October 11, 2019 / 3:41 AM / 4 days ago

Morning News Call - India, October 11

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    FACTORS TO WATCH
    5:30 pm: Government to release August Industrial output data in New Delhi.
    
    
    INDIA TOP NEWS
    • India pursues China-led trade deal despite domestic opposition
    India is pressing ahead with talks to join a China-led free trade pact,
officials said on Thursday, despite some domestic producers' concerns that the
country could be flooded with cheaper Chinese imports.
    • WeWork India seeks new backers after talks with local bank collapse
    WeWork's India franchise has seen talks with existing backer ICICI Bank on
$100 million in new funding break down since The We Company's botched stock
market launch and is in discussions on raising $200 million from other
investors, the venture's chief shareholder Jitu Virwani said on Thursday.

    • POLL-India's inflation surged in Sept but won't 'bring tears' to RBI 
    Indian retail inflation probably reached a 12-month high in September, but
still leaving room for further interest rate cuts because it's expected to
remain below the Reserve Bank of India's target, according to a Reuters poll.

    • TCS flags challenging second half after missing profit estimates
    Tata Consultancy Services (TCS) warned of a challenging second half after
India's No. 1 IT services exporter missed September-quarter profit on Thursday,
as a slowing global economy forced many of its clients to cut back
spending.
    • India considers stricter laws to curb frauds in co-operative banks -
Finance minister
    The government is considering amending laws to curb malpractices at
co-operative banks in Asia's third-largest economy, following allegations of
fraud in Punjab and Maharashtra Co-operative Bank, Finance Minister Nirmala
Sitharaman said on Thursday.
    • EXPLAINER-Why strong monsoon rains are not necessarily good news for
Indian farmers 
    India, one of the world's biggest agricultural producers, experienced its
heaviest monsoon rains in 25 years this year. While rain would normally cheer
the agricultural heartland, the monsoon was erratic and has left many crops
damaged.
    • Indian miners reject plan to link national coal index to foreign prices
    Miners are rejecting a government proposal to establish a national coal
index that would be linked to international prices, documents reviewed by
Reuters show, because it could make domestic supply uncompetitive.
    
    
    GLOBAL TOP NEWS
    • Day 1 of U.S.-China trade talks ends with hopes for limited deal 
    Top U.S. and Chinese negotiators wrapped up a first day of trade talks in
more than two months on Thursday as business groups expressed optimism the two
sides might be able to ease a 15-month trade war and delay a U.S. tariff hike
scheduled for next week.
    • Giuliani associates charged with illegally funneling cash to pro-Trump
group
    Two foreign-born Florida businessmen who have helped President Donald
Trump's personal lawyer Rudy Giuliani investigate political rival Joe Biden were
arrested in a scheme to illegally funnel money to a pro-Trump election committee
and other U.S. political candidates, prosecutors said on Thursday.
    • Thousands flee, hundreds reported dead in Turkish attack on U.S.-allied
Kurds in Syria
    Turkey pounded Kurdish militia in northeast Syria for a second day on
Thursday, forcing tens of thousands of people to flee and killing at least
dozens of people in a cross-border assault on U.S. allies that has turned the
Washington establishment against President Donald Trump.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.2% higher at 11,282.50.
    • The Indian rupee is expected to open higher against the dollar in the wake
of a Chinese yuan-led advance in Asian currencies on hopes the U.S. and China
will be able to reach a trade deal.
    • India government bonds are expected to open lower ahead of a weekly supply
of notes, even as investors await retail inflation data for September due next
week, which is expected to gain pace.The yield on the benchmark 7.26% bond
maturing in 2029 is likely to trade in a range of 6.66%-6.71% today.
    
    
    GLOBAL MARKETS
    • U.S. stocks rose on Thursday on hopes that top-level U.S.-China trade
talks would yield at least a partial deal, while a jump in Apple's shares also
boosted the market.
    • Asian shares and U.S. stock futures rose after U.S. President Donald Trump
said he would meet with China's top trade negotiator, while sterling retreated
after rallying on revived hopes of a possible Brexit deal.
    • Hopes of progress in U.S.-China trade talks and optimistic comments from
Europe on Brexit pushed back the safe-haven yen and lifted the British pound and
euro.
    • Treasury yields rose Thursday on optimism for a resolution to the
U.S.-China trade war as the two countries began a new round of negotiations in
Washington, alleviating some worries over slowing economic growth.
    • Oil prices rose, building on gains in the previous session, after producer
club OPEC hinted at making deeper cuts in supply while optimism was revived over
talks between the United States and China to end their trade war.
    • Gold prices edged lower as U.S. President Donald Trump's remarks on
progress in Sino-U.S. trade talks lifted risk appetite, while palladium was set
to end a three-day winning streak after touching a record high in the previous
session.    
    
             CLOSE        FII                EQUITIES     DEBT
                            INVESTMENTS                   
 PNDF spot   71.07/71.10  October 10         (683.02)     (620.35)
                                               crore        crore
 10-yr bond  6.68%        Month-to-date      (4,875)      (468)
   yield                                       crore        crore
                          Year-to-date       51,310       28,718
                                               crore        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 = 70.98 Indian rupees)
    
    

 (Compiled by Pooja Kesavan in Bengaluru)
  
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