May 24, 2018 / 3:11 AM / 6 months ago

Morning News Call - India, May 24

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    FACTORS TO WATCH
    3:45 pm: Syniverse Technologies Services Global CEO Dean Douglas meets
Electronics & IT Minister Ravi Shankar Prasad in New Delhi.
    
    LIVECHAT- FX AND PRECIOUS METALS 
    Georgette Boele, co-ordinator of FX and precious metals strategy at ABN AMRO
joins us in the forum at 02:30 pn IST. To join the conversation, click on the
link: here
    
    
    INDIA TOP NEWS
    • India court halts expansion of Vedanta's copper smelter after protest
killings 
    One person died and others were wounded by gunfire in southern India on
Wednesday in fresh violence related to protesters' demands that a copper smelter
be shut on environmental grounds. The day before at least ten people were killed
by police during a mass demonstration against the plant.
    • SoftBank to sell Flipkart stake to Walmart, first known Vision Fund
divestment 
    SoftBank Group said on Wednesday it is selling its roughly 20 percent stake
in Indian e-commerce firm Flipkart to Walmart, the first public divestment by
its Vision Fund.
    • Tata Motors Q4 profit halves on one-off charge, expenses
    Tata Motors'fourth quarter profit halved, missing analysts' estimates due to
higher expenses and a one-time impairment charge for certain product development
programmes, the Indian automaker said on Wednesday.
    • India takes U.S. steel tariffs complaint to the WTO 
    India has launched a complaint against the United States to challenge U.S.
President Donald Trump's tariffs on steel and aluminium, a filing published by
the World Trade Organization showed on Wednesday.
    • India to take "long-term" view on surging fuel prices 
    India will take a long-term view on the retail pricing of petrol and diesel
to shield consumers from volatility in global markets, the government said on
Wednesday, suggesting it could change the way pump prices are calculated.

    • India proposes higher compensation for flight delays in efficiency push
    Airlines in India may need to pay passengers higher compensation when
flights are delayed or cancelled, according to rule changes proposed by the
Civil Aviation Ministry aimed at raising efficiency in the world's
fastest-growing aviation market.
    • Jet Airways posts Q4 loss due to higher fuel costs 
    Jet Airways, the country's second-largest airline by market share, posted a
loss in the fourth quarter due to higher fuel expenses.
    • Motherson Sumi Systems Q4 profit rises over 9 percent 
    Auto parts maker Motherson Sumi Systems posted a 9.2 percent rise in
fourth-quarter net profit on Wednesday, but fell short of analysts'
expectations.
    
    
    GLOBAL TOP NEWS
    • U.S. launches national security probe of vehicle imports
    The Trump administration on Wednesday launched a national security
investigation into car and truck imports that could lead to new U.S. tariffs
similar to those imposed on imported steel and aluminum in March.
    • Japan business mood improves, signals return to growth-Reuters Tankan
    Confidence among Japanese manufacturers improved in May for the first time
in four months while service-sector sentiment hit a record high, the Reuters
Tankan poll showed, suggesting the economy may return to growth after a
first-quarter slump.
    • Trump says will know next week if N. Korea summit to go ahead
    U.S. President Donald Trump said on Wednesday he would know next week
whether his summit with North Korean leader Kim Jong Un would take place on June
12 in Singapore as scheduled, casting further doubt on plans for the
unprecedented meeting.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading up 0.3 percent at 10,447.50. 
    • Indian government bonds are likely to edge higher in early trade as U.S.
Treasury yields came off recent highs after the minutes of the Federal Reserve’s
latest meeting. The yield on the benchmark 7.17 percent bond maturing in 2028 is
likely to trade in 7.81 percent-7.87 percent band today.
    • The Indian rupee is expected to edge higher against the dollar, drawing
support from the fall in 10-year Treasury yield to below 3% after the Federal
Reserve’s May meeting minutes.
       
    
    GLOBAL MARKETS
    • U.S. stocks ended with small gains on Wednesday after minutes from the
Federal Reserve's latest meeting suggested higher inflation may not result in
faster interest rate hikes.
    • Asian shares moved lower as investors fretted about new setbacks in
U.S.-China trade talks, but negative sentiment was tempered by U.S. Federal
Reserve meeting minutes suggesting it would not raise the tempo at which it
increases interest rates.
    • The dollar lost momentum after the minutes of the Federal Reserve's last
policy meeting were seen as dovish and U.S. President Donald Trump proposed
looking into imposing new tariffs on imported cars.
    • U.S. Treasury yields held at lower levels on Wednesday after minutes of
the Federal Reserve's May meeting showed that most Fed policymakers thought it
likely another interest rate increase would be warranted "soon" if the U.S.
economic outlook remains intact.
    • Oil prices fell, pulled down by expectations that OPEC members could step
up production in the face of worries over supply from both Venezuela and Iran.

    • Gold prices edged higher for a second day as the dollar extended losses
after minutes of the latest Federal Reserve meeting hinted at a dovish approach
to interest rate hikes in the United States.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.36/68.39  May 23           -$45.53 mln   -$143.53
 10-yr bond yield  8.05 pct     Month-to-date    -$897.66 mln  -$2.42 bln
                                Year-to-date     $284.39 mln   -$4.09 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 = 68.3100 Indian rupees)

 (Compiled by Erum Khaled in Bengaluru)
  
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