November 1, 2019 / 3:31 AM / 20 days ago

Morning News Call - India, November 1

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    FACTORS TO WATCH
    No major events are scheduled for the day. 
    
    
    INDIA TOP NEWS
    • India fiscal deficit nears 93% of full-year target in 6 months, limiting
scope for tax cuts
    India's fiscal deficit in the six months through September approached 93% of
the target for the full year, limiting the scope for Prime Minister Narendra
Modi to consider more tax cuts to boost economic growth.
    • Yes Bank gets $1.2 billion offer from global investor
    Yes Bank said on Thursday it has received a binding offer of $1.2 billion
from a global investor as the private-sector lender looks to raise capital
through a fresh issue of shares, sending its stock 39% higher.
    • Reliance's Jio criticises telecom lobby warnings on sector health 
    Jio Infocomm, the telecoms arm of Reliance Industries', criticised on
Thursday the industry lobby's push for the Indian government to intervene after
a court ruling left rivals Bharti Airtel and Vodafone Idea facing billions of
dollars in costs.
    India, China clash over Kashmir as it loses special status and is divided
    India engaged in a diplomatic war of words with China over Kashmir on
Thursday as it formally revoked the disputed state's constitutional autonomy and
split it into two federal territories in a bid to integrate it fully into India.

    • IOC profit tanks 83% on inventory losses, lower refining margins
    Indian Oil Corp, the country's top refiner, posted an 82.7% slump in
second-quarter profit on Thursday, missing analysts' estimates by a wide margin
on inventory losses and lower refining margins.
    • RBI asks Indian banks to probe alleged data leak of 1.3 million cards
    The Reserve Bank of India (RBI) has asked banks to ensure customers' debit
and credit card data is secure and investigate reports that say data of 1.3
million accounts was available online, a notice seen by Reuters showed.

    • India asks WhatsApp to explain privacy breach
    India has asked Facebook-owned WhatsApp to explain the nature of a privacy
breach on its messaging platform that has affected some users in the country,
Technology Minister Ravi Shankar Prasad said on Thursday.
    • Goldman-backed ReNew says Andhra Pradesh problems could hurt India's
renewables target
    Investors could be put off India by Andhra Pradesh state's difficult
relationship with renewable energy companies, Sumant Sinha, chair of Goldman
Sachs-backed ReNew Power, said on Thursday.
    
    
    GLOBAL TOP NEWS
    • Trump says U.S., China to announce new venue to ink trade deal soon 
    U.S. President Donald Trump said on Thursday the United States and China
would soon announce a new site where he and Chinese President Xi Jinping will
sign a "Phase One" trade deal after Chile canceled a planned summit set for
mid-November.
    • Government officials around the globe targeted for hacking through
WhatsApp -sources 
    Senior government officials in multiple U.S.-allied countries were targeted
earlier this year with hacking software that used Facebook Inc's WhatsApp to
take over users' phones, according to people familiar with the messaging
company's investigation.
    • China October factory activity expands at fastest pace in over 2 years
-Caixin PMI
    China's factory activity unexpectedly expanded at the fastest pace in well
over two years in October as new export orders rose and plants ramped up
production, a private business survey showed.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were little changed at 11,919.50.
    • The Indian rupee is expected to open little changed against the U.S.
currency as mixed remarks by China and the U.S. fueled doubts over trade-truce
prospects while the dollar index weakened ahead of a key data release.
    • Indian government bonds are likely to rise in early session as U.S.
Treasury yields and crude oil prices fell overnight amid renewed concerns over a
potential U.S.-China trade deal. The yield on the new benchmark 6.45% bond
maturing in 2029 is likely to trade in a range of 6.42%-6.48% in the morning
session.
    
    
    GLOBAL MARKETS
    • U.S. stocks fell on Thursday as conflicting tones surrounding a possible
trade deal between the United States and China eclipsed strong earnings reports
from Apple and Facebook.
    • Asian shares fell in a weak start to the month and off three-month highs
struck this week on fresh concerns over Sino-U.S. trade prospects and ahead of
U.S. economic data, while the dollar eased against major rivals.
    • The dollar traded near a three-week low versus the yen before a U.S.
employment report expected to show a slowdown in job creation, highlighting
concerns about the health of the world's largest economy.
    • Two- and 10-year U.S. Treasury yields on Thursday recorded their biggest
daily drop since Aug. 5 on trade fears and in the wake of an interest rate cut
by the U.S. central bank.
    • Oil prices steadied after a rough week, squeezed about 4% lower by a
combination of rising global supply and uncertain future demand.
    • Gold prices were little changed as investors evaluated whether the Federal
Reserve's would continue to cut rates, but the metal was set for a second weekly
gain as the uncertainty surrounding a U.S.-China trade deal boosted safe-haven
appeal.        
    
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         71.04/71.07  October 31       7,594.51 crore  478.18 crore
 10-yr bond yield  6.64%        Month-to-date    12,368 crore    3,670 crore
                                Year-to-date     68,553 crore    32,856 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 = 71.06 Indian rupees)
    
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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