April 24, 2019 / 3:14 AM / 3 months ago

Morning News Call - India, April 24

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    FACTORS TO WATCH
    11:30 am: S&P Global Ratings webcast on Indian finance companies in Mumbai.
     
    LIVECHAT - MARKET STRATEGY
    We will be joined by Neil Dwane, Global Strategist at Allianz Global
Investors at 3:30 pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • India says it has 'robust plan' to guarantee oil supply after end to Iran
waivers
    India said on Tuesday its refineries will have adequate oil supplies, thanks
in part to imports from other producers, despite the United States' demand that
buyers of Iranian oil stop purchases by May 1 or face sanctions.
    • Jet Airways will do everything to revive airline, CEO says - ET Now
    Jet Airways is constantly engaging with the government and lenders for a
resolution of the current debt crisis and will not leave any stone unturned to
revive the airline, its chief executive officer Vinay Dube told television
channel ET Now in an interview.
    • RBI sets high cut-off at FX swap auction, forward rates jump
    The Reserve Bank of India on Tuesday set a cut-off at its second
dollar/rupee swap auction at a much higher than expected premium, in a sign that
the system is flush with dollar liquidity that banks are struggling to find
buyers for.
    • China's Bytedance says India TikTok ban causing $500,000 daily loss, risks
jobs
    India's ban on popular Chinese video app TikTok is resulting in "financial
losses" of up to $500,000 a day for its developer, Beijing Bytedance Technology
Co, and has put more than 250 jobs at risk, the company said in a court filing
seen by Reuters.
    • Indian junk bonds make a comeback, issuance soars
    Sales of Indian junk bonds have made a big comeback in 2019, almost tripling
to hit a five-year high, boosted by a risk-on rally prompted by a dovish U.S.
Federal Reserve that has given the Asia market a record start to the year.

    
    
    GLOBAL TOP NEWS
    • Top U.S. officials to hold trade talks in China next week
    U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven
Mnuchin will travel to Beijing for trade talks beginning on April 30, the White
House said in a statement on Tuesday.
    • Tighter U.S. sanctions on Iranian oil will cost Asia but supply will flow
    Asian buyers of Iranian crude are well placed to overcome the end of U.S.
sanctions waivers as they have demonstrated they can live without it and as
global producers have the capacity to make up a shortfall, according to analysts
and trade data.
    • Adding to Ghosn woes, Nissan set to slash outlook -report
    Nissan will announce a large-scale cut to its earnings outlook for the
fiscal year that ended in March, TV Tokyo reported, adding to the company's woes
as it grapples with the arrest of former Chairman Carlos Ghosn.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were little changed at 11,596, from its
previous close.
    • The Indian rupee is expected to open lower against the U.S. currency after
the dollar index climbed to its highest in almost two years, overshadowing
rising USD/INR forward premiums amid abundant dollar liquidity.
    • Indian government bonds will likely open higher as the central bank, in an
unexpected move, announced open market bond purchases worth 250 billion rupees
for next month. The yield on the benchmark 7.26 percent note maturing in 2029
will likely trade in a 7.40 percent-7.45 percent range today, a trader with a
private bank said. 
    
    
    GLOBAL MARKETS
    • The S&P 500 index and the Nasdaq registered record closing highs after a
broadbased rally on Tuesday, as a clutch of better-than-expected earnings
reports eased concerns about a slowdown.
    • Equity markets in Asia rose after upbeat earnings helped the Nasdaq and
S&P 500 indexes reach record closing highs on Wall Street overnight, while oil
retreated from its near six-month highs.
    • The dollar hovered near a 22-month high against its peers, after strong
U.S. housing data further eased concerns of a slowdown in the world's biggest
economy.
    • The yield curve steepened to just a tenth of a basis point below its 2019
high on Tuesday, indicating investor bullishness as strong U.S. company earnings
pushed the S&P 500 index toward record highs.
    • Oil prices inched lower on signs that global markets remain adequately
supplied despite a jump to 2019 highs this week on Washington's push for tighter
sanctions against Iran.
    • Gold prices eased, remaining near a four-month low touched in the previous
session as the dollar strengthened and Asian shares rose after the Nasdaq and
S&P 500 indexes marked record closing highs.     
 
     
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.75/69.78  April 23         -$33.97 mln  -$163
                                                                mln
 10-yr bond yield  7.47 pct     Month-to-date    $2.38 bln    -$1.73 bln
                                Year-to-date     $9.23 bln    -$2.18 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 = 69.76 Indian rupees)

 (Compiled by Swathi Nair in Bengaluru.)
  
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