July 15, 2019 / 3:17 AM / a month ago

Morning News Call - India, July 15

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    FACTORS TO WATCH
    12:00 pm: Government to release June wholesale price inflation data in New
Delhi.
    2:45 pm: Finance Minister Nirmala Sitharaman attends World Youth Skills Day
event 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
    • Housing lender DHFL warns it may not survive as a going concern
One of India's biggest housing finance companies, Dewan Housing Finance Corp Ltd
(DHFL), warned on Saturday that its financial situation was so grim that it may
not survive.
    • India aims to raise 3.25 trillion rupees from stake sales in state firms
over 5 years-sources
The Indian government has plans to raise as much as 3.25 trillion rupees in the
next five years by reducing its stakes in some large state-owned firms to 40%,
two senior government officials told Reuters, in the nation's biggest
privatisation push in more than two decades.
    • India's June inflation hits eight-month high but rate cut still possible
India's retail inflation hit a eight-month high in June on higher food prices,
but stayed below the central bank's target, potentially giving it room for a
further interest rate easing to boost slowing growth.
    • India says Deloitte misreading law in challenging govt's call for ban
India has told a tribunal the local auditing affiliate of international
accounting group Deloitte Touche Tohmatsu is misreading a key federal law as the
firm seeks to avoid a five-year ban on new business, according to legal
documents reviewed by Reuters on Sunday.
    • India's second lunar mission delayed due to 'technical snag'- ISRO
    India's space agency said it delayed the launch of its second lunar mission,
Chandrayaan-2, in the early hours due to a "technical snag" which was observed
less than an hour before the scheduled liftoff.
    • India-U.S. trade talks end without major progress -sources
U.S. and Indian trade negotiators ended talks on Friday without making major
progress on a range of disputes over tariffs and other protectionist measures
imposed by both sides that are straining bilateral ties, according to officials
with knowledge of the discussions.
    • Infosys raises revenue forecast on upbeat demand for digital services
India's second-biggest software services firm, Infosys, raised its revenue
forecast for the year on Friday, betting on upbeat client demand for its new-age
digital services such as cloud, data and analytics.
    • Indian authorities arrest top executive at retailer Future Group over
unpaid duties
Indian federal authorities arrested a top executive at the retail conglomerate
Future Group, one of the largest retailers in the country, on customs fraud
charges involving more than $2 million of unpaid customs duties on garment
imports, a government statement said on Saturday.
    
    
    GLOBAL TOP NEWS
    • China Q2 GDP growth slows to 6.2% y/y, 27-year low
China's economic growth slowed to 6.2% in the second quarter from a year
earlier, the weakest in at least 27 years, as demand at home and abroad faltered
as the United States ratcheted up trade pressure.
    • Iran ready to talk if U.S. lifts sanctions, Pompeo skeptical
Iran is ready to hold talks with the United States if Washington lifts sanctions
and returns to the 2015 nuclear deal it quit last year, Iranian President Hassan
Rouhani said in a televised speech on Sunday.
    • U.S. firms may get nod to restart Huawei sales in 2-4 weeks -official
The U.S. may approve licenses for companies to re-start new sales to Huawei in
as little as two weeks, according to a senior U.S. official, in a sign President
Donald Trump's recent effort to ease restrictions on the Chinese company could
move forward quickly.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were little changed at 11,553.00.
    • The Indian rupee is expected to open higher against the dollar as the
Federal Reserve’s dovish monetary policy outlook continued to weigh on the U.S.
currency.
    • Indian government bonds are likely to open higher, as easing June core
inflation heightened bets of another policy rate cut next month. The yield on
the benchmark 7.26% bond maturing in 2029 is likely to trade in a 6.45%-6.50%
today.
    
    
    GLOBAL MARKETS
    • All three major indexes posted record closing highs on Friday as firm
expectations for an interest-rate cut from the Federal Reserve continued to
propel shares while investors awaited next week's kickoff of the corporate
earnings season.
    • Asian shares started the week on a softer note after posting their first
weekly decline since early June, while the dollar was on the defensive.

    • The dollar stayed on the defensive, pinned down by expectations of a
Federal Reserve rate cut this month.
    • The U.S. yield curve was slightly steeper on Friday, with yields largely
unmoved by stronger-than-expected producer price data as market expectations of
an interest rate cut this month held firm.
    • Oil prices slipped after China posted its slowest quarterly economic
growth in at least 27 years, reinforcing concerns about demand in the world's
largest crude oil importer.
    • Gold prices were lower in Asian trading.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.52/68.55  July 12          -$124.0 mln   $107.31 mln
 10-yr bond yield  6.49 pct     Month-to-date    -$636.84 mln  $712.64 mln
                                Year-to-date     $10.70 bln    -$688.12 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 = 68.5500 Indian rupees)
    

 (Compiled by Yoganand KN in Bengaluru)
  
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