July 12, 2019 / 3:18 AM / 3 months ago

Morning News Call - India, July 12

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    FACTORS TO WATCH
    10:00 am: Finance Minister Nirmala Sitharaman at NABARD’s Foundation Day
event in New Delhi.
    12:30 pm: Secretaries of Finance Ministry to address CII members in New
Delhi.
    5:30 pm: Government to release June consumer price inflation data in New
Delhi.
    5:30 pm: Government to release May Industrial production data in New Delhi.
    
    
    INDIA TOP NEWS
    • India-U.S. trade talks to restart with little sign of compromise
Indian and U.S. trade negotiators will meet today, with little sign of a
compromise on a series of protectionist measures taken by the two governments in
recent months that have strained ties between the strategic partners.

    • Walmart told U.S. govt India e-commerce rules regressive, warned of trade
impact
Walmart told the U.S. government privately in January that India's new
investment rules for e-commerce were regressive and had the potential to hurt
trade ties, a company document seen by Reuters showed.
    • India to receive below-average monsoon rains in next two weeks
India may receive below-average rainfall in the next two weeks with a large
deficit in the soybean and cotton growing central and western regions, a weather
department official said on Thursday, raising concerns over the output of
summer-sown crops.
    • India market regulator to probe if IndiGo CEO downplayed promoters' tiff
-ET Now
India's market regulator is probing whether InterGlobe Aviation Chief Executive
Officer Ronojoy Dutta downplayed the tussle between the promoters of the
country's largest carrier IndiGo, ET Now reported on Thursday, citing sources.

    • Apple's India-made top-end iPhones to hit stores next month-source
Apple's top-end iPhones, assembled in India by Foxconn's local unit, are likely
to hit Indian stores next month, a source said, potentially helping the tech
giant drop prices in the world's second-biggest smartphone market.
    • Vistara to launch first international flights in August 
Indian full-service airline Vistara said on Thursday it would launch its
international flights in August, a year later than anticipated, with Singapore
as its first destination.
    
    
    GLOBAL TOP NEWS
    • Fed's Powell affirms rate cut view; others see U.S. economy humming
As Federal Reserve Chair Jerome Powell kept the focus Thursday on global risks
that could trigger a Fed rate cut in coming weeks, his colleagues from regional
Fed districts painted a rosier picture of continued U.S. economic growth and a
solid business outlook.
    • U.S. will not blacklist Iran's foreign minister, for now
The United States has decided not to impose sanctions on Iranian Foreign
Minister Mohammad Javad Zarif for now, two sources familiar with the matter said
on Thursday, in a sign Washington may be holding a door open for diplomacy.

    • Singapore's slowest growth in a decade raises recession risk
Singapore reported dismal preliminary second quarter growth data, including the
slowest pace of annual expansion in a decade, raising bets that a recession and
monetary policy easing could be coming.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were little changed at 11,573.00.
    • The Indian rupee is expected to open little changed against the dollar
after core U.S. consumer inflation topped estimates, possibly impacting the
upcoming Federal Reserve decision on interest rates.
    • Indian government bonds are likely to trade lower in early session,
tracking a jump in U.S. Treasury yields and as traders await local debt supply.
However, any major fall may be capped as traders remain optimistic ahead of
India’s retail inflation data for June, due after market hours today. The yield
on the benchmark 7.26% bond maturing in 2029 is likely to trade in a 6.48%-6.53%
range till the auction result today.
    
    
    GLOBAL MARKETS
    • The Dow and S&P 500 rose on Thursday to close at record highs as health
insurers gained after the Trump administration scrapped a plan designed to rein
in prescription drug prices, while financial shares climbed with bond yields.

    • Japan's Nikkei was flat with investors shifting their focus to corporate
earning as weak profits from some firms such as Yaskawa Electric dragged on
machinery stocks.        
    • The dollar was steady, having regained some traction against its peers
after stronger-than-expected U.S. inflation data tempered the prospect of an
aggressive Federal Reserve interest rate cut later this month.

    • U.S. Treasury yields rose, with the biggest gains in long-dated
maturities, after Thursday's auction of $16 billion 30-year bonds met weak
demand and U.S. underlying consumer prices recorded their biggest gain in 1-1/2
years.
    • Oil prices rose as U.S. oil producers in the Gulf of Mexico cut more than
half their output in the face of a tropical storm and as tensions continued in
the Middle East.
    • Gold prices rose and were on track for a weekly gain, as worries over
renewed U.S.-China trade tensions and expectations of a rate cut by the Federal
Reserve boosted demand for the safe-haven metal.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.39/68.42  July 12          -$46.3 mln    $99.82 mln
 10-yr bond yield  6.49 pct     Month-to-date    -$610.97 mln  $605.33 mln
                                Year-to-date     $10.73 bln    -$795.43 mln
 
    
    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 = 68.4240 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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