June 13, 2019 / 3:25 AM / 3 months ago

Morning News Call - India, June 13

To access a PDF version of this newsletter, please click here here
    
    If you would like to receive this newsletter via email, please register at:
here
    
    
    FACTORS TO WATCH
    No major events are scheduled for the day. 
    
    LIVECHAT - BONDS UPDATE
    Reuters interest rate reporters delve into government bond markets at 5:00
pm IST. To join the conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • May inflation hits seven-month high; still room for rate cut
    India's retail inflation rate hit a seven-month high in May due to higher
food prices, government data showed on Wednesday, but stayed below the central
bank's target and potentially gives it room for more interest rate cuts to help
a sluggish economy.
    • Reliance Capital tumbles after auditor resigns
    Shares in Reliance Capital closed 6% lower on Wednesday after the
non-banking finance company said its auditor had resigned, sparking worries
about the financial health of another player in India's troubled shadow banking
sector. 
    • NSE to remove Jet Airways shares from daily trading
    The National Stock Exchange of India (NSE) said on Wednesday that shares of
Jet Airways would be pulled out of daily trading, citing the embattled carrier's
failure to respond to queries about rumours in the market.
    • CFM wins blockbuster jet engine order from IndiGo - sources
    Engine maker CFM International is poised to announce one of the world's
largest jet engine orders with a deal for more than 600 engines from IndiGo,
industry sources said. 
    • India set to launch second lunar mission; land rover on the moon
    India said on Wednesday it will launch its second lunar mission in mid-July,
as it moves to consolidate its status as a leader in space technology by
achieving a controlled landing on the moon.
    • Government says will examine ex-advisor's finding of overstated GDP growth
    India's top ranking economic advisory council will examine former chief
economic adviser Arvind Subramanian's research findings that the country's
economic growth has been overstated, the government said in a statement on
Wednesday.
    • Indiabulls Housing Finance drops for third straight day on fraud
allegations
    Shares in Indiabulls Housing Finance fell for a third straight session on
Wednesday, dropping up to 9.8% even as the mortgage lender asked the Supreme
Court for an urgent hearing of a petition that alleged financial misdeeds.

    • Konkola Copper Mines plans to restart smelter on June 22
    Konkola Copper Mines, owned by Vedanta Resources, plans to restart its
Nchanga smelter on June 22, the company said on Wednesday.
    
    
    GLOBAL TOP NEWS
    • Trump leaves China tariff deadline open, calls relationship 'testy'
    U.S. President Donald Trump declined to set a deadline on Wednesday for
levying tariffs on another $325 billion of Chinese goods and called the
relationship with Beijing good but "testy" after China walked back commitments
for a trade deal.
    • Japan's Abe warns of armed conflict amid soaring U.S.-Iran tension
    Japanese Prime Minister Shinzo Abe warned of unintended clashes in the
crisis-hit Middle East after meeting the Iranian president in Tehran on
Wednesday, amid a brewing confrontation between Iran and the United States.

    • FAA says has no timetable for Boeing 737 MAX's return to service
    The Federal Aviation Administration (FAA) said on Wednesday it does not have
a specific timetable on when Boeing's troubled 737 MAX jet would return to
service after two fatal crashes led to the airplane's worldwide grounding in
March.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.3% lower at 11,894.50. 
    • The Indian rupee is expected to open little changed against the U.S.
currency as the dollar index’s biggest gain in two weeks would likely offset the
Brent crude’s fall to its lowest in more than four months. 
    • Indian government bonds are expected to rise in early trade as core
inflation softened in May and crude oil prices fell, boosting bets of monetary
easing in August. The yield on the benchmark 7.26% bond maturing in 2029 is
likely to trade in a range of 6.97%-7.03% today. 
    
    
    GLOBAL MARKETS
    • Wall Street ended down slightly on Wednesday, with bank stocks declining
as prospects of a U.S. interest rate cut rose and energy shares tumbling along
with oil prices.
    • Asian stocks stuttered, dogged by the uncertainty over an intractable
U.S.-China trade dispute.
    • The dollar held its gains early after rebounding from 11-week lows, as
peers such as the euro, pound and commodity currencies sagged due to troubles of
their own.
    • U.S. Treasury yield curve was steeper on Wednesday after soft inflation
data pulled short-dated yields lower, indicating increased expectations that the
Federal Reserve will cut interest rates.
    • Oil prices steadied, after slumping as much as 4% in the previous session
to nearly five-month lows on the back of a further buildup in U.S. crude
stockpiles and worries about lower demand growth.
    • Gold held steady in early Asian trade as festering Sino-U.S. trade
tensions and hopes of an interest rate cut by the U.S. central bank following
soft inflation data buoyed demand for the safe-haven bullion.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         69.29/69.32  June 12          -$151.33 mln  -$39.32 mln
 10-yr bond yield  7.01%        Month-to-date    $166.4 mln    $884.82 mln
                                Year-to-date     $11.36 bln    -$1.25 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 = 69.38 Indian rupees)
    

 (Compiled by Hrithik Kiran Bagade in Bengaluru)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below