January 8, 2019 / 3:18 AM / 16 days ago

Morning News Call - India, January 8

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    FACTORS TO WATCH
    11:00 am: Winter Session of Parliament continues in New Delhi.
 
       
    LIVECHAT - EUROPE ECONOMICS
    Is Germany heading towards a recession? What does Brexit, trade wars mean
for the rest of Europe. We will be chatting with Dr. Christian Grimme, Economist
at IFO institute at 5:30 pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • RBI likely to pay bumper interim dividend to help Modi government-sources
    India's central bank, having changed leadership last month following a clash
with the government, is likely to transfer an interim dividend of 300-400
billion rupees to the government by March, according to three sources with
direct knowledge of the matter.
    • India forecasts 7 percent-plus economic growth ahead of elections
    India forecast its economy will grow more than 7 percent in the current
financial year ending in March, giving some relief to Prime Minister Narendra
Modi who seeks a second term in national elections to be held by May.

    • RBI says it is open to liquidity needs, ahead of shadow banker meeting
    India's central bank is open to infusing "need-based" liquidity into the
financial system, Governor Shaktikanta Das said on Monday ahead of a meeting
with the shadow banking sector, which has been hit hard by a funding crunch.

     • Modi plans job quotas for less well-off Indians as election nears
    India's cabinet on Monday backed proposals to reserve 10 percent of
government jobs for Indians outside the higher income brackets, a plan the main
opposition party suggested was an attempt by the government to lure back voters
as an election nears.
    • Indian state firms allowed private help with old oil, gas blocks
    Energy-hungry India will allow state-owned explorers to rope in the private
sector to raise production from old fields as the world's third biggest oil
importer strives to better exploit its hydrocarbon resources and cut dependence
on foreign oil.
    • Trump, Indian PM Modi discuss trade, Afghanistan -White House
    U.S. President Donald Trump and Indian Prime Minister Narendra Modi
discussed reducing the U.S. trade deficit with India and increasing their
cooperation in Afghanistan in a telephone call on Monday, the White House said.

    • Bandhan Bank to buy Gruh Finance in share-swap deal
    Bandhan Bank will buy mortgage provider Gruh Finance in a share-swap deal to
build up its housing loan portfolio, the companies said on Monday.
    • BPCL to buy Iranian oil in February after 3-month gap - sources
    State-run Bharat Petroleum will import 1 million barrels of Iranian oil in
February after a gap of three months, with the nation's overall purchases from
Tehran remaining at 9 million barrels, three industry sources said.
    
    
    GLOBAL TOP NEWS
    • U.S., China can reach trade deal 'we can live with' -U.S. Commerce
secretary
    U.S. Commerce Secretary Wilbur Ross predicted on Monday that Beijing and
Washington could reach a trade deal that "we can live with" as dozens of
officials from the world's two largest economies resumed talks in a bid to end
their trade dispute.
    • Nissan's Ghosn says he is innocent in first appearance since November
arrest
    Nissan Motor's ousted Chairman Carlos Ghosn defended himself against
allegations of financial misconduct in a Tokyo court, declaring his innocence in
his first public appearance since his arrest in November.
    • N.Korea leader visits China after warning of alternate path to U.S. talks
    North Korean leader Kim Jong Un is visiting China at the invitation of
Chinese President Xi Jinping, only days after warning he may take an alternative
path if the United States does not ease sanctions and pressure on his isolated
country.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading flat at 10,807.50 from its
previous close.
    • The Indian rupee is expected to open lower against the dollar after Brent
crude oil reached its highest level since mid-December, offsetting a further
decline on the dollar index. 
    • Indian government bonds are expected to rise in early trade as the federal
government will auction a new 10-year note this week, boosting demand for other
notes. The yield on the benchmark 7.17 percent bond maturing in 2028 is likely
to trade in a 7.47 percent-7.53 percent band today.
    
    
    GLOBAL MARKETS
    • Amazon.com and Netflix fueled a second straight session of gains on Wall
Street on Monday, as the resumption of U.S.-China trade talks helped ease
concerns that have pummeled the market in recent months.
    • Asian shares rose for the third straight session as investors bet that
Washington and Beijing are inching towards a trade deal and that U.S. Federal
Reserve would halt its tightening if economic growth slows further.
    • The dollar fell versus other major currencies for a fourth straight
session, as investors grew increasingly convinced the Federal Reserve will not
raise interest rates this year amid uncertainties over the U.S. economy.
    • U.S. Treasury prices fell on Monday, extending losses from Friday, as
investors evaluated the likelihood of further Federal Reserve rate hikes this
year and as the United States and China resumed trade talks.
    • Oil prices were stable, supported by hopes that talks under way in Beijing
involving U.S. and Chinese officials could end trade disputes between the
world's biggest economies, while OPEC-led supply cuts also tightened markets.

    • Gold held steady as bets on a pause in U.S. interest rate hikes and hopes
of a Sino-U.S. trade deal put pressure on the dollar, but an improved risk
appetite capped gains for the safe-haven metal.   
    
                   CLOSE       FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.87/69.9  January 7        $105.5 mln   $17.53 mln
 10-yr bond yield  7.5 pct     Month-to-date    -$203.8 mln  $63.73 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 = 69.76 Indian rupees)
    
   

 (Compiled by Swathi Nair in Bengaluru)
  
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