March 16, 2020 / 3:30 AM / 17 days ago

Morning News Call - India, March 16

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    FACTORS TO WATCH
    12:00 pm: Government to release February wholesale price inflation data in
New Delhi.
    
    LIVE CHAT - MARKETS FOCUS
    Mike Dolan, Reuters Editor at Large, Finance and Markets, will join us to
look at market-moving factors and events for the upcoming week. To join the
conversation at 3:30 pm IST, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India proposes regional fund to fight coronavirus as cases exceed 100
    India proposed setting up an emergency fund to fight the coronavirus
outbreak in South Asia on Sunday, with New Delhi offering $10 million to get it
going, as the number of confirmed infections in the country rose past 100.

    • Troubled Yes Bank reports wider-than-expected loss
    Yes Bank reported a wider-than-expected quarterly loss of 185.6 billion
rupees, and said it was continuing to analyse the allegations of wrongdoing by
former Managing Director Rana Kapoor.
    • India increases fuel taxes in a bid to shore up revenue
    India on Saturday increased taxes on petrol and diesel in a desperate
attempt to increase government revenue at a time when tax collections have
fallen amid the weakest economic growth in over six years, with the coronavirus
impact yet to come.
    • India's February trade deficit at $9.85 billion - government
    India's trade deficit sharply narrowed in February to $9.85 billion from
$15.17 billion in the previous month, the trade ministry said in a statement on
Friday, helped by a rise exports.
    • India hikes taxes on mobile phones, parts
    India's Goods and Services Tax Council has increased the tax on mobile
phones and parts, Finance Minister Nirmala Sitharaman said on Saturday, a move
that could lead to higher prices.
    • India ready to take steps to calm markets over coronavirus, says adviser 
    The Indian government and financial regulators will take necessary steps to
calm markets gripped by fears over coronavirus, the government's chief economic
adviser Krishnamurthy Subramanian said on Friday.
    
    
    GLOBAL TOP NEWS
    • Fed slashes rates, global central banks coordinate to cushion coronavirus
blow
The U.S. Federal Reserve and global central banks moved aggressively on Sunday
to buttress a world economy unraveling rapidly amid the coronavirus pandemic,
with the Fed slashing interest rates to near zero, pledging hundreds of billions
of dollars in asset purchases and backstopping foreign authorities with the
offer of cheap dollar financing.
    • China's economy suffers heavy blow as epidemic paralyses activity
    China's industrial output contracted at the sharpest pace in 30 years in the
first two months of the year as the fast spreading coronavirus and strict
containment measures severely disrupted the world's second-largest economy, data
showed.
    • Airlines slash schedules, jobs and pay after new travel restrictions
Airlines around the world announced they would make more drastic reductions to
their flying schedules, cut jobs and seek government aid after countries further
tightened border restrictions due to the coronavirus.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 4% lower at 9,582.50.
    • The Indian rupee is expected to fall against the dollar, weighed by losses
on U.S. equity index futures and regional stocks despite the Federal Reserve
cutting rates by 100 basis points in the face of the coronavirus epidemic.
    • Indian government bonds are likely to open higher, as the emergency rate
cut by the U.S. Federal Reserve cemented bets of an early policy easing at home.
The yield on the benchmark 6.45% bond maturing in 2029 is likely to trade in a
range of 6.26%-6.34% today.
    
    
    GLOBAL MARKETS
    • Wall Street staged a furious rally in the waning moments of the session on
Friday after U.S. President Donald Trump declared a national emergency to combat
the rapidly spreading coronavirus, although major averages still suffered sharp
losses for the week.
    • Stock markets and the dollar were roiled after the Federal Reserve slashed
interest rates in an emergency move and its major peers offered cheap U.S.
dollars to break a logjam in global lending markets.
    • The dollar fell against a broad range of currencies after the U.S. Federal
Reserve made another surprise interest rate cut and major central banks took
steps to relieve a shortage of dollars and provide extra liquidity.
    • U.S. 10-year Treasury yields jumped back over the 1% level on Friday after
President Donald Trump declared a national emergency over the spreading
coronavirus, a move that sent stocks soaring.
    • Oil extended losses as an emergency rate cut by the U.S. Federal Reserve
failed to soothe global financial markets panicked by the rapid spread of the
coronavirus while a price war rages on between top producers.
    • Gold prices rose nearly 3% following a steep decline in the previous
session, as the dollar and global equities fell sharply after the U.S. Federal
Reserve made another surprise interest rate cut.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot         73.91/73.94  March 13         (1,802.06) crore  (2,988.79) crore
 10-yr bond yield  6.32%        Month-to-date    (24,776) crore    (14,050) crore
                                Year-to-date     (10833) crore     (23,601) crore
 (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 = 73.84 Indian rupees) 


 (Compiled by Pranay Prakash in Bengaluru)
  
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