May 23, 2019 / 3:34 AM / a month ago

Morning News Call - India, May 23

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    FACTORS TO WATCH
    No major events are scheduled for the day.
    
    GMF: LIVECHAT - INDIA MARKETS & POLICY POST-ELECTIONS
    On results day, Ritesh Jain, global macro investor, formerly CIO at BNP
Paribas Asset Management, will discuss his expectations on Indian markets and
fiscal policy, and what combination of government the world's largest democracy
is likely to see for the next five years at 9:30 am IST. To join the
conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • India starts counting 600 million votes, Modi looks at second term
India began counting about 600 million votes in its general election, with a
coalition led by Prime Minister Narendra Modi's party predicted to win a clear
majority.
    • Snapdeal conducts due diligence on ShopClues, considers bid: sources
Indian online retailer Snapdeal is conducting due diligence on ShopClues, in a
move likely to result in a potential acquisition of its rival in an all-stock
deal, two people familiar with the matter said on Wednesday.
    • RBI concerned to avert contagion from NBFC liquidity issues: sources
The Reserve Bank of India is concerned about liquidity issues facing some Indian
non-banking finance companies such as mortgage or auto lenders and wants to
ensure the problems do not become a systemic issue, two sources told Reuters on
Wednesday.
    • Wirecard teams up with India to issue tax ID cards
German payments company Wirecard said on Wednesday it would work with India to
simplify the process of issuing tax identity cards required to open bank
accounts, transfer money or complete business transactions.
    • DHFL shares fall on deposit curbs after downgrade
Shares of Dewan Housing Finance, one of India's biggest home loan lenders, fell
on Wednesday after it stopped taking new deposits and blocked premature
withdrawals following a credit rating downgrade.
    • India proposes electrifying motorbikes, scooters in 6-8 years: source
The Indian government's leading think-tank has proposed electrifying most
motorbikes and scooters within the next six to eight years to curb pollution and
reduce dependency on fossil fuels, a source with direct knowledge of the matter
said.
    • Antitrust probe finds Monsanto abused dominant position: sources
A probe by the investigations unit of India's antitrust body has found that
Monsanto abused its dominant position as a supplier of genetically modified
cotton seeds in the country, three sources with direct knowledge of the matter
told Reuters.
    • Tribunal stays NSE fine in unfair access case
India's National Stock Exchange won a partial reprieve on a $90 million
regulatory fine for allegedly giving unfair access to its network servers, as an
appellate tribunal on Wednesday announced an interim hold on the penalty.

    
    
    GLOBAL TOP NEWS
    • Next round of U.S. tariffs on China at least a month away: Mnuchin
The United States is at least a month from enacting its proposed tariffs on $300
billion in Chinese imports as it studies the impact on American consumers, U.S.
Treasury Secretary Steven Mnuchin said on Wednesday.
    • Trump torpedoes meeting with Democrats, blasts Pelosi's 'cover-up'
accusation
President Donald Trump on Wednesday abruptly cut short a White House meeting
with Democratic lawmakers on infrastructure, then ripped into them over House
Speaker Nancy Pelosi's accusation that he is engaged in a cover-up and asserted
that he could not work with them unless they dropped multiple investigations.

    • Minister quits, piling pressure on Britain's May
Prominent Brexit supporter Andrea Leadsom resigned from Prime Minister Theresa
May's government on Wednesday, piling pressure on the British leader after a new
Brexit gambit backfired and fuelled calls for her to quit.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were up 0.2% at 11,802.
    • The Indian rupee, tracking offshore rates, is likely to edge higher in
early trade even as vote counting for the nation’s federal elections begin.
    • Indian government bonds are likely to rise in early trade on expectation
that Prime Minister Narendra Modi-led alliance will come back to power for a
second five-year term. The yield on the benchmark 7.26% bond maturing in 2029 is
likely to trade in a range of 7.22%-7.28% in morning session.
    
    
    GLOBAL MARKETS
    • Wall Street's major indexes dipped on Wednesday as inflamed trade tensions
between the United States and China weighed on investor sentiment.
    • Asian shares were stuck in the red amid worries the Sino-U.S. trade
conflict was fast morphing into a technology cold war between the world's two
largest economies.
    • The yen advanced broadly as persistent U.S.-China trade fears and Brexit
concerns fanned risk aversion, lifting the safe-haven Japanese currency.
    • U.S. Treasury yields fell on Wednesday, pressured by worsening trade
tensions between the United States and China after a media report said the Trump
government is considering limits to Chinese video surveillance firm Hikvision's
ability to buy American technology.
    • Oil prices dropped, extending falls from the previous session amid surging
U.S. crude inventories and weak demand from refineries.
    • Gold prices steadied just above a two-week low touched this week, buoyed
by worries the Sino-U.S. trade conflict could expand into a technology cold war
between the world's two largest economies.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         69.67/69.70  May 22           -$138.53 mln  -$52.06 mln
 10-yr bond yield  7.26%        Month-to-date    -$252.40 mln  -$223.49 mln
                                Year-to-date     $9.52 bln     -$2.78 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 = 69.66 Indian rupees)

 (Compiled by Karthick Arvinth in Bengaluru)
  
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