January 10, 2019 / 3:22 AM / 5 months ago

Morning News Call - India, January 10

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    FACTORS TO WATCH
    No major events are scheduled.
    
    LIVECHAT - BONDS FOCUS
    Reuters interest rate reporter Dhara Ranasinghe delves into government bond
markets at 6:00 pm IST. To join the conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Yes Bank finalises potential candidates for top job
    Yes Bank said on Wednesday it has finalised the potential candidates for the
position of chief executive officer to replace the incumbent Rana Kapoor, but
did not disclose names.
    • IL&FS says ITNL roads business attracts strong interest
    India's heavily indebted Infrastructure Leasing & Financial Services said on
Wednesday it has received more than 30 expressions of interest for IL&FS
Transportation Networks domestic road business.
    • IndusInd Bank Q3 profit rises 5 percent
    IndusInd Bank reported a 5.2 percent rise in third-quarter profit on
Wednesday, helped by higher interest income.
    • India sets jobs quota for less well-off, critics see pre-vote ploy
    India's parliament passed a landmark bill on Wednesday reserving 10 percent
of government jobs for people outside high income brackets, a move criticised by
some as a pre-election gimmick amid high unemployment.
    • Pfizer to shut two manufacturing plants in India
    U.S. drugmaker Pfizer said on Wednesday it was shutting down two
manufacturing plants in India that make generic injectables like penicillin in
response to falling demand.
    
    
    GLOBAL TOP NEWS
    • China says trade talks with U.S. set foundation to resolve concerns
    Trade talks between China and the United States this week were extensive,
and helped establish a foundation for the resolution of each others' concerns,
China's commerce ministry said, but gave no details on the issues at stake.

    • BoJ mulls unpleasant policy options if Fed puts rate hikes on hold
    Worried by prospects of a pause in the U.S. interest rate hike cycle, the
Bank of Japan is shifting focus towards a risk that it may be forced to deploy
more stimulus this year to stop sharp yen rises from derailing an economic
recovery, sources say.
    • Trump storms out of talks on shutdown, bemoans 'total waste of time'
    U.S. President Donald Trump stormed out of talks with Democratic
congressional leaders on Wednesday over funding for a border wall with Mexico
and reopening the government, complaining the meeting at the White House was "a
total waste of time."
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.3 percent higher at 10,907
from its previous close.
    • The Indian rupee is expected to extend losses against the U.S. currency
after Brent crude oil reached its highest in almost a month, overshadowing a
broad weakness in the dollar amid dovish Federal Reserve minutes.
    • Indian government bonds are expected to fall in early trade as crude oil
prices extended gains, hurting the outlook for domestic inflation. The yield on
the benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.45
percent - 7.50 percent band today.
    
    
    GLOBAL MARKETS
    • Wall Street rallied for a fourth session on Wednesday, propelled by Apple,
chipmakers and other trade-sensitive stocks after signs of progress in trade
talks between the United States and China.
    • Asian shares began cautiously, struggling to rise after a multi-day rally
as markets await more news on U.S.-China trade talks that have raised hopes of a
deal to avert an all-out trade war.
    • The dollar weakened versus major peers such as the euro and yen due to
growing expectations the Federal Reserve will pause its rate tightening cycle
this year.
    • Dovish Federal Reserve speakers and a strong 10-year note auction helped
bring Treasury yields down from two-week highs on Wednesday, after optimism that
the United States would reach a trade deal with China had earlier boosted risk
appetite.
    • Oil prices fell on swelling U.S. supply, although the mood in global
markets was increasingly confident amid hopes the United States and China may
soon end trade disputes that have undermined global economic growth.
    • Gold prices held near seven-month highs as the dollar was pressured by
rising expectations the U.S. Federal Reserve will keep interest rates steady
this year, while investors also waited for further news on Sino-U.S. trade
talks.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         70.63/70.66  January 9        $39.14 mln    -$47.66 mln
 10-yr bond yield  7.47 pct     Month-to-date    -$262.36 mln  -$96.67 mln
                                Year-to-date     -             -
       
    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 = 70.52 Indian rupees)
 
 

 (Compiled by Swathi Nair in Bengaluru)
  
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