December 7, 2018 / 3:26 AM / 12 days ago

Morning News Call - India, December 7

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    FACTORS TO WATCH
    9:00 am: SEBI Chairman Ajay Tyagi and Kotak Mahindra Bank CEO Uday Kotak at
Financial Markets Summit in Mumbai.
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
    
    GMF: Rahul Karunakar, Reuters Polling editor-in-charge discusses the latest
forecasts in stocks and FX, and what to expect from the next set of central bank
meetings, at 9:30 am IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • EXCLUSIVE-Indian central bank delays discussing easing curbs despite
government pressure - source
A crucial Reserve Bank of India sub-committee did not discuss easing lending
curbs facing 11 state-run banks on Thursday despite intense pressure from the
nation's government to take a softer stance towards them, a source close to the
discussions said.
    • IBM to sell some of its software products to HCL for $1.8 billion
International Business Machines said on Thursday it will sell some of its
software products business to Indian software services exporter HCL Technologies
for $1.80 billion.
    • Indian court expected to reopen Vedanta copper smelter but appeal likely -
sources
An Indian court is expected to follow an experts' panel recommendation and order
the reopening of a copper smelter closed after 13 people died when police fired
on environmental protesters in May, two sources familiar with the matter said.

    • Slow train to China: India's trade ties with Beijing taking time to ripen
China and India may be talking about improving their trade relationship but
there is little action to go with the words.
    • India urges training to replicate Lion Air crash for Boeing pilots
Pilots flying Boeing's 737 MAX jets in India should be trained on a simulator
that replicates the suspected scenario that led to the Lion Air crash, India's
aviation regulator said in a statement on Thursday.
    • Indian bonds at 8-month high on cenbank bond purchase hopes, inflation
comments
Indian bonds rose to over 8-month highs as rate hike fears faded after the
central bank promised to keep buying government bonds to infuse liquidity, and
also mentioned the probability of changing its rate stance if inflation risks do
not mature.
    • Facebook to check Indian political ads in build-up to vote
Indian advertisers wanting to run political ads on Facebook will have to confirm
their identity and location to help prevent abuse of the system in the build-up
to national elections, the company said on Thursday.
    • India to import Iranian oil using rupee payment mechanism
India will import crude oil from Iran using a rupee-based payment mechanism, an
industry source involved in discussions told Reuters on Thursday, adding that 50
percent of those payments will be used for exporting items to Tehran.

    
        
    GLOBAL TOP NEWS
    • White House, Trudeau seek to distance themselves from Huawei move
President Donald Trump did not know about plans to arrest a top executive at
Chinese telecoms giant Huawei in Canada, two U.S. officials said on Thursday, in
an apparent attempt to stop the incident from impeding crucial trade talks with
Beijing.
    • OPEC tentatively agrees oil cut, waits for Russia to commit
OPEC tentatively agreed an oil output cut on Thursday but was waiting for a
commitment from non-OPEC heavyweight Russia before deciding the exact volumes
for a production reduction aimed at propping up crude prices, two sources from
the group said.
    • Trump to pick State Department spokeswoman for U.N. ambassador - source
President Donald Trump will nominate State Department spokeswoman Heather Nauert
as U.S. ambassador to the United Nations, a source familiar with his decision
said on Thursday, tapping someone with no prior policy or political experience
to deal with some of the world's thorniest issues.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading up 0.6 percent at 10,684.00,
from the previous close.
    • The Indian rupee is expected to open higher against the dollar, helped by
a retreat in crude oil prices amid signs that the OPEC may reduce output less
than expected.  
    • Indian government bonds will likely gain in early trade, as sentiment
remained positive after Brent crude oil price stayed below $60-per-barrel mark,
even while market awaited decision on a production cut from the Organization of
Petroleum Exporting Countries. Yield on the benchmark 7.17 percent 2028 bond is
likely to trade in a 7.39 percent-7.45 percent band today. 
    
    
    GLOBAL MARKETS
    • The S&P 500 and Dow industrials ended slightly negative but well above
their session lows in volatile trading on Thursday as the arrest of a Chinese
technology executive fanned fears of U.S-China tensions over trade, while some
beaten-up big technology and internet shares posted gains.
    • Asian shares fought to sustain the slimmest of recoveries amid speculation
the Federal Reserve might be "one-and-done" with U.S. rate hikes, while oil fell
anew as producers bickered over the details of an output cut.
    • The dollar struggled to recover against its key rivals in Asian trade,
hobbled by renewed speculation of an imminent pause in the Federal Reserve's
tightening cycle, perhaps as soon as it delivers a widely expected rate hike
later this month.
    • U.S. Treasury yields fell on Thursday, with 10-year yields hitting
three-month lows, as traders scaled back expectations on the number of rate
hikes the Federal Reserve would implement amid weakening economic data and
market volatility.
    • Oil prices fell, pulled down by OPEC's decision to delay a final decision
on output cuts, awaiting support from non-OPEC heavyweight Russia.
    • Gold prices rose slightly and were headed for their best week in 15, as
the dollar weakened following a decline in U.S. Treasury yields, while investors
awaited U.S. nonfarm payroll data for clues about the health of the world's top
economy.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         71.02/71.05  December 6       $10.23 mln   $446.82 mln
 10-yr bond yield  7.42 pct     Month-to-date    -$70.43 mln  $347.42 mln
                                Year-to-date     -$5.13 bln   -$6.80 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 = 70.84 Indian rupees)

 (Compiled by Hrithik Kiran Bagade in Bengaluru)
  
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