July 30, 2019 / 3:13 AM / 4 months ago

Morning News Call - India, July 30

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FACTORS TO WATCH

No major events are scheduled for the day

LIVECHAT - FED WATCH

Reuters Federal Reserve correspondent Ann Saphir at 7pm IST fields questions 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

• SBI tightens lending terms for auto dealers -source, internal memo

State Bank of India has tightened lending terms dramatically for auto dealerships, according to a source and an internal memo seen by Reuters, seeking to reduce its exposure to risk from a sector in the midst of a sharp downturn.

• Finance minister seeks more rate cuts, says no review on overseas borrowing plan -ET

Finance minister, Nirmala Sitharaman, called for a “significant” reduction in the central bank’s policy rates and said the government did not intend to review the budget proposal for overseas sovereign borrowings, the Economic Times reported on Monday.

• SEBI proposes tighter disclosure rules for proxy advisors

India’s market regulator on Monday proposed tighter disclosure rules for shareholder advisory firms known as proxy advisors to avoid conflicts of interest.

• State Bank of India cuts deposit rates, keeps lending rates unchanged

The State Bank of India cut interest rates on deposits across all maturities on Monday but analysts said it would take time for the country’s largest bank to make matching cuts in its lending rates.

• India’s tax rise for high earners may trigger fund flight - ex-RBI governor

A former Reserve Bank of India governor, Bimal Jalan, has warned that the higher income taxes the government introduced in its budget could lead to a flight of funds from the country.

• Amazon plans imminent launch of online food delivery service in India: sources

Amazon.com is planning a foray into the burgeoning online food delivery business in India this year, two sources aware of the development said, in a move that could raise competition in an increasingly crowded market.

• Petronas, Japan’s JXTG may buy stake in India’s Bina oil refinery: source

Malaysia’s Petroliam Nasional Bhd (Petronas) and a consortium led by Japan’s JXTG are among the companies interested in buying a stake in India’s Bina oil refinery, a source close to the matter said.

• Bigbasket gets $14.5 million in venture debt

Bigbasket, valued at about $1 billion, will receive $14.5 million in debt from local venture capital firm Trifecta Capital, the online grocery start-up said on Monday.

GLOBAL TOP NEWS

• BOJ faces test in keeping up with dovish-leaning U.S., European peers

The Bank of Japan faces its first test in keeping up with its increasingly dovish U.S. and European peers, as the growing pain from soft global demand and trade tensions weigh on the country’s modest economic recovery.

• U.S. firms see little clarity on Huawei as U.S.-China talks resume

A month after President Donald Trump said he would allow U.S. companies to resume selling to blacklisted Chinese telecommunications giant Huawei, his administration has done little to clarify what sales will be permitted.

• Qualcomm, Tencent agree to collaborate on gaming devices, 5G

Qualcomm and Tencent said on Monday they will cooperate on projects that could include making the Chinese company’s videogames play better on devices with Qualcomm chips, and create a 5G version of a Tencent-backed gaming phone.

LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

• SGX Nifty nearest-month futures were trading 0.2% higher at 11,229.50.

• The Indian rupee is expected to open little changed against the U.S. currency amid the dollar index’s gains and greenback sales by exporters.

• Indian sovereign bonds are likely to trade little changed in early session, ahead of the outcome of the Federal Reserve’s policy review tomorrow and as investors await fresh supply of state government debt today. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.39%-6.44% today.

GLOBAL MARKETS

• U.S. stocks on Monday stepped back from last week’s record highs as investors took a breather ahead of an expected interest rate cut by the Federal Reserve and looked for signs of progress from U.S.-China trade negotiations underway in Shanghai.

• Asian stocks edged up as equity investors prepared for an expected U.S. interest rate cut this week while heightened concerns in currency markets about a no-deal Brexit sent the pound to a 28-month low.

• The yen held near a three-week low as pared expectations for aggressive Federal Reserve cuts supported the dollar and ahead of a Bank of Japan meeting, which is seen as a key test for policymakers amid a global monetary easing cycle.

• U.S. Treasury yields fell broadly on Monday, in line with government bond markets around the world amid global economic uncertainty, as investors await a widely-expected interest rate cut by the Federal Reserve this week.

• Oil prices extended overnight gains amid widespread expectations the U.S. Federal Reserve will cut interest rates for the first time in more than a decade this week.

• Gold prices eased as the dollar held near multi-month highs, while investors awaited outcome of a two-day U.S. Federal Reserve policy meeting, where the central bank is widely expected to reduce interest rates.

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 = 68.7640 Indian rupees Compiled by Swathi Nair in Bengaluru

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