December 20, 2017 / 3:18 AM / 9 months ago

Morning News Call - India, December 20

(Morning News Call - India edition will not be published through the year-end
holiday season from December 25, 2017 to January 1, 2018. Normal service will
resume from January 2, 2018. Season’s Greetings and Happy New Year.)
    
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    FACTORS TO WATCH
    10:00 am: SEBI Chairman Ajay Tyagi, BSE MD Ashishkumar Chauhan, RBI ED M.
Rajeshwar Rao and other financial services industry executives at CII’s
Financial Markets Summit in Mumbai.
    10:00 am: Abbott Healthcare MD Susheel Umesh, Cadila Pharmaceuticals MD
Rajiv Modi at CII’s National Pharmaceutical Conclave in New Delhi.
    10.30 am: Prime Minister’s Economic Advisory Council likely to meet in New
Delhi.
    11:00 am: Winter session of parliament continues in New Delhi.
    
    GMF: CHARTING FX
    Take a look at the FX charts with Reuters technical analyst Martin Miller at
1630 iST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    Indian mortgage lender HDFC unveils $2 billion fundraising plan 
    Indian mortgage lender Housing Development Finance Corp said it would raise
as much as 130 billion rupees by selling shares or convertible bonds mainly to
maintain its stake in HDFC Bank.
    
    Tata Steel board approves up to $2 billion rights issue
    Tata Steel has approved a rights issue to raise up to 128 billion rupees to
fund capacity expansion at a plant in the eastern state of Odisha, and to cut
debt.
    
    Delivery Hero sells Indian unit to Ola in return for equity stake
    Germany's Delivery Hero said on Tuesday it was selling its foodpanda India
business to Ola in return for shares in the Indian ride-hailing firm.

    
    Dr. Reddy's resolves U.S. probe over child safety of drug packaging 
    Dr. Reddy's Laboratories will pay $5 million to resolve U.S. claims that the
Indian company sold prescription drugs in the United States in packaging that
was not tested for child safety, according to court papers filed on Monday.

    
    Apple names long-time exec as new India sales head - source 
    Apple has appointed Michel Coulomb as its top sales executive in India,
replacing Sanjay Kaul, a source familiar with the move said on Tuesday, as the
U.S. tech giant pursues a bigger share of the world's third-largest smartphone
market.
    
    
    GLOBAL TOP NEWS
    U.S. seeks ship ban over N.Korea violations, Moon proposes curtailing drills
    The United States has called on the U.N. Security Council to blacklist 10
ships for circumventing sanctions on North Korea, documents showed on Tuesday,
while South Korea's President suggested curtailing military exercises with
Washington to ease tensions ahead of next year's Winter Olympics.
    
    U.S. House OKs tax overhaul, but procedural snag forces new vote
    Congressional Republicans hit a last-minute snag on Tuesday in their drive
to pass the biggest U.S. tax overhaul in 30 years, requiring them to hold
another vote on Wednesday and delaying what was still likely to be their first
major legislative win under President Donald Trump.

    Miners big and small bank on China's hunger for high-grade iron ore
    China's aggressive campaign to clean its skies by clamping down on polluting
steel mills has fuelled a need for high-grade iron ore, and a prospector in the
Australian outback is hoping that will help fund an ambitious plan to develop a
full-scale mine.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    The SGX Nifty Futures was trading at 10,451.00, down 0.2 percent from its
previous close.
    The Indian rupee will likely open steady against the dollar, as investors
await a final vote on a U.S. tax-cut legislation later today after the House of
Representatives passed the bill that did not comply with the Senate rules. 
    Indian government bonds will likely open lower tracking gains in U.S.
Treasury yields. Investors are also awaiting the release of the Monetary Policy
Committee’s December meeting minutes. The yield on the benchmark 6.79 percent
bond maturing in 2027 is likely to trade in a 7.16-7.22 percent band, a trader
with a primary dealership said. 
    
    
    GLOBAL MARKETS
    • U.S. stocks fell on Tuesday as excitement over the likelihood of a tax
code revamp was offset by concern over its effect on years of monetary policy
stimulus and the future of interest rates.
    • Asian shares fell, taking their cues from Wall Street with investor
enthusiasm toward U.S. tax changes ebbing as the long-awaited reform bill wound
its way through Congress, while higher U.S. Treasury yields underpinned the
dollar.
    • The dollar was supported by expectations of a U.S. tax overhaul while a
sharp rise in German bond yields helped to underpin the euro.
    • U.S. Treasury yields rose on Tuesday with the benchmark yield hitting a
seven-week high as the biggest overhaul of the U.S. tax code in more than 30
years appeared on track to become law by the end of the week.
    • Oil prices inched up, supported by expectations of a fall in U.S. crude
inventories and by the ongoing outage of the North Sea Forties pipeline system.

    • Gold prices were nearly unchanged early as the dollar held steady on
expectations of a U.S. tax overhaul.
    
    
                    CLOSE         FII INVESTMENTS   EQUITIES      DEBT
 PNDF spot          64.00/64.03   December 19       -$63.70 mln   -$65.28 mln
 10-yr bond yields  7.22 pct      Month-to-date     -$508.12 mln  $280.94 mln
                                  Year-to-date      $8.19 bln     $26.02 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 = 64.0500 Indian rupees)
0 : 0
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