June 28, 2019 / 3:03 AM / 5 months ago

Morning News Call - India, June 28

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    FACTORS TO WATCH
    11:00 am: Union Bank of India annual general meeting in Mumbai.
    12:00 pm: Central Bank of India annual general meeting in Mumbai.
    
    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: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India faces weak monsoon rains, raising fears for crops, economy
    India's monsoon rains were below average for the fourth straight week, with
rainfall scanty over central and western parts of the country in the week ended
on Wednesday, raising concerns about major crop production and the impact on the
nation's economy.
    • Trump demands withdrawal of India's 'unacceptable' tariff hike
    U.S. President Donald Trump on Thursday demanded India withdraw retaliatory
tariffs imposed by New Delhi this month, calling the duties "unacceptable" in a
stern message that signals trade ties between the two countries are fast
deteriorating.
    • Indian government clarifies still planning to sell Air India
    India clarified on Thursday that plans to sell debt-laden state-run carrier
Air India were still on track, hours after a junior minister told parliament the
privatisation was on hold because of high oil prices and volatile exchange
rates.
    • SEBI tightens rules for pledged shares, mutual funds
    The Securities and Exchange Board of India (SEBI) reinforced disclosure
rules for when the shares in a company are pledged as collateral and tightened
rules for mutual funds to try to protect minority shareholders and retail
investors.
    • Finance ministry seeks state fund payout cut amid fears about lending
crunch
    India's finance ministry has demanded the social security and pension fund
cuts the 8.65 percent annual return it was planning to offer about 85 million
member workers, according to a ministry memorandum reviewed by Reuters.

    • Accenture's fall in bookings dampens upbeat quarterly profit, forecast
    Consulting and outsourcing services provider Accenture Plc reported a 9%
fall in quarterly bookings on Thursday, overshadowing better-than-expected
third-quarter results and an upbeat full-year forecast.    
    • RBI sees Indian banks' bad loans declining by March
    The Reserve Bank of India (RBI) on Thursday said the proportion of
commercial lenders' non-performing assets may fall slightly to 9% by March,
after the introduction of measures including the creation of a bankruptcy code.

    • India wins U.S. solar case at WTO but impact disputed
    India won a World Trade Organization challenge to solar industry incentives
in eight U.S. states on Thursday, although the United States told the panel the
ruling would have little or no impact.
    
    
    GLOBAL TOP NEWS
    • Trump agrees to no preconditions for meeting with China's Xi -Kudlow
    U.S. President Donald Trump has agreed to no preconditions for his
high-stakes meeting with Chinese President Xi Jinping this weekend and is
maintaining his threat to impose new tariffs on Chinese goods, White House
economic adviser Larry Kudlow said on Thursday.
    • Japan May factory output surprisingly strong, but trade risks linger
    Japan's industrial output rose at the fastest pace in more than a year in
May on the back of higher car production, suggesting that growth is holding up
despite fears manufacturers remain pressured by the U.S.-China trade war.

    • Apple design chief Jony Ive, Steve Jobs' confidant, to leave and start own
firm
    Jony Ive, a close creative collaborator with Apple Inc co-founder Steve Jobs
whose iPhone and other designs fueled Apple's rise to a $1 trillion company,
will leave later this year to form an independent design company.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were little changed at 11,901.00. 
    • The Indian rupee is expected to open little changed as investors await a
crucial meeting between U.S. President Donald Trump and his Chinese counterpart
Xi Jinping tomorrow. 
    • Indian government bonds are likely to fall in early trade as state
governments are expected to raise a higher quantum of funds by selling bonds
during July-September. The yield on the benchmark 7.26% bond maturing in 2029 is
likely to trade in a range of 6.88% 
    
    
    GLOBAL MARKETS
    • The S&P 500 and the Nasdaq closed higher in a broad-based rally on
Thursday as investors looked to the G20 summit in Osaka, Japan this weekend for
progress in the long-running U.S.-China trade dispute, which has whipsawed
markets for months.
    • Share markets in Asia edged higher as investors clung on to hopes that a
highly anticipated meeting between U.S. President Donald Trump and Chinese
President Xi Jinping this weekend could lead to an easing of trade
tensions.
    • The dollar trod water as investors awaited a crucial meeting between the
leaders of the United States and China at a Group of 20 summit over the weekend
for any signs of progress to end their heated trade war.
    • U.S. Treasury yields fell on Thursday on concerns that trade discussions
between the United States and China on Saturday may be more complicated than
previously expected, boosting demand for safe-haven debt.
    • Oil prices were steady, with focus shifting to the G20 summit where a
scheduled meeting between U.S. President Donald Trump and Chinese President Xi
Jinping has stirred hopes that trade tensions could ease.
    • Gold prices rose, heading for a sixth weekly gain in a row, as investors
await a meeting between U.S. President Donald Trump and Chinese President Xi
Jinping this weekend for any developments on trade.
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         69.11/69.14  June 27          ---          $101.22 mln
 10-yr bond yield  6.9%         Month-to-date    $224.82 mln  $599.91 mln
                                Year-to-date     $11.41 bln   -$1.53 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 = 69.0579 Indian rupees)
    
    

 (Compiled by Samrhitha Arunasalam in Bengaluru)
  
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