February 1, 2019 / 3:04 AM / 6 months ago

Morning News Call - India, February 1

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    11:00 am: Interim Finance Minister Piyush Goyal to present budget for next
fiscal year in New Delhi.
    2:30 pm: State Bank of India earnings conference call in Mumbai.
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
    Reuters Stocks Buzz writer and Chartist Terence Gabriel calls out risks and
opportunities in global markets via the charts at 8:00 pm IST. To join the
conversation, click on the link: refini.tv/2P8N0Wp
    • Indian jobless rate at multi-decade high, report says, in blow to Modi 
    An official survey that has been withheld by the government shows India's
unemployment rate rose to its highest level in at least 45 years in 2017/18, the
Business Standard newspaper reported on Thursday, delivering a blow to Prime
Minister Narendra Modi months before a general election.
    • Three Indian state banks come off central bank watchlist 
    India's central bank on Thursday removed Bank of India and Bank of
Maharashtra from its prompt corrective action plan (PCA) for state-owned banks
with high levels of bad debt and inadequate capital, confirming a Reuters
    • PM Modi looks to budget on Friday to shore up political base
    Prime Minister Narendra Modi's government is expected to try and shore up
its political support with big ticket farm giveaways and tax cuts for the middle
class in its final federal budget, months before elections.
    • Walmart, Amazon scrambling to comply with India's new e-commerce rules
    Walmart Inc-owned Flipkart and Amazon.com's Indian unit are rushing to rejig
ownership structures and rework some key vendor relationships, as they seek to
comply with new Indian e-commerce curbs without disrupting their businesses.
Further, Amazon.com took down an array of items from its India website including
Echo speakers, batteries and floor cleaners.
    • Bharti Airtel posts 72 percent third-quarter profit drop as price pressure
    Bharti Airtel posted a nearly 72 percent fall in quarterly profit on
Thursday, its 11th straight profit decline on a year-on-year basis, as the
telecoms bellwether suffered from continuing pricing pressure.    
    • Dewan Housing slumps 20 percent after sources say govt launches probe
    Shares of Indian home loan provider Dewan Housing Finance Corp slumped 20
percent on Thursday, after government sources told Reuters a probe had been
launched into allegations of financial mismanagement against the company.

    • Vedanta quarterly profit dives 21 percent, but beats estimate
    Miner Vedanta posted on Thursday a 21.1 percent fall in third-quarter
profit, hit by a drop in commodity prices and shutdown of its copper smelter in
south India.
    • Yes Bank appoints Ajai Kumar as interim chief executive 
    Yes Bank on Thursday named Ajai Kumar as interim chief executive, effective
Feb. 1, until Ravneet Gill takes charge.
    • Trump to meet with China's Xi to try to seal trade deal, progress reported
    U.S. President Donald Trump said on Thursday he will meet with Chinese
President Xi Jinping soon to try to seal a comprehensive trade deal as Trump and
his top trade negotiator both cited substantial progress in two days of
high-level talks.
    • Amazon sales outlook falls short after record holiday quarter
    Amazon.com on Thursday forecast first-quarter sales below Wall Street
estimates, warning that new regulations in India had created uncertainty around
one of its key growth markets and saying it would step up investments in 2019.

    • Japan's Jan factory activity weakens to 29-month low as export orders
    Japanese manufacturing activity grew at the slowest pace in 29 months in
January as export orders shrank sharply, a business survey showed, adding to
signs that the U.S.-China trade war is inflicting more pressure on the slowing
global economy.
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.3 percent higher at
10,890.00 from its previous close.
    • The Indian rupee is expected to open little changed against the dollar
ahead of the interim budget. 
    • Indian government bonds are expected to trade largely unchanged as most
participants may refrain from building new positions ahead of the budget today,
amid expectations that the government will announce a package for farmers ahead
of general elections that are due by May. The yield on India's benchmark 7.17
percent bond maturing in 2028 is likely to trade in a 7.46 percent - 7.51
percent band until the budget announcement at 11 a.m. 
    • Wall Street ascended on Thursday, with the S&P 500 wrapping up its biggest
monthly increase since 2015 after strong earnings from Facebook Inc added to
optimism after the Federal Reserve's dovish remarks.
    • Asian shares backed away from four-month highs as a dismal survey on
Chinese factory activity dulled optimism about the prospects for a Sino-U.S.
deal on tariffs.
    • The Australian and New Zealand dollars held steady versus the greenback,
as the Federal Reserve's more dovish stance and improved prospects for a
U.S.-Sino trade deal boosted investor risk appetite.
    • The 30-year Treasury yield fell below 3 percent on Thursday after
manufacturing data disappointed and a measure of wage inflation came in weaker
than expected, reinforcing the Federal Reserve's suggestion it may need to pause
before lifting borrowing costs further.
    • Oil prices held steady, torn between hopes the United States and China
could soon settle their trade disputes and new data raising fresh concerns over
China's economic slowdown.
    • Gold held firm near nine-month highs touched in the previous session on
the back of a pause in U.S. interest rate hikes, although optimism about a
Sino-U.S. trade deal boosted risk appetite, capping gains.
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         71.07/71.10  January 31       $423.68 mln   -$18.79 mln
 10-yr bond yield  7.49 pct     Month-to-date    -$463.29 mln  -$805.85 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 = 70.95 Indian rupees)

 (Compiled by Samrhitha Arunasalam in Bengaluru)
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