November 21, 2019 / 3:21 AM / 21 days ago

Morning News Call - India, November 21

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    FACTORS TO WATCH
    • 3:30 pm: Parliamentary Standing Committee on Finance meeting with finance
ministry officials in New Delhi.

    • GMF: LIVECHAT - BONDS FOCUS
Saikat Chatterjee joins us from London to discuss the latest developments in the
fixed income world at 5:00 pm IST. To join the conversation, click on the link:
refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India grants telcos relief by deferring spectrum payments
    India on Wednesday allowed telecom operators to defer payments due for
airwaves bought via auction until the end of March 2022, giving some respite to
firms after a court ruled they must pay overdue levies and interest of nearly
$13 billion.
    • India tightens rules on loan default disclosure for public firms
    India's publicly listed firms must disclose any failure to repay loans
within 24 hours in cases where 30 days have passed since the default, its
securities regulator said on Wednesday, tightening rules at a time when bond
defaults have soared.
    • India to start DHFL's bankruptcy proceedings in latest shadow banking
crisis
    India's central bank on Wednesday said it will begin bankruptcy proceedings
against Dewan Housing Finance Coporation Ltd (DHFL), a move that puts
the country's ailing shadow banking sector back in the spotlight.
    • India to offload Bharat Petroleum in state stake sell-off
    India has agreed to sell stakes in five state-run companies, including oil
refiner Bharat Petroleum Corp (BPCL), its finance minister said on
Wednesday, a move that could help bridge a widening fiscal gap.
    
    
    GLOBAL TOP NEWS
    • A U.S.-China 'Phase One' trade deal may not be inked this year
    Completion of a "phase one" U.S.-China trade deal could slide into next
year, trade experts and people close to the White House said, as Beijing presses
for more extensive tariff rollbacks, and the Trump administration counters with
heightened demands of its own.
    • U.S. House passes Hong Kong rights bills, Trump expected to sign
    The U.S. House of Representatives on Wednesday passed two bills to back
protesters in Hong Kong and send a warning to China about human rights, with
President Donald Trump expected to sign them into law, despite delicate trade
talks with Beijing.
    • 'Everyone was in the loop' about Ukraine pressure campaign
    A U.S. diplomat said on Wednesday that "everyone was in the loop" about a
Trump administration effort to get Ukraine to carry out investigations that
might ultimately benefit U.S. President Donald Trump, including Vice President
Mike Pence and Secretary of State Mike Pompeo.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.3% lower at 11,974.50.
    • The Indian rupee is expected to open lower against the dollar after
mounting tensions between the U.S. and China over Hong Kong and doubts over the
world's two largest economies reaching a trade deal prompted a broad selloff in
Asian equities.
    • Indian sovereign bonds are likely to open higher, as the federal cabinet's
approval for strategic disinvestment of the government’s stake in five state-run
companies eased concerns about a likely fiscal slippage. The yield on the
benchmark 6.45% bond maturing in 2029 is likely to trade in a range of
6.42%-6.48%.
    
    
    GLOBAL MARKETS
    • Wall Street's main indexes ended Wednesday's session lower on concerns
that a "phase one" trade deal between Washington and Beijing may not be
completed this year, while minutes from the Federal Reserve's October policy
meeting appeared to offer little help.
    • Global shares slid as a fresh row between Washington and Beijing over U.S.
bills on Hong Kong could complicate their trade negotiation and delay a "phase
one" deal that investors had initially hoped to be inked by now.
    • The yen rose against the dollar after sources close to the White House
told Reuters that a U.S.-China trade deal is unlikely this year, which spurred
demand for safe-haven assets.
    • U.S. long-dated yields fell to three-week lows on Wednesday, weighed down
by renewed jitters about trade talks with China after news, citing sources, that
a "phase one" or preliminary deal may not be completed this year.
    • Oil prices retreated as a spat over Hong Kong added to worries of a delay
in any U.S.-China trade deal, after posting steep gains in the previous session
on bullish U.S. crude inventory data.
    • Gold prices inched up, supported by concerns that U.S. bills on Hong Kong
could increase tensions between the United States and China and delay an interim
trade deal.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         71.83/71.86  November 20      (626.39) crore  (371.01) crore
 10-yr bond yield  6.44%        Month-to-date    12,114 crore    2,928 crore
                                Year-to-date     80,667 crore    35,784 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 = 71.74 Indian rupees)

 (Compiled by Nayyar Rasheed in Bengaluru)
  
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