October 5, 2018 / 3:39 AM / 15 days ago

Morning News Call - India, October 5

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    FACTORS TO WATCH
    2:30 pm: Monetary Policy Committee to announce interest rate decision in
Mumbai 
    2:45 pm: RBI Governor Urjit Patel briefs media, following the release of
monetary policy statement, in Mumbai.
           
    
    INDIA TOP NEWS
    • ICICI's scandal-hit Kochhar quits as CEO, Bakhshi gets top job
    ICICI Bank Ltd chief Chanda Kochhar, who has been mired in controversy for
months, resigned on Thursday after seeking an early retirement and will be
replaced by Sandeep Bakhshi, the Indian private lender said.
    • New board to consider all options to revive India's IL&FS
    India's Infrastructure Leasing & Financial Services (IL&FS), a debt-laden
infrastructure financing and construction company, will consider all available
options to revive the firm, its new non-executive chairman said on Thursday.

        • Slackening demand drags India services activity to four-month low in
Sept
    Activity in India’s dominant services sector eased to a four-month low in
September on dwindling demand, while intensifying price pressures pointed to a
bumpy road ahead, a private survey showed on Thursday.
    • Supreme court allows ArcelorMittal, NuMetal to bid for Essar Steel
India's Supreme Court allowed ArcelorMittal SA and NuMetal to bid for
debt-ridden Essar Steel after clearing their outstanding dues within two weeks,
according to a court ruling on Thursday.
    • ANALYSIS-India's ratings firms face reform pressure after failing to flag
IL&FS woes
    India's credit rating agencies are set to come under intense pressure from
the authorities and investors over their failure to proactively flag financial
problems at one of the country's biggest non-banking financial companies until
after a subsidiary defaulted on some of its debt.
    • India cuts fuel tax, refinery prices to ease pain of rising crude, weak
rupee
    India is cutting prices of gasoline and diesel by 2.50 rupees ($0.03) a
litre, Finance Minister Arun Jaitley said on Thursday, the government's latest
step to tackle the impact of a sharp rise in crude oil prices and a weak local
currency.
    
    
    GLOBAL TOP NEWS
    • Japan household spending posts biggest rise in 3 years, signals steady
recovery
    Japan's household spending jumped in August at the fastest annual pace in
three years as bigger bonuses boosted consumption, suggesting robust domestic
demand could help offset ill-effects from escalating trade
frictions.
    • Samsung Q3 profit likely hit record high but chip price falls cast shadow
    Samsung Electronics Co Ltd said quarterly operating profit likely surged by
a fifth to a record high, with its chip unit bolstered by robust demand from
data centres and gains in production yields.
    • Apple, Amazon deny Bloomberg report on Chinese hardware attack
    Apple Inc and Amazon.com Inc denied a Bloomberg Businessweek report on
Thursday that said their systems had been infiltrated by malicious computer
chips inserted by Chinese intelligence agents.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading off 0.4 percent at 10,561.50,
from its previous close.
    • The Indian rupee is expected to open lower against the dollar ahead of the
nation’s Monetary Policy Committee decision on whether to raise interest rates
to support Asia’s worst-performing currency this year.
    • Indian government bonds will likely edge lower ahead of the nation's
monetary policy decision today, where traders expect a monetary tightening. The
yield on the benchmark 7.17 percent bond maturing in 2028 may trade in a 8.15
percent-8.20 percent band today until the outcome of the three-day meeting of
the Monetary Policy Committee that ends today, a dealer with a private bank
said.
    
    
    GLOBAL MARKETS
    • Wall Street stocks stumbled on Thursday as U.S. Treasury yields continued
their ascent to multi-year highs on the latest round of strong economic data,
building concerns for an acceleration of inflation.
    • Asian shares were fragile after benchmark U.S. Treasury yields surged to a
seven-year high and strong economic data fanned concerns about inflation and the
risk of faster-than-expected interest rate rises.
    • The dollar stood tall against its major peers, including the yen and euro,
as investors evaluated the impact of a two-day global government bond rout that
has lifted U.S. Treasury yields to seven-year highs.
    • A selloff in U.S. Treasury bonds that has sent yields to multi-year highs
continued on Thursday, pushing the benchmark 10-year bond yield to its highest
level since May 2011.
    • Oil prices rose, as traders focused on U.S. sanctions against Iran's crude
exports that are set to start next month to tighten global markets.
    • Gold prices held steady as investors remained cautious after U.S. Treasury
yields hit multi-year peaks and ahead of monthly employment data, which if
stronger could boost the Federal Reserve's case for a tighter monetary policy.

    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         73.63/73.66  October 4        -$375.03 mln  -$87.64 mln
 10-yr bond yield  8.16 pct     Month-to-date    -$429.94 mln  -$446.40 mln
                                Year-to-date     -$2.60 bln    -$7.20 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 = 73.62 Indian rupees)
    
    

 (Compiled by Siddharth Athreya V in Bengaluru)
  
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