April 25, 2019 / 3:16 AM / a month ago

Morning News Call - India, April 25

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    FACTORS TO WATCH
    5:15 pm: Axis Bank to announce quarterly earnings in Mumbai.
    
    LIVECHAT - BONDS UPDATE
    Reuters interest rate reporters delve into government bond markets at 5:00
pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • RBI steps up liquidity management to make rate cuts count
    The Reserve Bank of India's surprise announcement of new open market
purchases of government bonds is a sign the central bank is stepping up efforts
to increase the economic impact of its policy decisions, analysts say.

    • Madras High Court moves to lift ban on Chinese video app TikTok
    The Madras High Court on Wednesday moved to lift a ban on popular video app
TikTok in the country, two lawyers involved in the case said, in a boost for its
developer Beijing Bytedance Technology Co.
    • India alleges P&G kept more than $35 million in tax benefits -source
    Indian tax authorities have alleged U.S. consumer goods maker Procter &
Gamble did not pass on more than $35 million in tax benefits which were meant to
have gone to its customers, a senior government official told Reuters on
Wednesday.
    • India's copper exports fell 70 pct in 2018/19 - trade body
    The value of India's copper products exports declined 70 percent in the year
ended in March 2019 primarily due to the shutdown of Vedanta's copper smelter,
an industry association said on Wednesday.
    
    
    GLOBAL TOP NEWS
    • S.Korea economy unexpectedly contracts in Q1, worst since global financial
crisis
    South Korea's economy unexpectedly shrank in the first quarter, marking its
worst performance since the global financial crisis, as companies slashed
investment and exports slumped in response to Sino-U.S. trade tensions and
cooling Chinese demand.
    • Iran's Zarif believes Trump does not want war, but could be lured into
conflict
    Iranian Foreign Minister Mohammad Javad Zarif does not believe U.S.
President Donald Trump wants war with Iran, but he told Reuters on Wednesday
that Trump could be lured into a conflict.
    • Ex-Nissan boss Ghosn to walk free, again, after court sets bail at $4.5
million
    Former Nissan Chairman Carlos Ghosn looked set to walk out of a Japanese
detention centre for the second time since his arrest last year on financial
misconduct charges, after a Tokyo court set his bail at $4.5 million.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.1 percent lower at
11,716.50, from its previous close.
    • The Indian rupee, in-line with losses in other Asian currencies, is
expected to open lower against the U.S. currency after the dollar index posted
its biggest daily advance in more than a month. 
    • Indian government bonds are likely to trade little changed in early
session as crude oil prices were steady, and as traders await a weekly auction
of notes tomorrow. The underlying sentiment remains upbeat after the central
bank announced its plan to conduct open market purchases of bonds 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 slipped on Wednesday after ending the previous session with a
record and the Nasdaq failed to hold all-time highs reached earlier in the day
while investors waited for more earnings reports.
    • Asian shares slipped as a surprise deterioration in German business morale
rekindled fears of slowing global growth, while oil prices pulled back slightly
after a sharp run-up earlier in the week.
    • The euro nursed losses against the dollar after dipping to a 22-month low
on a surprise drop in a leading indicator for economic activity in Germany,
amplifying worries of a growth slowdown in Europe's largest economy.
    • U.S. Treasury yields were lower across maturities on Wednesday as
investors piled into the safe-haven government bonds following a dovish report
from Canada's central bank, weak data from Germany and Australia, and solid
demand at auction for $41 billion of new five-year notes.
    • Oil prices dipped as record U.S. output and rising crude stockpiles
dampened the impact on markets of tighter U.S. sanctions on Iran and producer
club OPEC's continued curbs on supply.
    • Gold prices eased as the dollar remained near a two-year high hit in the
previous session, while a dip in equities and weak data from Germany augmented
worries about the pace of global growth and cushioned losses in the safe-haven
bullion. 
    
 
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.84/69.87  April 24         $139.39 mln  -$22.96 bln
 10-yr bond yield  7.42 pct     Month-to-date    $2.36 bln    -$1.75 bln
                                Year-to-date     $9.20 bln    -$2.20 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 = 69.95 Indian rupees)

 (Compiled by Swathi Nair in Bengaluru)
  
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