June 6, 2019 / 3:26 AM / 21 days ago

Morning News Call - India, June 6

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    FACTORS TO WATCH
    11:45 am: Monetary Policy Committee to announce interest rate decision in
Mumbai.
    
    LIVECHAT - OIL OUTLOOK
    Reuters energy correspondent Jessica Resnick-Ault take your questions about
the oil markets in the rapid-fire, weekly segment "Lock, Stock and Barrel" at
7:00 pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • India's services growth sinks to one-year low in May - PMI
    Activity in India's dominant services sector grew at its slowest pace in a
year in May, hurt by weak domestic demand, a private survey showed on Wednesday,
while a sharp easing in price pressures virtually cemented the case for another
rate cut this week.
    • Planned base price of India's 5G spectrum too high - telecom lobby
    India's top telecom lobby said the government's proposed base price for the
auction of spectrum for next-generation 5G networks is too high as India
outlined plans to launch the sale process this year.
    • IL&FS unit confirms investigations by govt authorities
    Infrastructure Leasing & Financial Services's (IL&FS) flagship lending unit
on Tuesday confirmed for the first time that it is under investigation by
various government agencies, months after the group defaulted on some of its
debt obligations triggering tremors through Indian financial markets.

    • Walmart faces major India test over unit Flipkart's legal spat with
startup
    An Indian startup's legal challenge against a Walmart unit claiming losses
caused by sharp discounting of its products is winning support from other online
sellers, in what is shaping as a key test of how the giant retailer operates in
the country.
    • BMW and Jaguar Land Rover to jointly develop electric car parts
    BMW and Jaguar Land Rover on Wednesday said they will jointly develop
electric motors, transmissions and power electronics, unveiling yet another
industry alliance designed to lower the costs of developing electric cars.

    • Samsung seeks bigger share of Indian market with new line of high-end TVs
    Samsung Electronics said on Tuesday it was aiming to expand its share of the
India flat-screen TV market to more than a third within months, as it unveiled a
new line of premium TVs it hopes will stave off the slowdown it and other
suppliers have seen in other markets.
    • Vedanta's Zambia court hearing adjourned for a week
    A court hearing following Zambia's decision to name a provisional liquidator
to run Vedanta Resources' Konkola Copper Mines business was adjourned for a week
on Tuesday without tackling Vedanta's demands to be involved, the company said.

    • Airtel Africa to file for London IPO
    Airtel Africa, a subsidiary of Bharti Airtel, on Tuesday said it will
proceed with its plan to list shares on the main market of the London Stock
Exchange through an initial public offering.
   
    
    GLOBAL TOP NEWS
    • Trump says 'not enough' progress made in high-stakes U.S.-Mexico talks
    Mexican and U.S. officials are set to resume talks in Washington aimed at
averting an imposition of tariffs on Mexican goods, with President Donald Trump
saying "not enough" progress on ways to curb migration was made when the two
sides met on Wednesday.
    • Fiat Chrysler withdraws merger offer for Renault, blames French politics
    Fiat Chrysler said it has abandoned its $35 billion merger offer for
Renault, blaming French politics for scuttling what would have been a landmark
deal to create the world's third-biggest automaker.
    • IMF's Lagarde warns U.S.-China tariffs to slash global growth in 2020
    The International Monetary Fund does not see the threat of a global
recession brought on by a widening U.S.-China trade war and potential U.S.
tariffs on Mexican goods and autos, IMF Managing Director Christine Lagarde said
on Wednesday.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.3% lower at 12,049.00. 
    • The Indian rupee is expected to open lower against the U.S. currency amid
a recovery in the dollar index. 
    • Indian government bonds are likely to rise in early trade ahead of the
rate-setting Monetary Policy Committee’s decision today. The yield on the
benchmark 7.26% bond maturing in 2029 is likely to trade in a range of
6.95%-7.00% until the policy decision, a trader with a state-run bank said. 
    
    
    GLOBAL MARKETS
    • Wall Street's major indexes rose on Wednesday as investors bet on a
Federal Reserve interest rate cut after weak private sector jobs data and hopes
grew that the United States and Mexico would reach an agreement to avoid U.S.
tariffs on Mexican goods.
    • Asian shares got off to a hesitant start as investors feared a looming
U.S. trade war with Mexico would further depress global growth, even as they
wagered central banks would have to respond with fresh stimulus.
    • The yen edged up versus the dollar as sentiment soured over U.S.-Mexico
talks on tariffs and immigration, fuelling broader concerns about global trade
hostilities and raising appetite for safe-haven currencies.
    • Short-dated U.S. Treasury yields fell on Wednesday, with two-year yields
hitting their lowest since December 2017 in the wake of a report that showed
private domestic jobs growth decelerated in May to its weakest in over nine
years.
    • Oil prices hovered around their lowest levels since January as markets
remain under pressure from rising U.S. supply and stalling demand amid an
economic slowdown.
    • Gold prices edged lower, easing from the previous session's 15-week high
as the dollar recovered from multi-week lows, although trade concerns and a
possible U.S. rate cut offered support for safe-haven bullion.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.27/69.30  June 4           -$59.97 mln  $265.74 mln
 10-yr bond yield  7.02%        Month-to-date    --           $341.98 mln
                                Year-to-date     $11.53 bln   -$1.79 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 = 69.40 Indian rupees)

 (Compiled by Hrithik Kiran Bagade in Bengaluru)
  
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