May 17, 2018 / 3:06 AM / 5 days ago

Morning News Call - India, May 17

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    FACTORS TO WATCH
    9:30 am: Transport Minister Nitin Gadkari and Steel Secretary Aruna Sharma
at an event in New Delhi.
    11:00 am: Parliament panel on finance likely to meet RBI Governor Urjit
Patel and finance ministry officials in New Delhi.
    
    LIVECHAT - COMMODITIES FOCUS 
    Clyde Russell, Reuters Asia Commodities and Energy Columnist speaks on the
subject at 9:30 am. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • Tata Steel profit lifted by one-off UK pension gain
    Tata Steel was helped to a quarterly profit of 146.88 billion rupees by a
one-off pensions gain, in contrast with an 11.68 billion rupee loss a year
earlier.
    • India's Infosys sets up blockchain-based trade finance network with seven
banks
    Infosys has formed a blockchain-based trade finance network with seven
private-sector banks, to increase security and efficiency in the banking sector
while also broadening its product offering.
    • Former Indian central bank boss says won't apply for top BoE job 
    Former Reserve Bank of India chief Raghuram Rajan said on Wednesday he did
not intend to apply for the job of Bank of England governor which is due to come
vacant next year.
    • India police charge jeweller Choksi, others in PNB fraud case 
    Indian federal police have filed charges against five further people
including jeweller Mehul Choksi as part of a probe into an alleged $2 billion
fraud at state-run Punjab National Bank, two police sources said.
    • JSW Steel posts record quarterly profit 
    JSW Steel posted record quarterly net profit on Wednesday, nearly tripling
from last year, largely beating market estimates thanks to higher commodity
prices and spreads.
    • TVS Motor Co Q4 profit up 31 percent, lags Street 
    TVS Motor posted an about 31 percent increase in quarterly profit on
Wednesday, helped by higher vehicle sales at home and growth in exports, but
missed analysts' estimates.
    • ITC Q4 profit rises 10 percent; beats estimates 
    India's biggest cigarette maker ITC posted a better-than-expected quarterly
profit on Wednesday, helped by a fall in excise duty.
    • Hindalco Industries Q4 profit dives 25 percent, lags estimate 
    Aluminium producer Hindalco Industries posted a 25 percent fall in its
fourth-quarter profit, widely missing street estimate.
    
    
    GLOBAL TOP NEWS
    • Trump says 'We'll see' on N.Korea summit, to insist on denuclearization
    U.S. President Donald Trump acknowledged on Wednesday it was unclear if his
summit with North Korea would go ahead after Pyongyang threatened to pull out of
the unprecedented meeting, a move that could deny him a potentially major
foreign policy achievement.
    • U.S., China to launch trade talks; China hawk Navarro's role reduced
-officials
    The United States and China launch trade talks on Thursday in a bid to avert
a damaging tariff war, with the White House's harshest China critic relegated to
a supporting role, senior Trump administration officials said on Wednesday.

    • Malaysia police seize handbags, other personal items from ex-PM's home
    Malaysian police seized handbags and few other personal items from the home
of former prime minister Najib Razak in connection with a money laundering
probe, a lawyer of the ex-leader said.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading almost flat at 10,768.50.
    • Indian government bonds are likely to fall in early trade tracking sharp
overnight gains in U.S. Treasury yields and crude oil prices. The yield on the
benchmark 7.17 percent bond maturing in 2028 is likely to trade in 7.90
percent-7.96 percent band today. 
    • The Indian rupee will likely open higher against the dollar amid a mild
recovery in emerging market currencies. 

    
    GLOBAL MARKETS
    • Retail and technology stocks led Wall Street higher on Wednesday and the
small-cap Russell 2000 hit a record peak, even as a rise in U.S. bond yields to
an almost seven-year high suggested more competition for equities and investors
fretted over geopolitics.
    • Asian shares held steady, while the euro struggled near five-month lows
set a day earlier following a report that Italian populist parties trying to
form a coalition could ask the European Central Bank to forgive 250 billion
euros of debt.
    • The dollar stood tall against a basket of currencies, as the euro
retreated to a five-month low on concerns the political developments in Italy
could cause wider disruptions in the common currency bloc.
    • U.S. Treasury yields rose on Wednesday as the 10-year yield reached
seven-year highs and tested key technical support at 3.10 percent, which may
touch off another wave of bond sales if it rises much further above that level.

    • Oil prices firmed, with Brent crude creeping ever closer to $80 per
barrel, a level it has not seen since November 2014, as supplies tighten while
demand remains strong.
    • Gold prices were mostly steady after touching their lowest level this year
in the previous session, with the U.S. dollar hovering below its
2018-peak.
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         67.91/67.94  May 16           -$103.14 mln  -$143.83 mln
 10-yr bond yield  8.07 pct     Month-to-date    -$415.81 mln  -$1.58 bln
                                Year-to-date     $766.24 mln   -$3.25 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 = 67.7700 Indian rupees)

 (Compiled by Erum Khaled in Bengaluru)
  
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