October 15, 2019 / 3:30 AM / a month ago

Morning News Call - India, October 15

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    FACTORS TO WATCH
    No major events scheduled for today. 
    
    LIVECHAT - AUTHOR INTERVIEW
    New York Times business and economic writer Binyamin Appelbaum talks the
forum through his best selling book The Economists' Hour : False Prophets, Free
Markets, and the Fracture of Society at 6.30 PM IST. To join the conversation,
click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India's retail inflation surges in September, but rate cut hopes still
high
    India's retail inflation rose close to the central bank's medium-term target
of 4% in September for the first time in 14 months, but analysts still predict a
sharp economic slowdown will prompt a sixth consecutive interest rate cut in
December.
    • China's Huawei says open to "no backdoor" agreement with India 
    China's Huawei Technologies is ready to enter into a "no backdoor" agreement
with India to allay security concerns, the telecom group's local head said on
Monday, as the giant South Asian country prepares to launch next generation 5G
networks.
    • Indian buyers slash Malaysian palm oil purchases fearing duty hike -
traders
    Indian refiners have stopped buying Malaysian palm oil for shipment in
November and December fearing New Delhi could raise import taxes or enforce
other measures to curb imports from the Southeast Asian nation, five traders
told Reuters on Monday.
    • French energy giant Total to buy 37% stake in India's Adani Gas 
    French energy giant Total SA said on Monday it will buy a 37.4% stake in gas
distribution company Adani Gas, as it looks to capitalise on India's push for
cleaner sources of energy.
    • Global oil majors see surge in Indian demand for natural gas 
    Global oil and gas majors are looking to India, the world's third biggest
oil importer, to buy some of their excess liquefied natural gas (LNG) as the
South Asian nation improves its gas infrastructure and strives to reduce
emissions.
    • Shares of Indian railways arm jump twofold on debut
    Shares of Indian Railway Catering and Tourism (IRCTC) more than doubled
their value on market debut on Monday, after the state-run company saw a bumper
initial public offering that was subscribed nearly 112 times.
    
    
    GLOBAL TOP NEWS
    • U.S. demands Syria ceasefire, slaps sanctions on Turkey over incursion
    President Donald Trump imposed sanctions on Turkey on Monday and demanded
the NATO ally stop a military incursion in northeast Syria that is rapidly
reshaping the battlefield of the world's deadliest ongoing war.
    • China's factory prices post steepest fall in 3 years
    China's factory gate prices declined at the fastest pace in more than three
years in September, reinforcing the case for Beijing to unveil further stimulus
as manufacturing cools on weak demand and U.S. trade pressures.
    • Brexit hangs in the balance as EU doubts a deal this week
    A deal to smooth Britain's departure from the European Union hung in the
balance on Monday after diplomats indicated the bloc wanted more concessions
from Prime Minister Boris Johnson and said a full agreement was unlikely this
week.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.4% higher at 11,375.00.
    • The Indian rupee is expected to open little changed against the dollar in
the wake of quiet Asian cues amid doubts over the U.S.-China trade pact. 
    • Indian government bonds will likely open lower as September’s retail
inflation data accelerated to a faster-than-expected 14-month high, raising
uncertainty over future rate cut trajectory by the rate-setting panel. However
easing core inflation is likely to provide some support to bonds, dealers said.
The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a
range of 6.66%-6.72% today.
    
    
    GLOBAL MARKETS
    • Wall Street edged lower on Monday as uncertainties following recent
U.S.-China trade negotiations clouded sentiment and investors turned their focus
on the third-quarter earnings season, which begins in earnest on Tuesday.
    • Asian stocks and Wall Street futures inched higher as some investors held
out hope that Britain still had a chance to avoid a messy exit from the European
Union at key negotiations this week.
    • The dollar hovered below 2-1/2-month highs against the yen on Tuesday,
failing to extend recent gains as optimism over trade negotiations between the
world's two largest economies and for an orderly British exit from the European
Union started to fade.
    • Oil prices dropped again on Tuesday after falling heavily in the previous
session, as weak Chinese economic data for September added to lingering concerns
about the feasibility of the U.S.-China trade deal announced by President Trump
late last week.
    • Gold prices held steady below the $1,500 per ounce level on Tuesday as
markets braced for talks between Britain and the European Union that will
determine how smooth Britain's departure will be from the trading bloc.  
 
     
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         71.13/71.16  October 14       (568.12) crore  1200.54 crore
 10-yr bond yield  6.67%        Month-to-date    (5,523) crore   (61) crore
                                Year-to-date     50,662 crore    29,125 crore
 
    (FII investment numbers are in Indian rupees. Source: National Securities
Depository Limited)
    
    
    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 = 71.23 Indian rupees)
    
    

 (Compiled by Pooja Kesavan in Bengaluru)
  
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