September 26, 2018 / 3:12 AM / 21 days ago

Morning News Call - India, September 26

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    FACTORS TO WATCH 
    No major events scheduled for the day.
    
    LIVECHAT - EQUITIES WATCH
Join our Reuters correspondents in London and New York for a discussion on the
stock markets and company earnings at 06:30 pm IST. To join the conversation
click here bit.ly/1kTxdKD

    TRADING INDIA FORUM - INDIAN ECONOMY
    India posted its highest growth in two years at 8.2 percent for Q1. However,
other macros are on shaky ground and with the INR being Asia's  worst-performing
currency in 2018, challenges for the government seems to be mounting. To discuss
measures on this and much more (including the amalgamation of BoB, Dena and
Vijaya Bank), we speak to Principal Economc Adviser at the MoF, Sanjeev Sanyal,
at 11:00 pm IST. To join the conversation, click bit.ly/1kTxdKD
    
    TRADING INDIA FORUM - INDIAN MARKETS
    Indian currency markets have had a torrid time in 2018. On the equity front,
the Midcap and Smallcap indexes have underperformed the main index due to a
variety of reasons. What is the way forward as we enter the election year? We
speak to Radhia Gupta, CEO, Edelweiss AMC, at 11:00 pm IST. To join the
conversation, click bit.ly/1kTxdKD
    
    
    INDIA TOP NEWS
    • Finance ministry urges RBI to take steps to ease liquidity, tackle credit
crunch
    The finance ministry wants the Reserve Bank of India (RBI) to consider more
steps to improve liquidity in the system, including reducing the amount of funds
banks must set aside with it, a senior ministry official said on Tuesday, amid a
bubbling credit crunch in the Indian shadow banking industry.
    • EXCLUSIVE-India eases oil import rules as it seeks to cut costs
    India has for the first time allowed state refiners to buy 35 percent of
their oil imports in tankers arranged by the seller, a document reviewed by
Reuters showed, enabling them to swiftly tap cheaper cargoes.
    • Yes Bank to seek RBI nod to extend CEO's term
    Yes Bank Ltd said on Tuesday it would seek the Reserve Bank of India’s (RBI)
approval to extend Chief Executive Officer Rana Kapoor’s term beyond January,
saying it needs more time to identify and groom a successor.
    • Indian hotel chain OYO to raise $1 bln from Softbank, others
    Hotel chain OYO Hotels said on Tuesday it would raise $1 billion from
existing investors, including Japan's Softbank Group, to grow its business in
India and China, and expand into new international markets.
    • Indian banks' bad loans decline as recoveries pick up - Jaitley
    Bad loans held by India's banks are declining as recoveries have picked up
and lenders are confident of maintaining liquidity for various sectors as
required, Finance Minister Arun Jaitley told a news conference on Tuesday.

    • WhatsApp says working with India's Reliance Jio to curb fake news menace
    Facebook's WhatsApp is working closely with Reliance Jio to spread awareness
of false messages, weeks after the Indian telecoms operator opened up the
messaging service to tens of millions of customers using its cheap
internet-enabled phone.
    • India LIC chairman says all options open to revive IL&FS
    India's largest state-run insurer, Life Insurance Corporation (LIC), will
not allow the country's beleaguered Infrastructure Leasing & Financial Services
(IL&FS) to collapse, LIC Chairman V.K. Sharma told reporters on
Tuesday.
    • A swipe is not enough: Tinder trials extra control for women
    The Indian edition of dating app Tinder is trialing a new feature which
gives women an additional level of scrutiny and security before they allow men
to start messaging conversations, with a view to rolling the function out
globally.
    
    
    GLOBAL TOP NEWS
    • Trump, Iran's Rouhani exchange threats, insults on U.N.'s world stage
    U.S. President Donald Trump and Iranian President Hassan Rouhani exchanged
taunts at the United Nations General Assembly on Tuesday with Trump vowing more
sanctions against Tehran and Rouhani suggesting his American counterpart suffers
from a "weakness of intellect."
    • U.S. trade chief says China policy change 'not going to be easy'
    U.S. President Donald Trump's top trade official said on Tuesday that
changing China's economic policies to become more market-oriented "is not going
to be easy" even with tariffs now in place on $250 billion worth of Chinese
goods.
    • U.S. says Canada not making concessions needed for NAFTA deal
    Canada is not making concessions needed to reach a deal with the United
States for a trilateral NAFTA pact and is running out of time before Washington
proceeds with a Mexico-only agreement, a top U.S. official said on
Tuesday.

        
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading up 0.5 percent at 11,130.50,
from its previous close. 
    • The Indian rupee is expected to open lower against the dollar following a
rise in long-term Treasury yields to four-month highs ahead of a near-certain
rate increase by the U.S. Federal Reserve.
    • Indian government bond prices will likely ease in early trade as U.S.
Treasury yields rose ahead of a near-certain interest rate hike by the U.S
Federal Reserve later today. The yield on the benchmark 7.17 percent bond
maturing in 2028 may trade in a 8.12 percent-8.18 percent band today, a dealer
with a private bank said. - NewsRise
    
    
    GLOBAL MARKETS
    • The S&P 500 fell on Tuesday as chipmakers were dented by ratings
downgrades and utilities declined ahead of an expected Federal Reserve interest
rate hike, offsetting a boost from the energy sector.
    • Asian shares barely budged, lacking traction as U.S. bond yields edged
near a seven-year peak ahead of a widely expected rate hike by the Federal
Reserve and as international oil prices rose to four-year highs.
    • The dollar largely stuck to tight ranges as investors awaited policy cues
from the Federal Reserve, which is widely expected to raise interest rates later
in the day, and as the Sino-U.S. trade dispute dampened demand for risky assets.

    • U.S. Treasury yields climbed on Tuesday, with the 10-year yield scaling to
a four-month peak, on bets about Federal Reserve interest rate increases in the
coming months and poor demand so far for this week's supply of government debt.

    • Brent oil edged further away from a four-year high and U.S. crude fell,
after the U.S. said it would ensure crude markets are well supplied before
sanctions are re-imposed on Iran and as President Donald Trump criticized high
prices.
    • Gold prices nudged down on a firmer dollar, as investors waited for
details of the U.S. Federal Reserve's two-day meeting that should give clues
whether policymakers will raise interest rates for the third time this year.

      
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         72.58/72.61  September 25     -$169.51 mln  -$64.21 mln
 10-yr bond yield  8.12 pct     Month-to-date    -$563.67 mln  -$1.33 bln
                                Year-to-date     -$1.42 bln    -$6.48 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 = 72.68 Indian rupees)
    
    

 (Compiled by Siddharth Athreya V in Bengaluru)
  
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