June 12, 2020 / 3:27 AM / a month ago

Morning News Call - India, June 12

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    FACTORS TO WATCH
    2:00 pm: NITI Aayog CEO Amitabh Kant at CII’s webinar on “FinTech &
Digitization” in New Delhi
    5:00 pm: Punjab & Sind Bank’s MD & CEO S. Harisankar at CII’s webinar on
“MSME - Extending A Helping Hand” in New Delhi
    5:30 pm: Government to release May consumer price inflation data in New
Delhi.
    5:30 pm: Government to release April Industrial output data in New Delhi.

       
    INDIA TOP NEWS
    • India sets out proposals for tighter governance at banks
    India's central bank proposed on Thursday stricter governance rules for
commercial banks, following a series of financial and governance problems at
lenders in recent months.
    • India lifts export ban on Trump-touted drug hydroxychloroquine
    India has lifted an export ban on hydroxychloroquine, the anti-malarial drug
touted by U.S. President Donald Trump as a potential "game changer" in the fight
against the COVID-19 pandemic, a minister said late on Wednesday.
    • Chinese smartphone brands in India turn to expensive imports as plants
struggle -sources
    China's Xiaomi and Oppo are importing some smartphone models into India as
their local plants struggle to get back to production levels needed to meet
demand that built up during lockdown, sources familiar with matter said.

    • Indian bank staff want cleaner branches amid coronavirus deaths in
industry
    Indian bank employees are demanding better cleanliness at lenders' branches
and more flexibility in staff work schedules following the death of at least 11
bankers and bank employees in the country due to the coronavirus outbreak.

    • India rejects Pakistan offer of help disbursing coronavirus cash
    Pakistani Prime Minister Imran Khan on Thursday offered to help neighbouring
India disburse cash to the public during the coronavirus lockdown, citing a
report Indians were struggling to make ends meet, but India later rejected the
offer.
    • India's sunflower oil imports could jump 15% -industry official
    India's sunflower oil imports could jump 15% in 2019/20 to a record 2.7
million tonnes as household consumption jumped during the lockdown, an industry
official said on Thursday.
    
    
    GLOBAL TOP NEWS
    • Fears of second U.S. coronavirus wave rise on worrisome spike in cases,
hospitalizations
    About half a dozen states including Texas and Arizona are grappling with a
rising number of coronavirus patients filling hospital beds, fanning concerns
that the reopening of the U.S. economy may spark a second wave of infections.

    • U.S. layoffs easing, labor market distress persists
    The number of Americans seeking jobless benefits fell last week, but
millions laid off because of COVID-19 continue to receive unemployment checks,
suggesting the labor market could take years to heal from the pandemic even as
hiring resumes.
    • Japan's $94 billion reserve to combat pandemic sparks ire as PM Abe's
'pocket money'
    A $94 billion emergency fund that can be tapped without parliamentary
oversight has been branded Japanese Prime Minister Shinzo Abe's "pocket money"
by opposition lawmakers alarmed at its unprecedented size.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 2.9% lower at 9,612.5
    • The Indian rupee is expected to extend losses against the U.S. currency as
stocks tumbled and the dollar index surged amid fears of a second wave of the
coronavirus in the world’s largest economy.
    • Indian government bond yields will likely edge higher in early session
ahead of a fresh supply of notes at today’s weekly auction and a debt switch on
Monday. The yield on the benchmark 5.79% bond maturing in 2030 is likely to
trade in a 5.76%-5.82% range till the auction outcome today.
    
    
    GLOBAL MARKETS
    • Wall Street plummeted on Thursday as investors reacted to renewed fears of
a pandemic resurgence and digested dour economic forecasts from the U.S. Federal
Reserve.
    • Japanese stocks skidded to two-week lows after Wall Street dived on fears
that a resurgence of COVID-19 infections could stunt the pace of reopening
economies.
    • The safe-haven Swiss franc and the yen held on to gains on Friday while
the U.S. dollar also held firm against riskier currencies after global stock
prices tumbled on renewed doubts over the prospects of a quick recovery in the
global economy.
    • U.S. Treasury yields continued their downward trajectory on Thursday amid
uncertainty over whether the Federal Reserve would turn to yield curve control
in the coming months, while the prospect of negative interest rates seeped back
into the market.
    • Oil prices slid early, extending heavy overnight losses on a surge in U.S.
coronavirus cases this week that has raised the prospect of a second wave of the
outbreak slamming demand in the world's biggest consumer of crude and fuel.

    • Gold prices held steady as downward pressure from a stronger dollar
countered rising safe-haven demand supported by gloomy economic projections and
renewed fears over a second wave in COVID-19 infections.
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         75.74/75.77  June 11          (370.57)      (75.88) crores
                                                 crores        
 10-yr bond yield  5.78 pct     Month-to-date    21,983        (2,167) crores
                                                 crores        
                                Year-to-date     (18,362)      (1,07,581) crores
                                                 crores        
 
    (FII investment numbers are in Indian rupees. Source: National Securities
Depository Limited)
    
    
    (Clarification – The June 11 edition of India Morning erroneously mentioned
India's monthly fuel demand doubled in May. It should have mentioned the demand
jumped 47.4%)
    ​
    
    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= 76.21 Indian rupees)
    
   

 (Compiled by Nachiket Tekawade in Bengaluru)
  
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