November 6, 2018 / 3:31 AM / 12 days ago

Morning News Call - India, November 6

(Morning News Call - India edition will not be published on Wednesday, November
7 and Thursday, November 8 as markets are closed for Diwali Laxmi Puja and
Diwali Balipratipada respectively)

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    FACTORS TO WATCH
    No major events are scheduled.
    
    
    INDIA TOP NEWS
    • State Bank of India sees rising profits as asset quality improves 
State Bank of India expects to increase its profits and has "complete control"
over its non-performing loans, its chairman said after the country's top lender
by assets reported its first quarterly profit in four.
    • Tata Group in talks to buy majority stake in Jet Airways -TV 
Tata Group is in talks to buy a majority stake in beleaguered carrier Jet
Airways and its loyalty programme, television news channel CNBC-TV18 reported on
Monday, citing sources.
    • India October services activity jumps, boosted by stronger orders
Activity in India's dominant services sector increased at its fastest pace in
three months in October, driven by a strong pick-up in new business, a private
survey showed on Monday.
    • India govt says some shadow lenders face liquidity stress, puts pressure
on RBI to ease
A top Indian government official on Monday said the nation's non-banking housing
finance companies were facing liquidity stress, in comments that are likely to
put more pressure on the Indian central bank to ease its policy towards the
sector.
    • Cipla warns of headwinds in second half after Q2 profit miss
Cipla, India's second-largest drugmaker by market capitalisation, warned on
Monday of "multiple headwinds" in the second half of the financial year after
its quarterly profit fell short of analysts' estimates.
    • GAIL (India) Q2 profit jumps 50 percent, tops estimates
State-run gas utility GAIL (India) posted a 50 percent jump in second-quarter
profit on Monday, boosted by higher revenue from its natural gas marketing
business.
    • Fortis Healthcare posts quarterly loss
Hospital operator Fortis Healthcare, which is set to be acquired by Malaysia's
IHH Healthcare, posted a quarterly loss due to impairment charges.
    
    
    GLOBAL TOP NEWS
    • U.S. networks drop 'racist' Trump ad as critical elections near
NBC, Fox News and Facebook pulled an ad by President Donald Trump's campaign
that critics had labeled racist as a bitter election fight for control of the
U.S. Congress headed on Monday for an unpredictable finish.
    • China's Xi promises to raise imports amid trade row with U.S.
Chinese President Xi Jinping promised on Monday to lower tariffs, broaden market
access and import more from overseas at the start of a trade expo designed to
demonstrate goodwill amid mounting frictions with the United States and others.

    • U.S. reimposes Iran sanctions, Tehran decries 'bullying'
The United States on Monday restored sanctions targeting Iran's oil, banking and
transportation sectors and threatened more action to stop its "outlaw" policies,
steps the Islamic Republic called economic warfare and vowed to defy.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading at 0.3 percent higher at
10,590, from its previous close.
    • The Indian rupee is expected to open higher against the U.S. currency as
the dollar index declined ahead of the U.S. mid-term elections.
    • Indian government bonds are likely to open higher ahead of an open market
purchase of notes by the Reserve Bank of India. The yield on the benchmark 7.17
percent bond maturing in 2028 is expected to trade in a 7.78 percent - 7.83
percent band today.
    
    
    GLOBAL MARKETS
    • The S&P 500 rose on Monday with boosts from financial, energy and
defensive sectors as investors showed some caution on the eve of U.S.
congressional elections.
    • Asian shares ticked up, supported by Wall Street gains although sentiment
was tempered ahead of the U.S. midterm elections, the first major electoral test
of President Donald Trump's big tax cuts and hostile trade policies.
    • The dollar stuck to tight ranges against its major rivals as investors
favoured caution ahead of U.S. midterm elections later in the day.
    • U.S. Treasury yields fell on Monday as traders stepped back into the bond
market following last week's sell-off to reduce their bearish positions and
hedge against any surprises in the U.S. congressional elections.
    • Oil prices slipped as concerns that an economic slowdown may curb fuel
demand growth overshadowed the reintroduction of sanctions on Iran.
    • Gold prices were steady ahead of U.S. midterm elections that may fuel
interest in the metal as a hedge against risk if the result sparks volatility in
wider financial markets.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         73.04/73.07  November 5       $1.69 mln   -$8.89 mln
 10-yr bond yield  7.80 pct     Month-to-date    $108.8 mln  $500.89 mln
                                Year-to-date     -$5.82 bln  $7.60 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 = 73.0750 Indian rupees)

 (Compiled by Hrithik Kiran Bagade in Bengaluru)
  
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