March 3, 2020 / 3:18 AM / a month ago

Morning News Call - India, March 3

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    FACTORS TO WATCH
    9:30 am: NITI Aayog CEO Amitabh Kant to speak at a conference on
Transformation of Aspirational Districts in New Delhi.
        
    
    
    INDIA TOP NEWS
    • India factory activity growth slows in Feb on weak demand - PMI
    India's factory activity growth slowed in February from the previous month's
eight-year high due to a modest weakening in demand and output, although overall
conditions remained firm, a private survey showed on Monday.
    • India retail banking a 'nice oasis' for foreign lenders Deutsche, HSBC,
peers
    Outsized returns in India, besting local lenders for the first time in a
decade, are emboldening banks such as Citigroup, Deutsche Bank and HSBC to
invest more in a market that has long held promise but tended to under-deliver.

    • India sees 2020/21 fuel demand growth rebound
    India expects its refined products demand growth to rebound to 3.8% in the
financial year beginning April, tracking improved economic growth, according to
government estimates that were made in January before the coronavirus broke out.

    • India's Feb jobless rate rises to 7.78%, highest in 4 months- CMIE
    India's unemployment rate rose to 7.78% in February, the highest since
October 2019, and up from 7.16% in January, according to data released by the
Centre for Monitoring Indian Economy (CMIE)on Monday, reflecting the impact of a
slowdown in the economy.
    • Vistara considering a bid for Air India, chairman says
    Vistara, a joint venture between Tata Group and Singapore Airlines, is
considering a bid for the government's stake in state-run carrier Air India,
Vistara's chairman said on Monday, according to local media reports.

    • Sun Pharma says hypertension drug in shortage in US
    Drugmaker Sun Pharmaceutical reported a shortage of its generic version of
hypertension drug pindolol in the United States due to a lack of pharmaceutical
ingredients, but said the shortfall did not stem from China.
    • India reports three more cases of coronavirus, including Italian national
An Italian national tested positive for coronavirus in the western Indian state
of Rajasthan, a major tourist destination, a hospital official said on Monday,
taking the number of people who have tested positive in the country to six.

        
    
    GLOBAL TOP NEWS
    • Coronavirus spreading fast outside China, airports to increase screenings
    The new coronavirus appears to now be spreading much more rapidly outside
China than within, and airports in hard-hit countries were ramping up screening
of travellers.
    • Newly obtained documents show Huawei role in shipping prohibited U.S. gear
to Iran
    Huawei Technologies, which for years has denied violating American trade
sanctions on Iran, produced internal company records in 2010 that show it was
directly involved in sending prohibited U.S. computer equipment to Iran’s
largest mobile-phone operator.
    • Top central banks appear primed to act to combat coronavirus risk
    The world's top three central banks look set to take steps to limit the
economic damage from the fast-spreading coronavirus, with the heads of the
European Central Bank and Bank of Japan issuing emergency statements on Monday
that echoed one from U.S. Federal Reserve Chair Jerome Powell late last week.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.2% higher at 11,148.00.
    • The Indian rupee is expected to rise against the dollar after U.S.
equities had their best day in more than a year amid increasing bets of support
from major central banks to combat the novel coronavirus outbreak.
    • Indian government bonds are likely to open lower, after U.S. Treasury
yields and crude oil prices rebounded on hopes of stimulus from central banks to
combat the coronavirus risk. Heavy supply of state debt in local market may also
keep traders away from adding positions. The yield on the benchmark 6.45% bond
maturing in 2029 is likely to trade in a range of 6.33%-6.38% today.
    
    
    GLOBAL MARKETS
    • The Dow Jones Industrial Average surged over 5% on Monday while the S&P
500 and Nasdaq each jumped more than 4% in a major rebound following last week's
steep sell-off sparked by fears about the coronavirus.
    • Global shares and oil prices extended their rebound on mounting
speculation policymakers around the world would move to ease the economic
fallout from the spreading coronavirus.
    • The euro held steady just under its highest in two months against the
dollar on expectations that coronavirus-driven monetary easing in the United
States can and will run deeper than any similar action in Europe.
    • U.S. Treasury prices fell on Monday as long-dated yields rose from record
lows, stocks soared and investors cheered stimulus measures from global central
banks meant to ease the economic impact of the coronavirus.
    • Oil prices rose for a second day on expectations that central banks are
likely to enact financial stimulus to offset the impacts of the coronavirus
outbreak and growing optimism that OPEC will order deeper output cuts this week.

    • Gold prices inched up on increasing bets of an interest rate cut by global
central banks to mitigate the economic impact from the fast-spreading
coronavirus outbreak.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES       DEBT
 PNDF spot         72.42/72.45  March 2          (3,341) crore  (2,265) crore
 10-yr bond yield  6.34 pct     Year-to-date     10,602 crore   11,816 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 = 72.88 Indian rupees)
 

 (Compiled by Pranay Prakash in Bengaluru)
  
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