October 31, 2018 / 3:23 AM / 15 days ago

Morning News Call - India, October 31

To access the newsletter, click on the link:
 
 here
    
    
If you would like to receive this newsletter via email, please register at: here
    
    
    FACTORS TO WATCH
    3:45 pm: NITI Aayog CEO Amitabh Kant to attend FICCI’s Higher Education
Summit in New Delhi.
5:00 pm: Government to release September infrastructure output data in New
Delhi.
    
    
    INDIA TOP NEWS
    • Indian govt invokes powers to direct RBI governor - ET
The Indian government has invoked never-before-used powers under the RBI Act
allowing it to issue directions to the central bank governor on matters of
public interest, the Economic Times reported. Meanwhile, the rift
between India's central bank and the government has widened and could lead to
the Reserve Bank of India (RBI) governor considering resignation, CNBC TV18
reported, citing sources.
    • India considers IL&FS sale among options to end debt crunch -source
India is considering selling Infrastructure Leasing and Financial Service
(IL&FS) or divesting some of its assets as it seeks to end the company's debt
crisis, a person with direct knowledge of the matter said on Tuesday.

    • EU opens deeper probe into Thyssenkrupp, Tata steel deal
The European Commission has opened a deeper investigation into Thyssenkrupp's
planned steel joint venture with Tata Steel over concerns that it could raise
prices and harm competition.
    • Tech Mahindra Q2 profit jumps over 27 percent, tops estimates
Software services exporter Tech Mahindra posted a better-than-expected 27.3
percent rise in second-quarter net profit on Tuesday, as it clocked more deals
in the July-September period.
    • Bank of Baroda Q2 profit jumps a fifth on lower bad loans
Bank of Baroda posted a 19.7 percent rise in second-quarter net profit on
Tuesday as the lender made lower provisions for bad loans amid strong growth in
retail banking.
    
    
    GLOBAL TOP NEWS
    • China factory growth weakest in over 2 yrs, slump in export orders deepens
China's manufacturing sector barely expanded in October and missed expectations,
as both domestic and external demand ebbed, in a sign of deepening cracks in the
economy from an intensifying trade war with the United States.
    • Samsung slashes capex, calls an end to chip boom after record Q3
Samsung Electronics slashed 2018 capex by more than a quarter and warned of
lower profit until early next year, calling an end to a two-year boom in memory
chips that fuelled record third-quarter profit.
    • Facebook expects rising costs to combat scandals to moderate after 2019
Facebook on Tuesday relieved investors by forecasting that margins would stop
shrinking after 2019 as costs from scandals ease up, sending shares up despite a
second-straight quarter with record-low user growth.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading at 0.1 percent higher at
10,237, from its previous close.
    • The Indian rupee is expected to open lower against the dollar following a
media report that the Reserve Bank of India Governor Urjit Patel is considering
resigning amid differences with the federal government. 
    • Indian government bonds may open lower, as the local currency is likely to
extend losses on rumors that central bank head Urjit Patel is likely to resign.
However, fall in crude oil prices and the central bank’s open market purchase of
bonds tomorrow may limit the losses. The yield on the benchmark 7.17 percent
bond maturing in 2028 may trade in a 7.81 percent-7.90 percent band today.
    
    
    GLOBAL MARKETS
    • Major U.S. stock indexes jumped more than 1 percent on Tuesday, helped by
strong gains for chip and transport stocks as investors took advantage of
cheaper prices following a steep recent pullback for equities.
    • Asian stocks pulled away from 20-month lows, thanks to a rebound on Wall
Street, although investors remained cautious after an October month that saw
sharp downturns across global equity markets.
    • The dollar hovered near 16-month highs versus a basket of its major rivals
after gaining overnight as traders bet on the relative outperformance of the
U.S. economy and continued rate increases by the Federal Reserve.
    • Yields on U.S. Treasury bonds were steady in light trading on Tuesday as
investors held off on making big moves ahead of this week's spate of economic
data.
    • Oil prices climbed for the first time in three days, but rising supply and
fears over the outlook for demand amid the U.S.-China trade war kept pressure on
the market.
    • Gold prices edged down as the dollar touched multi-month highs on robust
U.S. economic data and on concerns over an escalation in the U.S.-Sino trade
war.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         73.53/73.56  October 30       -$216.10 mln  $23.78 mln
 10-yr bond yield  7.83 pct     Month-to-date    -$3.49 bln    -$1.44 bln
                                Year-to-date     -$5.66 bln    -$8.19 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 = 73.6700 Indian rupees)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below