January 2, 2019 / 3:27 AM / 15 days ago

Morning News Call - India, January 2

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    FACTORS TO WATCH
    • 11:00 am: Winter Session of Parliament continues in New Delhi.
    • 1:00 pm: Federal cabinet likely to meet in New Delhi.        
    
    
    INDIA TOP NEWS
    • India exempts rupee payments for Iran oil from hefty taxes - gov't order
    India's finance ministry has exempted rupee payments made to the National
Iranian Oil Co (NIOC) for crude oil imports from a steep withholding tax,
according to a government order reviewed by Reuters.
    
    • RBI to allow banks to restructure some defaulting small business loans
    The Reserve Bank of India said it will allow banks to restructure loans to
small and medium sized-companies that are in default but standard as of the
beginning of the year. The dispensation is “one time”, the RBI said in a
circular on Tuesday.
    
    • Jet Airways defaults on debt payment to banks
Debt-laden Jet Airways has delayed the payment to a consortium of Indian banks,
led by State Bank of India, the airline said late Tuesday.
    
    • Banks' bad loans may decline further by March
    The Reserve Bank of India on Monday said the proportion of commercial
lenders' non-performing assets (NPAs) may fall slightly to 10.3 percent by
March, thanks to measures including the creation of a bankruptcy
code.
    
    • BJP confident of doing well in general election-Modi
    Bharatiya Janata Party (BJP) is confident of doing well at this year's
general election despite the party's recent losses in state polls, Prime
Minister Narendra Modi said in an interview with Reuters partner ANI on Tuesday.


    
    GLOBAL TOP NEWS
    • China December factory activity shrinks for first time in 19 months-Caixin
PMI
    China's factory activity contracted for the first time in 19 months in
December as domestic and export orders continued to weaken, a private survey
showed, pointing to a rocky start for the world's second-largest economy in
2019.
    
    • Hyundai scion emerges from father's shadow, says to complete ownership
revamp
    The heir apparent of Hyundai Motor Group said on Wednesday he will complete
a restructuring in 2019 as he moves to formally take over from his father at the
helm of South Korea's second-biggest conglomerate.

• Kim says ready to meet Trump 'anytime,' warns of 'new path'
    North Korean leader Kim Jong Un said on Tuesday he is ready to meet U.S.
President Donald Trump again anytime to achieve their common goal of
denuclearizing the Korean Peninsula, but warned he may have to take an
alternative path if U.S. sanctions and pressure against the country continued.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading flat at 10,922 from its
previous close.
    • The Indian rupee is expected to open lower against the dollar as most
regional currencies and equities declined following disappointing manufacturing
data from China.
    • Indian government bonds are expected to edge higher in early trade after
the central bank said it will buy notes this week. The yield on the benchmark
7.17 percent bond maturing in 2028 is likely to trade in a 7.39 percent - 7.45
percent band today.
    
    
    GLOBAL MARKETS
    • Wall Street advanced in low-volume trading on Monday as revelers gathered
to ring in 2019, marking the end of the worst year for U.S. stocks since 2008,
the height of the financial crisis.
    • Asian shares turned tail on the first trading day of the new year as more
disappointing economic data from China darkened the mood and erased early gains
in U.S. stock futures.
    • The dollar eased against the yen as caution prevailed on the first trading
day of the new year on wider concerns about global economic growth, the U.S.
government shutdown and a slower pace of Federal Reserve rate hikes.
    • U.S. Treasuries edged higher in a quiet session on Monday, ending a year
in which the yield curve reached its flattest since 2007.
    • Oil markets reversed early gains to fall on the back of surging U.S. crude
production and concerns of an economic slowdown in 2019.
    • Gold prices edged lower as Asian equities won support on the first day of
the new year from gains in U.S. stock futures, pointing to an improvement in
risk appetite.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         69.76/69.79  January 1        -$6.94 mln  -$87.83 mln
 10-yr bond yield  7.42 pct     Month-to-date    $286.1 mln  -
                                Year-to-date     -$4.77 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 = 69.44 Indian rupees)

 (Compiled by Swathi Nair in Bengaluru)
  
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