May 10, 2019 / 3:28 AM / 16 days ago

Morning News Call - India, May 10

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    FACTORS TO WATCH
   
    5:30 pm: Government to release March industrial production data in New
Delhi.
    
    GMF: LIVECHAT - CHARTS & CHAT 
Reuters Stocks Buzz writer and Chartist Terence Gabriel calls out risks and
opportunities in global markets via the charts at 8:00 pm IST. To join the
conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • Reliance Industries buys global toy retailer Hamleys
    Reliance Industries has acquired British toy retailer Hamleys, the
energy-to-telecoms conglomerate said on Thursday.
    
    • McDonald's settles with Vikram Bakshi, to reopen restaurants in 2 weeks
    McDonald's Corp's Indian arm has reached a settlement with former partner
Vikram Bakshi, acquiring full ownership in their joint venture Connaught Plaza
Restaurants Ltd, the company said in a statement.
    
      
    • India's disparate opposition senses a growing chance to topple Modi 
    India's disparate opposition parties are aiming to firm up an alliance as
they sense a chance of unseating Prime Minister Narendra Modi as a staggered
general election draws to a close.
    
    • INSIGHT-India's incredulous data: Economists create own benchmarks
    Economists and investors are increasingly showing that they have little or
no confidence in India's official economic data – presenting whoever is elected
as the next prime minister with an immediate problem.
    
    • Peugeot signals openness to deals after JLR report
    PSA Group said on Thursday it was ready to consider potential tie-ups, after
the French carmaker’s shares briefly rose on a report that it was in advanced
talks with Tata Motors to acquire UK-based Jaguar Land Rover (JLR).
        
    
    • Larsen & Toubro raises Mindtree stake to 26 percent
    Industrial conglomerate Larsen & Toubro bought an additional 2 percent stake
in Mindtree, raising its total ownership to 26 percent, the IT services firm
said on Thursday.
    
    • India, China agree to resolve market access issue 'expeditiously'
    India and China have agreed to resolve market access issues "expeditiously"
to promote a more balanced trade, the Indian government said in a statement on
Thursday.
    
    
    GLOBAL TOP NEWS
    • First day of U.S.-China trade talks end; Trump's tariff hike set to take
effect
    Top U.S. and Chinese trade negotiators concluded the first of two days of
talks on Thursday to rescue a trade deal that is close to collapsing as
Washington prepares to go ahead with plans to hike tariffs on hundreds of
billions of dollars of goods imported from China.
    
    • Uber valued at $82 billion in IPO as market jitters, Lyft woes weigh
    Uber Technologies priced its initial public offering on Thursday at the low
end of its targeted range for a valuation of $82.4 billion, hoping its
conservative approach will spare it the trading plunge suffered by rival Lyft.

    
    • North Korea fires more missiles, U.S. announces ship seizure as tensions
mount
    North Korea fired what appeared to be two short-range missiles on Thursday
in its second such test in less than a week, and the United States said it had
seized a North Korean cargo ship as tensions again mounted between the two
countries.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were little changed at 11,347.
    • The Indian rupee is expected to open higher against the dollar, tracking a
rebound in Asian currencies and equities ahead of the deadline for U.S. tariff
increase on Chinese imports.
    • Indian government bonds are likely to open lower, as crude oil prices rose
and ahead of weekly supply of notes via auction at home. The yield on the
benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 7.38% -
7.43% till the auction result today, a trader with a private bank said. 
    
    
    GLOBAL MARKETS
    • Wall Street's main indexes fell on Thursday ahead of critical trade
negotiations between the United States and China, though they pared losses
significantly after U.S. President Donald Trump said reaching a deal this week
was possible.
    • Asian shares inched up from two-month lows, hours ahead of the Trump
administration's plan to raise tariffs on Chinese imports, as investors waited
to see if negotiators can salvage a deal and avoid a sharp escalation in the
trade war.
    • The safe-haven Japanese yen and Swiss franc dipped, handing back some of
their large gains made earlier, as risk aversion eased in Asia amid the ebb and
flow in market sentiment towards U.S.-China trade negotiations.
    • U.S. Treasury yields fell on Thursday, with longer-dated yields hitting
five-week lows, as China and the United States were set to resume tense trade
talks just hours ahead of the Trump administration's plan to raise tariffs on
Chinese imports.
    • Oil prices rose more than 1 percent amid renewed optimism that a trade
deal could be struck between Washington and Beijing, calming fears that a
protracted tariff war would harm global economic growth.
    • Gold prices were steady, buoyed as investors shied away from riskier
assets amid worries that a rift over trade between the United States and China
could deepen if talks between the two fail to reach a deal.
    
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.90/69.93  May 9            -$93.55 mln  -$201.87 mln
 10-yr bond yield  7.40%        Month-to-date    $405.08 mln  -$339.43 mln
                                Year-to-date     $10.17 bln   -$2.90 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 = 70.01 Indian rupees)

 (Compiled by Nachiket Tekawade in Bengaluru)
  
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