June 10, 2019 / 3:20 AM / 3 months ago

Morning News Call - India, June 10

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    FACTORS TO WATCH
    No major events are scheduled for the day.
    
    LIVECHAT - FX WEEK AHEAD
    FX Buzz analyst Jeremy Boulton analyses G7 currencies joins the Global
Markets Forum at 5:00 pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • Reserve Bank to enhance monitoring of shadow banking firms - governor 
    Reserve Bank of India Governor Shaktikanta Das said the central bank would
closely monitor the health of non-banking financial companies (NBFCs) and it
would not hesitate to take corrective measures, if needed, to address issues in
the shadow banking sector.
    • Manappuram Finance gets notice over alleged insider trading
    Lender Manappuram Finance said on Friday it received a show-cause notice
from the Securities and Exchange Board of India alleging that its officials
disclosed price-sensitive information to a research firm in 2013.
    • Central bank relaxes stressed asset guidelines for lenders
    The Reserve Bank of India diluted its guidelines on stressed assets and has
now mandated banks to undertake a review of a borrower's accounts within 30 days
of default, according to a circular issued on Friday.
    • Eros CEO says loan payment delays being rectified as pressure mounts
    Eros International has taken steps to rectify delays in loan payments, Chief
Executive Officer Kishore Lulla said on Sunday, as pressure builds on the Indian
media company, with another short-seller report flagging potential issues at the
company.
    
    
    GLOBAL TOP NEWS
    • Trump defends Mexico migration deal and pledges more detail
    U.S. President Donald Trump defended his administration's deal with Mexico
against criticism that there were no major new commitments to stem a flow of
Central American migrants crossing into the United States, and said on Sunday
more details would soon be released.
    • FCA-Renault revival may hinge on Nissan stake cut - sources
    Fiat Chrysler Automobiles and Renault are looking for ways to resuscitate
their collapsed merger plan and secure the approval of the French carmaker's
alliance partner Nissan Motor, according to several sources close to the
companies.
    • Hundreds of thousands march in Hong Kong to protest China extradition bill
    Hong Kong was plunged into a fresh political crisis on Sunday night after
more than half a million people took to the streets to thwart a proposed
extradition law that would allow suspects to be sent to mainland China to face
trial.

        
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.51% higher at 11,957.00. 
    • The Indian rupee is likely to edge higher against the dollar after weak
U.S. jobs data increased the probability of a Federal Reserve interest rate cut.
    • Indian government bonds are likely to rise today as a weaker-than-expected
U.S. jobs report has boosted the case for monetary easing by the Federal
Reserve. The yield on the benchmark 7.26% bond maturing in 2029 is likely to
trade in a range of 6.65%-7.00% today. 
    
    
    GLOBAL MARKETS
    • Wall Street's major indexes charged higher on Friday, as sharply slowing
U.S. job growth boosted hopes for Federal Reserve interest rate cuts while
optimism about potential progress in U.S. trade fights with China and Mexico
added to risk appetites.
    • U.S. stock futures and Asian shares rose after the United States dropped
its threat to impose tariffs on Mexico in a deal to combat illegal migration
from Central America, and as weak U.S. jobs data raised hopes for U.S. interest
rate cuts.
    • The Mexican peso jumped against the dollar early in Asia after the United
States and Mexico struck a migration deal late last week to avert a tariff war,
providing much-needed relief to fragile market sentiment.
    • U.S. Treasury yields tumbled on Friday, with 10-year yields hitting their
lowest since September 2017 as domestic employers hired far fewer workers than
expected in May, raising bets the Federal Reserve would lower interest rates.

    • Oil prices rose after Saudi Arabia said producer club OPEC and Russia were
likely to keep withholding supplies, and in relief that the United States and
Mexico averted a trade war that would have damaged the global economy.
    • Gold retreated from a 14-month peak after an agreement late last week
between the United States and Mexico to avert a tariff war crimped safe-haven
demand for the metal.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.43/69.46  June 7           -$69.06 mln  $173.72 mln
 10-yr bond yield  6.97%        Month-to-date    $132.33 mln  $783.61 mln
                                Year-to-date     $11.32 bln   -$1.35 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 = 69.36 Indian rupees)
    

 (Compiled by Hrithik Kiran Bagade in Bengaluru)
  
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