October 17, 2019 / 3:17 AM / a month ago

Morning News Call - India, October 17

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    FACTORS TO WATCH
    9:45 am: Junior Finance Minister Anurag Thakur and NITI Aayog Vice Chairman
Rajiv Kumar at India Economic Conclave in New Delhi.
    12:00 pm: Junior Finance Minister Anurag Thakur at ASSOCHAM’s National
Summit on NBFCs in New Delhi.
    2:00 pm: NITI Aayog CEO Amitabh Kant at launch of India Innovation Index in
New Delhi.

    LIVECHAT - BREXIT CHAT
    University of Cambridge Professor of European Law Kenneth Armstrong, writer
of the the blog brexittime.com, explains the latest developments and the outlook
for the future of UK-EU relations at 2.00 pm IST. To join the conversation,
click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • GRAPHIC-Slowing Indian bank lending overshadows economic rebound hopes
    Credit growth at Indian banks has dropped to its lowest level in nearly two
years, the latest Reserve Bank of India data shows, as slowing domestic
consumption weighs on demand.
    • COLUMN-Coal India's woes should boost imports, but steel softness drags:
Russell
    India's coal imports are on track to decline for a third straight month in
October, a drop that seems out of kilter with the ongoing struggles of state
miner Coal India to boost domestic output.
    • Malaysia says will work diplomatically with India if palm oil imports
curbed
    Malaysia will work diplomatically with India if it decides to restrict
imports of Malaysian palm oil, Prime Minister Mahathir Mohamad said on
Wednesday, according to the state news agency Bernama.
    • Xiaomi says widening India product range to shed budget image
China's Xiaomi is shedding its image as a budget brand by widening its India
product portfolio to include pricier, high-spec smartphones and smart TVs, a
senior company executive said on Monday.
    • Insurance Australia sells SBI General stake for $432 million
    Insurance Australia Group said it will sell its 26% stake in SBI General
Insurance for about A$640 million to private equity firms as it trims overseas
holdings to focus on its domestic market.
    • Subsidy helps India traders sell sugar to Iran 
    Indian mills are aggressively selling old season sugar to Iran after New
Delhi announced a subsidy to help cash-strapped mills export a surplus, five
traders said, as Tehran strives to secure food supplies under U.S. sanctions.

   
    
    GLOBAL TOP NEWS
    • U.S., Chinese teams working on Phase 1 trade deal text-Mnuchin 
    U.S. and Chinese trade negotiators are working on nailing down a Phase 1
trade deal text for their presidents to sign next month, U.S. Treasury Secretary
Steven Mnuchin said on Wednesday, adding he was prepared to travel to Beijing
for more meetings if necessary.
    • Last-gasp Brexit deal set to dominate fraught EU summit 
    European Union leaders' two-day summit in Brussels starting on Thursday will
be dominated by last-gasp efforts to seal a deal on Britain's exit from the bloc
despite a raft of other pressing issues, from the crisis in the Middle East to
the bloc's budget.
    • Three militants, two civilians killed as violence spreads in Kashmir
    Indian security forces killed three separatists, while suspected militants
shot dead two people on Wednesday, one of the bloodiest days in Kashmir since
New Delhi revoked the disputed region's autonomy more than two months ago.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading up 0.1% at 11,492.50.
    • The Indian rupee is expected to open higher against the U.S. currency
after disappointing U.S. retail sales data pushed the dollar index to near
two-month lows.​
    • Indian government bonds will likely open largely unchanged, as investors
await fresh triggers ahead of tomorrow’s debt supply and minutes of the
rate-setting Monetary Policy Committee’s latest meeting. The yield on the
benchmark 7.26% bond maturing in 2029 is likely to trade in a 6.64%-6.70% range
today.
    
    
    GLOBAL MARKETS
    • Wall Street lost ground on Wednesday as weak U.S. economic data and
simmering geopolitical tensions spooked buyers away from the equities market,
despite a string of generally positive third-quarter earnings reports.
    • Asian stocks barely moved as soft U.S. retail sales data raised fears
about the health of the world's largest economy, sucking the steam out of a
five-session rally, while hopes of a Brexit deal kept sterling volatile.

    • The dollar drifted lower after lacklustre U.S. retail data and gathering
doubts about a Sino-U.S. trade deal, while the volatile pound was on edge as
Britain and the European Union scrambled to secure a last-minute Brexit
deal.
    • U.S. Treasury yields fell on Wednesday after data showed that U.S. retail
sales fell for the first time in seven months in September, adding to concerns
that the U.S. economy is slowing.
    • Oil prices slid after industry data showed a larger-than-expected build-up
in stocks in the United States, adding to concerns that demand for oil around
the world may weaken amid further signs of a global economic slowdown.
    • Gold prices held steady as weak United States retail sales data fanned
concerns that the country's economy may be feeling the pinch of the long-drawn
trade war with China, while palladium held close to a record high hit the
previous day.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         71.38/71.41  October 16       2,169.56 crore  (448.10) crore
 10-yr bond yield  6.66%        Month-to-date    2,799 crore     (566) crore
                                Year-to-date     58,984 crore    28,620 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 = 71.35 Indian rupees)
    
    

 (Compiled by Pooja Kesavan in Bengaluru)
  
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