Morning News Call - India, January 7

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    FACTORS TO WATCH
    2:30 pm: Finance Minister Nirmala Sitharaman at National Traders Convention
in New Delhi.
5:30 pm: Government to announce first advance FY20 GDP estimates in New Delhi.
    
        
    INDIA TOP NEWS
    • India plans to cut spending to curb deficit; may hurt growth
India's government is likely to cut spending for the current fiscal year by as
much as 2 trillion Indian rupees as it faces one of the biggest tax shortfalls
in recent years, three government sources said.
• Buoyant demand boosts India services activity to five-month high in December
Activity in India's dominant service industry accelerated to a five-month high
in December as demand rose at the fastest pace in more than three years, a
private business survey showed on Monday.
    
    
    GLOBAL TOP NEWS
    • Pentagon chief denies U.S. is leaving Iraq; slain commander mourned by
Tehran crowds
The United States has no plans to pull its troops out of Iraq, Defense Secretary
Mark Esper said on Monday, following reports by Reuters and other media of an
American military letter informing Iraqi officials about repositioning troops in
preparation for leaving the country.
• Bolton says he is willing to testify in Trump impeachment trial
U.S. President Donald Trump’s former national security adviser, John Bolton,
said on Monday he is willing to testify in the expected Senate impeachment trial
of the president, a surprise development that could potentially strengthen the
case that Trump should be removed from office.
• Japan December services sector shrinks at fastest pace in over 3 years - PMI
Japan's services sector saw its deepest contraction in more than three years in
December as business activity took a hit from weak demand at home and abroad, a
private survey showed.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.6% higher at 12,119.00.
• The Indian rupee is expected to open higher against the dollar, boosted by the
pullback in crude oil and rebound in U.S. and regional equities.
• Indian government bonds are likely to trade largely unchanged after a sharp
fall yesterday, as investors may defer purchases ahead of the release of the
first advance estimates of gross domestic product growth for this fiscal.The
yield on the benchmark 6.45% bond maturing in 2029 is likely to trade in a range
of 6.54%-6.60% today.
    
    
    GLOBAL MARKETS
    • U.S. stocks ended higher on Monday, rebounding from Friday's losses as
investors brushed aside worries about increased tensions in the Middle East and
shares of Alphabet and other internet names gained.
    • Asian shares rebounded as a day passed without any new escalation in the
Middle East and Wall Street erased early losses to end in the black as tech
stocks climbed.
    • The Swiss franc held gains against the U.S. dollar as traders sought
save-havens amid heightened anxiety about potential Iranian retaliation to a
U.S. drone strike that killed its most prominent military commander.
    • U.S. Treasury bonds sold off on Monday, lifting yields as the price of oil
remained elevated on heightened tensions between the United States and
Iran.
    • Oil prices edged lower, coming off their highest levels in months as the
market calmed while the world braces for Iran's response to the killing of its
top military commander by the United States.
    • Gold prices inched lower, a day after hitting their highest in nearly
seven years, with a lack of immediate escalation between the United States and
Iran denting bullion's safe-haven appeal.
  
           
                   CLOSE        FII INVESTMENTS  EQUITIES       DEBT
 PNDF spot         72.04/72.07  January 6        1301.97 crore  (1299.11) crore
 10-yr bond yield  6.57%        Month-to-date    777 crore      (3193) crore
                                Year-to-date     777 crore      (3193) 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 = 71.86 Indian rupees) 
 

 (Compiled by Siddharth Athreya V in Bengaluru)