January 4, 2019 / 3:31 AM / 3 months ago

Morning News Call - India, January 4

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    FACTORS TO WATCH
    11:00 am: Winter Session of Parliament continues in New Delhi.
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
         
     
    INDIA TOP NEWS
    • Parliamentary panel asks RBI to ease bank capital requirements
    An Indian parliamentary panel on Thursday asked the central bank to ease its
rules on capital requirements for banks so that they can increase lending.

    • Dena Bank, Vijaya Bank slump after Bank of Baroda announces swap ratios
for merger
    Shares of state-run Dena Bank and Vijaya Bank plunged on Thursday after the
federal cabinet approved their merger with Bank of Baroda late on Wednesday, in
an attempt to clean up the country's banking system.
    • Nestle welcomes Supreme Court ruling in Maggi case
    Food group Nestle said on Thursday a ruling by India's Supreme Court marked
a partial victory in its row with the government over Maggi noodles.

    • Indian banks likely to recover bad loans worth 700 bln rupees by March-end
- finance minister
    Finance Minister Arun Jaitley said on Thursday commercial banks were likely
to recover 700 billion rupees of bad loans by the end of March, helped by
resolution of 12 large cases.
    • U.S. drugmaker J&J's India sales dip 3 percent in 2017/18-filing
    Johnson & Johnson's sales in India dipped 3 percent in the year to March
2018, a regulatory filing showed on Thursday, as the U.S. drugmaker grappled
with the country's stringent medical device pricing policies.
    
    
    GLOBAL TOP NEWS
    • On first day in power, House Democrats challenge Trump to end shutdown
    Democrats wasted no time flexing their new power in the U.S. House of
Representatives on Thursday by approving legislation backed by new Speaker Nancy
Pelosi that would end a 13-day partial government shutdown, ignoring President
Donald Trump's demand for $5 billion for a border wall.
    • China services sector extends solid expansion in December - Caixin PMI
    China's services sector extended its solid expansion in December, offering
some cushion for the slowing economy, a private survey showed.
    • China and U.S. to hold vice ministerial level trade talks in Beijing on
January 7-8
    China and the United States will hold vice ministerial level trade talks in
Beijing on Jan. 7-8, China's commerce ministry said.
    
        
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were down 0.1 percent at 10,708.00 from
its previous close.
    • The Indian rupee is expected to open higher against the dollar after data
showed that U.S. manufacturing activity slowed to a two-year low, reaffirming
fears of a growth slowdown in the world’s largest economy. 
    • Indian government bonds are likely to trade little changed in early
session ahead of a weekly auction of notes today. The yield on the benchmark
7.17 percent bond maturing in 2028 is likely to trade in a 7.41 percent - 7.46
percent band today.
    
   
    GLOBAL MARKETS
    • Wall Street plunged on Thursday after slowing U.S. factory activity on the
heels of a dire revenue warning from Apple fueled fears of a global economic
slowdown.
    • Global markets were on edge on Friday as dire U.S. economic data slammed
Wall Street and pushed investors to bet the Federal Reserve could reverse its
policy tightening before the end of this year.
    • The safe-haven yen strengthened marginally versus the dollar as broader
market sentiment remained weak on rising concerns over a sharp slowdown in
global growth.
    • The U.S. two-year Treasury note yield dropped below 2.4 percent on
Thursday, reaching parity with the federal funds effective rate for the first
time since 2008.
    • Oil prices fell after the United States followed most other major
economies into a manufacturing downturn, although supply cuts by producer club
OPEC kept declines in check.
    • Gold prices rose to a fresh 6-1/2 month high as tumbling share markets on
the back of weak U.S. data fanned fears of a global economic slowdown, putting
the safe haven metal on track for a third weekly gain.
         
                   CLOSE       FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         70.17/70.2  January 3        -$138.77 mln  $234.84 mln
 10-yr bond yield  7.42 pct    Month-to-date    $5.14 mln     $152.08 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 = 70.12 Indian rupees)

 (Compiled by Swathi Nair in Bengaluru.)
  
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