July 1, 2019 / 3:16 AM / in 19 days

Morning News Call - India, July 1

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    FACTORS TO WATCH
    4:30 pm: Minister of State of Finance & Corporate Affairs Shri Anurag Thakur
at GST event in New Delhi.
    5:00 pm: Government to release May Infrastructure output data in New Delhi.
    
    LIVECHAT - FX WEEK AHEAD
    FX Buzz analyst Jeremy Boulton analyses G7 currencies at 5:00 pm IST. To
join the conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • PM Modi calls for water conservation push as drought hits crops
    Prime Minister Narendra Modi on Sunday pushed for greater grassroots water
conservation efforts amid concerns weak monsoon rains would push millions of
drought-hit people to the edge and hammer agricultural production in Asia's
third-biggest economy.
    • India asks its states not to partner with Philip Morris-funded foundation
    India's health ministry has asked all state governments in the country not
to partner with the Foundation for a Smoke-Free World (FSFW) because of its
links to tobacco giant Philip Morris International Inc, a letter seen by Reuters
showed.
    • Google appears to have leveraged Android dominance - India watchdog
    Google appears to have misused its dominant position in India and reduced
the ability of device manufacturers to opt for alternate versions of its Android
mobile operating system, Indian officials found before ordering a wider probe in
an antitrust case.
    • India's fiscal deficit hits 52% of budgeted target in first 2 months of
2019/20
    India's fiscal deficit in May stood at 3.66 trillion rupees, or 52% of the
budgeted target for the current fiscal year, government data showed on Friday.

    • Failure at a big Indian non-bank lender could cause large damage - cenbank
    Failure of a large Indian non-banking financial company could cause as much
damage as the collapse of a big commercial lender, the Reserve Bank of India
said, stressing a need for greater surveillance of these firms.
    • Flipkart to replace 40% of its delivery vans with EVs
    Walmart Inc's Indian unit Flipkart said late Thursday it plans to replace
nearly 40% of its current fleet of delivery vans with electric vehicles (EVs) by
March 2020, as part of its efforts to cut down on its carbon footprint.

    • Jaguar Land Rover to build electric cars at UK factory - report
    Britain's biggest automaker Jaguar Land Rover is expected to announce plans
next week to build electric cars at its central English Castle Bromwich factory,
the Sunday Times reported.
    • Zambian court lifts order blocking disposal of Vedanta unit assets 
    A Zambian court on Friday lifted an order blocking a provisional liquidator
at Vedanta's Konkola Copper Mines business from disposing of assets or making
arrangements with creditor until a July 4 hearing.
    
    
    GLOBAL TOP NEWS
    • Trump says China trade talks 'back on track,' new tariffs on hold
    The United States and China agreed on Saturday to restart trade talks after
President Donald Trump offered concessions including no new tariffs and an
easing of restrictions on tech company Huawei in order to reduce tensions with
Beijing.
    • OPEC set for oil cut extension if Iran endorses pact
    OPEC and its allies look set to extend oil supply cuts next week at least
until the end of 2019 as Iraq joined top producers Saudi Arabia and Russia on
Sunday in endorsing a policy aimed at propping up the price of crude amid a
weakening global economy.
    • China June factory activity unexpectedly shrinks as trade war weighs -
Caixin PMI
    China's factory activity unexpectedly shrank in June as domestic and export
demand faltered, a private sector business survey showed, pointing to further
strains on its vast manufacturing sector as the Sino-U.S. trade war drags on.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.1% higher at 11,851.50. 
    • The Indian rupee is expected to open higher against the dollar amid upbeat
risk appetite after the U.S. agreed to suspend new tariffs on Chinese shipments.
Possible intervention by the Reserve Bank of India, however, is expected to cap
the rupee’s advance. 
    • Indian government bonds may trade higher in early session tracking likely
gains in the local currency, as United States and China agreed to restart trade
talks after a month’s pause. The yield on the benchmark 7.26% bond maturing in
2029 is likely to trade in a 6.84% - 6.90% range today. 
    
    
    GLOBAL MARKETS
    • Wall Street advanced in heavy trading on Friday, with the S&P 500 and the
Dow closing the book on their best June in generations, ahead of
much-anticipated trade talks between U.S. President Donald Trump and Chinese
counterpart Xi Jinping at the G20 summit now underway in Japan.
    • Stocks rallied and bonds retreated in Asia as a thaw in the Sino-U.S.
trade dispute averted one threat to the global economy, leading investors to
pare wagers on aggressive policy easing by the major central banks.
    • The yuan gained and the safe-haven yen slid against the dollar as appetite
for risk-sensitive currencies improved after the United States and China agreed
to restart their troubled trade talks.
    • U.S. Treasuries were little changed on the day on Friday as investors
waited on talks between the United States and China on Saturday for signs that
leaders will de-escalate a trade war that has been blamed for harming global
economic growth.
    • Oil prices rose more than $1 a barrel after Saudi Arabia, Russia, Iraq
backed an extension of supply cuts for another six to nine months ahead of an
OPEC meeting this week.
    • Gold prices fell more than 1%, their lowest in a week, as hopes of a trade
deal between the United States and China improved risk appetite, while a
stronger dollar further weighed on prices.    
 
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.02/69.05  June 28          -$74.55 mln  $130.39 mln
 10-yr bond yield  6.89%        Month-to-date    $231.45 mln  $730.30 mln
                                Year-to-date     $11.42 bln   -$1.40 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 = 68.9480 Indian rupees)
    
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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