April 24, 2020 / 3:16 AM / a month ago

Morning News Call - India, April 24

To access a PDF version of this newsletter, please click here here
    
    If you would like to receive this newsletter via email, please register at:
here
    
    
    FACTORS TO WATCH
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
    
    
    INDIA TOP NEWS
    • India freezes salary rises for more than 11 million to combat coronavirus
    India on Thursday froze inflation-linked increases in salaries and pensions
for more than 11 million federal employees and pensioners to generate nearly $10
billion to help combat the coronavirus outbreak, officials said on Thursday.

    • 'I do feel afraid': Indian workers disinfect coronavirus hotspots
    One recent morning in his two-room New Delhi home, sanitation worker Dev
Dutt Sharma drank tea before putting on an orange jacket and bidding goodbye to
his two sons, wife, and elderly mother.
    • POLL-Locked-down Indian economy in its worst quarter since mid-1990s
    The Indian economy is likely to suffer its worst quarter since the
mid-1990s, hit by the ongoing lockdown imposed to stem the spread of
coronavirus, according to a Reuters poll, which predicted a mild and gradual
recovery.
    • India pushes lending, asks banks for daily reports
    India's government has redoubled efforts to push state-run banks to boost
lending and it has demanded that lenders submit a daily report detailing the
volume and scale of loans sanctioned, according to industry sources and
documents seen by Reuters.
    • RBI special operation leaves traders wary, but bonds rally
    India's central bank said on Thursday it will buy and sell bonds in a
special operation this month, leaving traders wondering if it is attempting to
partially monetise government debt - but giving the benchmark bond its biggest
one-day rally in nearly six months.
    • ANALYSIS-Chinese investors flummoxed by India's new foreign investment
rules
    India's plan to screen foreign direct investments from neighbouring
countries has Chinese firms concerned that such scrutiny will affect their
projects and delay deals in one of Asia's most lucrative investment markets.

    • Amazon India to highlight local shops as online sellers
    Amazon.com's Indian arm will soon add small local shops as sellers on its
platform as a way to provide them broader online exposure and offer consumers a
greater selection of merchandise, the company said on Thursday.
    • Jaguar Land Rover to restart some European output from mid-May
Jaguar Land Rover will restart some production in Europe from May 18, including
at one of its three British car plants and its factory in Slovakia, where the
new Defender vehicle is being made.
    
    
    GLOBAL TOP NEWS
    • U.S. House passes $500 billion coronavirus bill in latest relief package
    The U.S. House of Representatives overwhelmingly approved a $484 billion
coronavirus relief bill on Thursday, funding small businesses and hospitals and
pushing the total spending response to the crisis to an unprecedented near $3
trillion.
    • Gilead disputes report that its drug flopped in leaked coronavirus trial
    A closely-watched Gilead Sciences experimental antiviral drug failed to help
patients with severe COVID-19 in a clinical trial conducted in China, but the
drugmaker said the findings were inconclusive because the study was terminated
early.
    • Coronavirus-spurred slowdown in Japan prices sparks deflation fears
    Japan's core consumer inflation eased in March for the second straight
month, underscoring fears that slumping oil costs and soft consumption because
of the coronavirus pandemic might push the country back into deflation.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 1.1% lower at 9,193.50.
    • The Indian rupee will likely trade little changed against the U.S.
currency amid negative risk sentiment and bets that foreign investment flows
will cap the upside on the dollar.
    • India government bonds are likely to open higher, as sentiment remained
positive on the central bank’s announcement to conduct a special open market
operation next week. The yield on the benchmark 6.45% bond maturing in 2029 is
likely to trade in a range of 6.00%-6.08%
    
    
    GLOBAL MARKETS
    • The S&P 500 ended marginally lower on Thursday after a report that an
experimental antiviral drug for the coronavirus flopped in its first randomized
clinical trial, denting optimism that the pandemic's impact on the labor market
was nearing an end.
    • Asian shares and U.S. stock futures fell, spurred by doubts about progress
in the development of drugs to treat COVID-19 and new evidence of U.S. economic
damage caused by the coronavirus pandemic.
    • The dollar was headed for its best week since early April, as tumbling oil
prices weighed on commodity currencies and division over Europe's emergency fund
dragged on the euro.
    • Longer-term U.S. Treasury yields were slightly lower on Thursday as
investors set aside the latest grim jobs report to focus on how quickly the U.S.
economy might reopen amid the coronavirus pandemic.
    • Oil prices rose, gaining further ground as some producers like Kuwait said
they would move to cut output swiftly to try to counter the evaporation in
global demand for fuels caused by the coronavirus pandemic.
    • Gold prices jumped as much as 1.5% to more than a one-week high on
Thursday, emboldened by hopes of more stimulus from the United States as a
coronavirus-led lockdown takes a toll on the world's largest economy and its
labor market.
    
    
                   CLOSE       FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         76.1/76.13  April 23         (791.23) crore  (71.13) crore
 10-yr bond yield  6.06 pct    Month-to-date    (7,304) crore   (8,484) crore
                               Year-to-date     (55,334) crore  (78,411) 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 = 76.10 Indian rupees)
 
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below