March 20, 2019 / 3:21 AM / 3 months ago

Morning News Call - India, March 20

(Morning News Call - India edition will not be published on Thursday, March 21,
as markets are closed for Holi)
    
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    FACTORS TO WATCH
    No major events are scheduled.
    
    LIVECHAT - BREXIT SPECIAL SERIES
    Jim O'Neill, British economist; Former chairman of Goldman Sachs Asset
Management and former UK Treasury Minister, discusses various Brexit scenarios
at 3.30 pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • Economists raise concerns over India's slowdown with RBI chief - sources
Economists raised concerns over a sharp slowdown in Indian economy and pitched
for a monetary policy boost to support growth at a meeting with the nation's
central bank chief on Tuesday, according to three participants.
    • Jet Airways crisis worsens as Indian government steps in, pilots threaten
strike 
A crisis at Jet Airways deepened on Tuesday as an increasingly worried Indian
government called for an emergency meeting, angry passengers demanded refunds
and pilots threatened to go on strike over unpaid salaries.
    • Mindtree management rejects L&T's hostile takeover bid
Mindtree on Tuesday rejected conglomerate Larsen & Toubro's hostile takeover
bid, saying L&T's plan to acquire a controlling stake will not create value for
the IT services firm or its shareholders.
    • Goldman Sachs upgrades India to 'overweight' amid pre-election rally
Goldman Sachs upgraded its view on India to "overweight" as the country catches
up with pre-election rally amid expectations of another majority win for the
ruling Bhartiya Janata Party.
    • Indian traders burn Chinese goods in protest over blacklisting veto, trade
Hundreds of Indian traders burned Chinese goods on Tuesday and urged the
government to raise import taxes on them to protest against China's trade and
foreign policies.
    • Indian-Omani group strikes $3.85 bln deal to build Sri Lanka oil refinery
India's Accord Group and Oman's Ministry of Oil and Gas have signed a $3.85
billion deal to build an oil refinery in Sri Lanka, the biggest single pledge of
foreign direct investment ever made in the country.
    • Hyundai Motor, Kia to invest $300 million in India's Ola
Hyundai Motor and Kia Motors will together invest $300 million in Indian
ride-hailing platform Ola, playing catch-up in the global race to invest in
mobility firms.
    
    
    GLOBAL TOP NEWS
    • Top U.S. trade officials head to China next week for new trade talks
U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven
Mnuchin plan to travel to China next week for another round of trade talks with
Chinese Vice Premier Liu He, a Trump administration official said on Tuesday.

    • BOJ policymakers disagree on next policy move as risks mount
Bank of Japan policymakers disagreed on how quickly the central bank should ramp
up monetary stimulus, minutes of their January rate review showed on Wednesday,
as heightening overseas risks threatened to derail the country's fragile
economic recovery.
    • May seeks Brexit delay after third vote on her deal is derailed
Prime Minister Theresa May will ask the European Union to delay Brexit by at
least three months after her plan to hold a third vote on her fraught divorce
deal was thrown into disarray by a surprise intervention from the speaker of
parliament.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading down 0.1 percent at
11,564.50, from its previous close.
    • The Indian rupee is expected to decline against the U.S. currency amid
trimming of dollar short positions after yesterday’s turnaround.
    • Indian government bonds are likely to edge lower in early trade tracking
the local currency and as investors await the outcome of the U.S. Federal
Reserve’s policy review. The yield on the benchmark 7.17 percent bond maturing
in 2028 is likely to trade in a 7.52 percent-7.57 percent band today.
    
    
    GLOBAL MARKETS
    • The benchmark S&P 500 index ended little changed on Tuesday as investor
optimism regarding the Federal Reserve's expected affirmation of its dovish
policy stance was offset by reports of fault lines emerging in ongoing
U.S.-China trade negotiations.
    • Asian shares got off to a cautious start, holding close to six-month highs
on hopes the U.S. Federal Reserve will stick to a dovish stance and unveil a
plan to stop cutting bond holdings later this year.
    • The dollar rose against most of its peers as reports of renewed tension in
U.S.-China trade negotiations supported safe-haven bids, although the Federal
Reserve's policy meeting later due in the day limited the greenback's
gains.
    • U.S. Treasury yields were modestly higher in afternoon trade on Tuesday,
as investors await insight on the Federal Reserve's policy path when the U.S.
central bank ends its two-day meeting on Wednesday, amid broad expectations that
it will hold rates steady.
    • Oil prices dipped, retreating from a four-month high as economic growth
concerns dampened the outlook for fuel consumption.
    • Gold prices snapped three consecutive sessions of gains as the dollar
firmed, while investors awaited the results of the U.S. Federal Reserve's policy
meeting later in the day.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         68.96/68.99  March 20         $308.92 mln  $325.79 mln
 10-yr bond yield  7.53 pct     Month-to-date    $3.30 bln    $1.62 bln
                                Year-to-date     $5.38 bln    -$554.48 mln
 
        
    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 = 69.0140 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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