October 12, 2018 / 3:18 AM / 2 months ago

Morning News Call - India, October 12

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    FACTORS TO WATCH
    5:30 pm: Government to release August Industrial production data in New
Delhi
    5:30 pm: Government to release September consumer price inflation data in
New Delhi
    
    
    INDIA TOP NEWS
    • TCS forecasts double-digit revenue growth after record profit
    India's top software services exporter Tata Consultancy Services has
forecast double-digit revenue growth in this fiscal year, driven by strong
demand for digital services and healthy spending by key clients.
        • Top brewers raided by Indian watchdog in price-fixing probe -sources
India's antitrust watchdog raided the offices of three top beer companies on
Thursday as part of an investigation of price-fixing allegations, three sources
with direct knowledge of the matter told Reuters.
    • RBI changes tack on forex intervention, focuses on forwards market 
    India's central bank has changed tack in its foreign exchange intervention
policy, increasing its participation in the derivatives market in relation to
the spot market in an apparent attempt to avoid a cash crunch in the banking
system.
    • Dassault says it picked Reliance of its own will for India jet contract 
    Dassault Aviation said it picked India's Reliance Defence as a partner for a
big military combat deal on its own, countering a French online media report
that said the Indian government insisted on the firm as a condition of the
contract.
    • GRAPHIC-India's NSE index off to its worst start to October quarter in a
decade
    India's benchmark NSE index is off to its weakest start to the October
quarter since 2008 after a global sell-off on Thursday further dented investor
sentiment just as the Indian economy enters its peak-demand festive
season.
    • Flipkart confident of bumper sales season; says Amazon losing relevance 
Online retailer Flipkart, owned by Walmart, expects bumper sales during the
annual festive season that just kicked off, as it boasts that U.S. rival Amazon
is losing relevance in India.
    • India to raise import tariffs on electronic and communication items
    India said on Thursday it will raise import tariffs on several electronic
items and communication devices, in another move to rein in imports and bolster
a falling rupee.

        
    GLOBAL TOP NEWS
    • IMF warns trade friction, market turmoil to hurt Asian growth
    Sustained trade tensions could slash Asia's economic growth by up to 0.9
percentage point in coming years, the International Monetary Fund said, urging
policymakers in the region to liberalise markets to offset the fall in export
sales.
    • Call 'em crazy, but Fed officials likely to keep raising rates
    A stock sell-off, rising trade tension with China, slower global growth and
verbal pressure from the White House are unlikely to dent the U.S. Federal
Reserve's rate hike plans in an economy performing in line with the central
bank's forecasts.
    • China constricts capital outflows with eye on yuan stability
    China's latest attempts at restricting outward investment by its residents
show just how nervous policymakers in the world's second largest economy are
about possible capital flight spurred by a broadening Sino-U.S. trade war.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.3 percent higher at 10,312.50, from
its previous close.
    • The Indian rupee is expected to open higher against the U.S. currency
after inflation in the world’s largest economy trailed estimates, pulling the
dollar index down by the most in two weeks.
    • Indian government bonds are likely to open higher today as a continued
fall in crude oil prices eased inflation concerns, while the local currency is
also expected to rise against the dollar. However, major gains in bonds are
likely to be capped ahead of a fresh supply of notes and local retail inflation
data. Yield on the benchmark 7.17 percent bond maturing in 2028 may trade in a
7.95 percent-8.02 percent band today.
    
    
    GLOBAL MARKETS
    • Wall Street indexes continued their slide in Thursday's volatile session
as investors worried about rising interest rates and braced for a trade war hit
to corporate earnings a day ahead of the quarterly reporting season kickoff.

    • Asian shares appeared tentative, holding steady after a nine-day losing
streak, but sentiment was frail after Wall Street shares crumbled and
expectations of market volatility shot up to an eight-month high.
    • The U.S. dollar traded near its lowest level in nearly two weeks against
its major peers as declining U.S. treasury yields and further losses on Wall
Street soured sentiment.
    • U.S. Treasury yields fell to one-week lows on Thursday, sliding for a
second straight session, as Wall Street shares dropped a day after posting steep
losses on worries about prospects for rising interest rates.
    • Oil prices steadied after a market rout driven by sharp falls in equity
markets and indications that supply concerns have been overblown, but were still
on track for a fall or more than 4 percent for the week.
    • Gold edged down but held near an over two-month high hit in the previous
session, when prices surged over 2 percent as a rout in global stock markets
boosted the metal's safe-haven appeal.
    
    
 CLOSE             FII INVESTMENTS  EQUITIES       DEBT          
 PNDF spot         74.16/74.19      October 11     -$387.49 mln  -$273.18 mln
 10-yr bond yield  7.99 pct         Month-to-date  -$1.83 bln    -$1.33 bln
                                    Year-to-date   -$4 bln       -$8.08 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 = 74.0400 Indian rupees)

 (Compiled by Debanjan Bose in Bengaluru)
  
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