August 22, 2019 / 3:22 AM / 25 days ago

Morning News Call - India, August 22

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FACTORS TO WATCH

09:30 am: Junior Finance Minister Anurag Singh Thakur, Chief Economic Advisor Krishnamurthy Subramanian and NITI Aayog Vice Chairman Rajiv Kumar will be present at Mindmine Summit 2019 in New Delhi.

LIVECHAT - BONDS CHAT

Reuters European Government Bonds Correspondent Virginia Furness looks at bond markets on the continent following a week during which yields on safe haven bonds clocked fresh record lows. To join the conversation at 5:00 pm IST, click on the link: refini.tv/2P8N0Wp

INDIA TOP NEWS

• Parle may cut up to 10,000 jobs as slowdown bites

Parle Products might lay off up to 10,000 workers as slowing economic growth and falling demand in the rural heartland could cause production cuts, a company executive said.

• Weak growth is highest priority - RBI policy minutes

Fixing India’s weak growth has become the highest priority while a benign inflation outlook has given the central bank room to cut rates although transmission remains inadequate, monetary policy committee meeting minutes showed.

• P.Chidambaram arrested in corruption case

Police arrested former Indian finance minister P. Chidambaram late on Wednesday in relation to alleged corruption and money laundering, a day after the Delhi High Court rejected his application to seek exemption from arrest.

• India needs to reduce ecommerce restrictions to revive economy - Amazon executive

India needs to encourage ecommerce and reduce red tape to help small businesses sell online and export goods to help revive sagging domestic economic growth, a senior Amazon.com executive said on Wednesday.

• SEBI allows rating agencies to collect clients’ debt data

India’s markets regulator on Wednesday allowed credit rating agencies to obtain details of clients’ existing and future debt, in a bid to help them identify defaults in a timely way, amid a severe credit crunch and a slowdown in the economy.

• India has not set deadline to launch electric vehicles - official

The Indian government has not set a deadline to launch electric vehicles or to ban manufacturing of petrol and diesel cars, a government official said on Wednesday.

• Incarcerated Kashmir separatists urge public march over loss of autonomy

Separatist leaders in Indian Kashmir have urged people to defy a ban and join a mass march after Friday prayers this week, the first such call since the federal government revoked the region’s autonomy, stirring anger in the region and beyond.

• Cricket: BCCI grows richer with new Paytm deal

India’s cricket board (BCCI) said it will earn 58% more per match for the next four years as Paytm retained the title sponsorship rights for international and domestic matches, underlining the game’s undiminished popularity in the country.

GLOBAL TOP NEWS

• Fed was divided on rate cut, wanted to avoid appearing on path for more cuts

Federal Reserve policymakers were deeply divided over whether to cut interest rates last month but were united in wanting to signal they were not on a preset path to more cuts, a message not likely to sit well with U.S. President Donald Trump.

• Trump imposes rule allowing U.S. to detain migrant families indefinitely

The Trump administration on Wednesday unveiled a rule that allows officials to detain migrant families indefinitely while judges consider whether to grant them asylum in the United States, abolishing a previous 20-day limit.

• North Korea says U.S. cruise missile test, military moves ‘dangerous,’ still committed to dialogue -KCNA

A North Korean spokesman said the United States’ recent mid-range cruise missile test and plans to deploy F-35 jets and offensive military equipment around the Korean peninsula were “dangerous” moves that would “trigger a new cold war” in the region.

LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

• SGX Nifty nearest-month futures were trading 0.2% lower at 10,909.50.

• The Indian rupee is expected to open little changed against the dollar after the Federal Reserve’s latest meeting minutes revealed that most policymakers viewed last month’s rate cut “a recalibration of the stance of policy or mid-cycle adjustment.”

• The Indian government bonds will likely open little changed after yesterday’s rally, as the minutes of the country’s rate-setting authority as well as the U.S. were mostly on expected lines and did not provide any fresh guidance. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.53%-6.59% today.​

GLOBAL MARKETS

• Wall Street’s main indexes rose on Wednesday as upbeat earnings from retailers pointed to strength in U.S. consumer demand, and held gains after minutes from last month’s Federal Reserve meeting showed policymakers had debated a more aggressive interest rate cut.

• Asian shares went flat as uncertainty over the outlook for both U.S. interest rates and the chance of global fiscal stimulus sucked the life out of markets.

• The dollar held gains after minutes from the Federal Reserve’s last policy meeting hosed down some aggressive expectations the central bank would embark on a series of deep interest rate cuts.

• Benchmark 10-year Treasury yields rose off session lows on Wednesday after minutes from the Federal Reserve’s July meeting showed that policymakers were united in wanting to avoid the appearance of being on the path to further rate cuts.

• Oil prices edged higher after a drawdown in U.S. crude inventories, but lingering concerns over the global economy and a build-up in U.S. refined product stocks kept a lid on gains.

• Gold prices were steady, holding above the key $1,500 an ounce level, as investors awaited a U.S. central bankers’ conclave for clues on future interest rate cuts.

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 = 71.43 Indian rupees Compiled by Nachiket Tekawade in Bengaluru

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