October 29, 2018 / 3:27 AM / 17 days ago

Morning News Call - India, October 29

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    FACTORS TO WATCH
    No major events are scheduled.
    
    LIVECHAT - TRADE WARS
    Dr. Frank Jurgen Richter, the former director of World Economic Forum and
the chairman of Horasis, joins us to talk about the impact of the trade wars on
the world economy and much more at 1630 IST. To join the conversation, click on
the link: here
    
    
    INDIA TOP NEWS
    • Open rift between RBI, govt as official warns of catastrophe
In a sign of a mounting policy struggle between India's central bank and the
government of Prime Minister Narendra Modi, a top bank official warned on Friday
that undermining a central bank's independence could be "potentially
catastrophic".
    • ICICI Bank Q2 profit halves, but asset quality improves
ICICI Bank reported on Friday a bigger than expected 56 percent decline in
second-quarter net profit, as expenses increased, but the lender's bad loan
ratio improved.
    • ArcelorMittal, Nippon Steel chosen as final bidders for Essar Steel
Creditors of Essar Steel India have approved a joint offer by ArcelorMittal and
Japan's Nippon Steel & Sumitomo Metal Corp as the final bid for the debt-laden
asset, ArcelorMittal said in a statement on Friday.
    • Dr. Reddy's Q2 profit soars past market estimates
Dr.Reddy's Laboratories posted a better-than-expected rise in second-quarter
profit as higher sales in some emerging countries offset a marginal decline in
business in North America, a key market for the Indian generic drugmaker.

    • Yes Bank sinks on management woes, IL&FS exposure
Uncertainty around the succession plans for Yes Bank's chief executive and
exposure to debt-laden Infrastructure Leasing and Financial Services (IL&FS)
sent the lender's stock low on Friday, a day after it reported a
weaker-than-expected quarterly profit.
    
    
    GLOBAL TOP NEWS
    • China's industrial profits growth slows for fifth month as orders wane
Profit growth at China's industrial firms slowed for the fifth consecutive month
in September as sales of raw materials and manufactured goods further ebbed,
pointing to cooling domestic demand in the world's second-biggest economy.

    • IBM to acquire software company Red Hat for $34 billion
IBM said on Sunday it had agreed to acquire U.S. software company Red Hat for
$34 billion, including debt, as it seeks to diversify its technology hardware
and consulting business into higher-margin products and services.
    • Sri Lanka crisis turns violent as one killed at ex-minister's office
A political crisis in Sri Lanka took a deadly turn on Sunday, with one person
killed when a sacked cabinet minister tried to re-enter his office, days after
the president removed the prime minister and installed a powerful ally of China
in his place.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.5 percent higher at
10,095.50, from its previous close.
    • The Indian rupee is expected to open higher against the U.S. currency,
after the dollar index slipped from more than two-month highs amid further Wall
Street losses.
    • Indian government bonds are likely to open higher after the central bank
announced open market purchase plans for November, while the local currency is
also expected to strengthen against the dollar in early trade. The yield on the
benchmark 7.17 percent bond maturing in 2028 may trade in a 7.80 percent-7.85
percent band today.
    
    
    GLOBAL MARKETS
    • The S&P 500 ended at its lowest level since early May on Friday and
flirted with correction territory after technology and internet shares sold off
further, capping another volatile week for U.S. stocks.
    • Asian shares bounced from last week's steep declines, though sentiment
remained fragile amid heightened worries about corporate earnings and a slowdown
in global economic growth.
    • The dollar held firm against a basket of its key rivals, not far off a
10-week peak hit after data showed U.S. economic growth slowed less than
expected and as global risk sentiment remained fragile.
    • U.S. Treasury yields dropped to three-week lows on Friday as stocks sank
in volatile trading, boosting demand for safe-haven government debt.
    • Oil prices were stable, supported by a bounce in Asian stocks, but
analysts said sentiment remained cautious after a plunge in financial markets
last week triggered worries that global growth may be slowing.
    • Gold prices inched down early to drift away from a more than three-month
high hit in the previous session, pressured as the dollar firmed and Asian
stocks edged up after setbacks last week.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         73.31/73.34  October 26       -$184.74 mln  -$32.36 mln
 10-yr bond yield  7.87 pct     Month-to-date    -$3.05 bln    -$1.60 bln
                                Year-to-date     -$5.23 bln    -$8.35 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 = 73.4550 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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