August 8, 2019 / 3:15 AM / 17 days ago

Morning News Call - India, August 8

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FACTORS TO WATCH

11:00 am: Finance Minister Nirmala Sitharaman to meet industry associations in New Delhi.

LIVECHAT - ECONOMICS AND COMMODITIES

Paul Bloxham, Chief Economist for Australia, New Zealand and global commodities at HSBC, joins us at 09:30 am IST to discuss the Australian and Chinese economies, along with his expectations on the RBA,Fed and global rate paths, and his outlook on the commodity markets.To join the conversation, click on the link: refini.tv/2P8N0Wp

INDIA TOP NEWS

• RBI makes unconventional rate cut in bid to spur growth

The Reserve Bank of India lowered its benchmark interest rates for a fourth straight meeting on Wednesday with a slightly bigger than expected cut, underscoring its worries about India’s near-five year low economic growth pace.

• Indian auto executives seek tax cuts, easier finance access to revive sales-sources

India’s auto industry demanded tax cuts and easier access to finance for dealers and buyers at a meeting with Indian government officials on Wednesday to discuss the sector’s woes, sources said, in an effort to revive sales that have slumped.

• Reliance Industries set to bring Tiffany stores to India

Reliance Industries is partnering with iconic U.S.-based luxury jeweller Tiffany to open a line of stores in the country, adding yet another marquee name to its growing portfolio of brands.

• Mahindra warns of job losses in auto sector, seeks government help Mahindra and Mahindra said on Wednesday it saw a “huge danger” of job losses in the ailing domestic auto sector, as it sought government intervention, including tax reductions to revive demand.

• Zambian court blocks Vedanta’s bid to halt sale of Konkola mine

Vedanta Resources said on Wednesday that the Lusaka High Court had refused its application to halt the Zambian government’s winding up proceedings against its Konkola Copper Mines business.

• Indian airline Vistara eyes bigger reach, fleet this year

Vistara expects to grow its fleet size by over a third by the end of this year as it charts an aggressive expansion plan encouraged by the potential of the fast-growing domestic market, its top executive said.

GLOBAL TOP NEWS

• Trump says China is ‘killing us with unfair trade deals’

U.S. President Donald Trump on Wednesday said his tough stance on China’s economic and trade policies would ultimately benefit the American economy, even as Beijing signaled it could strike back by curbing sales of chemicals known as rare earths that are used in everything from iPhones to military equipment.

• U.S. government contractors get first look at Huawei ban

The U.S. agency responsible for government contracts on Wednesday released an interim rule for a ban on federal purchases of telecommunications equipment from five Chinese companies, including Huawei.

• Hong Kong facing worst crisis since handover -senior China official

Hong Kong is facing its worst crisis since it returned to China from British rule in 1997, the head of China’s Hong Kong and Macau Affairs office said on Wednesday amid more anti-government protests in the Asian financial hub.

LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

• SGX Nifty nearest-month futures were little changed at 10,860.

• The Indian rupee is expected to open little changed against the dollar amid a rebound on the Chinese yuan and worries over foreign equity outflows.

• The Indian government bonds, especially the benchmark bond, will likely open lower amid uncertainty over future rate cuts while rising geopolitical tensions between India and Pakistan will also weigh on sentiment. However, falling crude oil prices are likely to cap major losses, according to traders. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a 6.33%-6.40% range today.

GLOBAL MARKETS

• The S&P 500 recovered from steep early losses to end slightly higher on Wednesday as investors snapped up oversold shares and bond yields rebounded from significant lows that raised fears about a recession.

• Asian shares braced for more volatility as eye-catching easings by central banks stoked fears of global recession, driving U.S. yields to near-record lows and lifting gold past $1,500 for the first time since 2013.

• The yen stood tall, after global central banks startled markets with heavy rate cuts and threats of more to come as world economic risks grow, boosting the appeal of the safe-haven Japanese currency.

• U.S. Treasury yields tumbled on Wednesday, with 30-year yields approaching record lows, on growing fears over a global economic downturn and bets the Federal Reserve would have to pick up its pace of interest rate cuts to counter recession risks.

• Oil futures jumped more than $1 a barrel amid a weaker dollar, recovering ground after concerns that a global economic slowdown would hurt crude demand sparked losses of over 4% in the previous session.

• Gold prices rose again after topping the $1,500 mark in the previous session, as central banks around the world slashed interest rates amidst fears of a global recession.

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 = 69.39 Indian rupees)

Compiled by Priyanka Das in Bengaluru

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