August 27, 2019 / 3:20 AM / 23 days ago

Morning News Call - India, August 27

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FACTORS TO WATCH

10:30 am: State Bank of India MD Arijit Basu and Indian Banks Association Advisor V. Murlidharan at New Age Banking Summit 2019 in Mumbai.

LIVECHAT - CHINA FOCUS

ING Bank Greater China Economist Iris Pang reviews the yuan's moves over the last few weeks and where it might be headed, measures still expected from PBOC at 9:30 am IST. To join the conversation, click here refini.tv/2P8N0Wp

INDIA TOP NEWS

• India government gets windfall gain from RBI; raises expectation for stimulus The Indian government will receive a windfall from the central bank in the current financial year thanks to a much higher-than-expected dividend, allowing Prime Minister Narendra Modi’s administration to provide a tottering economy with additional fiscal stimulus. • Trump says India, Pakistan can handle Kashmir dispute on their own U.S. President Donald Trump said on Monday that India and Pakistan could handle their dispute over Kashmir on their own, but he was there should they need him. • India's trade ministry recommends import tax hike on Malaysian refined palm oil India's trade ministry has recommended raising the tax on refined palm oil imports from Malaysia to 50% from 45% to curb cheaper purchases of the commodity, a government document said.

GLOBAL TOP NEWS

• Trump says China trade deal coming, Beijing calls for resolution of dispute U.S. President Donald Trump on Monday predicted a trade deal with China after positive gestures by Beijing, calming global markets that have been roiled by new tariffs from the world's two largest economies. • Hong Kong leader says escalation of violence becoming more serious Hong Kong leader Carrie Lam said the escalation of violence in anti-government protests that have rocked the Asian financial centre for three months is becoming more serious. • Trump not considering U.S. tariffs on Japanese autos 'at this moment' U.S. President Donald Trump on Monday said the United States would not imminently impose new tariffs on autos imported from Japan as the largest and third-largest economies continue negotiations to firm up a preliminary trade agreement.

LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

• SGX Nifty nearest-month futures were trading 0.5% higher at 11,104.00. • The Indian rupee is expected to open higher against the dollar in the wake of a rebound in Asian currencies and equities. • The Indian government bonds are expected open sharply higher today after the board of the Reserve Bank of India approved a higher-than-expected transfer to the sovereign, easing fiscal concerns. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.35%-6.40% in early session.

GLOBAL MARKETS

• U.S. stocks rose on Monday, following a sharp sell-off in the prior session, after U.S. President Donald Trump predicted a trade deal with China, cooling investor concerns after a ramp-up in rhetoric derailed markets last week.

• Asian stocks rose in step with their global peers while safe-haven bonds retreated, as signs Sino-U.S. trade hostilities might be easing for now helped restore investor confidence after the previous session's rout.

• The dollar held firm after some signs of rapprochement between Washington and Beijing soothed investors' nerves after trade tensions between the world's biggest economies escalated yet again late last week and over the weekend.

• The U.S. yield curve inverted further on Monday with yields on shorter-dated yields rising more than longer-dated ones, as upcoming supply of shorter-maturity Treasury debt outweighed the easing of trade tensions between China and the United States.

• Oil prices rose on after U.S. President Donald Trump predicted a trade deal with China after positive comments by Beijing, calming nerves after a round of tit-for-tat tariff hikes had sent markets reeling.

• Gold prices traded steady, after retreating from an over six-year peak hit in the previous session, as U.S. President Donald Trump predicted a trade deal with China and calmed global markets that have been rattled by new tariffs.

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 = 71.49 Indian rupees)

Compiled by Siddharth Athreya V

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