October 19, 2018 / 3:30 AM / a month ago

Morning News Call - India, October 19

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    FACTORS TO WATCH
    No major events are scheduled. 
    
    
    INDIA TOP NEWS
    • Reliance Industries reports record quarterly profit
    Reliance Industries reported a record quarterly profit on Wednesday, driven
by growth in its core petrochemicals business and helped by rising revenues at
budding telecoms unit Jio. Separately, the oil-to-telecoms
conglomerate announced on Wednesday it will acquire controlling stakes in two
local cable TV and Internet service providers, expediting the rollout of its new
fibre broadband service.
    • Yes Bank told to find new CEO by Feb. 1
    Yes Bank on Wednesday said the Reserve Bank of India had reaffirmed that the
retail bank should appoint a successor to Chief Executive Rana Kapoor by
February 1, 2019.
    • ArcelorMittal to make $1 billion creditor payment to bid for Essar Steel 
ArcelorMittal said on Wednesday it would pay 74.69 billion rupees to creditors
of two Indian companies in which it previously held stakes, in order to make its
acquisition offer valid for Essar Steel, another debt-ridden Indian steel firm.

    • Tata Group in talks to buy stake in Jet Airways - Times of India
    Indian business conglomerate Tata Group has held preliminary discussions to
buy a large stake in debt-laden Jet Airways (India), the Times of India reported
on Thursday. Meanwhile, British Prime Minister Theresa May and
business minister Greg Clark met Ratan Tata, patriarch of the Indian Tata
family, a few weeks ago as its car brand Jaguar Land Rover warns about the
effect of Brexit and diesel policy, a government source said.
    • Regulator asks Fortis Healthcare to recover $55 million from founders, 8
firms
    India's capital markets regulator has asked Fortis Healthcare to recover
4.03 billion rupees from its founder brothers and firms related to them, pending
an investigation into loans made by the company.
    • Total ties up with India's Adani for LNG plants, fuel retail
    French oil major Total has signed a deal with Indian conglomerate Adani
Group to re-enter the South Asian nation's liquefied natural gas market and
build 1,500 retail service stations over the coming decade.
    • ACC Q3 profit misses expectations as expenses rise
    Cement maker ACC on Wednesday posted a 15.7 percent rise in quarterly
profit, which fell short of market estimates as expenses rose.
    • ANALYSIS-Netflix needs lower prices to woo India
Netflix's Indian operation drew attention in a surge of international
subscribers in the third quarter, but it faces fierce competition and a
difficult cultural conundrum to make inroads with the country's more than one
billion TV viewers.
    
    
    GLOBAL TOP NEWS
    • China's third quarter economic growth slowed to its weakest pace since the
global financial crisis, and missed expectations, as a years-long campaign to
tackle debt risks and the trade war with the United States began to bite.

    • Trump says Saudi journalist likely dead; Turkey searches for remains
    President Donald Trump said on Thursday he presumes missing Saudi journalist
Jamal Khashoggi is dead and that the U.S. response to Saudi Arabia will likely
be "very severe" but that he still wanted to get to the bottom of what exactly
happened.
    • U.S. asks for WTO panel over metals tariff retaliation
    The United States is requesting that a World Trade Organization dispute
resolution panel get involved in a clash over international retaliation over
U.S. tariffs on steel and aluminium, according to a U.S. official familiar with
the matter.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.7 percent lower at 10,305.
    • The Indian rupee is expected to open lower against the U.S. currency after
the dollar index rose its highest in two months amid hawkish Federal Reserve
minutes.
    • Indian government bonds will likely edge higher in early trade as crude
oil prices slipped. The yield on the benchmark 7.17 percent bond maturing in
2028 may trade in a 7.87 percent-7.93 percent band today.
    
    
    GLOBAL MARKETS
    • U.S. stocks fell more than 1 percent on Thursday as the European
Commission issued a warning regarding Italy's budget and concerns mounted over
the possibility of strained relations between the United States and Saudi
Arabia, further denting investors' appetite for risk amid global trade tensions
and rising interest rates.
    • Stocks in Asia fell as global sentiment soured on issues ranging from
trade worries, Italy's 2019 budget, higher U.S. interest rates and growth
concerns in China that led to a slump in Chinese shares in the previous session.

    • The euro hovered near a one-week low against the dollar as the European
Commission's criticism of Italy's populist budget sparked fresh concerns about
political tensions in the common currency zone.
    • U.S. Treasury yields slipped on Thursday as safe-haven demand fueled by
more losses on Wall Street mitigated selling tied to worries about further
interest rate increases from the Federal Reserve.
    • Oil prices nudged higher but were set for a second weekly drop amid higher
U.S. crude inventories, an ongoing Sino-U.S. trade war and concerns over the
death of a prominent Saudi journalist.
    • Gold prices nudged higher as Asian shares fell on renewed political and
economic concerns, with the metal on track for its third straight weekly rise.

 
    
                   CLOSE        FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         73.51/73.54  October 17       $19.04 mln  -$696.43 mln
 10-yr bond yield  7.91 pct     Month-to-date    -$2.50 bln  -$1.62 bln
                                Year-to-date     -$4.67 bln  -$8.37 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 = 73.5200 Indian rupees)

 (Compiled by Debanjan Bose in Bengaluru)
  
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