March 15, 2019 / 3:23 AM / 2 months ago

Morning News Call - India, March 15

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    FACTORS TO WATCH
    1:00 pm: State Bank of India Chairman Rajnish Kumar to announce a digital
initiative in Mumbai.
    
    
    INDIA TOP NEWS
    • Indian groups urge boycott of Chinese goods over stance on Pakistani
militant
An influential Hindu nationalist group and an Indian traders body called on
Thursday for a boycott of Chinese goods, to slap Beijing for blocking a move to
put a Pakistani militant leader on a U.N. terrorist list following a suicide
attack last month.
    • February WPI inflation accelerates to 2.93 percent year-over-year - govt
India's annual wholesale price inflation in February accelerated to 2.93
percent, government data showed on Thursday, pushed by a jump in the prices of
food and fuel products, after falling to a 10-month low of 2.76 percent in
January.
    • RBI's liquidity gambit may succeed where rate cut failed -analysts
The Reserve Bank of India's $5 billion plan to swap rupees for dollars with
domestic banks will help achieve its twin objectives of pushing interest rates
down while also preventing a sharp appreciation in the rupee, analysts said on
Thursday.
    • Dewan Housing Finance denies report of clean chit by regulator
Dewan Housing Finance Corp Ltd (DHFL) denied on Thursday a media report that the
country's housing regulator gave it a clean chit after allegations the mortgage
lender had created shell companies to divert funds.
    • POLL-Investors turn bullish on Indian rupee, long on most Asian currencies
Investors are bullish on the Indian rupee for the first time in nearly a year, a
Reuters poll showed, as a recent surge in popularity of the country's ruling
party is expected to bode well for its alliance in the upcoming national
elections.
    • Reliance Infrastructure to sell north India SPV in over $500 million deal
Reliance Infrastructure said on Thursday it would sell a special purpose vehicle
(SPV) in northern India for an enterprise value of 36.09 billion rupees, which
will help the company reduce its debt by 25 percent.
    • India to buy 12 percent less Iran oil in April vs March- sources
Indian state refiners will lift 8 million barrels of Iranian oil in April, a
decline of about 12 percent from the previous month, industry sources said, as
the nation is in talks with the United States to renew the waiver from U.S.
sanctions against Tehran.
    • India LNG demand journey to be shaky, slow due to infrastructure limits
India's demand for liquefied natural gas (LNG) is set to rise by about 10
percent this year even as the country adds import capacity at a faster clip,
because infrastructure constraints keep gas from getting to consumers and hinder
growth rates.
    
    
    GLOBAL TOP NEWS
    • Global gloom forces Japan central bank to temper its outlook
The Bank of Japan kept monetary policy steady but tempered its optimism that
robust exports and factory output will underpin growth, a nod to heightened
overseas risks that threaten to derail a fragile economic recovery.
    • British lawmakers overwhelmingly back Brexit delay
British lawmakers voted overwhelmingly on Thursday to seek a delay in Britain's
exit from the European Union, setting the stage for Prime Minister Theresa May
to renew efforts to get her divorce deal approved by parliament next week.

    • Trump-Xi summit will not happen in March - Mnuchin
A summit to seal a trade deal between U.S. President Donald Trump and Chinese
President Xi Jinping will not happen at the end of March as previously discussed
because more work is needed in U.S.-China negotiations, Treasury Secretary
Steven Mnuchin said on Thursday.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were little changed at 11,384 from its
previous close.
    • The Indian rupee, in-line with other Asian currencies, is expected to open
little changed against the dollar amid a delay in the trade meeting between the
leaders of the U.S. and China and ongoing foreign portfolio inflows into
domestic assets.
    • Indian government bonds are likely to trade little changed in early
session ahead of fresh supply later today, even as sentiment remains bullish for
short-end bonds after the central bank's announcement of liquidity infusion
through foreign exchange swaps. The yield on the benchmark 7.17 percent bond
maturing in 2028 is likely to trade in a 7.53 percent-7.59 percent band today.
    
    
    GLOBAL MARKETS
    • The S&P 500 slipped on Thursday, snapping a three-day streak of gains, as
uncertainty over when a trade deal between the United States and China would be
reached left investors on edge.
    • Asian stocks stepped ahead as sentiment improved on a report that more
progress has been made in U.S.-China trade talks and after UK lawmakers voted to
delay a potentially chaotic exit from the European Union.
    • The British pound paused for breath after the UK parliament voted
overwhelmingly to seek a delay in Britain's exit from the European Union.
    • U.S. Treasury prices dropped on Thursday in quiet trading overall, with
the sharpest falls seen on the long end of the curve, pressured by corporate
debt supply and some selling from Japanese investors ahead of Japan's fiscal
year end this month.
    • Oil prices were steady, supported as production cuts led by OPEC and U.S.
sanctions against Venezuela and Iran likely created a slight deficit in global
supply in the first quarter of 2019.
    • Gold prices edged down, after slipping below the key $1,300 level in the
previous session, pressured by improving appetite for risk as British lawmakers
voted to seek a delay to the country's exit from the European Union.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.47/69.50  March 14         $213.93 mln  $237.26 mln
 10-yr bond yield  7.55 pct     Month-to-date    $2.16 bln    $762.96 mln
                                Year-to-date     $4.23 bln    -$1.41 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 = 69.3270 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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