March 1, 2018 / 3:35 AM / 8 months ago

Morning News Call - India, March 1

(India Morning Newsletter will not be published on Friday, March 2, as markets
are closed for Holi)

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    FACTORS TO WATCH
    9:00 am: Defense Minister Nirmala Sitharaman at Annual Army Seminar in New
Delhi. 
    10:30 am: Finance Minister Arun Jaitley and State Bank of India Chairman
Rajnish Kumar at Civil Accounts Day function in New Delhi.
    
    LIVECHAT- COMMODITIES FOCUS
    Oil prices are pressured as high U.S. crude exports outweigh an unexpected
drop in inventories in the world's biggest fuel consumer. Meanwhile, demand
outlook for metals looks bright with China back from its Lunar New Year holiday,
while cautiousness persists in gold thanks to the Fed. Clyde Russell, Reuters
Asia commodities and energy columnist, talks on the subject at 0930 IST. To join
the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • India regains status as fastest growing major economy
    India regained its status as the world's fastest growing major economy in
the October-December quarter, surpassing China for the first time in a year as
government spending, manufacturing and services all picked up.
    
    • Federal police arrest auditor at PNB as investigation widens
    The federal police on Wednesday arrested an auditor of a Punjab National
Bank branch at the centre of an alleged $2 billion fraud, a police spokesman
said, bringing the number of bank employees held to seven as the investigation
widens.
    
    • Mobile carrier Aircel files for bankruptcy
    Mobile carrier Aircel Ltd filed for bankruptcy on Wednesday, pressured by a
high debt pile and mounting losses following a price war triggered by a telecom
upstart. 
            
    • Bharti Airtel wants to get out of towers, committed to Africa
    Bharti Airtel is exploring merger and sale options for its mobile towers
businesses as Chairman Sunil Bharti Mittal seeks to get out of the
infrastructure game and focus on connectivity.
    
    • H.G. Infra Engg's $70.9 mln IPO subscribed nearly 5 times
    Construction firm H.G. Infra Engineering Ltd's initial public offering to
raise up to $70.92 million was subscribed 4.9 times on the last day of the sale
on Wednesday.
    
    • India to double state purchases of oilseeds, pulses to help farmers
    India's cabinet approved on Wednesday doubling state purchases of oilseeds
and pulses from farmers, in a bid to boost local output and prevent distressed
sales.   
           
    • Police probing graft case arrest son of former finmin Chidambaram
    The federal police arrested the son of former finance minister P.
Chidambaram on Wednesday, but the agency which has been investigating suspected
criminal misconduct related to approvals of investment deals, did not reveal the
charges.
    
    • Amazon launches music streaming service in India
    Amazon.com launched its music-streaming service in India on Wednesday, its
latest offering to drive customers to shop more on its flagship e-commerce
platform.    
    
    
    GLOBAL TOP NEWS
    • China Feb factory growth picks up to 6-month high - Caixin PMI
    Growth in China's manufacturing sector unexpectedly picked up to a six-month
high in February as factories rushed to replenish inventories to meet rising new
orders, a private survey showed on Thursday.
    
    • In blow to Trump, top aide Hope Hicks to leave White House
Hope Hicks, one of U.S. President Donald Trump's longest-serving and most
trusted aides, is resigning from her job as White House communications director,
a blow to the president, whose inner circle has been depleted by firings and
clouded by scandal.  
           
    • Walmart joins Dick's Sporting Goods in raising age to buy guns
    Walmart, the largest U.S. retailer, joined Dick's Sporting Goods in raising
the minimum age to purchase firearms to 21 after the massacre at a Florida high
school that has reopened a fierce debate over gun control in America.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were trading at 10,457.00, down 0.6 pct from its
previous close.
    • The Indian rupee will likely open lower against the dollar, as ongoing
concerns about higher U.S. inflation and interest rates pressured risk assets
and boosted the greenback. 
    • Indian government bonds may ease in early trade after a
faster-than-expected economic growth in the third quarter of this fiscal year
boosts expectations of monetary policy tightening going ahead.The yield on the
7.17 pct bond maturing in 2028 is likely to trade in a 7.70 pct-7.76 pct band
today.  
    
    
    GLOBAL MARKETS
    • U.S. stocks sold off late to end sharply lower on Wednesday, dragged down
by continued worries over rising interest rates, and the Dow and S&P 500 capped
their worst months since January 2016.
    • Asian stocks fell after Wall Street marked its worst monthly performance
in two years as the impact from new Federal Reserve chief Jerome Powell's
hawkish-sounding comments reverberated across the broader risk asset
markets.
    • The dollar held firm, drawing support after the Federal Reserve's new
chief Jerome Powell struck an optimistic tone on the U.S. economy in a boost to
rate hawks that sent global stocks tumbling.
    • The spread between short- and longer-dated U.S. Treasury yields shrank
further on Wednesday after Federal Reserve Chairman Jerome Powell's optimistic
outlook on the economy raised bets the U.S. central bank may raise interest
rates faster.
    • Oil prices extended declines after official data showed a
larger-than-expected increase in U.S. crude inventories and a surprise build in
gasoline stocks.
    • Gold prices dipped, pulled down as the dollar remained strong following
comments from Federal Reserve Chairman Jerome Powell that fanned concerns of
faster-than-expected hikes in U.S. interest rates.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         65.23/65.26  February 28      -$268.56 mln  -$281.68 mln
 10-yr bond yield  7.73 pct     Month-to-date    -$1.67 bln    -$379.74 mln
                                Year-to-date     $371.87 mln   $1.09 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 = 65.2000 Indian rupees)

 (Compiled by Swathi Nair in Bengaluru)
  
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