October 31, 2019 / 3:25 AM / a month ago

Morning News Call - India, October 31

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    FACTORS TO WATCH
    10:00 am: Bank of India management organises Vigilance Awareness Week in
Mumbai. 
    5:00 pm: Government to release September infrastructure output data in New
Delhi.
    
    LIVECHAT - BONDS UPDATE
    Dhara Ranasinghe, Reuters senior European government bonds correspondent,
discusses trends in fixed income markets at 5:00 pm IST. To join the
conversation, click here refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Indian lobby group warns of telecoms catastrophe, Reliance disagrees
    India's telecoms sector and leading players Bharti Airtel and Vodafone Idea
will face an "unprecedented crisis" if the government refuses to relax its
demand for $13 billion in outstanding dues, a lobby group says.
    • India moves to divide Jammu and Kashmir state despite protests, attacks
    India will formally split up disputed Jammu and Kashmir state into two
federal territories today, aiming to tighten its grip on the restive region that
has been in the grip of a harsh security clampdown for nearly three months.

    • Malaysia says trade spat with India over palm oil will not be prolonged
    A Malaysian minister on Wednesday said a boycott of the country's palm oil
by Indian traders will likely not be prolonged as there were not enough supplies
from top producer Indonesia to cover the shortfall.
    • Amazon pumps in more than $600 mln into India units
    Amazon.com has invested around 45 billion rupees into its Indian
subsidiaries as the Seattle-based e-commerce giant ramps up operations in one of
its fastest growing markets.

    
    GLOBAL TOP NEWS
    • U.S. Fed cuts interest rates, signals it is on hold
    The Federal Reserve on Wednesday cut interest rates for the third time this
year to help sustain U.S. growth despite a slowdown in other parts of the world,
but signaled there would be no further reductions unless the economy takes a
turn for the worse.
    • Apple tunes out trade war as new AirPods, services lift holiday outlook 
    Apple on Wednesday forecast sales for the crucial holiday shopping quarter
ahead of Wall Street expectations, with Chief Executive Tim Cook seeing strong
sales of the wearables such as the noise-cancelling AirPods Pro and hoping for a
U.S.-China trade deal by year-end.
    • Samsung Electronics upbeat on chip outlook as Q3 profit plunges
    Samsung Electronics said chip sales should pick up next year after it
reported that third-quarter operating profit more than halved due to low prices
of memory chips amid a prolonged industry downturn.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.4% higher at 11,893.00.
    • The Indian rupee is expected to open higher against the U.S. currency amid
broad dollar weakness after the Federal Reserve cut its key interest rate for
the third time this year.
    • Indian federal government bonds are likely to rise tracking the fall in
U.S. Treasury yields after the Federal Reserve cut policy rates as expected. The
yield on India's benchmark 7.26% bond maturing in 2029 is likely to trade in a
range of 6.64%-6.69% today.
    
    
    GLOBAL MARKETS
    • U.S. stocks advanced on Wednesday, with the S&P 500 closing at a record
for the second time in three sessions, after a policy statement by the U.S.
Federal Reserve that cut interest rates by a quarter of a percentage point.
    • Asian shares rose and U.S. stock futures edged higher after the U.S.
Federal Reserve cut interest rates to keep economic expansion on track.

    • The dollar dipped against a basket of major currencies, reversing earlier
gains, after the Federal Reserve cut interest rates but signalled its rate-cut
cycle might be at a pause, as was broadly expected.
    • U.S. Treasury yields fell on Wednesday after the Federal Reserve cut
interest rates for the third time this year, as expected, but signaled that
monetary easing could be on hold.
    • Oil prices rose as investors banked on more economic stimulus by China
after weak PMI data, partly recovering from losses in the previous session on a
surprise build in U.S. crude stocks.
    • Gold prices edged higher after the U.S. Federal Reserve cut interest rates
as expected, even as the central bank dropped a previous reference in its
statement that signalled future rate cuts.
    
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         70.94/70.97  October 30       1,519.60 crore  2,017.63 crore
 10-yr bond yield  6.66%        Month-to-date    4,773 crore     3,191 crore
                                Year-to-date     60,958 crore    32,377 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 = 70.95 Indian rupees)
    
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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