October 8, 2018 / 3:32 AM / 2 months ago

Morning News Call - India, October 8

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    INDIA TOP NEWS
    • India surprises by leaving policy rate unchanged, rupee tumbles
    The Reserve Bank of India held interest rates unchanged on Friday,
condemning the rupee to a record low and surprising analysts who had expected a
rate rise to counter inflationary pressures arising from the weak currency and
high oil prices.
    • FOCUS-Saving the Titanic: India took control of IL&FS to avert
"catastrophic" damage - government
    The Indian government said it was forced to take control of ailing shadow
banking firm Infrastructure Leasing & Financial Services (IL&FS) as it feared
its collapse would cause "catastrophic" damage to the financial markets and the
economy, a court filing shows.
    • India seeks to reassure markets on deregulation of fuel prices
    India on Saturday sought to assure investors that the government would not
go back to regulating fuel prices, a day after oil company shares tumbled on
concerns about a return to a regime that has hurt their profits in the past.

    • India may be forced to delay Axis Bank stake sale - ET
    India may be forced to delay selling its stake in Axis Bank because of a
weak stock market, The Economic Times newspaper reported on Saturday, citing
unnamed market sources and an investment banker aware of the development.

    • India to keep buying Iranian oil despite U.S. sanctions - sources
    India will buy 9 million barrels of Iranian oil in November, two industry
sources said, indicating the world's third-biggest oil importer will continue
purchasing crude from the Islamic republic despite U.S. sanctions coming into
force on Nov. 4.
    
    GLOBAL TOP NEWS
    • China slashes banks' reserve requirements as trade war imperils growth
China's central bank on Sunday announced a steep cut in the level of cash that
banks must hold as reserves, stepping up moves to lower financing costs and spur
growth amid concerns over the economic drag from an escalating trade dispute
with the United States.
    • North Korea's Kim Jong Un says talks with Pompeo 'productive and
wonderful' -KCNA
    North Korean leader Kim Jong Un described his talks with U.S. Secretary of
State Mike Pompeo on Sunday as "productive and wonderful," state media KCNA
said, striking a positive tone compared with a previous state media stance when
talks were stalled.
    • INSIGHT-India’s Rohingya refugees struggle with hatred, fear as first
group is expelled
    Hours after Indian TV channels flashed that the country was deporting seven
Rohingya Muslims to Myanmar, Sahidullah said he received a call from his nephew:
"Uncle, please get us out of here. They will send us back too." Sahidullah, a
Rohingya living in the far north of India after fleeing what he called
persecution in Buddhist-majority Myanmar in 2010, said his relative, Sadiur
Rahman, 40, was lodged in one of several detention centres for illegal
immigrants in the distant northeastern state of Assam.  
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading off 0.2 percent at 10,275.50,
from its previous close.
    • The Indian rupee is expected to open lower against the dollar, weighed by
a further rise in long-term U.S. Treasuries following non-farm payroll data.
    • Indian government bonds will likely edge higher in early trade tracking a
fall in crude oil prices. The yield on the benchmark 7.17 percent bond maturing
in 2028 may trade in a 7.98 percent - 8.03 percent band today, a dealer with a
private bank said. 
    
    GLOBAL MARKETS
    • U.S. stocks dropped for a second straight day on Friday, weighed down by
another rise in Treasury yields in the wake of a solid jobs report that capped
off a week of robust data.
    • Shares in Asia stumbled in early trade as investors waited with bated
breath as China's markets prepare to reopen following a week-long holiday and
after its central bank cut banks' reserve requirements in a bid to support
growth.
    • The dollar edged higher as China followed an easing in domestic policy by
allowing its yuan to fall, though the drop was not as sharp as some had feared.

    • The U.S. Treasuries market tumbled for a third straight day with the
10-year yield hitting a seven-year high, as a solid payrolls report fueled
jitters about rising inflation and more interest rate hikes.
    • Brent crude oil prices fell by more than 1 percent after Washington said
it may grant waivers to sanctions against Iran's oil exports next month, and as
Saudi Arabia was said to be replacing any potential shortfall from Iran.
    • Gold prices inched lower as the dollar firmed after China's central bank
eased its domestic policy to support the economy.
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         74.04/74.07  October 5        -$456.86 mln  $61.21 mln
 10-yr bond yield  8.02 pct     Month-to-date    -$736.48 mln  -$385.19 mln
                                Year-to-date     -$2.91 bln    -$7.14 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 = 73.7650 Indian rupees)

 (Compiled by Debanjan Bose in Bengaluru)
  
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