January 7, 2019 / 3:24 AM / 2 months ago

Morning News Call - India, January 7

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    FACTORS TO WATCH
    11:00 am: Winter Session of Parliament continues in New Delhi.
 
        
    LIVECHAT - FX WEEK AHEAD
    FX Buzz analyst Jeremy Boulton analyses G7 currencies at 6:00 pm IST. To
join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • Reliance Communications says committed to settle dues with Ericsson
    Indian telecom company Reliance Communications said it remained "fully
committed" to settle dues with Swedish telecom gearmaker Ericsson from the
proceeds of its sale of wireless assets to Reliance Jio Infocomm.
    • Jet Airways, bankers to meet airline's vendors, lessors to discuss debt
plan -sources
    Debt-laden Jet Airways is close to reaching a deal with State Bank of India
for a fresh loan of 15 billion rupees to meet its working capital needs, two
sources aware of the matter told Reuters.
    • India's services activity dips in December, but firms step up hiring
    Growth in India's services sector slowed slightly in December, but firms
hired at a faster clip on continuing optimism as new business and employment
remained buoyant, a private survey showed on Friday.
    • Court declares tycoon Mallya a "fugitive economic offender"
    A court in India set up under anti-money laundering laws declared liquor and
aviation tycoon Vijay Mallya a "fugitive economic offender" on Saturday, paving
the way for the government to seize his assets, according to Reuters partner
ANI.
    • India has more than adequate 2,000 rupee notes in system - official
    India has not yet decided on further printing of 2,000 rupee notes as there
are more than adequate notes of this denomination in the system, Economic
Affairs Secretary Subhash Chandra Garg said.
    
    
    GLOBAL TOP NEWS
    • Trump: Weakness in China economy gives Beijing incentive for trade deal
    U.S. President Donald Trump said on Sunday that trade talks with China were
going very well and that weakness in the Chinese economy gave Beijing a reason
to work toward a deal.
    • Samsung Electronic braces for profit drop as China slowdown chips away at
demand
    Samsung Electronics is set to post its first drop in quarterly operating
profit in two years as slowing economic growth in China, a key market for the
South Korean tech giant, erodes demand for its products.
    • Trump holds firm on border wall, offers steel option as compromise
    U.S. President Donald Trump pledged on Sunday not to bend in his demand for
a wall along the southern border with Mexico but said the barrier could be made
of steel instead of concrete as a potential compromise with Democrats who refuse
to fund it.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 1.1 percent higher at 10,892
from its previous close.
    • The Indian rupee is expected to open higher against the dollar after U.S.
Federal Reserve Chairman Jerome Powell said low inflation will allow the central
bank to be “patient,” boosting appetite for emerging market currencies.
    • Indian government bonds are likely to trade little changed in early
session as the impact of an uptick in crude oil prices may be offset by
appreciation in the local currency. The yield on the benchmark 7.17 percent bond
maturing in 2028 is likely to trade in a 7.43 percent - 7.48 percent band today.
    
    
    GLOBAL MARKETS
    • Wall Street rebounded on Friday to close at its highest in two weeks after
a strong jobs report and assurances from Federal Reserve Chairman Jerome Powell
that the central bank would be patient and flexible in steering the course of
interest rates.
    • Asian shares sped ahead as a dovish turn by the Federal Reserve and
startlingly strong U.S. jobs data soothed some of the market's worst fears about
the global outlook.
    • The dollar weakened against its peers, as investors wagered that the
Federal Reserve would put its policy tightening on pause in 2019, which eased
market concerns about a slowing for U.S. growth.
    • Treasury yields rose on Friday after the U.S. employment report for
December came in more robust than expected, and on the back of U.S. equities,
which hit session highs as Federal Reserve Chair Jerome Powell struck a dovish
tone in a roundtable interview.
    • Oil prices rose, lifted by optimism that talks could soon resolve the
trade war between the United States and China, while supply cuts by major
producers also supported the market.
    • Gold prices edged down as equities rose on a recovery in risk appetite
following comments by U.S. Federal Reserve Chairman Jerome Powell that the
central bank would be patient and flexible in steering the course of interest
rates.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         69.86/69.89  January 4        -$22.73 mln   -$105.88 mln
 10-yr bond yield  7.45 pct     Month-to-date    -$145.18 mln  $46.2 mln
                                Year-to-date     -             -
    
    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 = 69.52 Indian rupees)

 (Compiled by Swathi Nair in Bengaluru)
  
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