August 9, 2019 / 3:18 AM / 16 days ago

Morning News Call - India,August 9

(Morning News Call - India edition will not be published on Monday, August 12 as markets are closed for Bakri Eid)

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FACTORS TO WATCH

5:00 pm: RBI to release weekly foreign exchange data in Mumbai.

5:30 pm: Government to release June Industrial output data in New Delhi.

INDIA TOP NEWS

• India may exempt foreign portfolio investors from higher taxes - sources

India is likely to exempt foreign portfolio investors from an increase in taxes in this year's budget approved by parliament, two government officials told Reuters, in comments that prompted a rally in stock markets.

• Indian auto parts maker braces for plant shutdowns amid industry-wide crisis

Jamna Auto Industries, a maker of springs used in vehicle suspensions, said on Thursday it might shut all its plants in August due to weak demand from its customers, underscoring the extent of a slowdown in the auto sector.

• India to hold state assembly elections in Jammu & Kashmir soon - Modi

Prime Minister Narendra Modi told the people of Jammu and Kashmir on Thursday that elections would be held soon in the state for the local assembly, two days after government's decision to end special status for the state and split it into two union territories.

• Mahindra considers second U.S. plant in Michigan

Mahindra and Mahindra said on Thursday it plans to open a plant in Flint, Michigan, to make vehicles including mail delivery trucks for the U.S. market, a move that could create up to 2,000 jobs.

• DHFL may not repay debt while restructuring talks continue

Dewan Housing Finance, one of India's so-called shadow banks, on Thursday said it might not be able to fulfil its debt obligations due in the near future while banks review its restructuring plan.

• Floods in India kill 33, displace thousands

Floods brought by heavy rains and overflowing rivers across large swathes of western and southern India have killed at least 33 people and forced the evacuation of 180,000 from their homes, officials said on Thursday.

• Unknown men attack SAIL chairman with iron bars

Four unidentified men attacked the chief of Steel Authority of India, with iron bars as he was driving home in a violent assault that he said on Thursday appeared linked to business dealings.

GLOBAL TOP NEWS

• Japan's GDP growth thumps expectations on consumer, business resilience

Japan's economy grew much faster than expected in April-June to mark the third straight quarter of expansion, as robust private consumption and business investment offset the hit to exports from cooling global demand.

• Uber loses $5 billion, misses Wall Street targets despite easing price war

Uber reported a record $5.2 billion loss and revenue that fell short of Wall Street targets on Thursday as growth in its core ride-hailing business slowed.

• Broadcom to buy Symantec's enterprise unit for $10.7 billion in software push

Broadcom said on Thursday it will buy antivirus software maker Symantec's enterprise security unit for $10.7 billion in cash to scale up its software business through deals.

LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

• SGX Nifty nearest-month futures were trading 0.2% higher at 11,089.00.

• The Indian rupee is expected to open higher against the dollar after U.S. equities had their best day in two months, boosting Asian stocks.

• The Indian government bonds will likely open largely unchanged ahead of a fresh supply of papers today, while uncertainty over the outlook for future rate cuts continues to weigh on investor sentiment.The yield on the benchmark 7.26% bond maturing in 2029 will likely trade in a 6.38%-6.42% range today.

GLOBAL MARKETS

• The S&P 500 registered its largest one-day percentage gain in about two months on Thursday, with technology shares providing the biggest boost as equities continued to rebound along with bond yields.

• Asian shares caught the tail of a Wall Street rally, helped by China's better-than-expected export figures but fresh concerns about Sino-U.S. trade ties are likely to limit gains in the region.

• The yen traded near an eight month high versus the dollar as renewed concerns about the U.S.-China trade dispute and signs that central banks are more worried about the global economy boosted safe-haven assets.

• U.S. Treasury yields rose on Thursday, with 30-year yields climbing from a near-record low, as traders scaled back safe-haven holdings of U.S. government debt as Wall Street continued to rebound from a recent rout.

• Oil prices rose, supported by expectations of more production cuts by OPEC amid fears the U.S.-China trade row could lead to a global slowdown, curbing demand for crude.

• Gold prices rose, holding above the key $1,500 per ounce pivot, as fresh concerns about the U.S.-China trade dispute and worries over global economic slowdown lifted demand for the safe-haven metal.

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 = 69.39 Indian rupees)

Compiled by Priyanka Das in Bengaluru

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