June 20, 2019 / 3:06 AM / a month ago

Morning News Call - India, June 20

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    FACTORS TO WATCH
    11:00 am: President Ram Nath Kovind to address Parliament session in New
Delhi.
    3:00 pm: State Bank of India annual general meeting in Mumbai.
    
    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
    • U.S. tells India it is mulling caps on H-1B visas to deter data rules
-sources
    The United States has told India it is considering caps on H-1B work visas
for nations that force foreign companies to store data locally, three sources
with knowledge of the matter told Reuters, widening the two countries' row over
tariffs and trade.
    • India plans to exempt electric vehicles from registration fee
    India has issued draft rules to exempt electric vehicles from paying
registration fee, the government said in a statement on Wednesday, as it looks
to cut its dependence on fossil fuels.
    • Maharashtra identifies site for Saudi Aramco, ADNOC's refinery
    Maharashtra state has identified a new site for the planned $44 billion oil
refinery that state-run firms are building with Saudi Aramco and Abu Dhabi
National Oil Co (ADNOC), Chief Minister Devendra Fadnavis said on Wednesday.

    • HDFC to buy Apollo Munich Health Insurance
    Housing Development Finance Corp Ltd (HDFC) on Wednesday said it will buy a
51.2% stake in Apollo Hospital Group's joint venture, Apollo Munich Health
Insurance Company for 13.47 billion rupees.
    
    
    GLOBAL TOP NEWS
    • Fed sees case building for interest rate cuts this year
    The U.S. Federal Reserve on Wednesday signalled interest rate cuts beginning
as early as July, saying it is ready to battle growing global and domestic
economic risks as it took stock of rising trade tensions and growing concerns
about weak inflation.
    • China to stand firm as trade talks with U.S. restart-state media
    Upcoming trade talks between the leaders of China and the United States are
unlikely to immediately resolve major disagreements between the two sides but
could start a new phase in negotiations, Chinese state media said.
    • BOJ keeps policy steady, warns of heightening overseas risks
The Bank of Japan kept monetary policy steady, preferring to save its dwindling
ammunition for deeper economic troubles as a darkening global growth outlook
prods major central banks to drop hints of additional stimulus.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.3% higher at 11,757.50.
    • The Indian rupee is expected to open higher against the dollar after the
Federal Reserve hinted that interest rates could fall in the coming months,
prompting broad losses on the U.S. currency.
    • Indian government bonds are likely to rise in early trade, as the yield on
U.S. 10-year Treasury slipped below the 2% mark after the Federal Reserve hinted
at interest rate cuts going ahead. The yield on the benchmark 7.26% bond
maturing in 2029 is likely to trade in a range of 6.78% - 6.83% today.
    
    
    GLOBAL MARKETS
    • The S&P 500 approached a record high on Wednesday after the Federal
Reserve signaled potential interest cuts later this year, reassuring investors
worried that the U.S.-China trade war could stall economic growth.
    • A gauge of global stock markets edged near this year's peak after the
Federal Reserve signalled possible interest rate cuts later this year.

    • The dollar was on the defensive after the Federal Reserve signalled it was
ready to lower interest rates to combat growing global and domestic risks.

    • U.S. Treasury yields retreated on Wednesday after the Federal Reserve held
interest rates steady, as expected, but flagged possible rate cuts of as much as
half a percentage point later this year as inflation remained below its target.

    • Oil prices rose over 1% as official data showed U.S. crude stocks fell
more than expected and as OPEC and other producers finally agreed a date for a
meeting to discuss output cuts.
    • Gold prices jumped to their highest level in more than five years, after
the U.S. Federal Reserve signalled possible interest rate cuts later this year.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.69/69.72  June 19          -$13.94 mln  $126.11 mln
 10-yr bond yield  6.84%        Month-to-date    $11.71 mln   $543.82 mln
                                Year-to-date     $11.20 bln   -$1.59 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 = 69.64 Indian rupees)
    
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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