October 3, 2018 / 3:20 AM / in 3 months

Morning News Call - India, October 3

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    FACTORS TO WATCH
    
    LIVECHAT - MARKETS FOCUS
    Stephen Innes, head of APAC trading at Oanda, joins us to talk about markets
and cues to watch and what next to expect from central banks at 09:30 am IST. To
join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • Government takes control of IL&FS to stem contagion
    India on Monday took control of Infrastructure Leasing and Financial
Services (IL&FS), in a rare move that it said was needed to protect the
country's financial system and markets from potential collapse.
    • India Sept factory growth picks up pace on strong demand and exports
    Indian factory activity expanded more quickly in September on strong
domestic and export order growth, a business survey showed, a welcome sign of
strength as policy makers worry about a sharp drop in the rupee and fallout from
global trade frictions.
    • India pumps in liquidity; bonds see profit-taking after initial rally
    The Indian central bank said on Monday it would pump $4.95 billion into
money markets in October, pledging to buy back government bonds as part of a bid
to quell fears of a credit crunch cascading through the economy.
    • Bandhan Bank plunges to all-time low as RBI tightens scrutiny
    Bandhan Bank Ltd shares plunged to their lowest since March debut on Monday
after the central bank withdrew permission to open new branches and froze chief
executive's salary, as the banking regulator tightens its grip over the
country's crisis-hit financial sector.
    • Vedanta shareholders back London delisting amid protest
    Shareholders in Vedanta Resources, the UK arm of Indian miner Vedanta, on
Monday backed the delisting of the company from London, where the miner has
faced protests and legal action.
    • Garden Reach Shipbuilders IPO fully subscribed after 3-day extension
    Garden Reach Shipbuilders & Engineers Ltd's initial share sale to raise up
to $47.31 million was fully subscribed on the sixth day of the sale on Monday,
after the state-owned firm extended the offer by three days.

    
    GLOBAL TOP NEWS
    • Japan Sept services PMI slumps to 2-yr low after natural disasters
    Japan's services sector grew at its slowest pace in two years in September
due to heavy rains, flooding, and earthquakes, a private survey showed on
Wednesday.
    • Trade pact clause seen deterring China trade deal with Canada, Mexico
    China's hopes of negotiating a free trade pact with Canada or Mexico were
dealt a sharp setback by a provision deep in the new U.S.-Mexico-Canada trade
agreement that aims to forbid such deals with "non-market" countries, trade
experts said on Tuesday.
    • Tesla worried by China tariffs even as deliveries surge
    Tesla Inc announced record quarterly car production on Tuesday but warned of
major problems with selling cars in China due to new tariffs that would force it
to accelerate investment in its factory in Shanghai.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures trading up 0.5 percent at 11,015.00, from
its previous close. 
    • The Indian rupee is expected to open at a record low against the dollar as
Brent crude oil prices reached a fresh four-year high. 
    • Indian government bonds will likely edge lower in early trade tracking a
rise in crude oil prices and as the local currency may continue to depreciate
against the dollar. The yield on the benchmark 7.17 percent bond maturing in
2028 may trade in a 7.98 percent-8.05 percent band today, a dealer with a
state-run bank said. 
    
    
    GLOBAL MARKETS
    • The Dow hit a record closing high on Tuesday, but another drop in Facebook
shares weighed on both the S&P 500 and Nasdaq, driving both to finish in the
red.
    • Asian shares ticked down and the euro held at six-week lows as Italy's
mounting debt and Rome's budget plan set it on a collision course with the
European Union. 
    •  The dollar stood near a one-month high against its peers as concerns as
political wrangling over Italy's budget plan rattled market sentiment and
weighed on the euro.
    • The yield curve flattened on Tuesday as a hawkish afternoon speech from
Federal Reserve Chair Jerome Powell lifted the short end of the curve while the
long end remained muted as investors sought safety from the Italian bond
selloff.
    • Oil prices were firm on expectations of a tighter market once U.S.
sanctions start targeting Iran's petroleum industry from next month, although a
strong dollar and rising U.S. crude supply curbed gains.
    • Gold prices edged up after gaining over 1 percent in the previous session,
buoyed by safe-haven demand as Italy's budget plan sets it on course for a
potential clash with the European Union.
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         72.74/72.77  October 1        -$252.61 mln  -$338.52 mln
 10-yr bond yield  7.99 pct     Month-to-date    -$1.31 bln    ---
                                Year-to-date     -$2.17 bln    -$7.29 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 = 72.92 Indian rupees)

    

 (Compiled by Siddharth Athreya V in Bengaluru)
  
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