June 21, 2018 / 3:16 AM / 5 months ago

Morning News Call - India, June 21

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    FACTORS TO WATCH
    9:30 am: NITI Aayog member V.K. Saraswat at India Minerals and Metals Forum
in New Delhi.
    10:30 am: Bank of Maharashtra annual meeting in Pune.
    
    LIVECHAT - OIL FOCUS
    Henning Gloystein, Reuters Asia deputy editor for commodities, joins us
ahead of the crucial OPEC meeting on June 22 to discuss what could be expected
in terms of output increases at 0930 IST. To join the conversation, click on the
link: here
    
    LIVECHAT - U.S.- CHINA TRADE WORRIES
    World markets were spooked on Tuesday as U.S. President Donald Trump
threatened to levy further tariffs on Chinese goods. What exactly is Trump
aiming for and is that achievable without any large-scale blowback? Andrew Polk,
co-founder at Trivium China, former China director for Medley global advisors
and a resident economist at the Conference board, will answer these questions
and more on trade and tariffs at 1200 IST. To join the conversation, click on
the link: here
    
    LIVECHAT - EUROPE MARKETS AND TRADE FEARS
    While trade tariff talks have US and China as the main players, the European
economy is the lead actor. In general, European companies are far more exposed
to the global economy than U.S. companies, making them more vulnerable to
countries slapping higher tariffs on goods. Alastair Winter, chief economist at
Daniel Stewart & Company talks about it at 1300 IST. To join the conversation,
click on the link: here
    
    TRADING INDIA FORUM - FORENSIC ACCOUNTING
    Co-founder of 2Point2 Capital Amit Mantri's blog on Manpasand a couple of
years ago came back to haunt the stock. With the auditors resigning, the stock
fell 65 percent. We speak to Amit at 1100 IST on the topic of forensic
accounting and how analysts fail to see the larger picture or worse, ask the
right questions. To join the conversation, click here. To join the conversation,
click on the link: here
    
    
    INDIA TOP NEWS
    Air India stake sale plan shelved, alternatives being worked on - govt
    India has shelved a plan to sell a 76 percent stake in state-owned carrier
Air India due to lack of interest from bidders, a government official said on
Wednesday, marking the latest setback in its ambitious efforts to rescue the
ailing airline.
    India ships more cotton to China as 25 percent tax spoils U.S. supply
    India's cotton shipments to China could grow five-fold to 850,000 tonnes in
the next crop year as exporters rack up orders amid a trade war that is forcing
the world's top consumer to look for other sources of supply. 
    Energy guzzler India urges OPEC to tackle high oil prices
    India, the world's third-biggest oil consumer and importer, on Wednesday
urged OPEC nations to fill a supply gap and ensure sustainable oil prices as
politics affect the output of some producers.
    Police arrest CEO, director of state-run Bank of Maharashtra over loans
    Police arrested the chief executive and an executive director of state-run
Bank of Maharashtra on Wednesday, accusing them of misusing their authority in
making loans to a property developer.
    Chief Economic Adviser Arvind Subramanian latest high profile hire to quit
government
    India's chief economic adviser Arvind Subramanian said on Wednesday he was
quitting his post to return to academic research in the United States, the third
high-profile hire to leave Prime Minister Narendra Modi's economic
administration.
    Bosch to invest 17 billion rupees in India over next 3 years
    German auto parts maker Bosch Group plans to invest $250 million in India
over the next three years to meet growing demand in the domestic automotive
market, Chief Executive Officer Volkmar Denner said on Wednesday.
    Vedanta says acid leak severe at south Indian copper smelter
    Vedanta said on Wednesday a sulphuric acid leak from a tank at its southern
Indian copper smelter was severe and inaction could lead to serious
environmental consequences.
    India rate panel strikes balanced tone, awaits clarity for further move -
minutes
    India's monetary policy committee struck a balanced note on its rate stance
going forward and cited rising inflation pressure due to high oil prices as the
key reason for raising interest rates in the June meeting, according to minutes
of the meeting released by the Reserve Bank of India on Wednesday.
    
    
    GLOBAL TOP NEWS
    Trump backs down on separating immigrant children, legal problems remain
    U.S. President Donald Trump on Wednesday backed down and abandoned his
policy of separating immigrant children from their parents on the U.S.-Mexico
border, after images of youngsters in cages sparked outrage at home and abroad.

    EXCLUSIVE-Toyota, pressed to innovate, is cutting marketing costs to fuel
research
    Toyota has begun slashing costs, starting with sales and marketing, and
shifting resources into research that will help it keep up with new competitors,
four people familiar with the matter said.
    U.S. identifies N.Korea missile test site it says Kim committed to destroy
    The missile engine test site that President Donald Trump said North Korean
leader Kim Jong Un had committed to destroy is a major facility in the western
part of the country that has been used for testing engines for long-range
missiles, according to a U.S. official.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty nearest-month futures were trading little changed at
10,797.5.
    • The Indian rupee is expected to open slightly lower against the dollar,
mirroring weakness in regional currencies, after the Federal Reserve Chair
Jerome Powell reiterated the central bank’s commitment to more interest rate
increases.  
    • Indian government bonds are expected fall in early trade after the minutes
of the Monetary Policy Committee’s June meeting reiterated the panel’s
commitment to maintain inflation at the target of 4 percent. The yield on the
benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.81
percent - 7.88 percent band today.
    
    
    GLOBAL MARKETS
    • The Nasdaq closed at a record on Wednesday, lifted by a climb in large-cap
tech and consumer discretionary names, while the Dow and S&P 500 were hemmed in
as concerns over an escalation in the U.S.-China trade skirmish simmered.
    • Asian shares crept ahead as a lull in the Sino - U.S. trade tussle and
talk of more Chinese stimulus helped calm nerves, while tensions in the oil
market grew ahead of an OPEC meeting that could expand the supply of crude.

    • The dollar hovered near an 11-month high against a basket of currencies,
supported by a rise in U.S. yields, while the pound struggled at its lowest
level since November 2017 ahead of Bank of England's monetary policy decision.

    • U.S. Treasury yields rebounded from sharp falls in the previous session,
as expectations of further U.S. interest rate increases diverted the market's
attention from Washington's trade conflict with China.
    • Oil prices fell as Iran signalled it could be won over to a small rise in
OPEC crude output, potentially paving the way for the producer cartel to agree a
supply increase during a meeting on Friday.
    • Gold prices edged up, but hovered close to a six-month low touched in the
previous session as a firm U.S. dollar curbed gains.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.11/68.14  June 20          -$359 mln     -$236.98 mln
 10-yr bond yield  8.07 pct     Month-to-date    -$553.12 mln  -$1.18 bln
                                Year-to-date     -$797.77 mln  -$5.41 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 = 68.0500 Indian rupees)

 (Compiled by Swathi Nair in Bengaluru)
  
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