January 15, 2020 / 3:12 AM / a month ago

Morning News Call - India, January 15

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    FACTORS TO WATCH
    No major events are scheduled for the day.
    
    LIVECHAT-EQUITIES WATCH
    Reuters stocks correspondents in London and New York discuss the latest
happenings in bourses on both sides of the Atlantic at 7:30 pm IST. To join the
conversation, click here refini.tv/2P8N0Wp
 
    
    
    INDIA TOP NEWS
    • India's annual electricity demand grows at slowest pace in 6 years
India's annual electricity demand in 2019 grew at its slowest pace in six years
with December marking a fifth straight month of decline, government data showed,
amid a broader economic slowdown that led to a drop in sales of everything from
cars to cookies and also to factories cutting jobs.
• Trump considering visit to India next month
U.S. President Donald Trump is considering visiting India next month, for what
would be his first visit to the world's largest democracy since he took office
three years ago, sources with knowledge of the matter said on Tuesday.

• RBI may put rate cuts on extended pause after spike in inflation
A spike in India's retail inflation in December has raised the chances the
central bank will put rate cuts on hold for some time despite economic growth
languishing at more than six-year lows.
• Amazon boss Jeff Bezos arrives in India as local traders plan protests
Amazon.com founder Jeff Bezos arrived in India on Tuesday, according to a post
on his Twitter account, as thousands of small traders across 300 cities planned
protests, claiming the firm is distorting local retail market.
• India appoints Michael Patra as RBI deputy governor
India's government appointed career central banker Michael Patra as one of the
Reserve Bank of India's four deputy governors for a three-year term, it said in
a statement on Tuesday.
• SoftBank's Oyo lays off over 1,000 employees in India amid profit push
SoftBank-backed Oyo Hotels and Homes is laying off hundreds of employees in
India, according to a source and an internal memo seen by Reuters, as the
loss-making hotel chain cuts costs in pursuit of profits.
• India trade body wants cap on refined palm oil imports
India should cap imports of refined palm oil and palmolein at a maximum 50,000
tonnes per month to boost local refining capacity and support local oilseed
growing farmers, a top trade body said on Tuesday.
   
    
    GLOBAL TOP NEWS
    • U.S. to maintain tariffs on Chinese goods until Phase 2 deal -Mnuchin
The United States will maintain tariffs on Chinese goods until the completion of
a second phase of a U.S.-China trade agreement, U.S. Treasury Secretary Steven
Mnuchin said on Tuesday, a day before the two sides are to sign an interim deal.

• Democrats add last-minute evidence to Trump impeachment case before Senate
trial
Democrats in the U.S. House of Representatives said on Tuesday they would
include new evidence when they send formal impeachment charges against President
Donald Trump to the Senate on Wednesday, seeking to expand the scope of a trial
that will dominate Washington for the next several weeks.
• Britain, France, Germany formally accuse Iran of breaking nuclear deal
Britain, France and Germany formally accused Iran on Tuesday of violating the
terms of its 2015 agreement to curb its nuclear program, which eventually could
lead to the reimposing of U.N. sanctions lifted under the deal.
   
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.1% lower at 12,373.00.
• The Indian rupee is expected to open lower against the dollar, tracking the
decline in major Asian currencies ahead of the signing of the interim U.S.-China
trade deal. 
• Indian government bonds are likely to open little changed, as traders await
clarity over future special open market operations by the central bank. The
yield on the benchmark 6.45% bond maturing in 2029 is likely to trade in a range
of 6.65%-6.70% today. 
    
    
    GLOBAL MARKETS
    • U.S. stocks dipped on Tuesday, reversing earlier intraday record highs,
following a report that the United States would likely maintain tariffs on
Chinese goods until after November's presidential election.
    • Stocks were steady in early Asian trade on Wednesday as investors awaited
the signing of an initial U.S.-China trade deal, with sentiment somewhat dented
by comments from the U.S. Treasury Secretary that tariffs would remain in place
for now.
    • The safe-haven yen held firm and riskier Asian currencies softened a
little on Wednesday, as currency investors awaited the signing of the U.S.-China
trade deal with trepidation.
    • U.S. Treasury yields ticked down on Tuesday as investors took stock of a
moderate rise in consumer prices and the expected signing of a trade deal
between the United States and China.
    • Oil prices slipped on concerns that the pending Phase 1 trade deal between
the United States and China, the world's biggest crude users, may not lead to
more fuel demand as the U.S. intends to keep tariffs on Chinese goods in place.

    • Gold prices edged up, after a top U.S. official said tariffs on China
would stay until a Phase 2 deal is completed, ahead of the signing of an interim
trade deal between the two countries, while palladium scaled a record
peak.

                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         70.83/70.86  January 14       120.79 crore  (1,128.89) crore
 10-yr bond yield  6.66%        Month-to-date    736 crore     (8,411) 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 = 70.84 Indian rupees)
 

 (Compiled by Siddharth Athreya V in Bengaluru)
  
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