June 26, 2019 / 2:58 AM / 4 months ago

Morning News Call - India, June 26

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    FACTORS TO WATCH
    9:30 am: Junior Finance Minister Anurag Singh Thakur at ASSOCHAM’s Investors
Protection summit in New Delhi. 
    
    LIVECHAT - EQUITIES WATCH
    Join our Reuters correspondents in London and New York for a discussion on
the stock markets and company earnings at 6:30 pm IST. To join the conversation,
click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Pompeo faces thorny issues on India visit, from trade to Russia arms deals
    U.S. Secretary of State Mike Pompeo arrived on Tuesday for talks with Indian
leaders in New Delhi, where he is expected to tackle a host of delicate issues
from trade to India's longstanding defence and energy ties to Russia and Iran.

    • India warns foreign e-commerce firms like Amazon, Flipkart over discounts
- sources
    India has told foreign e-commerce firms such as Amazon and Walmart's
Flipkart that they must ensure compliance with new foreign investment rules
aimed at deterring them from providing steep online discounts, three sources
familiar with the discussions told Reuters.
    • Troubled Indian mortgage lender DHFL again misses debt payments
    Mortgage lender Dewan Housing Finance Corp Ltd (DHFL) said it had only been
able to make a 40 percent payment on unsecured commercial papers due on Tuesday,
but vowed to pay the remaining 2.25 billion rupees in the coming days.

    • India plans to add 500 GW renewable energy by 2030 - govt
    India plans to add 500 gigawatts (GW) of renewable energy to its electricity
grid by 2030 in a bid to clean up air in its cities and lessen the rapidly
growing economy's dependence on coal, the government said on Tuesday.

    • Canada, U.S. gain as India cuts dependence on Australian coking coal
    Shipments of coking coal from the United States and Canada rose to a sixth
of all Indian imports of the fuel during the year ended March 2019, as
steelmakers in the coal guzzling country look to cut their dependence on
Australia.
    • IOC sees growth in demand for jet fuel and gasoline easing this year
    Growth in India's demand for gasoline and jet fuel is expected to slow
slightly this year, the head of Indian Oil Corp (IOC) said on Tuesday, as
prospects for world trade deteriorate.
    • L&T buys controlling stake in Mindtree - CNBC TV18
    Conglomerate Larsen and Toubro (L&T) has acquired a controlling stake in IT
services company Mindtree, CNBC TV18 channel reported citing
sources.
    
    
    GLOBAL TOP NEWS
    • U.S. aims to restart China trade talks, will not accept conditions on
tariff use
    The United States hopes to re-launch trade talks with China after President
Donald Trump and President Xi Jinping meet in Japan on Saturday, but Washington
will not accept any conditions around the U.S. use of tariffs in the dispute, a
senior administration official said on Tuesday.
    • Fed pushes back on aggressive U.S. rate cut views
    Federal Reserve officials on Tuesday pushed back on market expectations and
presidential pressure for the central bank to deliver a significant U.S.
interest rate cut of half a percentage point as soon as its next meeting.

    • Trump threatens 'obliteration,' Iran calls White House 'mentally retarded'
    U.S. President Donald Trump threatened on Tuesday to obliterate parts of
Iran if it attacked "anything American," in a new war of words with Iran which
condemned fresh U.S. sanctions on Tehran as "mentally retarded."
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.2% lower at 11,773.50.
    • The Indian rupee is expected to open lower against the U.S. currency in
the wake of the dollar’s recovery against major and regional currencies.
    • Indian government bonds are likely to edge lower tracking gains in crude
oil prices. The yield on the benchmark 7.26% bond maturing in 2029 is likely to
trade in a range of 6.86% - 6.92% today.
    
    
    GLOBAL MARKETS
    • Wall Street stock indexes fell on Tuesday, led by a sharp selloff in
technology shares, as simmering trade concerns and disappointing economic data
sent buyers to the sidelines, while the Federal Reserve chairman pushed back on
pressure from President Donald Trump to cut interest rates.
    • Asian stocks retreated and the dollar inched up from three-month lows
after Federal Reserve officials tempered expectations in the markets for
aggressive monetary easing.
    • The dollar edged up from a three-month low, as investors dialled back
expectations for aggressive U.S. rate cuts next month but broader conviction the
Federal Reserve will need to ease policy soon capped greenback gains.
    • U.S. benchmark Treasury yields fluctuated around the key 2% level on
Tuesday as investors weighed the prospect of an ongoing U.S.-China trade war
against the likelihood that the Federal Reserve may be less dovish than traders
expect.
    • Oil prices rose over 1% to hit their highest in nearly a month as
widely-watched data showed U.S. crude stockpiles fell more than expected,
underpinning a market already buoyed by worries over potential U.S.-Iran
conflict.
    • Gold prices slipped, moving further away from a six-year peak hit in the
previous session, as the dollar gained after Federal Reserve officials played
down expectations of aggressive monetary easing.
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         69.36/69.39  June 25          $167.09 mln   -$126.59 mln
 10-yr bond yield  6.89%        Month-to-date    -$153.02 mln  $508.07 mln
                                Year-to-date     $11.04 bln    -$1.62 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 = 69.3050 Indian rupees)
    
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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