May 20, 2019 / 3:24 AM / a month ago

Morning News Call - India, May 20

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    FACTORS TO WATCH
    No major events are scheduled for the day.
    
    GMF: LIVECHAT - INDIA MARKETS & POLICY POST-ELECTIONS
    Siddhartha Rastogi, Managing Director at Ambit Capital Asset Management,
will discuss his expectations on Indian markets and fiscal policy after final
voting ends on Sunday evening and exit polls start coming out at 11:00 am IST.
To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • Modi set to return to power with a bigger majority, exit polls show
Indian Prime Minister Narendra Modi is likely to return to power with an even
bigger majority in parliament after a mammoth general election that ended on
Sunday, exit polls showed, a far better showing than expected in recent weeks.

    • IndiGo's co-founder not intent on taking control of company: CEO
One of the co-founders of India's largest airline IndiGo has no plans of taking
control of the carrier, its Chief Executive said on Saturday, two days after
parent InterGlobe Aviation shares fell over a media report about alleged
differences between the co-founders.
    • Spencer's Retail to buy Nature's Basket in $43 million deal
India's Spencer's Retail will buy upmarket grocery chain Nature's Basket from
Godrej Industries for 3 billion rupees, the companies said on Friday.

    • Modi’s jobs deficit: J&J’s largest India plant idle 3 years after
completion
It was supposed to be Johnson & Johnson's biggest manufacturing plant in India.
It was to eventually employ at least 1,500 people and help bring development to
a rural area near Hyderabad in southern India. Yet, three years after the U.S.
healthcare company completed construction of production facilities for cosmetics
and baby products on the 47-acre site, they stand idle.
    
    
    GLOBAL TOP NEWS
    • Saudi Arabia says oil producers want to reduce inventories
Saudi Energy Minister Khalid al-Falih said on Sunday there was consensus among
OPEC and allied oil producers to drive down crude inventories "gently" but his
country would remain responsive to the needs of what he called a fragile market.

    • Weak spending overshadows Japan's surprise first quarter economic
expansion
Japan's economic growth unexpectedly accelerated in January-March, driven by net
contributions from exports and defying forecasts for a contraction in the
world's third-largest economy.
    • Google suspends some business with Huawei after Trump blacklist: source
Alphabet's Google has suspended business with Huawei that requires the transfer
of hardware, software and technical services except those publicly available via
open source licensing, a source familiar with the matter told Reuters on Sunday,
in a blow to the Chinese technology company that the U.S. government has sought
to blacklist around the world.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures 2.3% higher at 11,693.00.
    • The Indian rupee is expected to open higher against the dollar after most
exit polls forecast a second term for Prime Minister Narendra Modi.
    • Indian government bonds are expected to rise sharply after exit polls
predicted Prime Minister Narendra Modi’s ruling National Democratic Alliance is
likely to win a majority in the parliament's lower house. The yield on the
benchmark 7.26% bond maturing in 2029 is likely to trade in a range of
7.22%-7.30% today, a trader with a state-run bank said.
    
    
    GLOBAL MARKETS
    • Wall Street ended lower on Friday as continuing trade tensions pulled
industrial and tech shares down, and the Dow capped a fourth straight week of
losses in its longest weekly losing streak in three years.
    • Share markets in Asia got off to a steady start as investors tried to
catch their breath following another week of escalating trade tensions between
the United States and China.
    • The Australian dollar got a boost against the greenback following a
surprise election victory by the country's conservative government, while the
yen dipped slightly on a recovery in market sentiment.
    • Trade tension between the United States and China ratcheted up again on
Friday, pushing Treasury yields slightly lower as traders sought safety in
high-quality assets.
    • Oil rose to multi-week highs after OPEC indicated it will likely maintain
production cuts that have helped support prices this year, while tensions
continued to escalate in the Middle East.
    • Gold steadied after four days of falls, as a Sino-U.S. trade dispute
aggravated by a Huawei ban and U.S. President Donald Trump's latest threat to
Tehran fuelled interest in the safe-haven metal.
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         70.18/70.21  May 17           -$150.55 mln  -$88.90 mln
 10-yr bond yield  7.36%        Month-to-date    -$546.55 mln  -$157.88 mln
                                Year-to-date     $9.22 bln     -$2.72 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 = 70.28 Indian rupees)

 (Compiled by Karthick Arvinth in Bengaluru)
  
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