Morning News Call - India, October 1

(Morning News Call - India edition will not be published on Tuesday, October 2
as markets are closed for Mahatma Gandhi Jayanti)
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    5:00 pm: Government to release August Infrastructure output data in New
    EMEA Markets Editor Mike Dolan analyses the state of the European markets at
03:30 pm IST. To join the conversation, click on the link: here
    • ANALYSIS-India's shadow banking sector likely to face shake-up after
    India's burgeoning shadow finance sector is likely to face a shake-up after
defaults at one major lender battered the nation's financial markets in the past
week and reinforced worries about credit risk.
    • IL&FS wins shareholder approval for restructuring plan
    India's troubled Infrastructure Leasing and Financial Services Ltd (IL&FS),
whose recent defaults have roiled Indian markets, said on Sunday its
shareholders have approved a plan allowing it to raise fresh funds through debt
and equity issuances.
    • Life Insurance Corp open to taking part in IL&FS rights issue 
    Life Insurance Corporation, the largest shareholder in debt-ridden
Infrastructure Leasing & Financial Services (IL&FS), is open to participating in
a rights issue, the insurer's chairman V.K. Sharma said on Friday.
    • Yes Bank plunges to 29-month low as management crisis drags on 
    Shares of India's Yes Bank Ltd plunged nearly 10 percent on Friday to a
29-month low, as the lender's management crisis caused by the central bank
curtailing its top executive's tenure dragged on.
    • Ircon International falls on debut after $64.8 million IPO
    Shares of state-run construction company Ircon International Ltd fell as
much as 13 percent on its trading debut on Friday, after a 4.70-billion-rupee
($64.77 million) initial public offering (IPO).
    • Canada, U.S. reach deal to update NAFTA -Canadian sources
    The United States and Canada reached a deal to update NAFTA and keep it a
trilateral pact with Mexico, beating a midnight deadline with agreements to
boost U.S. access to Canada's dairy market and protect Canada from possible U.S.
autos tariffs, two Canadian sources with direct knowledge of the talks said on
    • China factory sector hurt in September as trade frictions bite
    Growth in China's manufacturing sector sputtered in September as both
external and domestic demand weakened, two surveys showed on Sunday, raising the
pressure on policymakers as U.S. tariffs appear to be inflicting a heavier toll
on the Chinese economy.
    • Tesla's SEC deal provides ammunition for U.S. probe, investor lawsuits
    Tesla Inc's settlement with U.S. regulators will help soothe investors
calling for more oversight of Chief Executive Elon Musk, experts said, even as
it gives ammunition to short-sellers pursing separate cases and to a probe by
the Justice Department.
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading up 0.1 percent at 10,971.00,
from its previous close.
    • The Indian rupee is expected to open lower against the dollar after crude
oil prices climbed to fresh four-year highs on looming supply concerns.
    • Indian government bonds will likely gain in early trade after the federal
government reduced its gross market borrowing for the current fiscal year by 700
billion rupees. The yield on the benchmark 7.17 percent bond maturing in 2028
may trade in a 7.98 percent-8.06 percent band today, a dealer with a private
bank said.
    • Wall Street ended flat on Friday as gains by Intel, real estate companies
and utilities offset a drop in Facebook after the social media network disclosed
a security breach.
    • The Canadian dollar and the Mexican peso rose on hopes of progress in
negotiations over a renewed North American Free Trade Agreement (NAFTA) deal,
but Asian shares got off to a slow start amid further signs of weakness in
    • The dollar dipped against the Canadian dollar ahead of a looming deadline
in Canada-U.S. talks over reworking the North American Free Trade Agreement,
while hitting a more than 10-month high against the yen.
    • U.S. Treasury yields slipped on Friday as the $15.3 trillion bond sector
recorded its worst month since January due to rising government debt supply and
sturdy economic data that have enabled the Federal Reserve to keep raising
interest rates.
    • Brent crude oil prices hit their highest level since November 2014 ahead
of U.S. sanctions against Iran that kick in next month.
    • Gold prices dipped, with the dollar holding steady after marking a near
three-week high in the previous session in the wake of the U.S. Federal
Reserve's plans last week for multiple interest rate hikes by 2020.
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         72.61/72.64  September 28     -$234.48 mln  ---
 10-yr bond yield  8.02 pct     Month-to-date    -$1.08 bln    ---
                                Year-to-date     -$1.94 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 = 72.5000 Indian rupees)

 (Compiled by Siddharth Athreya V in Bengaluru)