July 19, 2018 / 3:23 AM / 3 months ago

Morning News Call - India, July 19

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    FACTORS TO WATCH
    9:30 am: Junior Finance Minister Shiv Pratap Shukla and SEBI Whole Time
Member Madhabi Puri Buch at ASSOCHAM Commodity Futures Market summit in New
Delhi.
    11:00 am: Monsoon session of Parliament continues in New Delhi.
    4:00 pm: Interim Finance Minister, Piyush Goyal, likely to meet NBCC,
banking officials to discuss measures to help real estate sector in New Delhi.
    
    TRADING INDIA FORUM – INDIAN EQUITY MARKETS
India equity markets have been on an upward swing despite global jitters. But
the rally hides the paucity of depth. Just five stocks are responsible for
majority of gains. Will such a narrow rally really hold or are we in for a
difficult remainder for 2018? We speak to Ajay Bodke, CEO & Chief Portfolio
Manager at Prabhudas Lilladher, at 11:00 am IST. To join the conversation, click
on the link: here
Please note, Ajay will not answer stock specific questions. 
    
    LIVECHAT - INVESTMENT FOCUS
Courtney Rickert McCaffrey, manager of the global business policy council at AT
Kearney, joins us to discuss the findings of the 2018 Foreign Direct Investment
Confidence Index, which was topped by the U.S. for the sixth year in a row, with
the government’s protectionist rhetoric motivating companies to invest there.
Developed markets reasserted their dominance as FDI destinations, with investors
focused on opportunities in Europe. Rising geopolitical tensions topped
investors’ list of likely wildcards for the fourth year in a row. 
    GMF: XXX. To join the conversation at 09:30 am IST, click on the link: here
    
    
    INDIA TOP NEWS
    • India to inject $1.65 billion in five state banks in about a week - govt
source
Government will inject a total 113.36 billion rupees in five state-run banks,
including fraud-hit Punjab National Bank, in a week or so, a senior government
official told Reuters on Wednesday.
    • Indian state to ask court to dismiss Vedanta plea to reopen copper smelter
Tamil Nadu will ask the nation's environment court to dismiss a Vedanta petition
seeking to reopen its copper smelter, a lawyer representing the state government
said on Wednesday.
    • Online ticketing portal BookMyShow raises $100 million funding
Bigtree Entertainment, owner of online movie and events ticketing portal
BookMyShow, on Wednesday said it has raised $100 million in its latest round of
funding from a group of investors.
    • UltraTech Cement Q1 profit beats estimates
UltraTech Cement on Wednesday reported a first-quarter net profit of 5.98
billion rupees, beating street estimates.
    • RCom reports smaller loss in first quarter
Debt-laden Indian telecoms company Reliance Communications (RCom) said its
losses narrowed in the first quarter and it is confident of closing its debt
resolution process by the end of September.
    • Amazon in talks to invest in MedPlus
Amazon.com Inc is in early talks to invest in Indian pharmacy chain MedPlus,
Indian news website FactorDaily reported on Tuesday, citing sources.

    • Bandhan Bank Q1 profit surges on higher interest income
Bandhan Bank posted a 47 percent surge in its quarterly profit on Wednesday,
helped by higher interest income.
    
    
    GLOBAL TOP NEWS
    • Japan exports to U.S. fall for first time in 17 months amid protectionism
fears
Japan's exports to the United States fell in June for the first time in 17
months amid worries about U.S. President Donald Trump's protectionist trade
policies.
    • White House struggles to contain political outcry over Trump-Putin summit
The White House struggled on Wednesday to contain a political outcry and
confusion over U.S. President Donald Trump's summit with Russian President
Vladimir Putin, denying Trump ever meant to say that Moscow was no longer
targeting the United States.
    • Audit faults U.S. oversight of auto safety recalls, Takata inflators
A government audit released on Wednesday faulted the National Highway Traffic
Safety Administration's oversight of auto safety recalls and said its "delayed
action" may have delayed the expansion of a record-setting callback of millions
of vehicles for Takata air bag inflators.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading at 11,011.50, up 0.3 percent
from previous close.
    • The Indian rupee is expected to open slightly lower in the wake of the
dollar index hitting a three-week high and the Chinese yuan’s continuing
weakness.
    • Indian government bonds are likely to open lower tracking an uptick in
U.S. Treasury yields following Fed Chairman Jerome Powell’s bullish stance on
U.S. economic growth. The yield on the benchmark 7.17 percent bond maturing in
2028 is likely to trade in a 7.73 percent-7.79 percent band today.
    
    
    GLOBAL MARKETS
    • The S&P 500 rose to its highest in more than five months and the Dow
climbed for a fifth session on Wednesday as solid earnings boosted financial and
industrial stocks and reinforced expectations for a strong second-quarter
reporting season.
    • Asian shares made early gains as upbeat Wall Street earnings supported
global investor sentiment, although trade war jitters pushed China's offshore
yuan to a fresh one-year low.
    • The dollar held firm against the yen and other major currencies, supported
by bullish comments from the U.S. Federal Reserve chairman, which affirmed
expectations about the central bank's possible interest rate moves this year.

    • U.S. Treasury yields were little changed on Wednesday with the yield curve
remaining near its flattest in nearly 11 years as Federal Reserve Chairman
Jerome Powell stayed on message about a healthy economy before a U.S. House of
Representatives committee.
    • U.S. Oil prices extended gains from the previous session, after official
data showed that U.S. inventories of gasoline, diesel and heating oil
unexpectedly fell last week.
    • Gold prices rose slightly, after hitting a one-year low in the previous
session, as the U.S. dollar eased off a three-week high.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.61/68.64  July 18          $13.94 mln    $93.42 mln
 10-yr bond yield  7.75 pct     Month-to-date    -$342.78 mln  -$226.03 mln
                                Year-to-date     -$1.13 bln    -$6.01 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 = 68.6200 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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