October 24, 2018 / 3:25 AM / 2 months ago

Morning News Call - India, October 24

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    FACTORS TO WATCH
    9:00 am: Economic Affairs Secretary Subhash Chandra Garg to attend CRISIL's
annual bond market seminar in Mumbai.
    
    
    INDIA TOP NEWS
    • Three arrested over alleged bid to blackmail founder of Paytm
    An Indian court on Tuesday remanded three people, including the spokeswoman
of the country's biggest digital payments company Paytm, to a week's custody
over an alleged bid to blackmail its founder and extort $2.7 million by
threatening to leak stolen personal data.
    • Kraft Heinz to sell part of Indian businesses to drugmaker Zydus -
Bloomberg
    Kraft Heinz has agreed to sell a portfolio of its Indian businesses,
including children's drink brand Complan, to Indian drugmaker Zydus Wellness,
Bloomberg reported on Tuesday, citing sources.
    • HCL Tech posts higher-than-expected Q2 profit
    Indian software services exporter HCL Technologies posted a 14.8 percent
rise in second-quarter net profit, beating analysts' estimates, helped by higher
revenue from its software services business.
    • Ambuja Cements Q3 profit dives 34 percent
    Ambuja Cements said on Tuesday its third-quarter profit plunged over 34.2
percent, largely missing analysts' estimates, on higher expenses.
    • TVS Motor Q2 profit drops on higher commodity prices
    Auto manufacturer TVS Motor posted about 1 percent fall in second-quarter
profit on Tuesday, dented by higher commodity prices.
    • Jaguar Land Rover and unions adjourn pay talks until clearer on Brexit
    Jaguar Land Rover said it had agreed with unions to adjourn pay talks after
a weak recent performance caused by a more difficult market in China, consumer
confusion about diesel emission regulations and uncertainty around Brexit.

    • INTERVIEW-Veteran EM fund manager Mobius looks to bet on India's troubled
shadow banks 
    At a time when most money managers are steering clear of India's crisis-hit
shadow banking firms, veteran emerging markets fund manager Mark Mobius is
exploring aggressive contrarian bets on the sector.
    • Netflix backs "Sacred Games" season 2 after probe 
    Netflix said it would stick with the team behind Indian hit show "Sacred
Games" for a second season after an independent investigation into allegations
of sexual harassment against two individuals involved with the show.



    GLOBAL TOP NEWS
    • Trump says Saudis staged 'worst cover-up ever' on Khashoggi; U.S. revokes
visas of some Saudis
    President Donald Trump said on Tuesday Saudi authorities staged the "worst
cover-up ever" in the killing of prominent journalist Jamal Khashoggi this
month, as the United States vowed to revoke the visas of some of those believed
to be responsible.
    • Tariffs begin to take bite out of U.S. corporate earnings growth
    The easy money may be over. U.S. company earnings growth is slowing after a
bumper start to the year, and the reality of an escalating trade war between two
of the world's largest economies is starting to weigh on companies ranging from
Caterpillar to Ford Motor.
    • With record dry powder, private equity poised for Asia M&A boom
    Dealmaking by private equity firms in Asia has surged this year, data
showed, underscoring their rising presence in the region's otherwise stolid,
tycoon-dominated M&A scene, backed by an unmatched warchest. Private
equity-backed deals so far this year total $79 billion in Asia-Pacific excluding
Japan, up 63 percent over the same period of last year and surpassing the $74
billion full-year record set in 2015, according to Refinitiv data.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.6 percent higher at 10,230.50, from
its previous close. - NewsRise
    • The Indian rupee is expected to open higher against the dollar after a
pledge by Saudi Arabia to maintain adequate supply sent Brent crude to one-month
lows. - NewsRise
    • Indian government bonds will likely gain in early trade tracking an
overnight slump in crude oil prices and ahead of a note purchase by the Reserve
Bank of India on Thursday. The yield on the benchmark 7.17 percent bond maturing
in 2028 may trade in a 7.84 percent-7.90 percent band today. - NewsRise
    
    
    GLOBAL MARKETS
    • U.S. stocks fell on Tuesday after worries about the earnings outlook added
to recent selling pressure, though major indexes ended well off the day's lows
as investors snapped up beaten-down shares late in the session.
    • Asian stocks edged lower as concerns, ranging from worries about U.S.
corporate earnings to Middle East tensions, weighed on sentiment while crude oil
approached two-month lows after Saudi Arabia flagged possible supply increases.

    • The safe-haven Japanese yen and the Swiss franc held firm against the U.S.
dollar as risk-averse investors trimmed their exposure to the greenback in the
face of a weak performance on Wall Street.
    • Benchmark U.S. Treasury yields fell to their lowest in almost three weeks
on Tuesday as tumbling equity markets worldwide fed investor demand for low-risk
debt.
    • Oil prices extended falls from the previous day, when crude slumped as
much as 5 percent, after Saudi Arabia said it would make up for supply
disruptions from U.S. sanctions targeting Iran's petroleum exports from next
month.

    • Gold prices nudged up after hitting their highest in over three months in
the previous session, with international political and economic uncertainty
underpinning safe-haven demand for the metal.
   
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         73.56/73.59  October 23       -$46.23 mln  -$146.16 mln
 10-yr bond yield  7.89 pct     Month-to-date    -$2.61 bln   -$1.92 bln
                                Year-to-date     -$4.78 bln   -$8.67 bln
 
    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 = 73.5400 Indian rupees)

 (Compiled by Debanjan Bose in Bengaluru)
  
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