July 11, 2019 / 3:13 AM / 12 days ago

Morning News Call - India, July 11

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    FACTORS TO WATCH
    11:00 am: Axis Bank MD & CEO Amitabh Chaudhry to brief media on new business
initiative in Mumbai.
    
    LIVECHAT - FX IN FOCUS
Jane Foley, senior FX strategist at Rabobank, looks at currency markets and what
central banks such as the Fed, the ECB and the RBA could do next. To join the
conversation at 3:30 pm IST, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Row between founders hits shares in IndiGo parent
An escalating dispute between IndiGo's co-founders sparked falls in its parent
firm's shares on Wednesday as investors fretted about the potential impact on
India's largest airline.
    • India receives above normal rains this week, spurring crop planting
India's monsoon rains in the week ending on Wednesday were above average for the
first time since the start of the season on June 1, helping farmers to
accelerate the planting of summer-sown crops and easing concerns of drought.

    • India passenger vehicle sales slump in June
India's passenger vehicles sales slumped 17.54% in June, an auto industry body
said on Wednesday, resulting in an 18.4% fall in sales in the first quarter.

    • Qatar leads $150 million funding for Indian education startup Byju's
Indian online tutoring startup Byju's said on Wednesday it had raised $150
million from investors led by the Qatar Investment Authority (QIA), which a
source familiar with the matter said valued it at more than $5.5 billion.

    • Airtel Africa drops 10% in early trade after Lagos listing
Airtel Africa shares fell sharply on Wednesday, a day after its debut $4.4
billion flotation in Lagos, mirroring a similar decline on the London stock
market where the telecoms firm has its primary listing.
    
    
    GLOBAL TOP NEWS
    • Powell testimony, Fed meeting highlight case for 'insurance'
A confidence shock driven partly by the U.S. trade war is at the center of an
increasingly persuasive argument for Federal Reserve policymakers seriously
considering cutting rates for the first time in a decade.
    • Iranian boats 'harass' British tanker in the Gulf -U.S. officials
Five boats believed to belong to Iranian Revolutionary Guards approached a
British oil tanker in the Gulf on Wednesday and asked it to stop in Iranian
waters close by, but withdrew after a British warship warned them, U.S.
officials said.
    • China's 2019 growth seen slowing to 6.2% as trade war weighs
China's economic growth is expected to slow to a near 30-year low of 6.2% this
year, a Reuters poll showed on Wednesday, despite a flurry of support measures
to spur domestic demand amid a bruising trade war with the United States.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.4% higher at 11,545.50,
from its previous close.
    • The Indian rupee is expected to open higher against the dollar after
Federal Reserve Chair Jerome Powell flagged a possible interest rate cut amid
trade tensions and concerns over the strength of the global economy.
    • Indian government bonds are likely to trade lower in early session
tracking an overnight surge in crude oil prices. The yield on the benchmark
7.26% bond maturing in 2029 is likely to trade in a 6.51%-6.58% range today.
    
    
    GLOBAL MARKETS
    • U.S. stocks ended higher and the S&P 500 index briefly crossed the
3,000-point mark for the first time on Wednesday as remarks by Federal Reserve
Chairman Jerome Powell reassured investors about the potential for an interest
rate cut later this month.
    • Asian stocks gained and the dollar drooped after Federal Reserve Chair
Jerome Powell reinforced prospects of a U.S. interest rate cut later this month.

    • The dollar was soft after Federal Reserve Chairman Jerome Powell set the
stage for a rate cut later this month, vowing to "act as appropriate" to ensure
the world's biggest economy will be able to sustain a decade-long expansion.

    • The U.S. Treasury yield curve steepened on Wednesday after the Federal
Reserve's concerns about global growth increased expectations that the U.S.
central bank may cut rates more sharply than expected in July.
    • U.S. oil futures hit their highest in over a month as a potential
hurricane threatened crude output in the Gulf of Mexico and as an incident
involving a British tanker in the Middle East highlighted ongoing tensions
there.
    • Gold prices rose to their highest in over a week as the dollar pulled back
from multi-week highs after comments from Federal Reserve Chairman Jerome Powell
bolstered expectations for an interest rate cut later this month.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.57/68.60  July 10          -$88.52 mln   -$52.53 mln
 10-yr bond yield  6.54 pct     Month-to-date    -$543.89 mln  $505.51 mln
                                Year-to-date     $10.80 bln    -$895.25 mln
 
    
    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 = 68.3460 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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