May 27, 2019 / 3:39 AM / 3 months ago

Morning News Call - India, May 27

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    FACTORS TO WATCH
    No major events are scheduled for the day.​
    
    
    INDIA TOP NEWS
    • Jet Airways founder Naresh Goyal and wife stopped from leaving India:
airport official
Indian carrier Jet Airways founder Naresh Goyal and his wife Anita Goyal were
stopped from leaving India on Saturday at Mumbai airport, according to an
airport official who asked not to be named.
    • Jaitley unlikely to remain finance minister in Modi's new term: sources
India's Finance Minister Arun Jaitley is unlikely to continue in his current
role due to poor health as Prime Minister Narendra Modi begins his second term,
according to four sources with knowledge of the matter.
    • Foreign investors hope India dials back policy shocks after Modi win
Foreign companies in India have welcomed Prime Minister Narendra Modi's election
victory for the political stability it brings, but now they need to see him
soften a protectionist stance adopted in the past year.
    • RBI plans liquidity buffer at shadow banks to aid stressed sector
The Reserve Bank of India on Friday proposed introducing a liquidity coverage
ratio for large non-banking finance companies to help tackle liquidity problems
in the sector.
    • Many farmers voted for Modi the strongman, but now hope he tackles their
woes
Many farmers in three big states in the Indian heartland voted for Prime
Minister Narendra Modi for his strong record on national security, but they
expect him to address their problems of weak incomes and heavy debt in his
second term.
    
    
    GLOBAL TOP NEWS
    • Pro-Europe vote fragments but limits nationalist gains in EU election
Parties committed to strengthening the European Union held on to two-thirds of
seats in the EU parliament, official projections from the bloc's elections
showed on Sunday, though far-right and nationalist opponents saw strong gains.

    • Trump says expects to get trade gap with Japan fixed fast
U.S. President Donald Trump kept up pressure on Japan to cut its trade surplus
with America, saying ahead of a summit with Prime Minister Shinzo Abe that he
expected some announcements, probably in August, with the trade gap straightened
out rapidly.
    • Carmakers FCA and Renault to go public on tie-up talks
Fiat Chrysler and Renault are set to confirm tie-up talks on Monday, with the
board of the French carmaker called to an early morning meeting to discuss the
situation.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were down 0.2% at 11,858.50.
    • The Indian rupee is expected to open higher against the dollar, helped by
a weaker the U.S. currency amid disappointing economic data from the world’s
largest economy.
    • Indian government bonds may fall in early trade as the central bank's
planned quantum of open market purchase of notes for June is lower than
expected, traders said. The yield on the benchmark 7.26% bond maturing in 2029
is likely to trade in a range of 7.21%-7.26% today.
    
    
    GLOBAL MARKETS
    • Wall Street's major stock indexes edged higher on Friday after falling in
the previous session, as hopeful comments from U.S. President Donald Trump
regarding trade relations with China assuaged concerns among some investors.

    • Asia stocks hovered near four-month lows amid concerns about U.S.-China
tensions while the euro was confined to a narrow range after the weekend's
European Parliament elections.
    • The euro held firm after pro-European Union parties withstood more
fragmentation than before to hold on to two-thirds of seats in the EU parliament
elections, limiting gains in nationalist opponents.
    • U.S. Treasury prices fell on Friday as investors booked profits from the
previous day's steep rally, although the decline was seen as a blip as the
festering U.S.-China trade conflict could fuel further safe-haven buying.

    • Oil prices were stable amid ongoing supply cuts by producer club OPEC,
although markets remained tense amid concerns the Sino-U.S. trade war could
trigger a broad economic slowdown.
    • Gold prices rose amid concerns the Sino-U.S. trade war had started to take
its toll on the U.S. economy, weakening the dollar and raising hopes of a U.S.
Federal Reserve interest rate cut.
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         69.64/69.67  May 24           $292.08 mln   $206.16 mln
 10-yr bond yield  7.23%        Month-to-date    -$152.01 mln  -$34.91 mln
                                Year-to-date     $9.62 bln     -$2.59 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 = 69.39 Indian rupees)

 (Compiled by Karthick Arvinth in Bengaluru)
  
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