January 2, 2020 / 3:25 AM / a month ago

Morning News Call - India, January 2

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    FACTORS TO WATCH
    8:30 am: DIPAM Joint Secretary Anuradha Thakur at listing ceremony of Bharat
Bond ETF in Mumbai.
    
    
    INDIA TOP NEWS
    • Coal-fired plants around New Delhi running despite missing emissions
deadline
    Coal-fired utilities around New Delhi were still operating on Wednesday
despite threats from the Indian authorities to close them down if they had not
installed equipment to cut emissions of sulphur oxides by the end of the year.

    • EXCLUSIVE-Indian PM Modi's office proposes waiving carbon tax on coal
    Indian Prime Minister Narendra Modi's office has proposed waiving a tax on
coal to help finance pollution-curbing equipment, according to documents, but
the move would also make coal more competitive in price with solar and wind
energy.
    • India's current account improves as trade deficit shrinks
    India's current account deficit narrowed in the September quarter of the
fiscal year as the trade deficit shrank, central bank data showed on Tuesday,
but the momentum may not be sustainable.
    • India cuts tax on palm oil imports, could lift shipments
    India has cut import taxes on crude and refined palm oil from Southeast
Asian (ASEAN) countries after a request from suppliers, a government
notification said on Tuesday.
    • Karvy Group names new head for financial services arm
    Karvy Group said on Tuesday it has appointed a new head of its financial
services unit as part of corporate restructuring, a month after the country's
market regulator slapped a ban on its stock broking arm for alleged misuse of
client funds.
    • Rattanindia resolves debt with lenders through one-time settlement
    Rattanindia Power said it had reached a one-time settlement of 40.50 billion
rupees with its lenders for a debt transfer in the largest resolution of
stressed assets outside the National Company Law Tribunal's
framework.

            
    GLOBAL TOP NEWS
    • China December factory activity expands more slowly but confidence
jumps-Caixin PMI
    China's factory activity expanded at a slower clip in December, pulling back
from a three-year high the previous month as new orders softened, a private
survey showed.
    • Ghosn met Lebanese president after fleeing Japan-sources
    Fugitive former Nissan chairman Carlos Ghosn met Lebanon's president after
fleeing from Japan, where he was smuggled out of house arrest by a private
security company, two sources close to Ghosn said on Wednesday.
    • Rock-throwing Iraqi militias quit U.S. Embassy after protests
Supporters of Iranian-backed Iraqi paramilitary groups who stormed the U.S.
Embassy's perimeter and hurled rocks in two days of protests withdrew on
Wednesday after Washington dispatched extra troops and threatened reprisals
against Tehran.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures little changed at 12,249.00.
    • The Indian rupee is expected to open lower against the dollar tracking
decline in most Asian currencies amid weaker-than-expected China manufacturing
data.
    • Indian government bonds will likely trade largely unchanged after rallying
yesterday, as traders await the central bank’s next round of special open market
operation. The yield on the benchmark 6.45% bond maturing in 2029 is likely to
trade in a range of 6.48%-6.53% today, a trader with a state-run bank said.
    
    
    GLOBAL MARKETS
    • Wall Street's major indexes edged higher on Tuesday on a renewed rally
fueled by trade optimism, capping off a decade of handsome returns in which the
benchmark S&P 500 rose nearly 190%.
    • Asian shares kicked off the new decade higher, after global stocks ended
the previous one at record highs, and buoyed by Chinese markets after Beijing
eased monetary policy to support slowing growth.
    • The dollar started the new year where it left the old one, under pressure
as investors wagered U.S. economic outperformance could be coming to an end as
optimism on trade brightens the outlook for growth globally.
    • Longer-dated U.S. Treasuries look set to post their best return since 2014
on Tuesday, after concerns about the slowing U.S. economy prompted the Federal
Reserve to cut interest rates three times this year.
    • Oil prices rose on the first trading day of 2020 as warming trade
relations between the United States and China eased demand concerns, and rising
tensions in the Middle East raised worries about supply.
    • Gold prices rose slightly as the dollar remained on the back foot on signs
of progress in trade ties between the United States and China.
    
    
 CLOSE             FII INVESTMENTS  EQUITIES       DEBT          
 PNDF spot         71.26/71.29      January 1      (1,972.18)    (543.38) crore
                                                   crore         
 10-yr bond yield  6.8%             Month-to-date  (1,972)       (543) crore
                                                   crore         
                                    Year-to-date   (1,972)       (543) crore
                                                   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 = 71.22 Indian rupees)
 

 (Compiled by Siddharth Athreya V in Bengaluru)
  
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