March 22, 2019 / 3:18 AM / in a month

Morning News Call - India, March 22

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    FACTORS TO WATCH
    No major events are scheduled.
    
    LIVECHAT - BREXIT SPECIAL SERIES
    We continue our guest line-up to weigh in on the various Brexit scenarios
over the next week. The list of guests include:
    Monday
    1200 GMT: Jane Foley , Head of forex strategy at Rabobank
    1400 GMT: Boris Schlossberg, Managing director of FX strategy at BK Asset
Management
    Tuesday
    0600 GMT: Alastair Newton, Co-Founder and Director, Alavan Business Advisory
    1200 GMT: Neil Dwane, Global Strategist at Allianz Global Investors
    Wednesday
    0700 GMT: Prof. Moorad Choudhry, London Metropolitan University and author
of 'The Principles of Banking'
    1100 GMT: Philip Shaw, Chief Economist at Investec Plc
    Thursday
    0830 GMT: Arnab Das, Head EM macro, Invesco

    To join the Global Markets Forum, click on the link: here
    
    
    INDIA TOP NEWS
    • Reliance sends fuel from India, Europe to Venezuela to sidestep U.S.
sanctions
Reliance Industries is selling fuels to Venezuela from India and Europe to
sidestep sanctions that bar U.S.-based companies from dealing with state-run
PDVSA, according to trading sources and Refinitiv Eikon data.
    • Billionaire Indian remanded in custody after London court appearance
Fugitive billionaire jeweller Nirav Modi, wanted by Indian authorities over a $2
billion loan fraud at state-run Punjab National Bank (PNB) was remanded in
custody after appearing before a British court on Wednesday.
    • Tata to offer partial EU packaging sale for Thyssenkrupp deal approval -
sources
Tata Steel is likely to offer to sell parts of its European packaging activities
to secure regulatory approval for a planned joint venture with Thyssenkrupp,
three people familiar with the matter told Reuters.
    • India state banks want Jet Airways' Goyal to reduce stake to 10 percent -
CNBC-TV18
A group of Indian state-run banks want Jet Airways' embattled founder and
Chairman Naresh Goyal to reduce his stake in the carrier to 10 percent, news
channel CNBC-TV18 reported on Thursday, quoting sources.
    • Vodafone Idea's $3.6 billion rights issue to cause massive dilution
Vodafone Idea, India's largest telecommunications company by subscribers, is
selling $3.6 billion worth of shares in a rights issue at a discount of about 60
percent, which will more than triple its outstanding shares.
    • Subsidiary of India's debt-laden IL&FS misses payment due to "insufficient
funds"
IL&FS Transportation Networks said in a filing on Thursday that it missed some
209 mln rupees in principal and interest payments due on March 18 because of
"insufficient funds."
    • Investors snap up India's Embassy Office Parks REIT in $690 million IPO
Embassy Office Parks REIT's 47.50 billion rupee initial public offering, the
first by a real estate investment trust in India, was oversubscribed on the last
day of sale on Wednesday.
    
    
    GLOBAL TOP NEWS
    • May gets two-week Brexit reprieve from impatient EU
European Union leaders have given Prime Minister Theresa May two weeks'
reprieve, until April 12, before Britain could lurch out of the EU if she fails
to persuade lawmakers to back the withdrawal treaty she concluded with Brussels.

    • Japan's slowing inflation leaves BOJ fighting tough price battle
Japan's annual core consumer inflation slowed in February as gasoline costs fell
for the first time in more than two years, keeping the central bank under
pressure to maintain, or even ramp up, stimulus to accelerate price growth to
its 2 percent target.
    • Boeing to offer safety feature as standard in 737 MAX software upgrade
-sources
Boeing plans to offer as standard a safety feature that might have warned
earlier of problems that possibly played a role in the crashes of Ethiopian and
Indonesian planes that killed almost 350 people, two officials briefed on the
matter said on Thursday.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were little changed at 11,590.00, from its
previous close.
    • The Indian rupee is expected to open higher against the dollar, as the
U.S. Federal Reserve unexpectedly projected a pause in its monetary tightening
cycle for 2019 amid signs of a global economic slowdown.
    • Indian government bonds are likely to edge higher in early session
tracking a slump in U.S. Treasury yields after the Federal Reserve ruled out any
more rate hikes in 2019 and predicted only one hike for 2020. The yield on the
benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.46
percent-7.52 percent band today.
    
    
    GLOBAL MARKETS
    • An Apple-led tech rally pushed Wall Street higher on Thursday as jitters
over the Federal Reserve's forecast of an economic slowdown were calmed by
upbeat economic data.
    • Asian shares hit 6-1/2-month highs after upbeat U.S. data and optimism in
the tech sector lifted Wall Street stocks, helping calm some of the jitters
sparked by the Federal Reserve's cautious outlook on the world's biggest
economy.
    • The dollar largely held onto the previous session's gains, while sterling
edged up on news that Britain could leave the European Union without a Brexit
deal at a slightly later date.
    • The spread between the three-month Treasury bill yield and the 10-year
note yield shrank to its narrowest level since August 2007 on Thursday in the
wake of the Federal Reserve's decision to cease tightening monetary policy as
the American economy shows signs of contraction.
    • Oil prices hovered close to 2019 peaks reached the previous day, propped
up by supply cuts led by producer club OPEC and by U.S. sanctions against Iran
and Venezuela.
    • Gold extended losses, moving further away from a three-week peak hit in
the previous session, as appetite for riskier assets improved on upbeat U.S.
economic data, while the metal was still on path for a third straight weekly
gain.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         68.88/68.91  March 20         $257.56 mln  $275.67 mln
 10-yr bond yield  7.51 pct     Month-to-date    $3.62 bln    $1.89 bln
                                Year-to-date     $5.7 bln     -$278.81 mln
 
    
    
    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 = 68.8000 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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