March 20, 2020 / 3:13 AM / 12 days ago

Morning News Call - India, March 20

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    FACTORS TO WATCH
    3:00 pm: Finance Minister Nirmala Sitharaman to meet ministers for civil
aviation, MSMEs, tourism and animal husbandry, dairy & fisheries to assess the
economic impact of COVID-19 in New Delhi.
    
    
    INDIA TOP NEWS
    • India to halt international flights; Modi urges citizens to stay home as
virus spreads
    Prime Minister Narendra Modi appealed to citizens to stay home and avoid
panic buying, even as India outlined plans to halt all international flights and
rushed to stem the spread of coronavirus cases in the country.
    • Coronavirus sees India's biggest airline cut employee pay - internal memo
    India's biggest airline IndiGo has cut the salaries of most employees by
between 5% and 20% in response to the coronavirus outbreak, which has paralysed
air travel and dented its revenues, an internal memo seen by Reuters said.

    • Coronavirus to send emerging economies into recession by mid-year -
JPMorgan
    The crippling economic impact of the coronavirus is set to push the world's
poorer countries excluding China into recession by the middle of the year, U.S,
investment bank JPMorgan warned on Thursday.
    • JLR to suspend production at UK manufacturing facilities from next week
Luxury automaker Jaguar Land Rover said late on Thursday it would temporarily
suspend production at its UK manufacturing facilities from next week to curb the
coronavirus' spread.
    
    
    GLOBAL TOP NEWS
    • Coronavirus deaths in Italy overtake China as economic damage mounts
    The world's richest nations poured unprecedented aid into the global economy
on Thursday as coronavirus cases ballooned in the new epicentre Europe, with the
number of deaths in Italy outstripping those in mainland China, where the virus
originated.
    • U.S. Senate will seek deal on $1 trillion coronavirus economic aid package
    U.S. Senate Majority Leader Mitch McConnell introduced emergency legislation
on Thursday to stem the economic fallout from the coronavirus pandemic, and
Republicans and Democrats agreed to meet on Friday to seek an agreement.

    • China to ramp up spending to revive economy, could cut growth target -
sources
    China is set to unleash trillions of yuan of fiscal stimulus to revive an
economy expected to shrink for the first time in four decades amid the
coronavirus pandemic, while a planned growth target is likely to be cut,
according to four policy sources.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.4% higher at 8,237.00.
    • The Indian rupee is expected to trade little changed against the U.S.
currency amid a pause in the dollar index rally, mild improvement in risk
appetite, and a recovery in crude oil prices from multiyear lows.
    • Indian government bonds are likely to trade largely unchanged, ahead of
the central bank’s open market note purchase due later today. The yield on the
benchmark 6.45% bond maturing in 2029 is likely to trade in a range of
6.38%-6.43% today.
    
    
    GLOBAL MARKETS
    • U.S. stocks managed to post gains on Thursday after recent steep losses as
policymakers around the world took further emergency actions to try to help
financial markets cope with deep coronavirus-driven economic damage.
    • Asian shares staged a rare rally as Wall Street eked out gains, bonds
rallied and oil boasted its biggest bounce on record, though the panicked rush
into U.S. dollars suggested the crisis was far from done.
    • The dollar was headed for its biggest weekly gain since the 2008 crisis on
Friday, as the coronavirus pandemic drives a dash for cash that is stretching
the world's financial plumbing.
    • U.S. Treasury yields largely fell in volatile trading on Thursday as
investors hurried to minimize risk in the face of the coronavirus pandemic, and
the Fed poured liquidity into the financial system.
    • U.S crude oil prices edged higher, extending gains after a 24% jump the
previous day, buoyed by hints from U.S. President Donald Trump he may intervene
in the price war between Saudi Arabia and Russia at an "appropriate time."
    • Gold prices rose after a fall in the previous session, but the metal was
on track to post its second weekly drop due to a rush for cash amid the widening
economic fallout from the coronavirus outbreak.
    
 
                   CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot         75.06/75.09  March 19         (5,044.64) crore  (3,269.42) crore
 10-yr bond yield  6.41%        Month-to-date    (44,925) crore    (43,423) crore
                                Year-to-date     (30,982) crore    (52,974) 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 = 74.78 Indian rupees)
 

 (Compiled by Pranay Prakash in Bengaluru)
  
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