January 31, 2019 / 4:02 AM / 22 days ago

Morning News Call - India, January 31

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    FACTORS TO WATCH
    11:00 am: President Ram Nath Kovind addresses lawmakers of both Houses of
Parliament in New Delhi.
    3:00 pm: Government to convene all party meeting on the eve of the Budget
Session in New Delhi.
    5:00 pm: Interim Finance Minister Piyush Goyal at the ministry giving final
touches to the Union Budget in Mumbai. 
    5:00 pm: Government to release December Infrastructure output data in New
Delhi.
    
    LIVECHAT - FX OUTLOOK 
    We will sit down with Christopher Vecchio, Senior FX Strategist with IG
Group’s DailyFX, at 4:30 pm IST to discuss what lies in store for the currency
markets in the wake of a global slowdown. To join the conversation, click on the
link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • ICICI Bank probe finds ex-CEO Kochhar violated internal policies
    ICICI Bank said on Wednesday an investigation into former Chief Executive
Chanda Kochhar found she had violated internal bank policies and the bank will
seek to revoke her financial entitlements.
    • Juul plans India e-cigarette entry with new hires, subsidiary
    U.S.-based electronic cigarette company Juul Labs is hoping to launch its
products in India by late 2019, a person familiar with the strategy told
Reuters, marking one of its boldest bets to expand away from its home turf.

    • Indian authorities to probe allegations against Dewan Housing-sources
    India's Ministry of Corporate Affairs will look into allegations of
financial mismanagement against Dewan Housing Finance Corp Ltd (DHFL), two
government sources with direct knowledge of the matter told Reuters on
Wednesday.
    • Bajaj Auto third-quarter profit jumps nearly 16 percent
    Automaker Bajaj Auto posted a higher profit on Wednesday, exceeding
analysts' expectations, as the company sold more motorcycle units during the
quarter.
    • NTPC quarterly profit marginally up as higher costs weigh 
    Power producer NTPC posted a 1 percent rise in December-quarter profit on
Wednesday, missing estimate, as higher expenses weighed.
    • Jet Airways denies being told to ground aircraft 
    Debt-laden Indian carrier Jet Airways on Wednesday denied its aircraft had
been grounded by GE Capital Aviation Services, after media reports raised
further concerns over the airline's ability to pay dues.
    • Indian Oil looking for annual deal to buy U.S. oil 
    Indian Oil, the country's top refiner, is looking for an annual deal to buy
U.S. crude as it seeks to broaden its oil purchasing options, its chairman said
on Wednesday, amid uncertainties over imports from Iran.
    
    
    GLOBAL TOP NEWS
    • In a shift, U.S. Fed says will be 'patient' on future rate hikes
    The Federal Reserve on Wednesday signaled its three-year-drive to tighten
monetary policy may be at an end amid a suddenly cloudy outlook for the U.S.
economy due to global headwinds and impasses over trade and government budget
negotiations.
    • U.S., China launch high-level trade talks amid deep differences
    The United States and China opened a pivotal round of high-level talks on
Wednesday aimed at bridging deep differences over China's intellectual property
and technology transfer practices and easing a months-long tariff war.

    • Facebook profit beats Wall Street, shares jump after hours
    Facebook on Wednesday easily beat Wall Street's profit estimates, soothing
investor concerns that increased spending on the privacy of its users would
blunt growth.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.6 percent higher at
10,700.00 from its previous close.
    • The Indian rupee is expected to open higher against the U.S. currency
after the Federal Reserve once again signaled it will take a patient approach to
further rate increases, prompting a decline in the dollar.
    • Indian federal government bonds are likely to fall in early trade as
demand is likely to remain subdued ahead of the budget due tomorrow. However, a
fall in U.S. Treasury yields after the Federal Reserve said it will be patient
in relation to any future rate adjustments may aid some buying. The yield on
India's benchmark 7.17 percent bond maturing in 2028 is likely to trade in a
7.53 percent - 7.58 percent band today.
    
    
    GLOBAL MARKETS
    • U.S. stocks surged on Wednesday after the Federal Reserve said it would be
patient in lifting borrowing costs further this year, reassuring investors
worried about a slowing economy.
    • Asia stocks rose to a four-month high, tracking Wall Street, after the
Federal Reserve pledged to be patient with further interest rate hikes,
signalling a potential end to its tightening cycle amid signs of slowing global
growth.
    • The dollar extended losses after the Federal Reserve sent the clearest
signal yet that its three-year drive to tighten monetary policy is close to an
end in the face of rising pressure on the economy from slowing global growth.

    • U.S. government bond yields fell on Wednesday, with the biggest losses in
shorter-dated maturities, after Federal Reserve held interest rates steady but
said it would be patient in lifting borrowing costs further this year as it
pointed to rising uncertainty about the U.S. economic outlook.
    • U.S. oil prices edged up to extend gains into a third session, with widely
watched data showing signs of tightening supply in the United States.
    • Gold prices held near eight-month highs hit in the previous session after
the U.S. Federal Reserve signalled a potential end to its monetary tightening
cycle, and the bullion was heading for its fourth straight monthly gain.
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         71.15/71.18  January 30       $18.25 mln    -$50.89 mln
 10-yr bond yield  7.55 pct     Month-to-date    -$496.08 mln  -$787.06 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 = 71.22 Indian rupees)
    
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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