September 6, 2019 / 3:15 AM / a month ago

Morning News Call - India, September 6

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FACTORS TO WATCH

9:00 am: Junior Finance Minister Anurag Thakur and NITI Aayog CEO Amitabh Kant at ACMA Annual Session in New Delhi.

9:20 am: Chief Economic Adviser Krishnamurthy Subramanian and Principal Economic Adviser Sanjeev Sanyal at SBI Banking & Economics Conclave in Mumbai.

11:00 am: CBIC Member Sandeep Bhatnagar and finance ministry officials at Sabka Vishwas - (Legacy Dispute Resolution) Scheme event in New Delhi.

5:00 pm: RBI to release weekly foreign exchange data in Mumbai.

INDIA TOP NEWS

• ‘Here and now’: India’s auto industry urges government action to fight slowdown

India’s top auto industry executives called for the government on Thursday to take urgent steps to revive a sector crippled by plunging sales, leading to hundreds of thousands of job losses and lower production.

• Indian banks unlikely to sharply trim lending rates despite new norms The Reserve Bank of India’s move to compel lenders to link all new floating rate retail loans to external benchmarks is unlikely to achieve the intended goal of reducing interest rates sharply for consumers anytime soon, bankers and analysts said.

• INTERVIEW-India’s Reliance targets more retail acquisitions abroad Reliance Industries is looking to buy fashion and child-focused retailers abroad and partner with global sports and beauty brands as part of its expansion into consumer markets, a top executive told Reuters.

• Indian court approves JSW Steel’s takeover of bankrupt Bhushan Power An Indian court on Thursday cleared JSW Steel’s takeover plan for debt-ridden Bhushan Power and Steel, bringing an end to a bankruptcy case that has dragged on over two years.

• Brewer AB InBev says New Delhi ban to adversely hurt its business in the city

Anheuser-Busch InBev will face a “substantial adverse impact” on its business in New Delhi and is already incurring losses due a ban on its beer sales in the city amid allegations of tax evasion, it said in a court filing seen by Reuters.

• COLUMN-India’s crashing vehicle sales have yet to burn crude oil imports: Russell

India’s car manufacturers are in deep strife with slumping sales amid a broader slowdown in economic growth, but one element missing in the bearish narrative is a matching drop in crude oil imports.

• BPCL, HPCL buy more gasoline to plug supply gaps

Bharat Petroleum and Hindustan Petroleum continue to import gasoline to plug a persistent supply gap as their refineries undergo maintenance and upgrade to produce cleaner fuels.

• Outraged Indians lampoon government over steep rise in traffic fines

Many Indians have ridiculed a sharp increase in traffic fines this week, lampooning the poor state of roads and joking that the revenue from the fines would soon exceed that from taxes.

GLOBAL TOP NEWS

• U.S., China agree to resume trade talks, markets jump China and the United States on Thursday agreed to hold high-level talks in early October in Washington, cheering investors hoping for a trade war thaw as new U.S. tariffs on Chinese consumer goods chip away at global growth.

• British PM Johnson’s own brother quits on eve of Brexit election campaign British Prime Minister Boris Johnson’s plan to kick off what is in effect an election campaign casting parliament as the enemy of Brexit was overshadowed on Thursday when his younger brother quit the government, citing the national interest.

• Japan’s July household spending up for 8th straight month, but at slower pace

Japan’s household spending rose for an eighth month in July, albeit at a slower-than-expected pace, offering a warning about consumption in an economy already struggling with weak external demand amid the bitter U.S.-China trade war.

LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

• The SGX Nifty nearest-month futures were trading 0.4% higher at 10,901.00.

• The Indian rupee is expected to open little changed against the U.S. currency, as encouraging economic data kept the dollar index firm while optimism over U.S.-China trade boosted investors’ risk appetite.

• The India government bonds are expected to fall in early trade ahead of a weekly supply of notes and amid concerns that New Delhi may boost spending to help growth. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.56%-6.62% until the 170-billion-rupee auction. - NewsRise

GLOBAL MARKETS

• U.S. stocks surged on Thursday on expectations of a de-escalation in trade tensions after Washington and Beijing agreed to hold high-level talks next month, while strong U.S. economic data eased fears of a domestic slowdown.

• Asian stocks tracked global peers and rose while safe havens such as government bonds and the yen were sold amid signs of easing U.S.-China trade tensions and as firm U.S. economic data bolstered risk appetites.

• Encouraging U.S. economic data gave the dollar an edge over its peers, arresting a recent flight from the greenback while also supporting Asian currencies as investors toned down recent gloom over the global economy.

• U.S. Treasury yields were higher on Thursday following news that the United States and China had agreed to hold trade talks in October and ahead of U.S. employment data for August and remarks from Federal Reserve Chair Jerome Powell, both on Friday.

• Oil prices edged higher, with crude benchmarks poised for multi-week gains amid a sharp drawdown in U.S. crude inventories, while trade tensions eased after Washington and Beijing agreed to hold high-level talks next month.

• Gold prices inched lower, after dropping more than 2% in the previous session, as investors were driven to riskier assets encouraged by stronger U.S. economic data and hopes of a thaw in the U.S.-China trade tensions.

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 = 71.91 Indian rupees Compiled by Benny Thomas in Bengaluru

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