May 14, 2018 / 3:18 AM / 4 months ago

Morning News Call - India, May 14

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    FACTORS TO WATCH
    12:00 pm: Government to release April wholesale price inflation data in New
Delhi.
    12:00 pm: Science & Technology and Earth Sciences Minister Harsh Vardhan at
an event in New Delhi.
    2:30 pm: NITI Aayog CEO Amitabh Kant at an event in New Delhi.
    5:30 pm: Government to release April consumer price inflation data in New
Delhi.
    6:00 pm: Hindustan Unilever earnings conference call in Mumbai.

    
    LIVECHAT- FX WEEK AHEAD 
    FX Buzz analyst Jeremy Boulton analyses G7 currencies at 3:30 pm IST. To
join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • Walmart may launch IPO for Flipkart in as early as four years
    Walmart said on Saturday in a filing with a U.S. regulator that it may take
India's Flipkart public in as early as four years, detailing for the first time
a potential listing timeline for Walmart's largest-ever acquisition.
    • India's industrial growth slows to five-month low in March
    India's industrial output growth slowed to a five-month low of 4.4 percent
in March, dragged down by smaller increases in mining, but the central bank is
expected to hold interest rates in its next policy meeting amid growing
inflation concerns.
    • Bad loans push four Indian state banks to combined $1.74 billion Q4 loss
    Four Indian state banks reported on Friday a combined net loss of 117.29
billion rupees for the fiscal fourth quarter due to a jump in bad-loan
provisions following a tightening of central bank rules.
    • Fortis picks underdog in five-way bidding war
    Fortis Healthcare aims to accept an offer of investment from the underdog of
a five-way bidding war, in a decision that drew investor ire and sent shares in
the cash-strapped hospital operator down.
    • POLL-India April retail inflation seen climbing on higher oil prices 
    A three-month slide in India's inflation rate likely ended in April due to
higher energy prices, a Reuters poll found, which could intensify pressure on
the central bank to hike interest rates.
    • SpiceJet March-quarter profit rises nearly 11 percent
    SpiceJet posted a 10.8 percent growth in March-quarter profit on Friday,
helped by a rise in passenger yields during the period.
    • State-run lender OBC posts $245 million Q4 loss
    Oriental Bank of Commerce reported a 16.50 billion-rupee net loss for its
fourth quarter on Saturday as bad loans surged due to new central bank rules.
    • Polls suggest Modi's BJP may be leading party in India's Karnataka
    Exit polls in the southern Indian state of Karnataka on Saturday suggest
Narendra Modi's BJP could emerge as the leading party, potentially boosting the
prime minister's chances of winning a second term in general elections early
next year.
    
    
    GLOBAL TOP NEWS
    • Rhetoric over U.S. exit from Iran deal rises amid threat of sanctions
    The United States threatened on Sunday to impose sanctions on European
companies that do business with Iran, as the remaining participants in the Iran
nuclear accord stiffened their resolve to keep that agreement operational.
    • Xerox says it is ending Fujifilm deal, settles with Icahn, Deason
    Xerox said on Sunday it was ending a planned $6.1 billion deal with Fujifilm
Holdings and had reached a settlement with activist investors Carl Icahn and
Darwin Deason.        
    • Family of IS-inspired suicide bombers attack Indonesian churches, at least
13 dead
    A family of six launched suicide attacks on Christians attending Sunday
services at three churches in Indonesia's second-largest city of Surabaya,
killing at least 13 people and wounding 40, officials said. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty nearest-month futures were trading down 0.1 percent at
10,816.00
    • The Indian rupee is expected to open marginally higher against the U.S.
currency after the dollar index declined to a one-week low and crude oil pulled
back from multiyear highs.
    • Indian government bonds are likely to trade little changed ahead of
release of inflation data for April after market today. The yield on the
benchmark 7.17 percent bond maturing in 2028 is likely to trade in 7.70
percent-7.75 percent band today. 
    
    
    GLOBAL MARKETS
    • The S&P 500 rose on Friday, helped by healthcare stocks after President
Donald Trump blasted high drug prices but avoided taking aggressive measures to
cut them.
    • Asian shares shot up to near two-month highs on signs the United States
and China were toning down their trade war rhetoric, while Malaysian Ringgit hit
a four-month trough in the first onshore trade since a shock election result
last week.
    • The dollar held steady, its recent rally running out of steam on the back
of sagging U.S. yields as investors wound back expectations that the Federal
Reserve will launch a series of quick rate hikes.
    • The Treasury yield curve on Friday was the flattest it had been since July
2007 as shorter-dated yields rose on expectations the Federal Reserve would hike
U.S. interest rates in spite of weaker-than-expected economic data this week.

    • Oil prices fell away from last week's multi-year highs as a relentless
rise in U.S. drilling activity pointed to increased output, while resistance
emerged in Europe and Asia to U.S. sanctions against major crude exporter Iran. 

    • Gold prices rose on the back of a subdued dollar as investors considered
the prospects of slower interest rate hikes in the United States.
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         67.28/67.31  May 11           -$48.23 mln   -310.26 mln
 10-yr bond yield  7.9 pct      Month-to-date    -$465.18 mln  -$1.33 bln
                                Year-to-date     $716.87 mln   -$2.99 bln
    
    
    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 = 67.3900 Indian rupees)
    
    

 (Compiled by Erum Khaled in Bengaluru)
  
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