February 16, 2018 / 3:27 AM / 3 months ago

Morning News Call - India, February 16

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    FACTORS TO WATCH
    10:00 am: Mines Minister Narendra Singh Tomar to address Central Geological
Programming meeting in New Delhi. 
    12:30 pm: H.G. Infra Engineering to announce IPO details in Mumbai. 
    2:30 pm: Power Minister R.K. Singh at World Sustainable Development Summit
in New Delhi. 
    2:30 pm: Bank of Baroda post-earnings conference call for analysts 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
    • PNB seeks to soothe investors after uncovering massive fraud
    Punjab National Bank, India's second-largest state-run lender, sought to
soothe investors on Thursday after the discovery of a $1.77 billion scam at a
single branch sent its shares plunging and raised fears about the scale of fraud
in the sector.
    • January trade deficit widens to highest since May 2013
    India's trade deficit in January was the widest in more than 4-1/2 years as
a surge in the country's oil and coal import bill outweighed a rise in exports,
government data showed on Thursday.
    • MSCI asks India stock exchanges to reconsider anti-competitive measures
    Global index provider MSCI Inc on Thursday "strongly suggested" that India's
three main stock exchanges reconsider their anti-competitive measures that
restrict the accessibility of the Indian equity market to foreign exchanges.

    • WPI inflation eases to 2.84 percent y/y in January
    India's annual wholesale price inflation eased in January for the second
straight month after touching an eight-month high in November, helped by a
softer rise in food and fuel prices, government data showed on Thursday.

    • RBI says ready to inject more cash at March-end
    India's central bank will be ready to inject adequate amount of extra cash
into banks if needed ahead of March-end to give flexibility to lenders to manage
their liquidity mismatches that typically happen at quarter-end, it said in a
release on Thursday.
    
    
    GLOBAL TOP NEWS
    • U.S. Senate rejects immigration bills, leaves Dreamers in limbo
    The U.S. Senate rejected a series of bills to protect "Dreamer" immigrants
on Thursday, leaving in limbo the future of 1.8 million young adults brought to
the United States illegally as children.
    • Japan govt reappoints Kuroda as BOJ chief, picks reflationist academic as
deputy
    Japan's government on Friday reappointed Bank of Japan Governor Haruhiko
Kuroda for another term and chose an advocate of bolder monetary easing as one
of his deputies, a sign the central bank will be in no rush to dial back its
massive stimulus programme.
    • Ramaphosa elected president of South Africa, vows anti-corruption fight
    Cyril Ramaphosa was elected as South Africa's president in a parliamentary
vote on Thursday and pledged to tackle endemic corruption after scandal-ridden
Jacob Zuma resigned on orders from the ruling African National Congress.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were trading at 10,587.50, up 0.31 percent from its
previous close.
    • The Indian rupee will likely open slightly higher against the dollar, as
the greenback continued to trend down even after the U.S. reported upbeat
economic numbers that raised bets of faster rate hikes.
    • Indian sovereign bonds are likely to edge lower in early session amid lack
of fresh triggers in the domestic market, even as U.S. Treasury yields stay
elevated. The yield on the 7.17 percent bond maturing in 2028 is likely to trade
in a 7.54 percent-7.60 percent band today.
    
    
    GLOBAL MARKETS
    • Wall Street surged on Thursday to notch its fifth straight session of
gains, led by Apple and other technology stocks as investors shrugged off recent
inflation worries that sent the market into a sell-off at the start of the
month.
    • Asian shares extended their recovery from two-month lows into a fifth day
as the Wall Street market volatility gauge fell, while the U.S. dollar was
undermined by various worries including rising inflation.
    • The dollar slipped to a three-year low against a basket of currencies on
Friday, headed for its biggest weekly loss in two years, as bearish factors
offset support the U.S. currency could take from rising Treasury yields.

    • U.S. Treasury yields slipped on Thursday after sizable gains in recent
sessions, as investors took a breather from selling bonds and readjusted
positions to prepare for more inflation-related volatility, a scenario that
could take yields even higher.
    • Oil prices edged higher as the dollar stood near a three-year low in
subdued Asian trade, with many markets closed for the Lunar New Year holiday.

    • Gold prices held firm to remain on track for their biggest weekly
percentage gain in nearly two years, buoyed by a weaker U.S. dollar and as
investors looked to hedge against inflation.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         63.87/63.90  February 15      -$37.56 mln  -$15.13 mln
 10-yr bond yield  7.66 pct     Month-to-date    -$1.00 bln   $387.16 mln
                                Year-to-date     $1.04 bln    $1.86 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 = 63.8900 Indian rupees)
    
    
    

 (Compiled by Yoganand KN in Bengaluru)
  
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