October 4, 2019 / 3:08 AM / 11 days ago

Morning News Call - India, October 4

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FACTORS TO WATCH

11:45 am: Monetary Policy Committee to announce interest rate decision in Mumbai.

12:30 pm: NITI Aayog Vice Chairman Rajiv Kumar and NITI Aayog CEO Amitabh Kant at India Economic Summit in New Delhi.

3:00 pm: RBI analyst conference call post interest rate decision in Mumbai.

INDIA TOP NEWS

• INTERVIEW-India protectionist, but U.S. negotiating limited trade deal -Ross

India is among the world's most protectionist countries but the United States is trying to negotiate a limited trade deal with the South Asian nation to resolve their differences, U.S. Secretary of Commerce Wilbur Ross said on Thursday.

• India realty company boss arrested in PMC co-operative bank scam case

India arrested the head of a bankrupt realty company on Thursday after lender Punjab and Maharashtra Co-operative Bank (PMC) accused executives of partaking in a "criminal conspiracy" involving forged audit reports that cost the bank some 43.55 billion rupees.

• Indian railways arm enjoys bumper IPO subscription in slowing economy

State-run Indian Railway Catering and Tourism Corp's (IRCTC) initial public offering (IPO) to raise 6.45 billion rupees was subscribed nearly 112 times by the end of the book-running process, stock exchange data showed.

• Yes Bank CEO says lender 'very stable'; shares surge

Private-sector lender Yes Bank's Chief Executive Officer Ravneet Gill assured investors on Thursday that the bank remains on solid financial footing, sending its stock higher.

• Coal India expects to resume a third of output at flooded Dipka mine within 10 days

Coal India has resumed some production at its Dipka mine after flooding and aims to have at least a third of output back up and running within 10 days, a company official said on Thursday.

GLOBAL TOP NEWS

• Trump publicly asks China to probe Biden, even amid impeachment inquiry

President Donald Trump on Thursday again invited foreign interference in a U.S. presidential election by publicly calling on China to investigate Democratic political rival Joe Biden, the kind of request that has already triggered an impeachment inquiry in Congress.

• Trump hails 'nice victory' on trade as EU whisky, wine makers left reeling

President Donald Trump hailed a "nice victory" on Thursday after the United States got the green light to place tariffs on European Union goods in a dispute over EU aircraft subsidies.

• Fed policymakers 'open' to rate cut as risks to outlook rise

Two Fed policymakers on Thursday signaled they are open to delivering another rate cut after a report showed the growth in the vast U.S. services sector is slowing, but the Fed's No. 2, speaking late in the day, gave little away on his own thinking.

LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

• SGX Nifty nearest-month futures were trading 0.2% higher at 11,386.50.

• The Indian rupee is expected to open lower against the dollar ahead of a likely interest rate cut by the South Asian nation’s rate-setting committee.

• Indian government bonds will likely trade little changed ahead of the rate-setting Monetary Policy Committee’s interest rate decision later today. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.58% - 6.63% until the MPC outcome at 11:45 a.m.

GLOBAL MARKETS

• Wall Street stocks climbed on Thursday after data showing U.S. services-sector activity at a three-year low fueled expectations that the Federal Reserve would cut interest rates to stem a wider economic downturn.

• Asian stocks edged higher, thanks to gains on Wall Street, but the mood was cautious before a key U.S. job report that could help determine whether the Federal Reserve cuts interest rates further.

• The dollar stepped back after a soft U.S. service sector survey stoked worries that pressure from U.S. trade disputes with China and other countries could spill over into the broader U.S. economy and tip it into a recession.

• U.S. bonds rallied for the sixth straight session on Thursday, leaving the two-year Treasury yield at its lowest since September 2017, as signs of a slowdown in U.S. manufacturing and services fanned recession fears.

• Oil futures edged higher but were on track for a large weekly loss on fears that slower global economic growth will hurt fuel demand, while Saudi Arabia said it has fully restored oil output after recent attacks.

• Gold prices rose for a fourth straight session as weak U.S. service sector survey deepened concerns over economic growth and bolstered bets of further rate cuts by the Federal Reserve, with markets awaiting nonfarm payrolls data.

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 = 71.02 Indian rupees)

Compiled by Samrhitha Arunasalam in Bengaluru

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