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Morning News Call - India, May 25
May 25, 2017 / 3:25 AM / 7 months ago

Morning News Call - India, May 25

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    FACTORS TO WATCH
    9:45 am: Power Minister Piyush Goyal and Railway Minister Suresh Prabhu at
an event in New Delhi.
    10:00 am: NITI Aayog CEO Amitabh Kant at an event in New Delhi.
    11:00 am: Finance Ministry officials to appear before Parliamentary Standing
Committee in New Delhi.
    
        
    GMF: LIVECHAT - INVESTMENT OUTLOOK
    Lee Robinson, founder of Altana Wealth joins us to discuss how he views the
investment landscape at 2:30 pm IST. To join the conversation, click on the
link: here
    
    
    INDIA TOP NEWS
    • India scraps foreign investment board in push for more FDI
India on Wednesday scrapped a ministerial panel responsible for coordinating
foreign investments, part of efforts by Prime Minister Narendra Modi to boost
funding of local industries from overseas.
    • ArcelorMittal agrees on concessions to seal delayed $897 million India JV
ArcelorMittal, the world's largest steel producer, said on Wednesday it has
agreed to make concessions to Steel Authority of India to seal a delayed $897
million automotive joint venture.
    • Vedanta Resources FY core profit rises less than expected
Mining and energy group Vedanta Resources Plc on Wednesday posted a 36.6 percent
rise in its full-year core profit, driven by firmer commodity prices, but failed
to meet analyst expectations.
    • Drugmaker Lupin warns of more pricing pressure as Q4 profit halves
Indian drugmaker Lupin Ltd expects to launch over 30 products in the United
States this year, but warned revenue growth would remain muted due to growing
pricing pressure and competition in the world's largest healthcare market.

    • Ebix to invest $120 million for stake in Indian digital payment provider
ItzCash
U.S.-based software firm Ebix Inc will pay $120 million for a majority stake in
Indian payment provider ItzCash, the companies said on Wednesday, the latest
foreign investment in India's booming digital payments market.
    • Debt concerns pile pressure on shares in India's Reliance Communications 
Shares in Indian telco Reliance Communications fell on Wednesday after a
sell-off in its bonds, sparked by concerns that the debt-laden firm may be
unable to repay its lenders amid intense competition in the sector.
    • India to pick industry champions as defence buying plan cleared 
India approved on Wednesday a long-awaited policy to boost local defence
manufacturing by effectively picking industry champions that would tie up with
foreign players to make submarines, fighter jets, helicopters and armoured
vehicles. 
    • Mahindra to build long-range electric vehicles 
Indian automaker Mahindra & Mahindra will invest in building long-range electric
vehicles, high-power battery packs and power trains in an effort to boost green
car sales, senior company executives said on Wednesday.

    
    
    GLOBAL TOP NEWS
    • UK police hunt Manchester bomber's network, angered by U.S. leaks
Police scrambled to close down a network around the Manchester suicide bomber
with arrests in Britain and Tripoli on Wednesday, as details about the
investigation were leaked to U.S. media, infuriating authorities who fear a
second attack is imminent.
    • In first under Trump, U.S. warship challenges Beijing's claims in South
China Sea
A U.S. Navy warship sailed within 12 nautical miles of an artificial island
built up by China in the South China Sea, U.S. officials said on Wednesday, the
first such challenge to Beijing in the strategic waterway since U.S. President
Donald Trump took office.
    • OPEC, non-OPEC set for new oil cut, eye longer duration
OPEC and non-member oil producers are set to extend output cuts on Thursday,
possibly by as long as 12 months, to help clear a global stocks overhang and
prop up crude prices.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were trading at 9,411.00, up 0.4 pct from its
previous close.
    • The Indian rupee will likely open higher, tracking its Asian peers, as the
dollar index fell after the U.S. Federal Reserve’s latest meeting minutes
signaled a rate increase was coming “soon,” but reiterated the central bank’s
cautious approach to future hikes.
    • Indian government bonds will likely edge higher tracking a fall in U.S.
Treasury yields, after the Federal Reserve hinted at a cautious, gradualist
approach to future rate increases. The yield on the benchmark 6.97 pct bond
maturing in 2026 is likely to trade in a 6.77 pct-6.83 pct band today.


    
    
    GLOBAL MARKETS
    • U.S. stocks ended up slightly on Wednesday, with the S&P 500 hitting a
record high close, after minutes of the Federal Reserve's latest meeting showed
policymakers view a rate hike coming soon.
    • Asian shares scaled two-year highs while the dollar and U.S. bond yields
slipped after the U.S. Federal Reserve signalled a cautious approach to future
rate hikes and the reduction of its $4.5 trillion of bond holdings.
    • The dollar was on the defensive after the Federal Reserve dialled down on
some of the more hawkish policy expectations in the market, while the euro edged
back up towards a 6-1/2-month high.
    • U.S. Treasury yields fell on Wednesday on investor relief after the
Federal Reserve signaled a gradual approach on raising interest rates and
winding down of its massive $4.5 trillion worth bond holdings.
    • Oil prices rose by one percent ahead of an OPEC meeting that is expected
to extend output cuts into 2018, adding at least nine months to an initial
six-month cut in the first half of this year.
    • Gold held steady to keep most of its gains from the previous session, with
the dollar slipping after minutes of the U.S. Federal Reserve's last policy
meeting dampened hopes for an aggressive string of interest rate hikes.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         64.83/64.86  May 24           $12.65 mln  -$1.08 mln
 10-yr bond yield  7.10         Month-to-date    $1.39 bln   $3.15 bln
                                Year-to-date     $7.83 bln   $12.54 bln
    
    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 = 64.73 Indian rupees)

 (Compiled by Pathikrit Bandyopadhyay in Bengaluru)
  

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