March 18, 2020 / 3:44 AM / 22 days ago

REFILE-Morning News Call - India, March 18

 (Refiles to fix the date in the headline)
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    FACTORS TO WATCH
    No major events are scheduled.
    
    LIVECHAT - MARKETS FOCUS
    John Lekas, President, CEO and senior portfolio manager, Leader Capital
Corp, discusses his expectations for markets. To join the conversation at 9:30
am IST, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Indian banks to appeal for relief on bad loans amid coronavirus concerns
    The coronavirus pandemic has sparked concerns about a fresh surge in bad
loans at India's lenders, and the industry body representing the banks plans to
appeal to regulators to provide some reprieve in bad-debt classification, two
sources told Reuters on Tuesday.
    • Yes Bank aims to recover up to $1.35 billion of bad loans next fiscal -
administrator
    Yes Bank aims to recover $1.15-$1.35 billion of bad loans in the next fiscal
year, its administrator said, days after India carved out a rescue plan for the
debt-laden lender.
    • India halts key policy plans as revenues shrink: sources
    India has dropped at least three crucial policy initiatives, including
lowering import taxes on vegetable oils, as the outbreak of the coronavirus hits
government revenue collection, two sources said on Tuesday.
    • India auto dealers seek to extend sales of older vehicles due to
coronavirus
    An Indian industry body representing thousands of auto dealers said on
Tuesday it had asked the Supreme Court to allow sales of vehicles with older
emissions technology beyond March as the sector takes a battering from the
coronavirus outbreak.
    • Salesforce hires former banker Arundhati Bhattacharya as India CEO-source
    Salesforce Inc has hired Arundhati Bhattacharya, one of India's best-known
former bankers, as its India chief executive officer, a source with direct
knowledge of the matter told Reuters on Tuesday.
    • ArcelorMittal, Nippon Steel sign $5.15 bln loan pact to refinance Essar
Steel buy
    Japan's biggest steelmaker Nippon Steel said on Tuesday its joint venture
with ArcelorMittal has signed a $5.15 billion loan agreement with Japanese
banks, including Japan Bank for International Cooperation.
    • India's February steel exports fall for first time in 8 months
    India's finished steel exports plunged 8% in February from a year earlier,
their first decline in eight months, government data showed, as demand from
traditional buyers in Europe and South East Asia contracted due to coronavirus
outbreak.
    • GoAir suspends all international flights as India curbs travel
    Budget airline GoAir has suspended all international flights after India
expanded travel restrictions on Tuesday to inbound flights from Afghanistan, the
Philippines and Malaysia.

    
        
    IMPACT OF CORONAVIRUS
    • Global powers unleash trillions of dollars to stem spiraling coronavirus
crisis
    The world's richest nations prepared more costly measures on Tuesday to
combat the global fallout of the coronavirus that has infected tens of thousands
of people, triggered social restrictions unseen since World War Two and sent
economies spinning toward recession.
    • Trump presses for $1 trillion stimulus as U.S. coronavirus deaths cross
100
    The Trump administration pressed on Tuesday for enactment of a $1 trillion
stimulus package, possibly with $1,000 direct payments to individual Americans,
to blunt the economic pain from a coronavirus outbreak that has killed over 100
people in the country.
    • Fed moves to backstop funding for U.S. companies as coronavirus fallout
spreads
    The U.S. Federal Reserve moved Tuesday to ensure the flow of credit to U.S.
companies, banks and even local governments amid a nationwide scramble for ways
to blunt the economic fallout from the coronavirus crisis.
    • Japan's Abe to launch panel to mull big stimulus package - source
    Japanese Prime Minister Shinzo Abe will form a panel of key economic
ministers and Bank of Japan Governor Haruhiko Kuroda to discuss measures to prop
up an economy hit by the fallout from the coronavirus epidemic, a government
official with direct knowledge of the matter said.
    • Governments offer airlines aid as coronavirus drives deeper flight cuts
    Australia and Taiwan joined a growing list of countries offering financial
aid to their ailing aviation sectors as global airlines announced deeper
capacity cuts due to plummeting demand and stricter border controls associated
with the coronavirus.

        
    
    GLOBAL TOP NEWS
    • Japan's exports fall, imports from China slump as virus impact widens
    Japan's exports slipped for a 15th straight month in February as U.S. and
China-bound shipments declined, suggesting a cooling of business activity in the
world's third-largest economy due to the coronavirus outbreak.
    • Amazon warehouses receive only vital supplies in U.S., Europe amid
coronavirus
    Amazon will only receive vital supplies at its U.S. and UK and other
European warehouses until April 5, its latest move to free up inventory space
for medical and household goods in high demand as a result of the coronavirus
outbreak.
    • Front-runner Biden crushes Sanders in Florida, projected to win Illinois
    Joe Biden coasted to a blowout victory over Bernie Sanders in Florida's
Democratic presidential primary and was projected to win Illinois on Tuesday,
edging closer to the nomination to face President Donald Trump in November's
election.
   
    
    Thomson Reuters/INSEAD Asian Business Sentiment Survey 2020Q1
    Confidence among Asian companies slumped to near 11-year lows in the first
quarter as the coronavirus pandemic sent countries into lockdown, battering
economic activity and consumer sentiment, a Thomson Reuters/INSEAD survey
showed. To read more, click here here
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.3% lower at 8,976.00.
    • The Indian rupee is expected to rise against the dollar tracking a rebound
in most Asian currencies amid more steps by the U.S. Federal Reserve and the
White House to assist the economy in battling the coronavirus pandemic.
    • Indian government bonds are likely to open lower tracking a sharp spike in
U.S. Treasury yields overnight and amid uncertainty about likely monetary policy
easing at home. The yield on the benchmark 6.45% bond maturing in 2029 is likely
to trade in a range of 6.25%-6.30% today.
    
    
    GLOBAL MARKETS
    • The S&P 500 rose 6% on Tuesday, clawing back a significant portion of
Monday's steep losses, as the Federal Reserve and the White House took further
steps to boost liquidity and stem damage from the coronavirus outbreak that has
gripped the global economy.
    • The S&P 500 rose 6% on Tuesday, recouping half of the previous session's
historic sell-off, as the Federal Reserve and the White House took further steps
to boost liquidity and stem damage from the coronavirus outbreak that has
gripped the global economy.
    • The dollar held overnight gains against most major currencies after U.S.
yields jumped and as deepening fear around the coronavirus drove a scramble for
greenback.
    • The benchmark U.S. 10-year Treasury note yield climbed back over the 1%
level on Tuesday as a modicum of renewed confidence shored up Wall Street and
reduced demand for safe government debt after the Federal Reserve announced
plans to rescue the stressed commercial paper market.
    • Oil prices steadied after slipping to new four-year lows, sapped by fears
for fuel demand and the global economy amid travel and social lockdowns
triggered by the coronavirus epidemic.
    • Gold prices rose as the U.S. Federal Reserve's measures to boost liquidity
in the market eased some concerns over disruptions to the global economy and a
potential cash crunch due to the coronavirus outbreak.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot         74.19/74.22  March 17         (4,699.85) crore  (11,454.59) crore
 10-yr bond yield  6.26%        Month-to-date    (36,217) crore    (31,982) crore
                                Year-to-date     (22,274) crore    (41,533) crore
 (FII investment numbers are in Indian rupees. Source: National Securities
Depository Limited)
    
    
    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 = 74.06 Indian rupees) 


 (Compiled by Pranay Prakash in Bengaluru)
  
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