March 17, 2020 / 3:36 AM / in 22 days

Morning News Call - India, March 17

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    FACTORS TO WATCH
    No major events are scheduled.
    
    LIVE CHAT - MARKET FOCUS
    Stephen Innes, Global Chief Markets Strategist, AxiCorp, joins the forum to
discuss his outlook for global markets. To join the conversation at 9:30 pm IST,
click on the link: refini.tv/2P8N0Wp
  
    
    INDIA TOP NEWS
    • RBI disappoints markets, leaves rates on hold
    The Reserve Bank of India said on Monday its policy actions will be
"considered and calibrated," after it left interest rates unchanged in the face
of the coronavirus outbreak. The timing of any interest rate action would be
based on the "evolving situation," Shaktikanta Das, the governor of the RBI,
said at a suddenly announced press conference that had raised hopes for an
emergency rate cut.
    • SBI Cards makes tepid debut amid virus worries
    Shares in the credit-card arm of State Bank of India fell in their market
debut on Monday, as coronavirus worries dampened enthusiasm for one of the
country's largest public listings in recent times.
    • Vodafone Idea settles principal portion of government dues
    Vodafone Idea said it had settled the entire principal portion of the dues
it owed to the government after paying an additional 33.54 billion rupees on
Monday.
    • India plans to top up strategic tanks with cheap Saudi, UAE oil- sources
    India plans to take advantage of low prices for oil from Saudi Arabia and
the United Arab Emirates to top up its strategic petroleum reserves, two sources
familiar with the matter said on Monday.
    • Unseasonal rain and hail damages crops in India, hits farmers' income
Unseasonal torrential rains and hailstorms have damaged the winter-planted crops
of millions of Indian growers, inundating wheat, potato, chickpea and rapeseed
farms in large parts of the fertile northern plains, farmers said.

    
        
    CORONAVIRUS IMPACT
    • Coronavirus causes historic market drop, global scramble to contain
'invisible enemy'
    Coronavirus fears led to a historic drop in U.S. stocks, shut borders and
disrupted daily life around the world, as governments took increasingly drastic
measures to try to reduce the severity of the global outbreak.
    • ANALYSIS - Powell's whatever-it-takes pledge puts limits of Fed's reach in
spotlight
    Federal Reserve Chair Jerome Powell's message in announcing a barrage of
monetary policy and liquidity actions was clear: The U.S. central bank will use
all the tools at its disposal to keep credit flowing through the U.S. and global
financial system.
    • SPECIAL REPORT - "All is well." In Italy, triage and lies for virus
patients
    The fight against death pauses every day at 1 p.m. At that time, doctors in
the intensive care unit of Policlinico San Donato phone relatives of the unit's
25 critically-ill coronavirus patients, all of whom are sedated and have tubes
down their throats to breathe, to update the families. Lunchtime used to be for
visiting hours at this Milan hospital. But now, as the country grapples with a
coronavirus outbreak that has killed more than 2,000 people, no visitors are
allowed in. And no one in Italy leaves their homes anymore.
    • Airline bailouts? Cash handouts? Debate deepens on inoculating economy
against coronavirus
    The United States and other rich countries need to start spending their way
out of the coronavirus crisis, White House advisers, the International Monetary
Fund and business groups said Monday, amid growing market panic about the
pandemic.
    • 'Single biggest shock': Airlines, airports battle coronavirus cash crunch
    As Boeing and other U.S. aviation companies angle for billions in
assistance, airlines and airport operators globally are suspending dividends,
selling airplanes and flying cargo on passenger jets amid plunging demand caused
by the pandemic.
    • Coronavirus: First test of a U.S. financial system 10 years in repair
    A health emergency dismissed at first as a fleeting risk to the U.S. economy
has turned into a full-on test of whether a decade of planning, regulation,
research and soul-searching has left the financial system resilient to a major
shock and its central bank able to mount a rescue.
    
    
    GLOBAL TOP NEWS
    • Japan business mood plunges to decade lows on coronavirus woes-Reuters
Tankan
    Japanese business confidence plunged to decade lows in March as the
spreading coronavirus outbreak stoked fears of a global recession and sent stock
markets tumbling, the Reuters Tankan survey showed on Tuesday.
    • Amazon to hire 100,000 workers as online orders surge on coronavirus
worries
    Amazon.com on Monday said it would hire 100,000 warehouse and delivery
workers in the United States to deal with a surge in online orders, as many
consumers have turned to the web to meet their needs during the coronavirus
outbreak.
    • Boeing stock wipes out gains made during ousted CEO Muilenburg's term
    Boeing shares on Monday erased all gains recorded during ousted CEO Dennis
Muilenburg's tenure due to the economic fallout of the coronavirus pandemic and
uncertainty around the 737 MAX's return to service, which also led to a credit
rating downgrade by S&P Global Ratings.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were little changed at 9,101.50.
    • The Indian rupee is expected to trade little changed against the dollar
amid index futures suggesting a rebound on Wall Street and decline in most
regional Asian currencies.
    • Indian government bonds are likely to trade largely unchanged in early
session, ahead of fresh supply of state debt, even rate cut hopes at home
persist. The yield on the benchmark 6.45% bond maturing in 2029 is likely to
trade in a range of 6.16%-6.24% today.
    
    
    GLOBAL MARKETS
    • Wall Street suffered its biggest drop since the crash of 1987 on Monday
after unprecedented steps taken by the Federal Reserve, lawmakers and the White
House to slow the spread and blunt the economic hit of the coronavirus failed to
restore order to markets.
    • Asian shares fell in a topsy-turvy session following one of Wall Street's
biggest one-day routs in history as headlines about the coronavirus outbreak and
its global economic impact whiplashed investor sentiment.
    • The safe-haven Japanese yen held largely firm while risk-sensitive
currencies struggled to stay afloat as coordinated moves by central banks failed
to quell investor trepidation over the spreading coronovirus pandemic.
    • U.S. government debt yields fell on Monday after the Federal Reserve
announced it would slash interest rates to near zero, but remained above session
lows as investors fretted that Treasuries would sell off as they did last week.

    • Oil prices rose more than $1 as the recent sharp falls due to the
coronavirus pandemic encouraged bargain hunters to come forward, although the
market remains volatile as the spread of the infection disrupts economies and
hurts demand.
    • Gold prices inched lower following a meltdown in precious metals last
session, as investors continued to sell assets across markets to keep their
money in cash amid heightened panic over the coronavirus pandemic.
    
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot         74.29/74.32  March 16         (6,741.02) crore  (6,477.87) crore
 10-yr bond yield  6.20%        Month-to-date    (31,517) crore    (20,528) crore
                                Year-to-date     (17,574) crore    (30,079) 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 = 74.00 Indian rupees)
 

 (Compiled by Pranay Prakash in Bengaluru)
  
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