October 23, 2019 / 3:21 AM / a month ago

Morning News Call - India, October 23

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    FACTORS TO WATCH
    No major events are scheduled for the day.
    
    LIVECHAT - EQUITIES FOCUS 
    Reuters stocks correspondents in London and New York sift through a heavy
corporate earnings week and discuss trends for indices across the U.S. and
Europe at 6.30 pm IST. To join the conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Indian private lenders signal stress in loan book
    Two top Indian private-sector lenders on Tuesday signalled stress in their
loan books as the banks grapple with the worst economic slowdown in years that
has increased bad loans across the sector.
    • Infosys loses $6.6 billion in market cap after whistleblower complaints
    India's No.2 software services exporter, Infosys, is probing whistleblower
complaints that its top two executives engaged in "unethical practices" to boost
short-term revenue and profit, sending its shares down 16% on Tuesday.

    • India govt, Facebook spar over decryption laws at top court
    Government asked Facebook on Tuesday to help it decrypt private messages on
its network, citing national security requirements in a court hearing on privacy
rights on social media platforms.
    • Malaysia's Mahathir stands by Kashmir comments despite palm oil boycott by
India traders 
    Malaysian Prime Minister Mahathir Mohamad said on Tuesday he would not
retract his criticism of New Delhi's actions in the disputed region of Kashmir
even though Indian traders have urged a boycott of Malaysian palm oil.

    • Some 300,000 employees of Indian state-led banks strike against mergers
    Nearly 300,000 employees of Indian state-run banks went on strike on Tuesday
against government plans to consolidate the sector through mergers as part of
efforts to ensure stronger balance sheets.
    • Uber CEO expects to ride developing market growth in next decade
    Uber pinned its growth over the next decade on developing markets like India
on Tuesday, despite the problems it has faced in establishing itself in China
and Southeast Asia.
    • Walmart chief seeks stable business environment from India's Modi- ET
    Walmart's chief executive has written to Prime Minister Narendra Modi
seeking certainty and predictability in India's business environment, the
Economic Times newspaper reported on Tuesday, citing people familiar with the
matter.
    
    
    GLOBAL TOP NEWS
    • EU moves towards Brexit delay as PM Johnson seeks election to break
impasse 
    EU leaders should delay Brexit after Prime Minister Boris Johnson paused
legislation on his deal following a parliamentary defeat, EU Council President
Donald Tusk said on Tuesday, as Britain spins towards a possible election to
break the impasse.
    • Trade tensions weigh on Texas Instruments revenue forecast
    Texas Instruments forecast current-quarter revenue well below estimates on
Tuesday, the latest sign that the global microchip industry is being squeezed by
a downturn in demand as well as a prolonged U.S.-China trade dispute.

    • India, Pakistan set to sign pilgrim corridor pact amid Kashmir tension
    India and Pakistan are set to sign an agreement on Indian pilgrims visiting
a Sikh shrine in Pakistan, rare cooperation between the nuclear-armed neighbours
at a time of tension that has brought exchanges of fire on their disputed
border.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were little changed at 11,616.50.
    • The Indian rupee is expected to open lower against the dollar, tracking
the broad strength in the U.S. currency amid uncertainty over Brexit.
    • Indian federal government bonds are likely to edge higher in early trade
tracking an overnight fall in U.S. Treasury yields but prices will be rangebound
due to concerns over New Delhi's fiscal situation. The yield on the benchmark
7.26% bond maturing in 2029 is likely to trade in a range of 6.69%-6.74% today.
    
    
    GLOBAL MARKETS
    • U.S. stocks ended lower on Tuesday, giving up early gains after British
lawmakers rejected the government's proposed timetable for passing legislation
to ratify its deal to exit the European Union.
    • Futures for Wall Street's major indexes and Asian shares slipped as
revenue warnings from Texas Instruments raised worries about the global tech
sector and after British lawmakers forced the government to hit the pause button
on the latest Brexit deal. ​
    • The pound edged lower after an overnight fall as Brexit hung in the
balance, with the British Parliament still divided on how, when or even if to
engineer Britain's departure from the European Union.
    • U.S. Treasury yields dropped on Tuesday, as investors bought safe-haven
debt after UK lawmakers voted against Prime Minister Boris Johnson's extremely
tight timetable to approve his deal for Britain to exit the European Union.

    • Oil slipped after U.S. industry data showed a bigger-than-expected build
in crude stockpiles, but possible deeper production cuts coming from OPEC and
its allies prevented a further slide in prices.
    • Gold prices were steady, as investors waited for clarity on Brexit
confusion after UK lawmakers voted for Prime Minister Boris Johnson's divorce
plan but opposed his tight timetable to complete the legislative process in
three days.
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         70.89/70.92  October 22       107.75 crore  319.32 crore
 10-yr bond yield  6.70%        Month-to-date    5,078 crore   421 crore
                                Year-to-date     61,263 crore  29,607 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 = 70.80 Indian rupees)
    
    

 (Compiled by Pooja Kesavan in Bengaluru)
  
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