October 14, 2019 / 3:42 AM / a month ago

Morning News Call - India, October 14

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    FACTORS TO WATCH
    9:40 am: Finance Minister Nirmala Sitharaman at CERAWeek's India Energy
Forum in New Delhi.
    12:00 pm: Finance Minister Nirmala Sitharaman to hold review meeting with
heads of state-run banks to discuss credit growth and fund flow to NBFC sector
in New Delhi.
    12:00 pm: Government to release September wholesale price inflation data in
New Delhi.
    5:30 pm: Government to release September consumer price inflation data in
New Delhi.
    
    LIVECHAT - FX WEEK AHEAD
    Reuters FX Buzz Analyst Jeremy Boulton, examines what the week could hold
for the G7 currencies and select EM FX pairs at 5.00 pm IST. To join the
conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • World Bank slashes India's growth forecast to 6% for this fiscal year
    The World Bank on Sunday slashed its growth forecast for India's current
fiscal year to 6%, down from 7.5%, warning that the "severe" slowdown could
further weaken the country's stuttering financial sector.
    • China, locked in trade war with U.S., agrees to tackle India's trade
deficit
    Chinese President Xi Jinping and Indian Prime Minister Narendra Modi agreed
at a summit on Saturday to set up a high-level group to tackle India's galloping
trade deficit with the world's second-biggest economy, a top Indian diplomat
said.
    • INSIGHT-Realty bites: Indian property slump leaves beleaguered banks
exposed
    India might have thought the worst of a bad loans crisis was past, but a
severe cash crunch in the real estate industry could augur fresh strife for its
banks. A slump in the residential property market is leaving many builders
struggling to repay loans to shadow lenders - housing finance firms outside the
regular banking sector that account for over half of the loans to developers.

    • India investing $60 billion on gas grid to link up nation by 2024
    India, one of the world's largest consumers of oil and coal, is investing
$60 billion to build a national gas grid and import terminals by 2024 in a bid
to cut its carbon emissions, the oil minister said on Sunday.
    • India's industrial output shrinks at fastest rate in more than six years
    India's industrial output shrank at its fastest rate in more than six years
in August, reflecting the impact of an economic slowdown that could prompt the
central bank to cut its key policy rate for the sixth time in December.

    • Infosys revises forecast on upbeat client demand
    India's second-largest software services exporter, Infosys, on Friday raised
the low end of its revenue forecast for the year on upbeat demand for its
digital services from Western clients.]
    • India's September passenger vehicle sales dive 24% as slowdown persists
    Passenger vehicle sales slumped 23.7% in September, the eleventh straight
month of declines, prompting an industry body to flag more job cuts if sales
failed to pick up soon.
    • India watchdog links over $500 million Bhushan Power assets to fraud probe
    India's financial fraud agency said on Saturday assets worth 40.25 billion
rupees of Bhushan Power & Steel Limited were connected with a money-laundering
probe, a move that could scupper the debt-ridden firm's sale to JSW Steel Ltd.

    • Malaysia to study impact of India's planned trade action
    Malaysia's Prime Minister Mahathir Mohamad said his government will monitor
the trade situation with India, which is reported to be considering trade curbs
on the Southeast Asian nation over his criticism of actions in Kashmir, news
wire Bernama reported.
    
    
    GLOBAL TOP NEWS
    • U.S. to pull last troops from north Syria; Syrian army to redeploy on
border
    The United States said on Sunday it will withdraw its remaining 1,000 troops
from northern Syria in the face of an expanding Turkish offensive while Syria's
army struck a deal with Kurdish forces to redeploy along its border with Turkey,
both major victories for Syrian President Bashar al-Assad.
    • Hunter Biden disputes Trump attacks of his work, wades into impeachment
fight
    Hunter Biden, the son of former U.S. Vice President Joe Biden, for the first
time on Sunday defended his work in Ukraine and China, after sustained criticism
from Republican President Donald Trump that has in turn embroiled the White
House in an impeachment inquiry.
    • Singapore eases monetary policy for first time in 3 years
    Singapore's central bank eased monetary policy for the first time in three
years, as widely expected, with the city-state's bellwether economy narrowly
dodging recession.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.2% lower at 11,289.00.
    • The Indian rupee is expected to open higher against the dollar after the
U.S. and China announced a tentative, limited trade agreement, boosting Asian
currencies and equities. 
    • Indian government bonds will likely open lower tracking a sharp rise in
U.S. Treasury yields, after the U.S. and China agreed on a partial trade
agreement.Investors also await India’s retail inflation data, due later today,
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 6.71% - 6.76% today.
    
    
    GLOBAL MARKETS
    • U.S. stocks ended more than 1% higher on Friday though well off the day's
highs after the announcement of a partial trade deal between the United States
and China.
    • Asian share markets firmed as signs of progress in the Sino-U.S. trade
standoff whetted risk appetite, though investors were wary of the damage already
done to the global economy.
    • The dollar held near a 2 1/2-month high against the yen after Washington
and Beijing announced progress towards a trade deal, while sterling hovered near
a three-month peak on hopes for an orderly British exit from the European Union.

    • The Federal Reserve's preferred measure of the yield curve on Friday
uninverted for the first time since mid-July, as progress in U.S.-China trade
talks boosted the U.S. economic outlook.
    • Oil prices were little changed, holding onto 2% gains from Friday amid
renewed geopolitical tensions in the Middle East, while a detente in the
U.S.-China trade war buoyed market sentiment.
    • Gold prices eased, extending falls into a third session, as news that the
United States and China had made progress in their recent high-level trade talks
lifted risk appetite.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES       DEBT
 PNDF spot         71.02/71.05  October 11       (79.82) crore  (794.26) crore
 10-yr bond yield  6.73%        Month-to-date    (4,955) crore  (1,262) crore
                                Year-to-date     51,230 crore   27,924 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 = 70.91 Indian rupees)
    
    

 (Compiled by Pooja Kesavan in Bengaluru)
  
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