May 13, 2019 / 3:28 AM / 8 days ago

Morning News Call - India, May 13

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    FACTORS TO WATCH
    5:30 pm: Government to release April consumer price inflation data in New
Delhi.
    
    GMF: LIVECHAT - MARKETS UPDATE
    EMEA Markets Editor Mike Dolan analyses the state of the European markets at
3:30 pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • Etihad submits bid for Jet Airways, eyes minority stake
    Middle Eastern carrier Etihad Airways has submitted a bid for a stake in Jet
Airways, the unit of State Bank of India overseeing the sale of the stricken
airline said on Friday.
    • Germany's Thyssenkrupp to seek new steel partners, CEO tells paper
    Thyssenkrupp will still seek partners for its steel operations after
abandoning a European merger with India's Tata Steel, Chief Executive Guido
Kerkhoff said in comments published on Sunday.
    • State Bank of India misses Q4 profit estimate, provisions up QoQ
    State Bank of India reported a smaller-than-expected quarterly profit on
Friday, partly due to provisions for bad loans that the country's largest lender
by assets set aside in the quarter.
    • ANALYSIS-In a sunset industry, economics of Adani's Australian coal mine
questioned
    A crash in Australian thermal coal prices is raising fresh questions about
the viability of a controversial $4 billion coal mine just a week ahead of a
national election in which climate change is a key issue.
    • EXCLUSIVE-India orders anti-trust probe of Google for alleged Android
abuse-sources
    • India's antitrust watchdog has ordered an investigation into Alphabet's
unit Google for allegedly abusing the dominant position of its popular Android
mobile operating system to block rivals, two sources aware of the matter told
Reuters.
    • India's March Industrial output falls 0.1 percent y/y - government
    India's industrial output in March contracted 0.1 percent from a year
earlier, government data showed on Friday.
    • PepsiCo withdraws lawsuits against Indian potato farmers
    PepsiCo has formally withdrawn lawsuits against Indian farmers that the
snack food and drinks maker had accused of infringing its patent by cultivating
a potato variety, the company and the growers said on Friday.
    
    
    GLOBAL TOP NEWS
    • China defiant toward U.S. on trade, Kudlow urges strong enforcement steps
    The United States and China appeared at a deadlock over trade negotiations
on Sunday as Washington demanded promises of concrete changes to Chinese law and
Beijing said it would not swallow any "bitter fruit" that harmed its interests.

    • Trump may provoke U.S. lawmakers to impeach him -senior Democrat
    Democrats are reluctant to impeach U.S. President Donald Trump, but he may
provoke such a move by continuing to obstruct Congress' efforts to oversee his
administration, a senior Democratic lawmaker said on Sunday.
    • U.S. presidential contender Kamala Harris favors look at breaking up
Facebook
    Democratic presidential candidate Kamala Harris said on Sunday that U.S.
officials should consider breaking up Facebook, the world's largest social media
company, saying it is a utility that has gone unregulated.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were down 0.3 percent at 11,254.50.
    • The Indian rupee is expected to open lower against the dollar, weighed by
the drop in the Chinese yuan and regional equities after U.S.-China trade talks
ended without an agreement.
    • Indian government bonds will likely open little changed on caution ahead
of retail inflation data, which will provide guidance on the next policy action
from the nation’s interest rate-setting panel. The yield on the benchmark 7.26
percent bond maturing in 2029 is likely to trade in a range of 7.39 percent-7.43
percent band today, a trader with a private bank said.     
    
    GLOBAL MARKETS
    • U.S. stocks rebounded from early losses on Friday to snap a four-day
losing streak after U.S. President Donald Trump and Treasury Secretary Steven
Mnuchin said trade talks between the United States and China were
"constructive."
    • U.S. stock futures fell and Asian shares slipped on Monday on growing
uncertainty over whether the United States and China will be able to reach a
deal to end their escalating trade war.
    • The safe-haven yen edged higher and the Chinese yuan and Australian dollar
dipped after the latest escalation in the trade war between the United States
and China.
    • U.S. Treasury yields were little changed on Friday, with longer-dated
yields hovering at five-week lows, as worries about trade tension between China
and the United States simmered down even in the absence of a deal following
two-days of negotiations.
    • Oil futures were mixed, with U.S. crude edging lower, as investors and
traders fretted over global economic growth prospects amid a standoff in
Sino-U.S. trade talks.
    • Gold prices steadied as trade talks between the United States and China
hit a wall, raising doubts over whether the two countries would be able to reach
a deal, thereby boosting demand for safe-haven assets.
   
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.85/69.88  May 10           $177.86 mln  $151.65 mln
 10-yr bond yield  7.41 pct     Month-to-date    $326.45 mln  -$187.78 mln
                                Year-to-date     $10.09 bln   -$2.75 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 = 70.00 Indian rupees)

 (Compiled by Benny Thomas in Bengaluru)
  
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