July 23, 2019 / 3:10 AM / a month ago

Morning News Call - India, July 23

To access a PDF version of this newsletter, please click here here
    
    If you would like to receive this newsletter via email, please register at:
here
    
    
    FACTORS TO WATCH
    3:30 pm: Goods and Services Tax Network CEO Prakash Kumar at roundtable
discussion on GST related issues in New Delhi.
    
    LIVECHAT - FED WATCH
    Reuters reporters and editors tracking the Federal Reserve take questions at
8 pm IST on the economics, politics, trade matters and rates policies facing
America's central bank and others whose decisions drive markets day in and day
out. To join the conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • RBI's Das says change in stance as good as additional 25 bps rate cut:
reports
    The Reserve Bank of India's change in monetary policy stance effectively
equates to an additional 25-basis-point (bps) rate cut, Governor Shaktikanta Das
was reported as saying.
    • Rise in India government borrowing can weigh on corporate sector: RBI's
Acharya
    An increase in government borrowing runs the risk of flooding the debt
market, while making it expensive for companies to borrow, according to outgoing
Reserve Bank of India Deputy Governor Viral Acharya.
    • Auditors to DHFL raise red flags around quarterly results
    Dewan Housing Finance Corp Ltd filed its long-delayed audited results for
the quarter ended March 31 late on Monday, and revealed that its auditors had
raised several red flags around its numbers, raising fresh concerns about the
future of the troubled lender.
    • India government wants antitrust review of Big Four accountants: source
    The Indian government wants the country's antitrust body to assess whether
the so-called "Big Four" auditing firms and their affiliates are hurting
competition in any manner, a senior government official told reporters.

    • Kotak Mahindra Bank joins rivals in warning of challenges ahead
    Kotak Mahindra Bank reported a 32.7% jump in its first-quarter profit on
Monday, but its results fell marginally shy of estimates and it became the third
private-sector Indian bank in a row to sound a cautionary note about the slowing
pace of domestic growth.
    • Indian panel recommends cryptocurrency ban
    An Indian government panel has recommended banning all private
cryptocurrencies and a jail term of up to 10 years and heavy fines for anyone
dealing in digital currencies, which could signal the end of them in India.

    • China's ByteDance plans to set up data centre in India
    China's ByteDance said it plans to open a data centre in India, where it is
facing concerns about consumer privacy and demands for a ban on its hugely
popular video app TikTok.
    
    
    GLOBAL TOP NEWS
    • Trump agrees to prompt responses to license requests for Huawei sales
U.S. President Donald Trump agreed at a meeting with the heads of top technology
companies like Google on Monday to make "timely" decisions on requests by U.S.
companies to sell to blacklisted Huawei Technologies, the White House said.

    • China's new Nasdaq-style STAR Market plunges on second day of trading
China's STAR Market kicked off its second day of trading with sharp falls in
most listed shares a day after they posted average gains of 140%, underscoring
the volatility of the country's new Nasdaq-style board.
    • Apple in advanced talks to buy Intel's smartphone-modem chip business -
WSJ
Apple is in advanced talks to buy chipmaker Intel's smartphone-modem chip
business, the Wall Street Journal reported on Monday, citing people familiar
with the matter.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.1% higher at 11,352.50.
    • The Indian rupee is expected to open lower against the U.S. currency amid
a further decline in Asian currencies.
    • Indian government bonds are likely to open little changed, as traders
await fresh cues after comments by the central bank governor hurt bets of
aggressive rate cuts. The yield on the benchmark 7.26% bond maturing in 2029 is
likely to trade in a 6.38%-6.43% range today.
    
    
    GLOBAL MARKETS
    • The S&P 500 climbed toward a record high on Monday, supported by
expectations of lower interest rates, while investors awaited quarterly earnings
from marquee companies Facebook, Alphabet and Amazon later this week.
    • Expectations of policy easing by major central banks such as the Federal
Reserve propped up global stocks, while the pound sagged as Britain braced for a
new prime minister who could pave the way for a no-deal exit from the European
Union.
    • Sterling was on the back foot as investors worried Boris Johnson, the
frontrunner to become the UK's next prime minister, would trigger a "hard
Brexit" from the European Union, widely seen as a major risk for the British
economy.
    • U.S. Treasury yields fell on Monday and the yield curve flattened as
dovish global central bank policy supported demand for government debt, with no
major new events to set market direction.
    • Oil prices inched lower as the International Energy Agency (IEA) said it
would act quickly if needed to keep the market supplied amid tensions in the
Middle East and traders eyed a weaker demand outlook.
    • Gold prices fell in early Asian trade as the dollar rose to a near
one-week high on expectation of a smaller interest rate cut by the U.S. Federal
Reserve at the end of this month.
    
    
                   CLOSE         FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         6.418         July 22          -           -$141.56 mln
 10-yr bond yield  68.97/69 pct  Month-to-date    -$1.20 bln  $673.28 mln
                                 Year-to-date     $10.14 bln  -$727.48 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 = 68.8930 Indian rupees)

 (Compiled by Swathi Nair in Bengaluru)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below