October 4, 2018 / 3:32 AM / in 2 months

Morning News Call - India, October 4

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    FACTORS TO WATCH
    Wang Tao, Reuters Market Analyst for Commodities Technicals, joins us to
discuss his 2018 Q4 outlook for commodities on the charts at 09:00 am IST. To
join the conversation, click here bit.ly/1kTxdKD
    
        
    INDIA TOP NEWS
    • India's rescue of debt-ridden IL&FS may spell major losses for lenders
-sources
    India's move to take control of debt-laden Infrastructure Leasing and
Financial Services (IL&FS) will only succeed if lenders agree to take
substantial losses, government sources familiar with the discussions told
Reuters.
    • ANALYSIS-Deepening farm crisis in India could hurt Modi's re-election bid 
    The financial squeeze on India's farmers is set to worsen because of record
high fuel prices and surging costs of fertilisers, posing a challenge to Indian
Prime Minister Narendra Modi in an election that must be held by
May.
    • Vedanta gets interim relief as Indian court stays state's land allotment
cancellation
    An Indian court on Wednesday ordered an interim stay on the cancellation of
land allotted for expansion of Vedanta's VED.L south Indian copper smelter, in a
relief to the conglomerate whose unit was shut on environmental
grounds.
    • RBI allows oil firms hit by rising costs to raise $10 billlion overseas
    India said on Wednesday it will allow state oil marketing firms to raise $10
billion in overseas loans to help them deal with a sharp rise in crude oil
prices and a falling rupee currency.
    • India risks U.S. sanctions with $5-billion purchase of Russian missiles
    The United States has warned India against a planned purchase of S-400
surface-to-air missiles from Russia when President Vladimir Putin's visits New
Delhi this week, saying such an acquisition would attract sanctions under U.S.
law.
    • Mauritius bank SBM says unit's India operations hit by cyber fraud
    Mauritius banking group SBM Holdings said on Wednesday that its Indian
operations suffered a cyber fraud earlier in the week, and that the bank has
potentially lost up to $14 million.
    
    
    GLOBAL TOP NEWS
    • Honda to invest $2.75 billion GM's self-driving car unit
Honda Motor Co Ltd will invest $2.75 billion and take a 5.7 percent stake in
General Motors Co's Cruise self-driving vehicle unit, to jointly develop
autonomous vehicles for deployment in ride services fleets around the
world.
    • EXCLUSIVE-Saudi Arabia, Russia agreed in Sept to lift oil output, told
U.S.
    Russia and Saudi Arabia struck a private deal in September to raise oil
output to cool rising prices and informed the United States before a meeting in
Algiers with other producers, four sources familiar with the plan
said.
    • U.S. judge says China's ZTE violated probation; extends monitor's term
    A U.S. judge on Wednesday issued an order finding that China's ZTE Corp
violated probation imposed in March 2017 when the company pleaded guilty for
conspiring to evade U.S. sanctions by illegally shipping U.S. goods and
technology to Iran.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading off 1.1 percent at
10,760.00,from its previous close. 
    • The Indian rupee is expected to open at fresh lifetime lows against the
dollar after upbeat U.S. economic data boosted 10-year Treasury yields to
multiyear highs. 
    • Indian government bonds will likely fall in early trade tracking a uptick
in crude oil prices and U.S. Treasury yields 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 8.12 percent-8.18 percent band
today, a dealer with a private bank said.
    
    
    GLOBAL MARKETS
    • Wall Street advanced on Wednesday and the Dow Jones Industrial Average
closed at a record for a second day, after U.S. economic data fueled a rise in
Treasury yields, lifting financial stocks.
    • The dollar notched an 11-month top on the yen as stunningly strong U.S.
economic data drove Treasury yields to their highest since mid-2011, while Asian
stocks were pressured as borrowing costs rose at home.
    •  U.S. Treasury yields jumped to multi-year peaks on Wednesday, with the
10-year yield reaching a seven-year high after economic data bolstered the case
for the Federal Reserve to raise interest rates again in December and
beyond.
    • Oil prices fell from four-year highs reached the previous session,
pressured by rising U.S. inventories and after sources said Russia and Saudi
Arabia struck a private deal in September to raise crude output.
    • Gold prices moved in a narrow range after losses in the previous session,
with robust U.S. economic data and hawkish comments from Federal Reserve
policymakers boosting the dollar.
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         73.31/73.34  October 3        -$211.34 mln  -$20.24 mln
 10-yr bond yield  8.11 pct     Month-to-date    ----          -$358.76 mln
                                Year-to-date     -$2.39 bln    -$7.11 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 = 73.34 Indian rupees)
    
    

 (Compiled by Siddharth Athreya V in Bengaluru)
  
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