $200 billion of Chinese goods
have put the focus back on volatile Sino-U.S. trade relations.
    • The U.S. dollar edged up on the yuan and growth-leveraged currencies after
a source said the White House was about to propose higher tariffs on $200
billion in Chinese imports, perhaps sparking a new round of trade hostilities.

    • U.S. Treasury yields were little changed in afternoon trading on Tuesday
amid widespread expectations the Federal Reserve would leave interest rates
unchanged when it announces its latest policy decision on Wednesday.
    • Oil prices fell after industry data showed U.S. stockpiles of crude
unexpectedly rose, starting the new month in negative territory after the
largest monthly decline in two years in July.
    • Gold prices were steady, after slipping to a near two-week low in the
previous session, as investors waited for the outcome of the U.S. Federal
Reserve's monetary policy meeting for outlook on interest rates.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.58/68.61  July 31          $83.56 mln    $93.52 mln
 10-yr bond yield  7.77 pct     Month-to-date    $76.20 mln    $31.81 mln
                                Year-to-date     -$711.23 mln  -$5.75 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 = 68.4500 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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