March 22, 2018 / 3:31 AM / a month ago

REFILE-Morning News Call - India, March 22

 (Refiles to replace GMF item.)
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    FACTORS TO WATCH
    09:30 am: Commerce Minister Suresh Prabhu, Commerce Joint Secretary Shyamal
Mishra at CAPINDIA 2018 in Mumbai.
    11:00 am: Budget session of Parliament continues in New Delhi. 
    03:00 pm: Chief Economic Advisor Arvind Subramanian at an interactive
session in New Delhi.

    TRADING INDIA FORUM: INDIAN REAL ESTATE 
    With the double whammy of GST and RERA, the Indian real estate sector took a
beating in 2017. Green shoots through seem to be emerging this year. While
investors and developers seem to be shifting their focus to satellite towns, big
names like Canadian pension fund Caisse aim to double its India real estate
investments. We speak to Kanchan Diwan, Managing Director at High Street Homes,
on her view for the sector in 2018 at 11:00 am IST. To join the conversation,
click on the link: here

    GMF: LIVECHAT - BONDS UPDATE
    Reuters interest rate reporter Dhara Ranasinghe delves into government bond
markets at 07:00 pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • RCom gets bondholders' nod for asset sale
    Reliance Communications said on Wednesday its bondholders had approved their
asset-sale plan, that includes the sale of certain assets to upstart rival
Reliance Jio Infocomm Ltd.    
    • Sandhar Technologies $79 mln IPO subscribed over 6 times
    Indian automotive parts maker Sandhar Technologies Ltd's initial public
offering of shares to raise 5.12 billion rupees was subscribed more than six
times on the last day of the sale on Wednesday.    
    • EXCLUSIVE-India drops plan to raise wheat import tax, indicating output
deficit
    India has dropped a plan to double a wheat import tax to 40 percent, two
government sources said, in a sign it expects imports to make up for a shortfall
in domestic production for the third year in a row.    
    • Finance ministry official says primary dealers want more shorter duration
bonds
    Indian primary dealers have asked the government to issue more shorter-dated
securities to help boost sagging demand in debt markets, said a finance ministry
official on Wednesday after meeting with market participants about the country's
borrowing plans.
    
    
    GLOBAL TOP NEWS
    • Trump set for China tariff announcement on Thursday, trade war fears grow
    President Donald Trump will announce tariffs on Chinese imports on Thursday,
a White House official said, in a move aimed at curbing theft of U.S. technology
and likely to trigger retaliation from Beijing and stoke fears of a global trade
war.    
    • Fed lifts rates, signals tougher stance as economy strengthens
    The U.S. Federal Reserve raised interest rates on Wednesday and forecast at
least two more hikes for 2018, highlighting its growing confidence that tax cuts
and government spending will boost the economy and inflation and spur more
aggressive future tightening.    
    • U.S. Congress unveils $1.3 trillion spending bill as shutdown looms
    Republican and Democratic leaders in the U.S. Congress late on Wednesday
unveiled a $1.3 trillion bill to fund the government through September, which
includes an additional $80 billion in national defense spending but fails to
fund some of President Donald Trump's immigration initiatives.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    SGX Nifty Futures were trading at 10,216.00, up 0.4 percent from its
previous close. 

The Indian rupee will likely open higher against the dollar amid broad weakness
in the U.S. currency after the Federal Reserve continued to forecast three rate
hikes for this year.
    
    Indian government bonds are likely to edge lower after the U.S. Federal
Reserve raised interest rates as expected. Gains in crude oil prices are also
likely to weigh on demand for Indian debt, traders said. The yield on the
benchmark 7.17 percent bond maturing in 2028 is likely to trade in 7.55
percent-7.62 percent band today.

            
    GLOBAL MARKETS
    • U.S. stocks ended slightly lower on Wednesday, with major indexes giving
up gains in choppy trade after the Federal Reserve raised U.S. interest rates,
while a strong gain in the energy space helped limit losses.
    • MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3
percent, with South Korea's Kospi hitting six-week high, while Japan's Nikkei
gained 0.2 percent in early trade.
    • The dollar struggled against its peers after the Federal Reserve
maintained the view that it would raise interest rate three times in 2018
instead of the four that some currency bulls had hoped for.
    • U.S. Treasury yields were slightly lower on Wednesday after the Federal
Reserve raised interest rates and forecast two more hikes for 2018, fewer than
the three that many market participants had expected.
    • Oil prices rose, lifted by a surprise draw on U.S. crude inventories as
well as ongoing dollar weakness which makes oil cheaper in global markets and
potentially spurs demand.
    • Gold prices edged higher, adding to gains in the previous session on the
back of a weaker dollar after the U.S. Federal Reserve disappointed investors
expecting more hawkish comments on interest rate rises.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         65.20/65.23  March 21         $15.11 mln  $19.02 mln
 10-yr bond yield  7.66 pct     Month-to-date    $1.56 bln   $1.05 bln
                                Year-to-date     $1.67 bln   $ 39.63 mln
 
    
    
    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 = 65.1700 Indian rupees)

 (Compiled by Nachiket Tekawade in Bengaluru)
  
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