January 6, 2020 / 3:16 AM / 20 days ago

Morning News Call - India, January 6

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    FACTORS TO WATCH
    2:00 pm: NITI Aayog CEO Amitabh Kant at National Traders Convention in New
Delhi.
    
    LIVECHAT- FX WEEK AHEAD
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 link:
refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • IndiGo co-founder seeks to ease rules on shareholdings in Indian carrier
One of the co-founders of Indian airline IndiGo is seeking to modify rules on
the sale and purchase of shares by its main shareholders amid a bitter spat with
his founding partner in the country's largest carrier.
• Former Tata chairman Cyrus Mistry says he will not seek chairmanship of Tata
Sons
The former chairman of Tata Sons Cyrus Mistry said on Sunday he would not seek
to reclaim his board seats and position as executive chairman of the
salt-to-software conglomerate after a company's tribunal in December ordered he
be reinstated.
• Adani Ports to buy majority stake in Krishnapatnam Port for $1.89 billion
Adani Ports and Special Economic Zone said on Friday it would buy a 75% stake in
Krishnapatnam Port Co Ltd for an enterprise value of $1.89 billion.
• India's 2019 gold imports hits 3-year low as record high prices dent demand
India's gold imports in 2019 fell 12% from a year ago to the lowest level in
three years as retail buying faltered in the second half after local prices
rallied to a record high, a government source said on Friday.
    
    
    GLOBAL TOP NEWS
    • Iraq wants foreign troops out after air strike; Trump threatens sanctions
Iraq's parliament called on Sunday for U.S. and other foreign troops to leave as
a backlash grows against the U.S. killing of a top Iranian general, and
President Donald Trump doubled down on threats to target Iranian cultural sites
if Tehran retaliates.
• China's services sector expands at slower pace in December as confidence dips
- Caixin PMI
China's services sector expanded at a slower pace in December following a strong
rebound in the previous month, with business confidence falling to the second
lowest on record despite a pick-up in new orders, a private survey showed.

• Venezuela's ruling Socialists seize congress, defiant opposition re-elects
Guaido
Venezuela's socialist government installed a new head of Congress on Sunday
after armed troops blocked opposition legislators from entering parliament, in a
move condemned by dozens of nations as an assault on democracy.    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.4% lower at 12,197.00. 
    • The Indian rupee is expected to weaken further against the dollar after
Brent crude climbed above $70 a barrel for the first time in almost four months
on mounting tensions between the U.S. and Iran.
    • Indian government bonds are likely to open lower tracking consistent rise
in crude oil prices, even as market awaits the central bank’s third special open
market operation due today. The yield on the benchmark 6.45% bond maturing in
2029 is likely to trade in a range of 6.48%-6.54% today.
    
    
    GLOBAL MARKETS
    • Wall Street's major indexes fell from record highs on Friday after a U.S.
air strike in Iraq ratcheted up tensions in the Middle East and a
bigger-than-expected contraction in the U.S. manufacturing sector raised
concerns of slowing economic growth.
    • A gauge of Asian shares was toppled from an 18-month top as heightened
Middle East tensions sent investors scurrying for the safety of gold, which hit
a near seven-year high while oil jumped to four-month peaks.
    • The safe-haven Japanese yen hit a three-month high, while gold soared as
increasing tensions between Iran and the United States sent investors scurrying
to less risky assets.
    • U.S. Treasury yields fell sharply on Friday on safety buying after a U.S.
air strike killed Iran Quds Force chief Qassem Soleimani, increasing tensions
between the two countries.
    • Oil prices shot more than 2% higher, with Brent rising above $70 a barrel,
after U.S. President Donald Trump issued a threat to impose sanctions on Iraq
amid escalating tensions with Iran in the Middle East.
    • Gold soared to its highest in nearly seven years, as intensifying tensions
in the Middle East drove investors towards the safe-haven metal, while palladium
surpassed $2,000-level to hit a record high.
    
 
                   CLOSE        FII INVESTMENTS  EQUITIES  DEBT
 PNDF spot         71.70/71.73  January 3        1088.24   (1348.83) 
                                                 crore     crore
 10-yr bond yield  6.62%        Month-to-date    (525)     (1894) crore
                                                 crore     
                                Year-to-date     (525)     (1894) crore
                                                 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 = 71.76 Indian rupees)
 
    

 (Compiled by Siddharth Athreya V in Bengaluru)
  
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