February 28, 2020 / 3:19 AM / a month ago

Morning News Call - India, February 28

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    FACTORS TO WATCH
    5:00 pm: Government to release January Infrastructure output data in New
Delhi.
    5:30 pm: Government to release October-December GDP data in New Delhi.
    
    
                
    INDIA TOP NEWS
    • India's GDP seen growing at 4.7% year-on-year in December quarter, with
virus impact to come
    Having suffered its weakest expansion in over six years in the September
quarter, India's economy probably fared slightly better in the December quarter,
before suffering a relapse due to the impact of the coronavirus globally,
analysts said.
    • With revenues falling, India's taxmen rake up three-year-old
demonetization cases
    Indian jewellers have received surprise tax notices asking them to turn over
money they made from customers who scrambled to buy gold after Prime Minister
Narendra Modi's 2016 ban on high-currency notes, according to a dozen jewellers
and tax officials.
    • Tata Motors, two group finance firms accused of antitrust violations in
India - sources
    India's competition regulator is examining allegations that Tata Motors and
two finance firms of its $100 billion parent group abused their market position
while selling commercial vehicles, according to three sources and legal
documents seen by Reuters.
    • India fines jewellery firm for withholding information in $2 billion bank
fraud
India's securities regulator on Thursday fined jewellery retailer Gitanjali Gems
and its executives 50 million rupees for failing to disclose key information
related to a $2 billion fraud at Punjab National Bank.
    • India chicken sales slashed almost 50% by false virus rumour - Godrej
Agrovet
    A false rumour that the coronavirus can be spread by chickens has slashed
Indian poultry sales by almost 50%, top supplier Godrej Agrovet said on
Thursday.
    • IKEA won't raise prices in India following import tax hike -executive 
    Sweden's IKEA is not planning to increase prices in India in the short term,
following India's move to raise import taxes on goods such as furniture, a
company executive said on Thursday.
    • U.S. spy agencies monitor coronavirus spread, concerns about India
-sources
    U.S. intelligence agencies are monitoring the global spread of coronavirus
and the ability of governments to respond, sources familiar with the matter said
on Thursday, warning that there were concerns about how India would cope with a
widespread outbreak.
    
    
        
    GLOBAL TOP NEWS
    • World prepares for coronavirus pandemic; global recession forecast
    Hopes the coronavirus would be contained to China vanished as infections
spread rapidly around the world, countries started stockpiling medical equipment
and investors took flight in expectation of a global recession.
    • Fed seen cutting rates amid virus threat, low inflation
    The Federal Reserve may need to move aggressively to cut borrowing costs to
cushion the economy from the effects of the rapid spread of the new coronavirus,
which sent global stocks tumbling this week.
    • Britain, on trade collision course with EU, says it could walk away
    Britain unveiled a negotiating mandate on Thursday for talks with the
European Union that puts it on a collision course with Brussels, saying it was
ready to walk away if "good progress" was not made by June.
    
        
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 1.6% down at 11,421.
    • The Indian rupee is expected to trade lower against dollar following yet
another rout on Wall Street amid intensifying worries over the novel
coronavirus. Increasing bets that the U.S. Federal Reserve may cut interest
rates to help restore investor confidence could, however, cap the rupee’s
losses.
    • Indian government bonds are likely to gain in early trade amid a continued
fall in U.S. Treasury yields and crude oil prices even as investors wait for the
October-December growth data. The yield on the benchmark 6.45% bond maturing in
2029 is likely to trade in a range of 6.34%-6.40% today.
    
    
        
    GLOBAL MARKETS
    • Wall Street's main indexes plunged on Thursday for the sixth straight
session, with the S&P 500 confirming its fastest correction in history as the
rapid global spread of coronavirus intensified worries about economic growth.

    • Global share markets were headed for the worst week since the depths of
the 2008 financial crisis as investors ditched risky assets on fears the
coronavirus would become a pandemic and derail economic growth.
    • The dollar nursed losses after its worst day against the euro in nearly
two years, as the global spread of the coronavirus fired up expectations for a
U.S. rate cut and pushed the hunt for yield elsewhere.
    • U.S. Treasury yields steadied following sharp declines on Thursday as
coronavirus concerns led investors to pile into safe-haven assets, with the
yield on the benchmark 10-year note reaching an all-time low for the third
consecutive day.
    • Oil prices fell for a sixth straight session and were on track for about a
12% weekly fall, the biggest in more than four years, as the spread of the
coronavirus outside China raised fears of slowing global demand.
    • Gold prices inched higher as worries intensified that the rapidly
spreading coronavirus could turn into a pandemic and derail global economic
growth.
    
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot         71.61/71.64  February 27      (3,132.32) crore  (2,217.03) crore
 10-yr bond yield  6.37 pct     Month-to-date    4,885 crore       4,037 crore
                                Year-to-date     17,008 crore      (7,611) crore
 (FII investment numbers are in Indian rupees. Source: National Securities
Depository Limited)
    
    
    
    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 = 71.87 Indian rupees)
 

 (Compiled by Pranay Prakash in Bengaluru)
  
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