June 21, 2019 / 3:08 AM / 4 months ago

Morning News Call - India, June 21

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    FACTORS TO WATCH
    No major events are scheduled for the day.
    
    LIVECHAT - FED FOCUS
    Rob Carnell, head of research and chief economist for Asia-Pacific at ING
Bank, joins us at 9:30 am IST to review the FOMC decision this week, his
expectations of Fed policy and markets into 2020. To join the conversation,
click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • U.S. has no plans to cap H-1B work visa program -State Department
    The Trump administration has no plans to cap H-1B work visas for nations
that force foreign companies to store data locally, the State Department said on
Thursday.
    • India's flagging economy needs urgent boost amid muted inflation -MPC
minutes
    With inflation in India well within the monetary policy committee's (MPC)
mandated target, it is crucial to give higher importance to faltering economic
growth, members said in the minutes of the June meeting released on Thursday.

    • India's bankruptcy court admits insolvency plea against Jet Airways
    India's bankruptcy court, the National Company Law Tribunal, on Thursday
accepted an insolvency petition against Jet Airways filed by its creditors as
they attempt to recover some of their dues.
    • Zambian court rejects Vedanta bid to join liquidation case
    Vedanta Resources said it would take urgent steps to protect its Zambian
assets and pursue international arbitration if necessary after a Lusaka court on
Thursday rejected its request to be included in liquidation proceedings.

    
    
    GLOBAL TOP NEWS
    • Trump says hard to believe Iranian shooting down of U.S. drone was
intentional
    U.S. President Donald Trump played down Iran's downing of a U.S. military
surveillance drone on Thursday, saying he suspected it was shot by mistake and
"it would have made a big difference" to him had the remotely controlled
aircraft been piloted.
    • Japan's slow inflation, manufacturing slump could draw early BOJ action
    Japan's core consumer inflation slowed in May and factory activity shrank in
June, underlining the growing stress on the economy and keeping the central bank
under pressure to expand its radical stimulus programme, possibly as early as
next month.
    • China, U.S. to resume trade talks but China says demands must be met
China said on Thursday it hoped U.S. officials would bring a problem-solving
attitude to renewed trade talks in advance of a meeting between Presidents
Donald Trump and Xi Jinping next week in Japan.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.1% lower at 11,853.00.
    • The Indian rupee is expected to open lower against the dollar following a
surge in crude oil amid rising U.S.-Iran tensions.
    • India government bonds are expected to edge lower in morning trade
tracking an overnight rise in crude oil prices. 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 hit a record high on Thursday, lifted by Wall Street's
expectations that the Federal Reserve will cut interest rates as soon as next
month to keep the U.S.-China trade war from stalling economic growth.
    • Asian stocks struggled to follow Wall Street's euphoria about a possible
U.S. rate cut next month as anxiety over Sino-U.S. trade negotiations clouded
investor sentiment in the region.
    • The dollar struggled to get on the front foot, and was poised for a weekly
loss against major currencies after the U.S. Federal Reserve joined global peers
with plans to cut interest rates to support flagging economic growth.
    • U.S. benchmark 10-year Treasury yields on Thursday dropped below 2% for
the first time in more than 2-1/2 years, while other maturities fell to
multiyear lows as well, a day after the Federal Reserve flagged interest rate
cuts as early as next month.
    • Oil prices rose, with Brent crude heading for its first weekly gain in
five weeks on tensions in the Middle East after Iran shot down a U.S. military
drone and on hopes for a drop in U.S. interest rates that may stimulate global
growth.
    • Gold prices climbed above $1,400 per ounce for the first time in nearly 6
years after the U.S. Federal Reserve indicated earlier this week that it could
cut interest rates as early as July, prompting a sharp fall in the dollar and
U.S. Treasury yields.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.58/69.61  June 20          -$63.01 mln  $94.50 mln
 10-yr bond yield  6.79%        Month-to-date    $8.47 mln    $638.32 mln
                                Year-to-date     $11.20 bln   -$1.49 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 = 69.51 Indian rupees)
    
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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