January 15, 2019 / 3:04 AM / a month ago

Morning News Call - India, January 15

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    FACTORS TO WATCH
    No major events are scheduled.
    
    LIVECHAT - EUROPE ECONOMICS
    Is Germany heading towards a recession? What does Brexit, trade wars mean
for the rest of Europe. We will be chatting with Dr. Christian Grimme, Economist
at IFO institute at 5:30 pm IST. To join the conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India's plunging inflation rate opens door to monetary easing
    India's annual retail inflation rate dropped to an 18-month low of 2.19
percent in December, strengthening views of some economists that the central
bank could ease monetary policy next month as prices for many food items fell
and the nation faces a manufacturing slowdown.
    • India likely to overshoot fertiliser aid bill by $4.2 billion, banks may
chip in -sources
    India is likely to overshoot its fertiliser subsidy bill for this financial
year by 300 billion rupees, three sources with direct knowledge of the matter
said, and the government could tap state banks to fund the extra spending.

    • Etihad to raise stake in cash-strapped Jet Airways - source 
    Etihad Airways, which owns 24 percent of debt-laden company Jet Airways,
plans to increase its stake in the Indian airline, a source close to the Abu
Dhabi carrier told Reuters on Monday.
    • Flipkart unit Myntra and Jabong CEO steps down
    The chief executive officer of Myntra and Jabong, a unit of Walmart-owned
Flipkart, Ananth Narayanan has left the company to pursue external
opportunities, Myntra said on Monday.
    • Jet Airways shares jump after report chairman likely to step down 
    Shares in India's Jet Airways jumped on Monday after a report that founder
and chairman Naresh Goyal was likely to step down from the board of the
embattled company and give up majority control.    
    • Bharti Airtel in talks to buy Telkom Kenya - sources
    Bharti Airtel is in talks to buy Telkom Kenya, the East African nation's
smallest telecoms operator, to create a stronger challenger to market leader
Safaricom, three industry sources told Reuters on Monday.
    
    
    GLOBAL TOP NEWS
    • Take a second look, Britain's May urges lawmakers before Brexit vote
    British Prime Minister Theresa May urged lawmakers on Monday to take a
"second look" at her deal to leave the European Union, a last-ditch effort to
win over a parliament that looks set to reject the agreement.
    • Trump's attorney general nominee vows to shield Russia probe from politics
    U.S. President Donald Trump's attorney general nominee, William Barr, will
pledge at his confirmation hearing to protect Special Counsel Robert Mueller's
Russia probe and stress his own independence from the White House, according to
prepared testimony released on Monday.
    • China court sentences Canadian to death as diplomatic row deepens
    A Chinese court on Monday sentenced a Canadian man to be executed for drug
smuggling, prompting Canada's Prime Minister Justin Trudeau to accuse China of
using the death penalty arbitrarily.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.5 percent higher at
10,820.50 from its previous close. 
    • The Indian rupee is expected to open higher against the dollar after
consumer inflation in Asia’s third-largest economy eased to an 18-month low. The
dollar’s decline against major currencies and regional peers is also expected to
aid the local currency, a dealer at a commodity firm said. 
    • Indian government bonds are expected to rise in early trade as inflation
fell to a 18-month low in December, boosting expectations of monetary easing
going ahead. The yield on the benchmark 7.17 percent bond maturing in 2028 is
likely to trade in a 7.39 percent -7.44 percent band today.
        
    
    GLOBAL MARKETS
    • U.S. stocks declined on Monday as an unexpected drop in China's exports
reignited worries of a global economic slowdown and prompted caution among
investors as the corporate earnings season kicked off.
    • Asian shares were on back foot as an unexpected drop in China's exports
heightened worries about the global economy while the British pound braced for a
showdown in parliament over the government's Brexit plan.
    • The dollar was marginally firmer than most of its peers, as heightened
fears of a slowdown in global growth increased investor demand for safe-haven
assets.
    • U.S. Treasury yields advanced on Monday in thin trading as risk sentiment
improved and Wall Street shares trimmed losses, with the overall bond market in
consolidation mode after volatile moves in the last two weeks.
    • Oil prices rose by 1 percent amid supply cuts by producer club OPEC and
Russia, although analysts said much bigger gains were unlikely because of a
darkening economic outlook capped gains.
    • Gold prices were steady, pressured by a firm dollar on the back of
concerns over slowing global growth, but well supported by expectations the U.S.
Federal Reserve could refrain from raising interest rates this year.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         70.74/70.77  January 14       -$103.51 mln  -$16.89 mln
 10-yr bond yield  7.43 pct     Month-to-date    -$326.85 mln  -$271.85 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 = 70.72 Indian rupees)
    
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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