November 30, 2018 / 3:24 AM / in 17 days

Morning News Call - India, November 30

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    FACTORS TO WATCH
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
    5:00 pm: Government to release October Infrastructure output data in New
Delhi.
    5:30 pm: Government to release July-September GDP data in New Delhi.
      
    
    INDIA TOP NEWS
    • India's economic growth seen slowing during Modi's run for re-election
    India's annual economic growth probably moderated to 7.4 percent in the
July-September quarter, according to a Reuters poll, weakening just as Prime
Minister Narendra Modi's Hindu nationalist led-government gets set for an
election due by May.
    • Poll-Next India rate rise pushed back again, now well into 2019
    The Reserve Bank of India won’t raise interest rates until at least April,
much later than thought just one month ago, according to economists polled by
Reuters who say that rise will probably be a “one-and-done.”
    • RBI relaxes asset securitisation norms for shadow banks
    India's central bank on Thursday relaxed rules for non-banking financial
companies (NBFCs) to sell or securitise their loan books, in a bid to ease
persistent stress in the sector.
    • Maharashtra puts land purchase for Saudi Aramco refinery on hold
    Maharashtra has put on hold the process to buy land for the country's
biggest oil refinery that state-run oil companies are building with Saudi
Aramco, Chief Minister Devendra Fadnavis said, after strong opposition from
farmers.
    • Bajaj Allianz Life looks to IT, pharma stocks in 2019
    Bajaj Allianz Life Insurance is looking to raise its exposure to local IT
services companies and drugmakers in 2019, drawn by attractive valuations and
easing regulatory issues, even as a strengthening rupee threatens to hurt
earnings.
    • Vedanta seeks U.S. oil services consortium for new India blocks
    Vedanta Resources wants U.S. oilfield services companies to set up consortia
to help develop the 41 blocks in India acquired this year by its Cairn Oil & Gas
unit, the company's chairman said on Thursday.
    • Hindustan Unilever says cannot reveal details on Horlicks pursuit
    Hindustan Unilever, the Indian unit of Unilever, on Thursday said it cannot
disclose details on whether it is planning to buy GlaxoSmithKline's Indian
Horlicks nutrition business, citing confidentiality obligations.
    • Adani says to fully fund its troubled Australia coal project
    Adani Enterprises will fully fund its coal mine and rail project in
Australia itself, the company said on Thursday, taking a big step closer to
building the long-touted project that has faced fierce resistance from green
groups.
    
    
    GLOBAL TOP NEWS
    • G20 members struggle for agreements ahead of Argentina summit
    G20 member nations were still struggling to reach agreement on major issues
including trade, migration and climate change as world leaders began arriving in
the Argentine capital ahead of a summit starting on Friday.
    • China Nov factory growth stalls as orders shrink
    Growth in China's vast manufacturing sector stalled for the first time in
over two years in November as new orders shrank, adding pressure on Beijing
ahead of high-stakes trade talks between presidents Xi Jinping and Donald Trump
this weekend.
    • Exclusive-Fearing espionage, U.S. weighs tighter rules on Chinese students
    The Trump administration is considering new background checks and other
restrictions on Chinese students in the United States over growing espionage
concerns, U.S. officials and congressional sources said.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    SGX Nifty nearest-month futures were trading 0.2 percent up at 10,939.50,
from its previous close. 
    The Indian rupee is expected to open little changed against the dollar ahead
of a high-stakes meeting between U.S. President Donald Trump and Chinese leader
Xi Jinping at the sidelines of the G-20 Summit in Argentina. 
    Indian government bonds are likely to trade little changed in early session,
ahead of weekly debt sale later today, while traders also remain focused on a
meeting of key global leaders at the G-20 summit. The yield on the benchmark
7.17 percent 2028 bond is likely to trade in a 7.58 percent-7.64 percent band
today, a trader with a state-run bank said. 
    
    
    GLOBAL MARKETS
    • Wall Street closed slightly lower on Thursday as tech and financial shares
slumped, erasing earlier gains stemming from Federal Reserve minutes showing the
central bank opened the debate on when to pause further interest rate hikes.

    • Share markets ticked slightly lower in early Asian trade as investors
await a closely watched meeting between the Chinese and U.S. presidents in
Argentina this weekend for signs of a trade war detente.
    • The dollar was on tenterhooks before a meeting of U.S. and Chinese leaders
to discuss contention trade issues that might provide a catalyst for the near
term direction of riskier assets such as stocks and safe havens including the
greenback and the yen.
    • The benchmark 10-year Treasury yield fell as the two-year return rose on
Thursday, flattening the yield curve, after minutes from the last Federal
Reserve policy-making meeting showed October's market volatility would not deter
the U.S. central bank from raising interest rates in December and beyond. 
    • Oil prices firmed as traders expected OPEC and Russia to agree on
production cuts next week, although swelling U.S. supplies kept markets in
check.
    • Gold prices were flat as the dollar steadied ahead of the G20 meet in
Argentina this weekend, where U.S. and Chinese leaders are scheduled to discuss
trade matters after months of tensions.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.88/69.91  November 29      $117.96 mln  $103.29 mln
 10-yr bond yield  7.60 pct     Month-to-date    $720.14 mln  $999.94 mln
                                Year-to-date     -$5.20 bln   -$7.10 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 = 69.77 Indian rupees)
    
    

 (Compiled by Siddharth Athreya V in Bengaluru)
  
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