October 10, 2018 / 3:25 AM / 2 months ago

Morning News Call - India, October 10

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    FACTORS TO WATCH
    1:00 pm: Bandhan Bank earnings conference in Mumbai.
    
    GMF: BITCOIN FOCUS
    While most feel that bitcoin has been enveloped in bouts of volatility, its
3- month volatility is at medium-term lows. What more can be expected from the
king of cryptocurrencies? We speak to our forum member-turned-guest, Stephen
Quan from Quan Holdings, at 09:30 am IST. To join the conversation, click on the
link: here
    
    
    INDIA TOP NEWS
    • India likely to miss fiscal deficit target due to fuel excise duty cut -
Moody's
    India is likely to overshoot its fiscal deficit target for 2018/19 by a
small margin following its decision to cut fuel excise duties, Moody's Investors
Service said on Tuesday, describing the move as "credit negative".
    • State Bank of India ups target for loan portfolio purchase from NBFCs
    Top lender State Bank of India said it is stepping up its target to buy
"good quality" asset portfolios from non-banking financial companies (NBFC).

    • India to export raw sugar for first time in 3 years as global prices rally
    Indian sugar mills have signed deals to export raw sugar for the first time
in three years as a rally in New York prices to seven-month highs along with
government subsidies made exports lucrative, five dealers and two industry
officials told Reuters.
    • WhatsApp builds system to comply with India's payments data storage norms
    WhatsApp has built a system to store payment-related data in India, in line
with a central bank directive that all such data must only be stored locally, as
the Facebook-owned messenger looks to deepen its offerings in its biggest market
by users.
    • Work stalls in many small factories in Indian PM's home state after
attacks on migrants 
Mukesh Patel's factory making decorative lights sits eerily silent during what
should be one of its busiest times of the year. Work at the plant in Ahmedabad,
the largest city in India's western state of Gujarat, has come to a standstill
just ahead of India's crucial festival shopping season as dozens of his workers
have fled the state.
    
    GLOBAL TOP NEWS
    • Global financial stability risks rising with trade tensions, IMF says
    Risks to the global financial system have risen over the past six months and
could increase sharply if pressures in emerging markets escalate or global trade
relations deteriorate further, the International Monetary Fund said.

    • Japan August core machinery orders point to more capex gains
Japan's core machinery orders unexpectedly rose in August after robust gains in
the previous month in a sign that capital spending is set to grow as companies
invest in new equipment and software to manage labour shortages.
    • Trump's U.N. envoy Haley resigns, rules out 2020 run for office
    Nikki Haley, a rising Republican star, said on Tuesday she was stepping down
as U.S. ambassador to the United Nations, but knocked down speculation that she
might challenge President Donald Trump at the next election.
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading up 0.3 percent at 10,343.50,
from its previous close.
    • The Indian rupee is expected to open higher against the U.S. currency amid
a media report that policymakers are considering tapping citizens overseas for
dollar flows as early as this month. Falling Treasury yields, which propped up
Asian currencies, are also expected to support the rupee.
    • Indian government bonds will likely edge higher as the U.S. Treasury
yields eased from multi-year highs and as the Reserve Bank of India will hold an
open market purchase of bonds on Thursday. The yield on the benchmark 7.17
percent bond maturing in 2028 may trade in a 8.04 percent-8.10 percent band
today.
    
    
    GLOBAL MARKETS
    • The Dow and S&P 500 ended slightly lower on Tuesday as investors, worried
about global growth prospects, fled from materials and industrials stocks but
falling bond yields kept declines in check in the three major indexes.
    • Asian shares steadied in early trade after world stocks hit eight-week
lows the previous day on worries about global economic growth, although the
pound stayed firm on hopes for a Brexit deal.
    • The dollar slipped further from seven-week highs after U.S. Treasury
yields edged lower overnight while sterling took some comfort on hopes Britain
and the European Union might be close to a Brexit deal.
    • U.S. long-dated Treasury yields fell on Tuesday in choppy trading, as
investors took a respite from selling bonds that took rates to multi-year highs
following recent economic data and on interest rate prospects over the next year
and a half.
    • Oil prices edged lower after the IMF lowered its global growth forecasts
but prices were supported as Hurricane Michael churned towards Florida, causing
the shutdown of nearly 40 percent of U.S. Gulf of Mexico crude output.
    • Gold prices crawled higher as long-dated U.S. Treasury yields retreated
from multi-year highs, pressuring the dollar.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         74.25/74.28  October 9        -$167.09 mln  -$97.06 mln
 10-yr bond yield  8.08 pct     Month-to-date    -$1.58 bln    -$786.47 mln
                                Year-to-date     -$3.75 bln    -$7.54 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 = 74.3300 Indian rupees)

 (Compiled by Debanjan Bose in Bengaluru)
  
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