May 30, 2018 / 3:29 AM / 5 months ago

Morning News Call - India, May 30

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    FACTORS TO WATCH
    12:15 pm: Power Grid Corp. press conference to discuss quarterly results and
future growth path in Mumbai.
    2:30 pm: Commerce Ministry, Officer On Special Duty Anup Wadhawan briefs
media regarding TRIPS CBD linkage, in New Delhi.
    4:15 pm: Rural Electrification Corp. post results media interaction in
Mumbai.
    
    GMF: LIVECHAT - ENERGY MARKETS
    Peter Kiernan, lead energy analyst at the EIU joins us for a look at how
politics are shaping energy markets, at 2:30 pm IST. To join the conversation,
click on the link: here
    
    
    INDIA TOP NEWS
    CBI launches probe against AirAsia boss Tony Fernandes
The Central Bureau of Investigation (CBI) said on Tuesday they have filed a case
against AirAsia Group, the airline’s CEO Tony Fernandes and its domestic entity
AirAsia India, over allegations of corruption and breaking rules in obtaining a
flying licence.
    
    Vedanta prepares legal challenge to India copper plant closure after fatal
protest - sources
Vedanta Resources is working on a legal challenge to the Tamil Nadu government’s
closure of one of its copper smelters, but it will not proceed until tensions
over the deaths of 13 people during protests last week have eased, two sources
told Reuters.
    
    India resists lobbying by U.S. payment firms to ease local data storage
rules
India's central bank is standing firm on a directive to compel global payment
firms to store customer data in India, resisting calls from U.S. companies to
dilute an order they say would cost them millions of dollars, people familiar
with the matter said. 
    
    POLL-Indian economy likely motored ahead in Q1 but now might coast
India's economy probably gained a little momentum in the first three months of
2018 which should ensure that it remains the world's fastest growing major
economy, a Reuters poll found.
    
    Fortis Healthcare launches new bidding process
India's cash-strapped Fortis Healthcare laid out plans on Tuesday for a fresh
bidding process, after it became the subject of a bidding war by suitors seeking
to cash in on an expected boom in India's private healthcare market.

    
    India's bankruptcy appeal court defers RCom-Ericsson case hearing
India's bankruptcy appeals court delayed a hearing of Reliance Communications'
(RCom) plea seeking to overturn insolvency proceedings against the company to
Wednesday.
    
    Monsoon rains hit Kerala coast - weather office
Monsoon rains hit the southern state of Kerala a few days earlier than normal on
Tuesday, the country’s weather office said, potentially brightening the nation’s
outlook for agricultural output and economic growth.
    
    Mahindra & Mahindra fourth-quarter profit jumps 70 percent
Mahindra & Mahindra Ltd on Tuesday said fourth-quarter profit surged over 70
percent, slightly above estimates.
    
    
    GLOBAL TOP NEWS
    Italy may return to polls in July, sources say, amid market rout
Italy may hold repeat elections as early as July after the man asked to be prime
minister failed to secure support from major political parties for even a
stop-gap government, sources said on Tuesday, as markets tumbled on the growing
political turmoil.
    
    Top North Korea envoy to hold crucial talks in U.S. about summit
A top North Korean official was headed to New York on Tuesday for talks with
U.S. Secretary of State Mike Pompeo, the latest indication that an
on-again-off-again summit between President Donald Trump and North Korean leader
Kim Jong Un may go ahead next month.
    
    China's state media slam U.S. trade announcement, say Beijing ready to fight
China's state media lashed into a U.S. announcement that it would press ahead
with restrictions on investment by Chinese companies, saying Beijing was ready
to fight back if Washington was looking to ignite a trade war.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    SGX Nifty nearest-month futures trading down 0.73 percent at 10,531.50.
    
    The Indian rupee will likely open little changed against the dollar as
investors analyze the impact of Italy’s political turmoil on emerging markets.
    
    Indian government bonds are likely to trade little changed in early session
despite a decline in U.S. Treasury yields as global investor sentiment is
cautious amid political turmoil in Europe. The yield on the benchmark 7.17
percent bond maturing in 2028 is likely to trade in 7.73-7.79 percent band
today.
    
    
    GLOBAL MARKETS
    • The S&P 500 and the Dow Jones Industrial Average registered their biggest
one-day percentage drops in a month on Tuesday as political turmoil in Italy
sparked concerns about the stability of the euro zone and shares of U.S. banks
tumbled.
    • Asian shares extended a global sell-off as Italy's political crisis
provoked a heavy retreat on Wall Street, sent the euro to a 10-month low and
pushed up borrowing costs for the government in Rome.
    • The euro was buried near multi-month lows against major rivals as Italy's
political crisis deepened, raising the likelihood of an early election that some
market players fear could lead to a eurosceptic government in Rome.
    • U.S. benchmark 10-year Treasury yields posted their largest one-day drop
on Tuesday since Britain voted to exit the European Union nearly two years ago,
as a political crisis in Italy, the third-largest euro zone economy, fueled a
flight to safe-haven assets.
    • Oil prices retreated under pressure from expectations that Saudi Arabia
and Russia would pump more oil to counter potential supply shortfalls from
Venezuela and Iran, even as U.S. output has surged in recent years.
    • Gold prices rose as political turmoil in Italy and concerns over Sino-U.S.
trade conflict spurred safe-haven demand.
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         67.92/67.95  May 29           --           $13.26 mln
 10-yr bond yield  7.95 pct     Month-to-date    -$1.27 bln   -$2.47 bln
                                Year-to-date     -$83.21 mln  -$4.14 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 = 67.8300 Indian rupees)

 (Compiled by Nayyar Rasheed in Bengaluru)
  
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