August 2, 2019 / 3:12 AM / 17 days ago

Morning News Call - India, August 2

To access a PDF version of this newsletter, please click here here

If you would like to receive this newsletter via email, please register at: here

FACTORS TO WATCH

2:30 pm: State Bank of India earnings conference call in Mumbai.

INDIA TOP NEWS

• Stronger demand boosts India factory activity in July: PMI

India's factory activity accelerated in July as domestic demand and output strengthened, encouraging firms to hire at the fastest rate in five months, a private business survey showed on Thursday.

• Bharti Airtel reports first quarterly loss in over a decade

Bharti Airtel reported its first quarterly loss in over a decade on Thursday, taking a one-time hit of 14.69 billion rupees, as it lost customers amid a fierce battle against Reliance Jio for market share.

• Amazon in early talks to buy stake in India's Reliance Retail: Economic Times

Amazon.com is in exploratory talks with Reliance Industries' retail unit to buy an up to 26% stake in India's biggest brick-and-mortar retailer, the Economic Times reported on Thursday.

• India's gold demand to soften in Q3 on price rise, rural distress: WGC

India's gold demand is expected to soften in the September quarter as record high local prices dampen buying in the world's second biggest consumer of the precious metal, the World Gold Council (WGC) said on Thursday.

• India grants infrastructure project status to $10-billion hyperloop plan

India's western state of Maharashtra has granted infrastructure project status for a $10-billion plan to build the world's first ultra-fast hyperloop project, aiming to link the financial hub of Mumbai with the neighbouring city of Pune.

• Indian firms set up JV to mine for lithium, cobalt overseas

Three Indian state-run companies - National Aluminium, Hindustan Copper and Mineral Exploration - are to form a joint venture to buy mining assets overseas that have minerals such as lithium and cobalt, which are used in the manufacture of batteries for electric vehicles.

GLOBAL TOP NEWS

• Trump hits China with more tariffs, says Xi moving too slow on trade

U.S. President Donald Trump said he plans to impose a 10% tariff on $300 billion of Chinese imports from Sept. 1 and could raise tariffs further if China's President Xi Jinping fails to move more quickly to strike a trade deal.

• Pentagon puts $10 billion JEDI contract on hold after Trump suggests it favored Amazon

The Pentagon has decided to put on hold its decision to award a $10 billion cloud computing contract after President Donald Trump said his administration was examining Amazon.com's bid following complaints from other tech companies.

• Iran says ready for worst in battle to save nuclear deal amid standoff with U.S.

President Hassan Rouhani said on Thursday that Iran was ready for the worst in an uphill struggle to salvage its nuclear deal with world powers abandoned by the United States, but that he was sure Tehran would eventually prevail.

LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

• SGX Nifty nearest-month futures were trading 0.5% lower at 10,958.50.

• The Indian rupee is expected to open lower against the dollar after U.S. President Donald Trump said he will impose tariffs on more Chinese goods, prompting a selloff in Asian currencies and equities.

• Indian government bonds are likely to gain in early session tracking lower U.S. Treasury yields and an overnight slump in crude oil prices. However, an escalation in trade tensions between the United States and China and fresh supply of notes will likely cap the gains. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.35%-6.40% band till the auction result today.

GLOBAL MARKETS

• Wall Street fell again on Thursday, abruptly reversing early gains after U.S. President Donald Trump put concerns about the U.S.-China trade war back in the spotlight, tweeting that he would impose an additional 10% tariff on $300 billion in Chinese imports.

• Global stocks took another beating while investors piled on to safe-haven assets after U.S. President Donald Trump said he would slap a 10% tariff on the remaining $300 billion of Chinese imports from next month.

• The Japanese yen hit a more-than-one month high against the dollar and multi-year peaks against antipodean currencies after U.S. President Donald Trump broke a truce in the Sino-U.S. trade war, bolstering demand for safe-havens.

• The U.S. Treasury market rallied on Thursday with 10-year yields tumbling to their lowest levels since November 2016, as U.S. President Donald Trump's threat to slap more duties on Chinese goods touched off a stampede for safe-haven government bonds.

• Oil prices rose more than $1, rebounding from their biggest falls in years after U.S. President Donald Trump imposed more tariffs on Chinese imports, intensifying the trade war between the world's two biggest economies and crude consumers.

• Gold prices fell, consolidating from a more than 2% surge in the previous session after U.S. President Donald Trump broke a trade truce with China, but the metal was headed for a third weekly gain in four.

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 = 69.0050 Indian rupees Compiled by Swathi Nair in Bengaluru

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below