May 8, 2019 / 3:27 AM / 17 days ago

Morning News Call - India, May 8

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    FACTORS TO WATCH
    No major events are scheduled for the day. 
    
    GMF: LIVECHAT - EQUITIES WATCH 
Join our Reuters correspondents in London and New York for a discussion on the
stock markets and company earnings at 6:30 pm IST. To join the conversation,
click on the link: here
    
    
    INDIA TOP NEWS
    • Jet Airways pilots' union asks India's top court to direct lender to
release funds
    Jet Airways' pilots' union has appealed to India's top court to direct State
Bank Of India to release interim funding to try to revive the grounded airline,
according to a court filing made on Tuesday which was reviewed by Reuters.

    
    • U.S. warns India against retaliatory duties over scrapping of trade
privileges
    Any retaliatory tariff by India in response to the United States' planned
withdrawal of trade privileges will not be "appropriate" under WTO rules, U.S.
Commerce Secretary Wilbur Ross warned on Tuesday.
    
    • RBI plans more FX swaps, steps to inject cash - officials
    The Reserve Bank of India (RBI) will probably conduct at least one more swap
of rupees for dollars after the general election, said three officials with
direct knowledge of the plan, part of an effort to support economic growth.

    
    • Vedanta fourth-quarter profit beats estimate on global zinc demand
    Vedanta on Tuesday posted a better-than-expected fourth-quarter profit,
helped by an increase in international demand for zinc.
    
    • India's oil imports from Iran down 57 percent y/y in April - trade 
    India's oil imports from Iran fell about 57 percent year-on-year in April,
according to tanker arrival data seen by Reuters, the last month when New Delhi
was allowed to load Iranian oil ahead of U.S. sanctions stopping purchases of
oil from the OPEC member.
    
    • Gold glitters in India during key festival as prices dip
    Indians could buy at least 10 percent more gold during the annual Hindu and
Jain holy festival of Akshaya Tritiya than a year ago, industry officials said,
as a dip in prices prompted consumers to increase purchases.
    
    • India's Piramal, Canadian pension fund set up renewable energy trust
    Piramal Enterprises said on Tuesday it had signed a memorandum of
understanding with Canada's biggest public pension fund to co-sponsor a $600
million infrastructure trust focused on renewable energy.
    
    • India's cotton imports could surge to record high as output plunges-trade
body
    India's 2018/19 cotton imports are likely to double from a year ago to a
record 3.1 million bales as the drop in production to the lowest level in nine
years forces textile manufactures to ramp up overseas purchases, a senior
industry official said.
    
    
    GLOBAL TOP NEWS
    • Seeking to avert higher tariffs, China dispatches top negotiator to U.S.
    Chinese Vice Premier Liu He will travel to Washington for two days of trade
talks this week, China said on Tuesday, setting up a last-ditch bid for a deal
that would avoid a sharp increase in tariffs on Chinese goods ordered by U.S.
President Donald Trump.
    
    • Japan April services PMI slips as new business growth slows
    Activity in Japan's services sector expanded at a slightly slower pace in
April than the previous month as growth in new business slowed, a business
survey showed.
    
    • U.S. lifts sanctions on Venezuelan general who broke with Maduro
    The United States is lifting economic sanctions on a former Venezuelan
general who turned against President Nicolas Maduro in an action it hopes will
lead other Maduro military allies to follow suit, Vice President Mike Pence said
on Tuesday.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were down 0.5 percent lower at 11,479.50.
    • The Indian rupee is expected to open lower against the dollar after U.S.
equities slipped to their worst level in a month amid trade war fears.
    • Indian government bonds are likely to trade largely unchanged today ahead
of a weekly supply of Treasury Bills, even as traders closely watch the movement
of crude oil prices for further cues. The yield on the benchmark 7.26 percent
bond maturing in 2029 is likely to trade in a range of 7.36 percent - 7.42
percent today, a trader with a primary dealership said. 

    
    
    GLOBAL MARKETS
    • U.S. stocks slid on Tuesday as escalating trade tensions between the
United States and China triggered global growth fears and drove investors away
from riskier assets. 
    • Asian equities tracked Wall Street's slide, while investors switched to
safe-haven government bonds, driven by fears that global growth will suffer as a
potential trade deal between the United States and China appeared to be
unravelling.
    • Growing fears about the impact of a worsening U.S.-Sino trade conflict on
global growth kept the safe-haven Japanese yen near recent highs against its
peers. 
    • U.S. Treasury yields fell on Tuesday with longer-dated yields hitting
five-week lows as worries about renewed trade tension between China and the
United States and its impact on global economic growth spurred safe-haven demand
for bonds. 
    • Oil prices stabilised as markets remained relatively tight amid U.S.
sanctions on crude exporters Iran and Venezuela. 
    • Gold prices firmed as renewed concerns on U.S.-China trade dispute upset
risk appetite, boosting demand for safe-haven assets. 
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.39/69.42  May 7            -$92.69 mln  -$58.76 mln
 10-yr bond yield  7.38 pct     Month-to-date    $109.86 mln  -$304.11 mln
                                Year-to-date     $9.88 bln    -$2.86 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 = 69.59 Indian rupees)

 (Compiled by Nachiket Tekawade in Bengaluru)
  
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