October 18, 2019 / 3:33 AM / 25 days ago

Morning News Call - India, October 18

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    INDIA TOP NEWS
    • Indian court jails former MD of PMC Bank as fraud probe deepens
    An Indian court on Thursday sent the former managing director of Punjab and
Maharashtra Co-operative (PMC) Bank, Joy Thomas, to jail as a probe into an
alleged 43.55 billion rupees fraud intensifies.
    • India to miss fiscal deficit target by 30-50 bps - sources 
    India is likely to miss its fiscal deficit target of 3.3% of gross domestic
product for the current financial year by 30-50 basis points, two sources said,
due to the sharp slowdown in the economy that has severely crimped tax
collection goals.
    • DHFL's bondholders take shadow bank to bankruptcy court
    The resolution plans of debt-laden shadow lender Dewan Housing Finance
Corporation Ltd (DHFL) have hit a roadblock after the custodian of DHFL bonds
said on Thursday it is taking the firm to bankruptcy court on behalf of certain
debenture holders.
    • Netflix and Amazon face censorship threat in India: source
    India is deliberating potential censorship on streaming platforms such as
Netflix and Amazon Prime Video, a senior government source told Reuters.

    • BASF weighs $4 billion Indian chemicals complex with partners
    German chemicals maker BASF is teaming up with partners to study the
feasibility of a petrochemical complex in India worth up to $4 billion, which
would be the world's first to be fully powered by renewable energy.

    
    GLOBAL TOP NEWS
    • China Q3 GDP grows 6.0%, slowest pace in almost three decades
    China's economic growth slowed more than expected to 6.0% year-on-year in
the third quarter, the weakest pace in almost three decades, hit by soft factory
production amid a bruising Sino-U.S. trade war and lacklustre demand at home.

    • White House acknowledges strings attached in Trump withholding Ukraine aid
    President Donald Trump's withholding of $391 million in military aid to
Ukraine was linked to his request that the Ukrainians look into a claim -
debunked as a conspiracy theory - about the 2016 U.S. election, a senior
presidential aide said on Thursday, the first time the White House acknowledged
such a connection.
    • UK's Johnson agrees Brexit deal, but must now win over parliament
    European Union leaders unanimously backed a new Brexit deal with Britain on
Thursday, leaving Prime Minister Boris Johnson facing a battle to secure the UK
parliament's backing for the agreement if he is to take Britain out of Europe on
Oct. 31.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.2% lower at 11,582.50. 
    • The Indian rupee is expected to open little changed against the dollar as
investors focus on the outlook of a U.S.-China trade deal and the weekend’s vote
on the new Brexit deal.
    • Indian government bonds will likely open lower ahead of a weekly supply of
notes, while renewed worries over fiscal slippage will weigh on investor
sentiment. The yield on the benchmark 7.26% bond maturing in 2029 is likely to
trade in a 6.68%-6.73% range until the auction outcome, a trader with a private
bank said.
    
    
    GLOBAL MARKETS
    • Wall Street advanced on Thursday as investor sentiment was buoyed by a
string of corporate earnings beats and encouraging geopolitical
developments.
    • Asian stocks edged higher, tracking the global lift in sentiment after the
UK and the European Union struck a long-awaited Brexit deal.
    • The pound traded near a five-month high against the dollar and the euro
after Britain's prime minister Boris Johnson and European Union leaders agreed a
new deal for Britain to exit the bloc.
    • U.S. Treasuries reversed earlier price weakness on Thursday as concerns
grew that Britain’s parliament may not pass a deal designed to avoid a
disorderly exit from the European Union.
    • Oil prices edged lower, dragged down by a trade dispute between China and
the United States.
    • Gold prices held steady after Britain managed to eke out a deal for its
exit from the European Union, lifting risk appetite, while a sluggish dollar
provided support to the metal.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         71.24/71.27  October 17       896.62 crore  384.51 crore
 10-yr bond yield  6.70%        Month-to-date    3,696 crore   (182) crore
                                Year-to-date     59,881 crore  29,004 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 = 71.12 Indian rupees)
    
    

 (Compiled by Pooja Kesavan in Bengaluru)
  
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