May 11, 2020 / 3:30 AM / 18 days ago

Morning News Call - India, May 11

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    FACTORS TO WATCH
    3:00 pm: Finance Minister Nirmala Sitharaman to meet heads of state-run
banks to review credit flow in New Delhi. 
    3:00 pm: Prime Minister Narendra Modi to hold meeting with chief ministers
of various states to discuss lockdown situation in New Delhi. 
    4:00 pm: The Health ministry will brief on the COVID-19 situation in New
Delhi.
    
    LIVECHAT - MARKETS UPDATE 
    Mike Dolan, Reuters Editor at Large, Finance & Markets, discusses the themes
in play for markets in the upcoming week. To join the conversation at 3:30 pm,
click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India issues guidelines for post-lockdown factory restarts after fatal gas
leak
    India has issued guidelines to ensure the safe restart of manufacturing
facilities, after a weeks' long nationwide lockdown aimed at stemming the spread
of the novel coronavirus.
    • India inflation likely fell to a five-month low in April  
    Indian retail inflation eased to a five month low in April as the nationwide
lockdown imposed to try to quell the spread of the coronavirus and subsequent
sluggish demand drove price pressures down, a Reuters poll found.
    • Saudi, U.S. firms eye stakes in Reliance's Jio - Bloomberg 
    Two more firms are eyeing a share of Reliance Industries' $65-billion
digital unit Jio Platforms, according to Bloomberg News, setting them up to be a
part of a growing list of firms that have recently invested in the company.
 
    • India's fuel demand nearly halves in April amid lockdown
    India's fuel demand dipped 45.8% in April from a year earlier, as a
nationwide lockdown and travel curbs to combat the spread of novel coronavirus
eroded economic activity.
    • Indian court seeks govt reply over challenge to mandatory coronavirus app 
    A court asked the Indian government on Friday to respond to a challenge
against its order for compulsory use of a contact tracing app by public and
private sector employees returning to work amid the world's biggest coronavirus
lockdown.
    • India mounts huge airlift to return stranded citizens home   
    Doctors in hazmat suits ran temperature checks on passengers at Delhi
airport and bags were disinfected as the first group of Indians returned home on
special flights from Singapore and the Gulf on Friday since a sweeping lockdown
was imposed in March.
    • China-backed AIIB approves $500 million loan for India's COVID-19 response
    Beijing-backed Asian Infrastructure Investment Bank (AIIB) said on Friday it
had approved a $500 million loan to India to help the country navigate the
coronavirus pandemic.
    
    
    GLOBAL TOP NEWS
    • Pence not in quarantine, to be at White House Monday, after aide tests
positive for coronavirus
    Vice President Mike Pence is not in quarantine and plans to be at the White
House on Monday, a spokesman said on Sunday, despite media reports that Pence
was self-isolating after a staffer tested positive for the novel coronavirus.
 
    • Japan eyes more spending backed by 2nd extra budget to combat pandemic
fallout
    Japan will take additional stimulus measures "swiftly" to combat the fallout
from the coronavirus pandemic, Prime Minister Shinzo Abe said, signalling
readiness to compile a second supplementary budget during the current Diet
session running through June. 
    • Shanghai Disneyland re-opens after three-month closure due to coronavirus 
Walt Disney reopened its Shanghai Disneyland park to a reduced number of
visitors, ending a roughly three-month closure caused by the coronavirus
outbreak. 

    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 1.3% higher at 9,356.
    • The Indian rupee is expected to trade little changed against the dollar,
tracking rangebound moves in other Asian currencies following a surge in U.S.
unemployment.
    • India's federal government bonds are likely to fall sharply today, with
yields jumping by about 25 basis points, after New Delhi increased its market
borrowing for this financial year by 54% due to the impact of the novel
coronavirus outbreak. The yield on the benchmark 6.45% bond maturing in 2029 is
likely to trade in a range of 6.15%-6.25%. 
    
    GLOBAL MARKETS
    • Major U.S. stock indexes jumped on Friday and logged solid gains for the
week after data on historic job losses due to the coronavirus crisis showed they
were slightly fewer than feared.
    • Asian shares followed Wall Street higher as investors looked ahead to more
countries restarting their economies, even as some reported an unwelcome pick up
in new coronavirus cases.
    • The dollar rose against most of its major peers as moves by the United
States and other countries to re-open their economies raised hopes for a quicker
global recovery from a deep recession triggered by the coronavirus health
crisis.
    • Two-year Treasury yields hit record lows on Friday and fed fund futures
implied the Federal Reserve could cut rates into negative territory, though
analysts said the move was likely technical as investors betting on higher rates
were squeezed out of their positions.
    • Oil prices slid nearly $1 a barrel as concern over a persistent glut and
economic gloom caused by the coronavirus pandemic combined to cancel out support
from supply cuts at some of the world's top producers.
    • Gold held above the key $1,700 per ounce level as a new wave of
coronavirus infections in some countries kept the safe-haven metal underpinned,
despite firmer equities and a stronger dollar.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES         DEBT
 PNDF spot         75.56/75.59  May 8            17,122.71 crore  (189.10) crore
 10-yr bond yield  5.96 pct     Month-to-date    18,637 crore     (2,823) crore
                                Year-to-date     (36,277) crore   (85,302) 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 = 75.52 Indian rupeesIndian rupees)
 
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