June 7, 2018 / 3:21 AM / a month ago

Morning News Call - India, June 7

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    FACTORS TO WATCH
    10:30 am: Railway Board Chairman Ashwini Lohani at an event in New Delhi.
    12:30 pm: Earth Sciences Minister Harsh Vardhan to brief media on four-year
achievements of the ministry in New Delhi.
    4:00 pm: Housing Minister Hardeep Singh Puri media briefing on four-year
achievements of the ministry in New Delhi.
    
    LIVECHAT-ECONOMIC OUTLOOK
    We take a look at broader economic factors and risks likely to affect
financial markest with David Page, senior economist at AXA Investment Managers
at 02:30 pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • India raises key rate for 1st time since 2014, retains 'neutral' stance
    Growing inflation concerns prompted India's central bank to raise its policy
rate for the first time in over four years on Wednesday, but it surprised some
economists by keeping its stance "neutral" instead of changing to
"tighten".
    • Canara bank fined in UK for anti-money laundering breaches
    Britain's markets regulator has fined the UK division of India's Canara Bank
896,100 pounds and blocked it from accepting new deposits for around five months
for systemic anti-money laundering (AML) failures.
    • Saudi Arabia 'revisiting' policy on oil output cuts, India says
    India's oil minister said on Wednesday Saudi Arabia and other OPEC producers
are "revisiting" their output-cutting policy, referring to a discussion he had
with his Saudi counterpart.
    • India unveils measures to help sugar mills, woo farmers
    India has decided to build a 3 million tonne stockpile of sugar to soak up
excess supply from the domestic market, and grant soft loans worth 44.4 billion
rupees ($661.40 million) to help millers expand ethanol output capacity, the
food minister said.
    • Indian police source says still seeking to quiz AirAsia boss; airline
denies summons 
    India's federal police will again ask AirAsia Group's chief to appear for
questioning over allegations the airline broke rules to obtain a flying licence
in the country, a source said on Wednesday, after he failed to answer a previous
request.
    • India's May gold imports plummet as price rally dents demand
    India's gold imports plunged a fifth straight month in May to 48 tonnes as a
rally in local prices to near their highest level in 21 months curtailed retail
purchases, provisional data from precious metals consultancy GFMS and bank
dealers showed.


    GLOBAL TOP NEWS
    • Trump sticks with hard line on trade as showdown looms at G7
    U.S. President Donald Trump is not backing down from the tough line he has
taken on trade, the White House's top economic adviser said on Wednesday,
setting the stage for a showdown with top allies at this week's G7 summit in
Canada.
    • U.S. lawmakers press Facebook over Chinese data sharing
    Facebook faced criticism on Wednesday from Republican and Democratic U.S.
lawmakers who demanded that the social media company be more forthcoming about
data it has shared with four Chinese firms.
    • U.S. Congress has few options to stop Trump from saving China's ZTE
    There is little Congress can do to stop President Donald Trump if he wants
to relax penalties on ZTE, despite strong bipartisan opposition to easing
restrictions on China's No. 2 telecommunications equipment maker.


    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty nearest-month futures were trading up 0.4 percent at
10,742.50.
    • The Indian rupee is expected to open little changed amid rising bond
yields in the U.S. and Europe on concerns the European Central Bank will end its
bond purchase programme. 
    • Indian government bonds are likely to trade little changed after the
Monetary Policy Committee yesterday hiked its key interest rate for the first
time yesterday since January 2014. The yield on the benchmark 7.17 percent bond
maturing in 2028 is likely to trade in 7.88 percent - 7.95 percent band today.


    GLOBAL MARKETS
    • Wall Street indexes rallied on Wednesday with help from financial stocks
as investors eyed strong economic data and trade war fears took a back seat
while the Nasdaq registered its third straight record closing high.
    • Asian shares rose to 2 1/2-month high, supported by strong economic
fundamentals, while expectations the European Central Bank could start to wind
down its stimulus boosted the euro and global bond yields.
    • The euro stayed near two-week highs against many of its rivals, on rising
bets the European Central Bank may announce it will wind down its stimulus
programme by year-end as early as next week.
    • U.S. Treasury yields rose on Wednesday, with the 10-year yield hitting a
1-1/2-week high on worries that the European Central Bank would end the
expansion of its massive bond purchase program this year.
    • Oil prices rose to shake off some of the previous session's losses,
supported by plunging exports by OPEC-member Venezuela.
    • Gold prices edged higher, supported by a weaker dollar amid ongoing
concerns about a trade war between the United States and its allies.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         67.02/67.05  June 6           -$12.18 mln  -$44.08 mln
 10-yr bond yield  8.1 pct      Month-to-date    $482.86 mln  -$50.21 mln
                                Year-to-date     $238.21 mln  -$4.27 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 = 66.83 Indian rupees)
    
    

 (Compiled by Shradha Singh in Bengaluru)
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