July 27, 2018 / 3:12 AM / 5 months ago

Morning News Call - India, July 27

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    FACTORS TO WATCH
    9:30 am: IBA Banking HR Conclave in Mumbai.
    10:30 am: NITI Aayog CEO Amitabh Kant at an event in New Delhi.
    
    LIVECHAT - G7 FX CHARTING
Wilson Leung, chief market strategist at Trendsetter, joins us to discuss
technical charts for G7 currencies at 09:30 am IST.
    To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • U.S. aluminium firm Novelis to buy Aleris for $2.6 billion
Hindalco Industries said its U.S. unit Novelis Inc has agreed to buy aluminium
processor Aleris Corp for $2.6 billion, giving it a foothold in supplying the
aerospace industry and other value-added businesses globally.
    • ITC Q1 profit rises 10 pct, beats estimates
India's biggest cigarette maker ITC posted a better-than-expected 10 percent
rise in first-quarter profit on Thursday, as the company paid a significantly
lower excise duty, a tax on manufactured goods.
    • Vedanta's smelter closure has hurt companies, put people out of jobs -
exec
India's decision to shut down Vedanta Resources' biggest copper smelter over
environment concerns has hit 350 companies that buy its products and led to over
3,000 layoffs, a top company executive said.
    • Bharti Airtel posts surprise Q1 profit on tax write-back
Bharti Airtel posted a surprise first-quarter profit helped by a tax write-back,
though a pricing war in the country’s telecoms sector continued to weigh on the
mobile carrier's bottomline.
    • EXCLUSIVE-HPCL cancels Iran oil shipment after insurer excludes coverage -
sources
Hindustan Petroleum Corp (HPCL) cancelled the purchase of an Iranian oil cargo
earlier this month after its insurance company refused to provide coverage for
the crude because of U.S. sanctions, three sources with knowledge of the matter
said.
    • Dr.Reddy's profit soars on anti-opioid drug sales in U.S.
Dr.Reddy's Laboratories posted an over seven-fold rise in first-quarter net
profit on Thursday, handily beating market expectations, aided by the U.S.
launch of a generic version of an opioid addiction drug.
    • Indian truckers' strike hits Amazon deliveries, commodity trade
A truckers' strike across India has affected deliveries for e-commerce firms
such as Amazon and Snapdeal, hurt cotton trade in the world's biggest producer
of the fibre and disrupted the movement of grains and vegetables.
    • Tata Power Q1 profit jumps nearly five-fold, tops estimates
Tata Power reported a near five-fold jump in quarterly profit on Thursday due to
a one-off gain on sale of investments.
    
    
    GLOBAL TOP NEWS
    • U.S. Senate quietly votes to cut tariffs on hundreds of Chinese goods
As trade tensions escalate between Washington and Beijing, the U.S. Senate
quietly passed legislation on Thursday that would lower trade barriers on
hundreds of items made in China.
    • Amazon beats estimates, Wall Street breathes sigh of relief
Wall Street breathed a sigh of relief on Thursday after Amazon.com's quarterly
results beat estimates, sending the online retailer's stock to a record high and
alleviating fears of deepening troubles across the FANG group after Facebook's
results sent its shares reeling.
    • BP to buy U.S. shale assets from BHP for $10.5 billion
BP has agreed to buy U.S. shale oil and gas assets from global miner BHP
Billiton for $10.5 billion, giving the British oil major a much bigger footprint
in oil-rich onshore basins.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading at 11,245, up 0.2 percent
from previous close.
    • The Indian rupee is expected to open lower against the dollar after the
Chinese yuan paced losses among regional currencies following fresh clashes
between Washington and Beijing on trade.
    • Indian government bonds are likely to open lower, tracking sharp rise in
U.S. Treasury yields, while market awaits fresh supply of papers later today and
monetary policy decision next week. The yield on the benchmark 7.17 percent bond
maturing in 2028 is likely to trade in a 7.74 percent-7.80 percent band today.
    
    
    GLOBAL MARKETS
    • A plunge in Facebook's shares pushed the Nasdaq down more than 1 percent
on Thursday, the index's biggest one-day drop in a month, but industrial stocks
rose after the United States and the European Union said they would negotiate on
trade.
    • Asian stocks struggled to gain traction, following a mixed end to Wall
Street trade and as the worsening Sino-U.S. trade dispute kept investors in the
region cautious, despite signs of rapprochement between the United States and
Europe.
    • The dollar was firm against its peers, having regained traction as the
euro slid sharply after the European Central Bank kept to its planned timetable
to move away from its accommodative monetary policy.
    • U.S. benchmark Treasury yields traded at six-week highs on Thursday as
investors waited for what many analysts expect to be a strong reading of gross
domestic product data for the second quarter on Friday.
    • Oil prices slipped in quiet trading after three days of gains, but took
support from Saudi Arabia halting crude transport through a key shipping lane,
falling U.S. inventories and easing trade tensions between Washington and
Europe.
    • Gold prices edged up but stayed close to one-year lows, with investors
waiting for data later in the day on U.S. economic growth.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.62/68.65  July 26          $357.44 mln   -$140.26 mln
 10-yr bond yield  7.75 pct     Month-to-date    -$388.32 mln  -$168.88 mln
                                Year-to-date     -$1.18 bln    -$5.95 bln
 
    
    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 = 68.6550 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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