July 26, 2019 / 3:14 AM / 2 months ago

Morning News Call - India, July 26

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FACTORS TO WATCH

10:00 am: Junior Finance Minister Anurag Thakur will be at the Conference on Digital & Cashless Economy in New Delhi.

5:00 pm: Bibek Debroy, chairman, Economic Advisory Council to the Prime Minister will be at Mutual Fund Conclave 2019 in Mumbai.

INDIA TOP NEWS

• PM’s office wants finance ministry to restudy issuing overseas sovereign bond: sources

The Indian Prime Minister’s Office wants the finance ministry to reassess the idea of issuing foreign currency overseas sovereign bonds, two sources with knowledge of the development said on Thursday.

• Saudi’s Falih says Reliance-Aramco talks on Indian refinery stake continue

Saudi Arabia’s Energy Minister Khalid al-Falih said state-run Saudi Aramco’s talks with Reliance Industries to buy a minority stake in the Indian conglomerate’s refining assets have not stalled.

• Tata Motors first-quarter loss nearly doubles, JLR challenges continue

Jaguar Land Rover owner Tata Motors on Thursday reported a bigger-than-expected quarterly loss that nearly doubled, hit by an ongoing slump in car demands at home, as well as plant shutdowns and delays due to Britain’s planned exit from the European Union.

• India’s auto parts makers warn of 1 million job cuts if slowdown continues

India’s auto parts industry could be forced to slash a fifth of its 5 million or so workforce if the slowdown in vehicle sales continues, the president of the Automotive Component Manufacturers Association of India said.

• JSW says steel sector slowdown could impact turnaround time for Monnet

JSW Steel said a weaker steel market hit by falling global demand and a local slowdown could impact the turnaround time for its newly acquired Monnet Ispat assets, but its chairman played down any substantial impact on financials.

• Billionaire Anil Agarwal sells Anglo stake

Billionaire Anil Agarwal, the biggest shareholder in mining company Anglo American, said on Thursday he was divesting the nearly 20% stake he has held since 2017.

• Byju’s replaces Oppo as India team sponsor

Bengaluru-based education and learning app Byju’s will replace smartphone maker Oppo as the India cricket team’s jersey sponsor starting in September, the Board of Control for Cricket in India said on Thursday.

GLOBAL TOP NEWS

• SoftBank Group announces new $108 bln Vision Fund, broadens investor base

SoftBank announced a second Vision Fund aimed at investing in technology firms, saying it has secured memoranda of understanding for about $108 billion from companies including Apple and Microsoft. • ECB pledges more easing and ponders inflation goal review

European Central Bank President Mario Draghi all but pledged to ease policy further as the growth outlook deteriorates and even hinted on Thursday at a reinterpretation of the ECB’s inflation target, the cornerstone of its entire policy framework.

• Amazon’s push for one-day delivery dents profits, costs up 21%

Amazon.com on Thursday reported its first profit miss in two years and said income would slump in the current quarter, as the online retailer ramps up spending on one-day delivery to spark sales growth.

LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

• SGX Nifty nearest-month futures were trading 0.2% lower at 11,283.00.

• The Indian rupee is expected to open lower amid weakness in regional equities and currencies following the European Central Bank’s policy review.

• Indian government bonds are likely to fall in early session on caution ahead of fresh debt supply, while uncertainty over the government plan to sell bonds overseas continues to dent sentiment. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.50%-6.55% till the auction result today.

GLOBAL MARKETS

• Wall Street fell from record highs on Thursday following a flurry of downbeat quarterly results from Ford Motor and other companies and after European Central Bank chief Mario Draghi’s comments disappointed investors hoping for a more dovish stance on monetary policy.

• Asian share prices opened a tad lower on mixed U.S. earnings reports and the euro held above two-year lows struck overnight after the European Central Bank held interest rates steady, though officials said a cut was certain in September.

• The dollar traded near a two-week high versus the yen as investors pared expectations for aggressive Federal Reserve interest rate cuts ahead of key U.S. economic data due later in the day.

• U.S. Treasury yields rose on Thursday after European Central Bank President Mario Draghi said that the bank sees a low risk of a recession in the euro zone, even as he acknowledged a worsening outlook.

• Oil prices fell after a Reuters poll showed global economic growth is likely to slow further amid the U.S.-China trade war, although losses were limited by tensions in the Middle East.

• Gold prices rebounded from a sharp decline in the previous session, while investors awaited U.S. economic growth data due later in the day that could provide clues about the Federal Reserve’s monetary policy meeting.

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 = 69.1080 Indian rupees Compiled by Swathi Nair in Bengaluru

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