June 15, 2020 / 3:32 AM / a month ago

Morning News Call - India, June 15

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    FACTORS TO WATCH
    10:30 am: S&P Global Ratings' Asia-Pacific Chief Economist Shaun Roache at a
webinar on “Coronavirus Insights Series” in Mumbai.
    12:00 pm: Government to release May wholesale price inflation data in New
Delhi 
    
   
    PROMOTION
    LIVECHAT – REUTERS GLOBAL MARKETS FORUM
    Mike Dolan, Reuters Editor at Large, Finance & Markets, looks at the week
ahead for markets. To join the conversation at 3:30 pm IST, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Reliance says TPG and L Catterton to invest 64.4 billion rupees in Jio
Platforms
    Indian oil-to-telecoms conglomerate Reliance Industries raised a total of
64.4 billion Indian rupees from the sale of two stakes in its digital unit Jio
Platforms, the group said on Saturday.
    • Zydus Cadila to make Gilead's potential COVID-19 drug remdesivir
    Indian drugmaker Zydus Cadila said on Friday it signed a non-exclusive
licensing pact with Gilead Sciences to manufacture and market antiviral drug
remdesivir, the first treatment to show improvement in COVID-19 trials.

    • Slow start for India's ambitious plan to resuscitate small businesses
    India's ambitious plan to provide some 3 trillion rupees in loans to small
businesses to boost an economy ravaged by the coronavirus pandemic has got off
to a slow start with banks disbursing only a tiny fraction of the available
funds.
    • Netflix in talks to source Indian content from Reliance affiliate Viacom18
-sources
    U.S. video streaming company Netflix is in talks with Viacom18, part of the
Indian conglomerate Reliance Industries' media unit Network18, about a
multi-year partnership to source content, three sources told Reuters, in a move
that would expand a relationship between the two sides.
   • India suspends release of headline retail inflation data for lockdown
period
    India said on Friday it was putting off the release of headline consumer
price inflation numbers for April and May, a period that include a more-than
two-month lockdown imposed to combat the coronavirus pandemic, due to inadequate
data collection.
   • Delhi to use 500 railway coaches as hospital facilities to fight
coronavirus
    India's federal government said on Sunday it will provide New Delhi's city
authorities with 500 railway coaches that will be equipped to care for
coronavirus patients, after a surge in the number of cases led to a shortage of
hospital beds.
   • U.S. regulator sides with FCA in Jeep trade case against Mahindra
    A U.S. regulator ruled that India's Mahindra and Mahindra Ltd infringed upon
the intellectual property rights of Fiat Chrysler Automobiles NV's (FCA) Jeep
brand, barring the sale of the vehicles in question.
    
    
    GLOBAL TOP NEWS
    • Beijing steps up coronavirus measures as dozens of cases emerge from a
food market
    After weeks with almost no new coronavirus infections, Beijing has recorded
dozens of new cases in recent days, all linked to a major wholesale food market,
raising concerns about a resurgence of the disease.
    • China's May factory output rises less than expected
    China's industrial output rose for a second straight month in May but the
gain was smaller than expected, suggesting the economy is still struggling to
get back on track after the coronavirus crisis.
    • AstraZeneca agrees to supply Europe with 400 mln doses of COVID-19 vaccine
    AstraZeneca Plc has signed a contract with European governments to supply
the region with its potential vaccine against the coronavirus, the British
drugmaker's latest deal to pledge its drug to help combat the pandemic.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.6% lower at 9,881. 
    • The Indian rupee is expected to weaken against the dollar, tracking losses
in regional equities and currencies amid worries over another coronavirus wave
in the U.S. and China. 
    • Indian government bond yields are likely to open largely unchanged ahead
of a debt switch auction later today, while market awaits measures from the
central bank to absorb excess supply. The yield on the benchmark 5.79% bond
maturing in 2030 is likely to trade in a range of 5.78%-5.82% today.
    
    
    GLOBAL MARKETS
    • U.S. stocks ended higher on Friday as bargain hunters stepped back into
the market following sharp losses a day earlier, but all three major indexes
suffered their biggest weekly percentage declines since March.
    • Asian shares stumbled and oil prices slipped as fears of a second wave of
coronavirus infections in Beijing sent investors scurrying for safe-havens while
underwhelming data from China further weighed on sentiment.
    • The Australian and New Zealand dollars fell against their U.S. counterpart
as fears of a second wave of the coronavirus in Beijing prompted investors to
sell currencies sensitive to risk.
    • U.S. Treasury yields rose on Friday as stocks clawed back some ground from
Thursday's biggest one-day drop in about three months.
    • Oil prices fell, with U.S. oil dropping more than 2%, as a spike in new
coronavirus cases in the United States raised concerns over a second wave of the
virus which would weigh on the pace of fuel demand recovery.
    • Gold prices rose as the U.S. dollar weakened and fears of a second wave of
the coronavirus in Beijing prompted investors to seek the safe-haven metal.

          

                   CLOSE        FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         75.84/75.87  June 12          857.81      118.77 crores
                                                 crores      
 10-yr bond yield  5.80 pct     Month-to-date    22,840      (2,048) crores
                                                 crores      
                                Year-to-date     (17,505)    (1,07,462) crores
                                                 crores      
    (FII investment numbers are in Indian rupees. Source: National Securities
Depository Limited)
    
    
    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= 75.96 Indian rupees)
 

 (Compiled by Nachiket Tekawade in Bengaluru)
  
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