August 20, 2019 / 3:19 AM / a month ago

Morning News Call - India, August 20

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FACTORS TO WATCH

9:30 am: RBI deputy governors N.S. Vishwanathan and M.K. Jain at FIBAC 2019 in Mumbai.

LIVECHAT - ASIA EM MACROS

Trinh Nguyen, Senior Economist, Emerging Asia at Natixis discusses the outlook for economies in the region amid global uncertainty at 10:00 am IST. To join the conversation, click on the link: refini.tv/2P8N0Wp

INDIA TOP NEWS

• India exempts shadow lenders from debenture reserve requirements

India’s non-banking financial firms and listed companies that issue debentures will no longer have to maintain a certain level of redemption reserves against them, the government said on Monday, in an effort to increase the availability of money for lending.

• RBI weighs linking some new bank loans to policy rate

The Reserve Bank of India is looking to get banks to link some new loans to its key policy rate or other external benchmarks, Governor Shaktikanta Das said on Monday, as he pushes them to cut rates faster to stimulate a flagging economy.

• Trump urges India and Pakistan to reduce tensions in call with leaders

U.S. President Donald Trump spoke with the leaders of India and Pakistan on Monday, discussing prospects for improved trade ties with Washington and stressing the need to reduce tensions over Kashmir between the nuclear-armed neighbors.

• Visa critical of India’s move towards no-fee debit card transactions

Global card payments group Visa is critical of the Indian government’s decision to boost adoption of electronic payments by requiring banks and card payment networks to offer no-fee debit card transactions, a senior Visa executive said.

• U.S. assures support to American tech firms in India in letter

The United States ambassador to India has written to top American technology firms assuring them of support for a level playing field in India, a letter seen by Reuters showed, amid Washington’s concerns over New Delhi’s protectionist policies.

• INSIGHT-Besieged Kashmiri neighbourhood in test of wills with India’s Modi

For more than a week, the young men of Soura, a densely populated enclave in Kashmir’s main city of Srinagar, have been taking turns to maintain an around-the-clock vigil at the entry points to their neighbourhood.

• India’s Vodafone Idea names Ravinder Takkar as CEO

Telecom operator Vodafone Idea Ltd on Monday named Ravinder Takkar as its managing director and chief executive, replacing Balesh Sharma.

• Facebook contractor hikes pay for Indian content reviewers

Facebook contractor Genpact has raised minimum wages for the content moderation teams it runs for the Silicon Valley firm in India, the latest sign of improvement for workers after reports of stressful conditions at the social network’s sites globally.

GLOBAL TOP NEWS

• China sets new lending reference rate slightly lower on first day

China’s new lending reference rate was set slightly lower in the first publication of the benchmark since the central bank announced interest rate reforms designed to lower corporate borrowing costs.

• Hong Kong leader says she hopes peaceful protest was a turning point Hong Kong leader Carrie Lam said she hoped a peaceful weekend anti-government protest was the start of an effort to restore peace and that the government would talk to peaceful protesters and tackle complaints against police.

• Mining giant BHP pays record dividend, but flags risks to global growth BHP Group, the world’s biggest miner, reported its largest annual profit in five years and posted record full-year dividends, boosted by a dramatic rally in prices for steelmaking ingredient iron ore.

LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

• SGX Nifty nearest-month futures were trading 0.1% lower at 11,043.

• The Indian rupee is expected to extend losses against the dollar, weighed by the U.S. currency’s advance against its peers and the Chinese yuan’s decline.

• The Indian government bonds are likely to open lower as sentiment remains cautious after uptick in crude oil prices, while chances that the government may spend more to revive the economy continued to weigh on investor sentiment. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a 6.56%-6.62% range today.​

GLOBAL MARKETS

• U.S. stocks climbed on Monday as reports of stimulus efforts in China and Germany calmed fears of a severe downturn in the global economy that were stoked last week as bond yields fell.

• Asian shares extended their gains as hopes for stimulus in major economies tempered anxiety about a global recession, boosting riskier assets and drawing money from safe-havens such as bonds and gold.

• The dollar held near a three-week high, as expectations global economies would unleash fresh stimulus and an improvement in appetite for riskier assets lifted yields on U.S. government bonds.

• U.S. Treasury yields rose on Monday after the Treasury Department late on Friday said it was gauging market interest in ultra-long-dated debt, and as risk sentiment improved.

• Crude oil prices slipped, but losses were limited as equity markets rallied and as traders hoped Sino-U.S. trade tensions would ease.

• Gold prices held steady after posting their biggest daily decline in a month in the previous session, plummeting below a key psychological level of $1,500 an ounce.

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 = 71.44 Indian rupees Compiled by Nachiket Tekawade in Bengaluru

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