February 2, 2018 / 3:26 AM / 9 months ago

Morning News Call - India, February 2

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    FACTORS TO WATCH
    10:00 am: Bajaj Finance post-earnings analyst conference call in Mumbai
    10:30 am: NITI Aayog Vice Chairman Rajiv Kumar, Oil Secretary K. D.
Tripathi, Central Electricity Authority Chairperson R. K. Verma, Power Secretary
A. K. Bhalla at India Energy Congress in New Delhi.
    11:00 am: Cummins India post-earnings analyst conference call in Mumbai.
    1:30 pm: Ashok Leyland post-earnings analyst conference call in Mumbai.
    4:00 pm: Ceat post-earnings analyst conference call in Mumbai.
    4:30 pm: Godrej Properties post-earnings analyst conference call in Mumbai.
    
    
    LIVECHAT - WEEKAHEAD 
    Reuters EMEA markets editor Mike Dolan discusses the upcoming week's main
market inflection points at 1630 IST. To join the conversation, click on the
link: here
    
    
    INDIA TOP NEWS
    •India prioritises rural spending, healthcare in budget as election looms
Eyeing an election next year, India's government announced massive spending for
rural areas and projected economic growth above 8 percent in an annual budget on
Thursday that won broad approval from economists, though bond and share markets
fell.
    •Budget spurs inflation worries ahead of RBI policy
India's federal budget could push up inflation and prompt the central bank to
raise interest rates sooner, analysts said on Thursday, raising the probability
of a scenario that could hurt the nascent economic recovery.
    •Budget to sting buyers of Apple's iPhones, Audi cars, other luxury brands 
    India outlined a farmer-friendly budget on Thursday, but for its burgeoning
middle class, who aspire to own luxury goods ranging from Ray-Bans to iPhones,
and Zippos to Fitbits - imported goods are set to get a whole lot costlier.

    •India's April-Dec fiscal deficit touches 113.6 pct of full-year target
India reported a fiscal deficit of 6.21 trillion rupees for April-December or
113.6 percent of the budgeted target for the current fiscal year that ends in
March.
    •India vows to eliminate use of cryptocurrencies
India will move to stamp out use of cryptocurrencies, which it considers
illegal, Finance Minister Arun Jaitley said on Thursday, launching a
no-holds-barred attack on virtual currencies such as Bitcoin.
    •India's Ashok Leyland Q3 profit surges, beats estimates
Ashok Leyland reported a near threefold rise in quarterly profit on Thursday,
beating analysts' estimates, helped by higher export volumes and domestic sales
of medium and heavy commercial vehicles.
    •Info Edge India to sell stake in food delivery firm Zomato to Alibaba's Ant
Info Edge India said it will sell a stake in food delivery firm Zomato Media to
Ant Financial, Alibaba Group Holding's payment affiliate, for $50 million.

    •India factory growth cools to 3-month low in Jan on weaker demand
Indian factory growth cooled to a three-month low in January as weaker domestic
demand dragged on output despite firms keeping price increases to a minimum, a
business survey showed on Thursday.
    
   
    GLOBAL TOP NEWS
    •Amazon posts largest profit in its history on sales, tax boost
Amazon.com reported a profit near $2 billion, the largest in its history, as the
online retailer drew millions of new customers to its Prime fast-shipping club
for the holiday season and as changes to U.S. tax law added to its bottom
line.
    •Strong iPhone prices, cash plans buoy Apple shares after muted outlook
Stronger iPhone prices and hints by Apple that it could return more than half of
its $285 billion in cash to shareholders eased concerns among investors, even as
the world's biggest technology company gave a disappointing revenue outlook for
the current quarter.
    •Alphabet's earnings miss profit estimates as spending grows
Google parent Alphabet missed quarterly profit forecasts as steady ad sales
growth was offset by increased spending to promote its consumer gadgets, YouTube
video app and cloud computing services, the U.S. technology company
said.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    •The SGX Nifty Futures were trading at 10,926.00, trading down 1.09 percent
from its previous close.
    •The Indian rupee will likely open flat to weaker against the dollar, in
line with most Asian peers, tracking a sell-off across most global shares that
may spillover to the local equities.
    •Indian government bonds are likely to extend their fall as investors await
a fresh supply of notes through a weekly auction. The yield on the 7.17 percent
bond maturing in 2028 is likely to trade in a 7.57 percent -7.63 percent band
till the auction result.
    
    
    GLOBAL MARKETS
    • Wall Street stocks gave up early gains on Thursday as bond yields rose and
technology stocks retreated ahead of a host of high-profile earnings.
    • The euro neared multi-year peaks as talk of policy tightening in Europe
and expectations that inflation is set to gear higher drove up borrowing costs
globally.
    • The dollar nursed losses against a basket of currencies and was on track
for a weekly fall as investors focused on renewed economic strength in the
eurozone.
    • The U.S. Treasuries market started February on a sour note with the
10-year yield hitting a near four-year peak on Thursday as investors booked
profits on curve-related bets ahead of Friday's jobs report.
    • U.S. oil rose for a third day after a survey showed strong compliance with
output cuts by OPEC and others including Russia, offsetting concerns about
surging U.S. production.
    • Gold prices inched down ahead of U.S. jobs data due later in the day as
traders looked for guidance on the course of monetary policy for the remainder
of the year.
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         63.73/63.76  February 1       $171.80 mln  $217.90 mln
 10-yr bond yield  7.71 pct     Month-to-date    $2.04 bln    $1.69 bln
                                Year-to-date     $2.04 bln    $1.69 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 = 63.9700 Indian rupees)
    
    
    

 (Compiled by Yoganand KN in Bengaluru)
  
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