April 23, 2020 / 3:13 AM / a month ago

Morning News Call - India, April 23

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    FACTORS TO WATCH
    2:30 pm: NITI Aayog CEO Amitabh Kant will participate in a discussion on welfare of senior
citizens during COVID19.
    
    LIVECHAT - BONDS FOCUS
    Reuters European Government Bonds Correspondent Yörük Bahçeli examines the state of play in
European govvies at 4:00 pm IST. To join the conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India suspends coronavirus antibody tests after questions over reliability
    India has ordered a pause in testing for antibodies to the coronavirus because of concern
over the accuracy, health officials said on Wednesday, complicating the fight against the
epidemic as its tally of cases nears 20,000.
    • Two SpiceJet lessors in talks to reclaim planes over missed payments - sources
    Two lessors to Indian carrier SpiceJet are in talks to terminate contracts and repossess
planes via mutually agreed deals with the airline over missed payments, according to two sources
directly involved in the discussions.
    • SoftBank-backed OYO cuts pay of all India employees - internal memo
    SoftBank Group-backed OYO Hotels and Homes has cut salaries of all employees in India by 25%
for four months starting in April and also put some of its staff on leave without pay, according
to an internal memo reviewed by Reuters.
    • India battles supply snags in race to build affordable ventilators
    Indian medical device makers, racing to churn out ventilators as domestic COVID-19 cases
spike, have been beset by supply bottlenecks, cost overruns and labour shortages that are
delaying their efforts to produce an affordable device.
    • Three Indian refiners cut Mideast oil imports in May - sources
    At least three Indian refiners have curbed oil imports from Middle East producers, including
Saudi Arabia, for May because of storage constraints as local fuel demand slumped following the
coronavirus outbreak, company officials said.
    • India cuts potash subsidy to lowest in a decade
    India on Wednesday cut subsidies for potash-based fertiliser by 9% to the lowest in a
decade, as the world's leading importer of the crop nutrient tries to contain a fiscal deficit.

    
    
    GLOBAL TOP NEWS
    • Trump order temporarily limits U.S. immigration during coronavirus crisis
    President Donald Trump on Wednesday ordered a temporary block on some foreigners from
permanent residence in the United States, saying he wanted to protect American workers and jobs
during the coronavirus pandemic.
    • Japan's coronavirus shutdowns pummel service, factory sectors - PMIs
    Japan's services sector shrank at a record pace in April, while factories also fell quiet
across the country due to the widening fallout from the coronavirus pandemic as an economic
contraction deepens.
    • McConnell says he favors state bankruptcy over more federal aid
    U.S. Senate Majority Leader Mitch McConnell on Wednesday opened the door to allowing U.S.
states to file for bankruptcy to deal with economic losses stemming from the coronavirus
outbreak that are punching big holes in their budgets.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.3% lower at 9,161 after opening on positive
note.
    • The Indian rupee is expected to rise against the dollar, tracking a rebound in most
regional equities from the losses triggered by concerns over crude oil prices.
    • Indian government bonds may open little changed, as investors still await the likely
announcement of a fiscal stimulus package to mitigate the coronavirus pandemic impact. The yield
on the benchmark 6.45% bond maturing in 2029 is likely to trade in a range of 6.20%-6.25%.
    
    
    GLOBAL MARKETS
    • Wall Street surged on Wednesday as oil prices recovered and Congress looked on course to
approve nearly $500 billion more in aid to help small businesses ride out the coronavirus
crisis.
    • Asian stock markets rose as the combination of a rebound in crude prices from historic
lows and the promise of more U.S. government aid to cushion the coronavirus-ravaged economy
helped calm nervous markets.
    • The dollar edged higher against the currencies of oil producers as a rebound in crude
prices from an unprecedented collapse only partially calmed markets unnerved by the massive
coronavirus-led drop in global demand.
    • A market shift back into equities on Wednesday drove up U.S. Treasury yields, but they
remained at relatively low levels as bond investors' skepticism about efforts to restart the
U.S. economy amid the COVID-19 pandemic limited gains.
    • Oil extended gains amid signs that producers are cutting production to cope with a
collapse in demand for fuel as the coronavirus outbreak ravages the world's economies.
    • Gold prices edged lower after a sharp rise in the previous session, as equities regained
some footing and the dollar firmed, although hopes for more global economic stimulus measures
underpinned bullion.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot         76.64/76.67  April 22         (1,830.85) crore  414.32 crore
 10-yr bond yield  6.22 pct     Month-to-date    (6,513) crore     (8,413) crore
                                Year-to-date     (54,543) crore    (78,340) 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 = 76.42 Indian rupees)
 
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