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FACTORS TO WATCH
9:30 am: Junior Finance Minister Anurag Thakur and CBDT Member Akhilesh Ranjan at International Tax conference in New Delhi.
5:15 pm: RBI Governor Shaktikanta Das at Bloomberg’s India Economic Forum in Mumbai.
LIVECHAT - CRUDE FOCUS
Saxo Bank Head of Commodities Strategy Ole Hansen discusses his crude oil outlook after Prince Abdulaziz bin Salman becoming Saudi Arabia’s oil minister, confirming expectations he would stick with policy to limit crude output to support prices; Saudi Aramco’s listing plans; and John Bolton’s exit from the White House. To join the conversation at 12:30 pm IST, click on the link: refini.tv/2P8N0Wp
INDIA TOP NEWS
• India bans e-cigarettes as global backlash at vaping gathers pace
India banned the sale of electronic cigarettes on Wednesday and warned of an “epidemic” among young people, in the latest and potentially biggest move globally against vaping over growing health concerns.
• Apples rot in Kashmir orchards, as lockdown puts economy in tailspin
In one of the world’s largest apple growing regions, a weeks-old lockdown imposed after Prime Minister Narendra Modi dramatically abolished Jammu and Kashmir’s special constitutional status has cut transport links with buyers in India and abroad, fruit growers and traders say, plunging the industry into turmoil.
• India open to selling part of Air India to foreign airline -sources
India’s government is open to selling a partial stake in debt-laden state-run carrier Air India to a foreign airline, people familiar with the matter said on Wednesday.
• Pakistan refuses permission for Modi to fly across its airspace
Pakistan refused a request from Indian Prime Minister Narendra Modi to cross its airspace on a flight to Germany, Pakistan’s foreign minister said on Wednesday, as tensions between the two nations ran high over the disputed region of Kashmir.
• India to invite bids from global coal miners before end of 2019 -sources
India plans to invite bids from global firms for the first time for coal mining blocks before end-2019, sources familiar with the matter said, a move that would end Coal India Ltd’s near-monopoly for the fuel as the nation tries to cut imports.
• India scraps import tax on open cell panels in boost for TV makers
India has scrapped a tax on imports of open cell TV panels, used to make television displays, in a move likely to boost television manufacturing in the country and counter incentives offered by nations such as Vietnam.
• U.S. lawmakers urge Trump administration to restore India’s trade privileges
Forty-four members of the U.S. Congress have urged President Donald Trump’s trade representative to restore trade concessions to India, saying the withdrawal of the privilege had led to retaliatory tariffs from New Delhi which were hurting U.S. industry.
• India’s monsoon rains above-average for third straight week: IMD
Monsoon rains in India in the week through to Wednesday were above average for a third straight week, the India Meteorological Department (IMD) said, with floods hitting many districts in the central parts of the country and damaging crops such as soybean and pulses.
GLOBAL TOP NEWS
• Fed cuts interest rates, signals holding pattern for now
The U.S. Federal Reserve cut interest rates again on Wednesday to help sustain a record-long economic expansion but signaled a higher bar to further reductions in borrowing costs, eliciting a fast and sharp rebuke from President Donald Trump.
• Trump sees many options short of war with Iran after attacks on Saudis
U.S. President Donald Trump said on Wednesday there were many options short of war with Iran after U.S. ally Saudi Arabia displayed remnants of drones and missiles it said were used in a crippling attack on its oil sites that was “unquestionably sponsored” by Tehran.
• BOJ keeps policy steady, signals chance of easing in October The Bank of Japan kept monetary policy steady but said it would re-examine economic and price developments more thoroughly at its next policy meeting in October.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
• The SGX Nifty nearest-month futures were little changed at 10,846.50.
• The Indian rupee is expected to open lower against the dollar after the Federal Reserve cut rates once again but cast doubts on further easing.
• Indian government bonds are likely to fall in early trade after the U.S. Federal Reserve cut rates as expected but did not hint at another reduction this year or next. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.60%-6.65% today.
• The S&P 500 ended marginally higher on Wednesday after Federal Reserve policymakers cut interest rates by a quarter of a percentage point, as expected, but gave mixed signals about their next move.
• Asian shares edged higher, tracking some modest Wall Street gains after the U.S. Federal Reserve cut interest rates as expected but offered mixed signals on the next easing, keeping investors cautious.
• The dollar stood tall after the U.S. Federal Reserve cut rates by 25 basis points, as expected, but its chairman signalled a higher bar for future rate cuts.
• U.S. Treasury yields rose on Wednesday and the yield curve flattened after the Federal Reserve cut interest rates for the second time this year, but indicated that further cuts may not follow.
• Oil prices edged higher in early Asian trade after days of turbulence, with markets soothed by Saudi Arabia’s pledge to restore full production by end-September at facilities knocked out in drone and missile attacks last weekend.
• Gold prices edged lower as investors remained cautious after the U.S. Federal Reserve cut interest rates as expected but delivered mixed signals about its next move.
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 = 71.13 Indian rupees Compiled by Benny Thomas in Bengaluru
Our Standards: The Thomson Reuters Trust Principles.