December 2, 2019 / 3:10 AM / 2 months ago

Morning News Call - India, December 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:
    No major events are scheduled for the day.

    Jeremy Boulton, Reuters FX Buzz analyst, answers questions on G7 currencies
and select EM FX pairs at 5.30 pm IST. To join the conversation, click on the
    • India's economic growth slows, pressure on Modi to speed up reforms
    India's annual economic growth slowed to 4.5% in the July-September quarter,
its weakest pace since 2013, putting pressure on Prime Minister Narendra Modi to
speed up reforms as five rate cuts by the central bank have failed to boost
    • India plans to invest $1.39 trillion in infrastructure to spur economy
    India will unveil a series of infrastructure projects this month as part of
a plan to invest 100 trillion rupees ($1.39 trillion) in the sector over the
next five years, the finance minister said on Saturday, in a push to improve the
country's economy.
    • Yes Bank seeks up to $2 billion in preferential new share issue
    Yes Bank aims to raise up to $2 billion in a massive issue of new shares to
institutional investors and wealth managers as it soaks up the impact of bad
loans in the country's crisis-hit shadow banking and real estate sectors.

    • SoftBank-backed Ola targets IPO process by March-end 2021, cut staff by up
to 5% -sources
    Indian ride-hailing firm Ola, backed by Japan's SoftBank, aims to begin the
IPO process by the end of March 2021 and plans to cut its workforce by up to 5%
as part of preparations, said people with direct knowledge of the matter.

    • RBI moves to begin bankruptcy proceedings against DHFL
    The Reserve Bank of India has filed an application to begin bankruptcy
proceedings against shadow lender Dewan Housing Finance Corporation, it said on
    • Indian retailer Future's shares surge as regulator approves Amazon
    Shares in Future Retail surged on Friday, after India's antitrust body
approved a deal that would give a minority stake in one of the
country's top retail groups.
    • Indian shadow lender Home First Finance files for $209 million IPO
    Housing lender Home First Finance filed for an initial public offering (IPO)
of up to 15 billion rupees ($209 million), according to a draft prospectus from
one of its bookrunners dated Nov. 28.
    • India makes gold jewellery hallmarking mandatory from mid-January
    India will make hallmarking of gold jewellery and artefacts mandatory from
mid-January, a senior government minister said on Friday, a move that could
boost demand in the world's second-biggest gold market by tackling quality
    • China wants U.S. tariffs rolled back in phase one trade deal - Global
    Beijing's top priority in any phase one trade deal with the United States is
the removal of existing tariffs on Chinese goods, China's Global Times newspaper
reported on Sunday, amid uncertainty on whether the two sides can end a 17-month
trade war that has depressed global growth.
    • China's November factory activity unexpectedly expands at quickest pace in
almost three years - Caixin PMI
    China's factory activity unexpectedly expanded at the quickest pace in
almost three years in November, with solid increases in output and new orders, a
private business survey showed.
    • Hong Kong police fire tear gas as thousands take to the streets in fresh
    Police fired tear gas to disperse thousands of anti-government protesters in
Hong Kong on Sunday, ending a rare lull in violence, as residents took to the
streets chanting "revolution of our time" and "liberate Hong Kong".
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading down 0.1% at 12,089.00.
    • The Indian rupee is expected to open little changed against the dollar
amid disappointing domestic economic data and better-than-expected China
manufacturing data.
    • Indian government bonds will likely open higher as bets of another
interest rate cut later this week strengthened after weaker-than-expected
economic growth in the July-September quarter, while comments from an official
over the fiscal glide path will aid further. India’s federal government will
keep the fiscal deficit on glide path and continue to follow the glide path
rules, a finance ministry official said on Nov. 29, while ruling out any
additional borrowing as of now. The yield on the benchmark 6.45% bond maturing
in 2029 is likely to trade in a range of 6.42%-6.48% today, a trader with a
private bank said.
    • Wall Street's major indexes ended Friday's shorter session lower as
U.S.-China discord over Hong Kong fueled investor anxiety about trade talks and
retail stocks dipped as in-store Black Friday sales appeared to draw smaller
    • Global shares ticked up, as investors clung to hopes Beijing and
Washington could reach a compromise in trade talks although increasing tensions
over Hong Kong unsettled market confidence.
    • The British pound began the week on the back foot as polls showed a
tightening U.K. election race, while an unexpected rebound in Chinese
manufacturing supported risk appetite.
    • U.S. Treasury yields were steady on Friday after China said it would
retaliate after the United States passed legislation backing anti-government
protesters in Hong Kong, potentially complicating the chance of a bilateral
trade deal.
    • Oil prices rose more than 1% as signs of rising manufacturing activity in
China pointed to increasing fuel demand and hints that OPEC may deepen output
cuts at its meeting this week indicated supply may tighten next year.
    • Gold prices fell after hitting their highest in more than a week, as
stocks gained on better-than-expected China factory data and the greenback
strengthened, despite fresh uncertainty over a U.S.-China trade truce.​
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         71.79/71.82  November 29      1,627.69 crore  (1,864.78) crore
 10-yr bond yield  6.46%        Month-to-date    25,231 crore    (2,358) crore
                                Year-to-date     93,784 crore    30,498 crore
    (FII investment numbers are in Indian rupees. Source: National Securities
Depository Limited)​

    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 = 71.74 Indian rupees)

 (Compiled by Nidhi C Sai 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