July 16, 2019 / 3:14 AM / a month ago

Morning News Call - India, July 16

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    FACTORS TO WATCH
    No major events are scheduled for the day.
    
    
    INDIA TOP NEWS
    • India's June import decline reflects further weakness in demand and
activity
India's imports declined to their lowest level in four months in June to $40.29
billion, down 9% from a year ago, indicating weakening consumption in Asia's
third largest economy, economists said.
    • DHFL says working with creditors to avoid haircut
Crisis-hit Indian property finance firm Dewan Housing Finance Corp Ltd (DHFL)
said on Monday it was working closely with its creditors and stakeholders on a
resolution plan that would not require its lenders to take a haircut.

    • Pakistan reopens airspace for civil aviation after India standoff
Pakistan's airspace has been reopened to civil aviation with immediate effect,
its aviation authority said, following months of restrictions imposed in the
wake of a standoff with neighbouring India earlier this year.
    • Eros International swings to quarterly loss
Film and entertainment group Eros International on Monday swung to a loss in the
fourth quarter due to an impairment charge and a rise in costs, sending its
U.S-listed shares down.
    • India to keep sugar export subsidies even as rivals complain-sources
India will keep its sugar export subsidies despite complaints to the World Trade
Organization (WTO) from rival producers Brazil and Australia, though it will
tweak how it provides them, four sources directly involved in the matter said.

    • Over 100 killed, millions displaced from floods in India, Nepal and
Bangladesh
Floods have forced more than four million people from their homes across India,
Nepal and Bangladesh and killed more than 100 people as torrential rains in the
initial days of monsoons wreaked havoc.
    
    
    GLOBAL TOP NEWS
    • Trump sees slowing Chinese growth pressuring Beijing on trade
U.S. President Donald Trump on Monday seized on slowing economic growth in China
as evidence that U.S. tariffs were having "a major effect" and warned that
Washington could pile on more pressure as bilateral trade talks sputtered along.

    • Nuclear deal parties not ready to launch dispute mechanism against Iran,
prefer more diplomacy -EU
The remaining parties to the Iran nuclear deal do not see Tehran's breaches as
significant and do not intend for now to trigger the pact's dispute mechanism,
preferring more diplomacy to ease the crisis, the EU foreign policy chief said
on Monday.
    • Trump defiant as lawmakers blast his 'racist' attacks on four
congresswomen
President Donald Trump doubled down on his attacks against four minority U.S.
congresswomen on Monday and dismissed concerns that his comments were racist,
prompting outrage from Democrats, who moved to condemn him in the House of
Representatives.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were little changed at 11,579.00. 
    • The Indian rupee is expected to open little changed against the dollar as
investors await U.S. retail sales data and speeches by Federal Reserve
officials.
   •  Indian government bonds are likely to open little changed, as traders
await fresh cues and amid some likely consolidation after the benchmark yield
hit a near two-year low. The yield on the benchmark 7.26% bond maturing in 2029
is likely to trade in a 6.41%-6.46% range today.
    
    
    GLOBAL MARKETS
    • The benchmark S&P 500 index ended little changed on Monday after
oscillating between positive and negative territory throughout the session after
Citigroup kicked off the earnings season with a mixed quarterly report.
    • Japan's Nikkei fell as slowing economic growth in China hurt investor
sentiment, but automakers outperformed on a media report that China will rely
more on hybrid vehicles.       
    • The pound struggled near a six-month low against the dollar hampered by
persistent worries over Brexit that, in turn, weighed on the euro.
    • Longer-dated U.S. Treasury yields edged lower on Monday as investors
focused on Tuesday’s retail sales figures as the next indicator of the strength
of the U.S. economy.
    • Oil prices fell for a second day as more production facilities returned to
operation in the U.S. Gulf after Hurricane Barry swept through over the weekend,
while Chinese economic data dimmed the outlook for crude demand.
    • Gold prices were little changed as investors awaited U.S. retail sales
data due later in the day for further clues on policy easing from the Federal
Reserve in the face of a global slowdown.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.55/68.58  July 15          -$31.51 mln   $85.55 mln
 10-yr bond yield  6.43 pct     Month-to-date    -$742.18 mln  $798.19 mln
                                Year-to-date     $10.60 bln    -$602.57 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 = 68.5450 Indian rupees)
    

 (Compiled by Yoganand KN in Bengaluru)
  
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