May 31, 2019 / 3:23 AM / 3 months ago

Morning News Call - India, May 31

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    FACTORS TO WATCH
    5:00 pm: Government to release April infrastructure output data in New
Delhi.
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
    5:30 pm: Government to release January-March GDP data in New Delhi.
    
    GMF: LIVECHAT - CHARTS & CHAT
    Reuters Stocks Buzz writer and chartist Terence Gabriel calls out risks and
opportunities in global markets via the charts at 8:00 pm IST. To join the
conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • U.S. suspension of trade program with India 'a done deal': official
    The suspension of a U.S. trade preference program with India is a "done
deal," a senior State Department official said on Thursday as Prime Minister
Narendra Modi began his second term.
    • Modi to name ruling party chief Shah as finance minister: media
    Prime Minister Narendra Modi is set to name Amit Shah, the chief of his
Hindu nationalist Bharatiya Janata Party, as the country's new finance minister
after taking his oath of office for the second time on Thursday, according to
several Indian media reports.
    • India's economy seen limping behind China entering Modi's second term
    India probably lost its spot as the fastest growing major economy to China
in the January-March quarter as a chill in domestic and global consumer demand
hit manufacturers and service providers.
    • Adani wins one of last two permits it needs for Australia coal mine
    The Australian state of Queensland approved Adani Enterprise's management
plan for an endangered bird at the site for a controversial coal mine, leaving
only one more permit before construction can start on the project.
    • UPL bets big on Brazil farmer relationships: executives
    Mumbai-based UPL, one of the world's top five agrochemical and crop
protection firms, will invest some $200 million in Brazil over five years to
best serve local food producers who are key suppliers in India's ever-growing
market.
    • Billionaire jeweller Modi appears in UK court
    Indian billionaire jeweller Nirav Modi appeared in a London court on
Thursday where he heard that no date could yet be set for a full hearing over
his possible extradition to India.
    • Japan, South Korea tighten grip over Indian steel imports: government data
    Japan and South Korea strengthened their grip on the Indian steel market in
April, supplying nearly three-fifths of the total imports, according to
government data seen by Reuters.
   
    
    GLOBAL TOP NEWS
    • Trump vows rapid increase in tariffs on Mexico unless illegal immigration
ends
    U.S. President Donald Trump, incensed by a surge of illegal immigrants
across the southern border, vowed on Thursday to impose a tariff on all goods
coming from Mexico starting at 5% and ratcheting higher until the flow of
border-crossers ceases.
    • China May factory activity shrinks more than expected as exports falter
    China's factory activity in May slumped into a deeper contraction than
markets had expected, heaping pressure on Beijing to roll out more stimulus to
support an economy hit hard by a bruising trade war with the United States.

    • Saudi Arabia says firm stand needed to deter Iran, Iraq demurs
    Saudi Arabia's king told an emergency Arab summit that decisive action was
needed to stop Iranian "escalations" in the region following attacks on Gulf oil
assets, as American officials said a U.S. military deployment had deterred
Tehran.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.1% higher at 11,988.50.
    • The Indian rupee is expected to open higher against the dollar on the back
of Brent crude’s decline to a near-three-month low.
    • Indian government bonds are likely to gain in early trade, tracking an
overnight slump in crude oil prices and U.S. Treasury yields as U.S. President
Donald Trump's imposition of tariffs on Mexico is expected to hurt global
growth. The yield on the benchmark 7.26% bond maturing in 2029 is likely to
trade in a range of 7.12%-7.18% today.
    
    
    GLOBAL MARKETS
    • U.S. stocks showed signs of stabilizing on Thursday, but gains were kept
in check by conflicting comments on trade talks from President Donald Trump and
Beijing that reinforced concerns about a potentially lengthy battle harming
global growth.
    • U.S. stock futures slid and sovereign bonds surged as investors feared
President Donald Trump's shock move to slap tariffs on Mexico risked tipping the
United States, and maybe the whole world, into recession.
    • The Mexican peso sank to three-month lows against the dollar after
Washington unexpectedly said it will slap tariffs on all goods coming from its
southern neighbour.
    • Benchmark U.S. Treasury yields held just above 20-month lows on Thursday
as concerns about the U.S.-China trade war denting global growth sustained
demand for the safe haven debt.
    • Oil prices dropped 1.5% percent to their lowest in nearly three months
after U.S. President Donald Trump said he would impose tariffs on imports from
Mexico, stoking fears about global economic growth.
    • Gold prices rose to remain on track for their first monthly gain since
January, with expectations of cuts in U.S. interest rates boosted by inflation
data for the first quarter.
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.91/69.94  May 30           $238.53 mln  -$74.16 mln
 10-yr bond yield  7.13%        Month-to-date    $983.27 mln  $204.95 mln
                                Year-to-date     $10.75 bln   -$2.36 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 = 69.80 Indian rupees)
    
    

 (Compiled by Karthick Arvinth in Bengaluru)
  
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