January 3, 2020 / 3:14 AM / 7 months ago

Morning News Call - India, January 3

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    FACTORS TO WATCH
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
    
    
    INDIA TOP NEWS
    • India's December factory activity picks up to 7-month high but business
optimism weakens
    India's factory activity expanded at its fastest pace in seven months in
December as a jump in new orders prompted companies to ramp up production, a
private business survey showed on Thursday.
    • India electricity supply down 1.1% in December, declines for fifth
straight month
    India's electricity supply fell for the fifth straight month in December,
provisional government data showed, potentially reflecting sluggish industrial
activity amid an overall economic slowdown.
    
    
    GLOBAL TOP NEWS
    • Lebanon receives Interpol arrest warrant for ex-Nissan boss Ghosn
    Lebanon received an Interpol arrest warrant on Thursday for former Nissan
chairman Carlos Ghosn, while Turkey launched an investigation into his daring
escape from Japan via Istanbul.
    • HSBC kicks off year with Hong Kong branches closed, vandalised
    HSBC is being drawn into Hong Kong's political turmoil with protesters
attacking some of its branches and graffiti daubed on the famous pair of lions
that guard its city-centre headquarters.
    • Iran's Soleimani and Iraq's Muhandis killed in U.S. air strike - militia
spokesman
    Iranian Major-General Qassem Soleimani, head of the elite Quds Force, and
Iraqi militia commander Abu Mahdi al-Muhandis were killed early on Friday in an
air strike on their convoy at Baghdad airport, an Iraqi militia spokesman told
Reuters.
   
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were down 0.2% at 12,318.50. 
    • The Indian rupee is expected to open lower against the dollar, weighed by
the surge in Brent crude after a U.S. air strike reportedly killed Iranian and
Iraqi military personnel. 
    • India's federal government bonds are likely to rise today as the central
bank will conduct yet another special open market operation, where it will
simultaneously buy and sell notes worth up to 100 billion rupees each. The yield
on the benchmark 6.45% bond maturing in 2029 is likely to trade in a range of
6.45%-6.50% until the weekly bond auction today.
        
    
    GLOBAL MARKETS
    • Wall Street's major indexes notched record highs to open the new year on
Thursday, as fresh economic stimulus from China added to optimism fueled by
easing trade tensions and an improving global outlook.
    • Asian shares extended their New Year's rally after Wall Street struck
another record high on fresh Chinese stimulus while oil spiked after U.S. air
strikes in Iraq heightened geopolitical tensions.
    • The Japanese yen led other safe-haven assets higher after air strikes on
Baghdad airport killed a senior Iranian military official, stoking tensions in
the Middle East and lifting the price of oil.
    • U.S. Treasury yields fell on Thursday in light post-holiday trading, after
longer-dated debt posted its best yearly returns since 2014.
    • Oil prices jumped more than $1 after a U.S. air strike killed key Iranian
and Iraqi military personnel, raising concerns that escalating Middle East
tensions may disrupt oil supplies.
    • Gold prices inched up, on track to record a fourth consecutive weekly
gain, as the dollar eased, while investors awaited the release of minutes from
the U.S. Federal Reserve's December meeting.
    
        
 CLOSE             FII INVESTMENTS  EQUITIES       DEBT      
 PNDF spot         71.33/71.36      January 2      359.03    (1.45)cro
                                                   crore     re
 10-yr bond yield  6.62%            Month-to-date  (1,613)c  (545)cror
                                                   rore      e
                                    Year-to-date   (1,613)   (545)cror
                                                   crore     e
 (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 = 71.34 Indian rupees)
    
 

 (Compiled by Siddharth Athreya V in Bengaluru)
  
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