January 27, 2020 / 3:33 AM / 2 months ago

Morning News Call - India, January 27

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    FACTORS TO WATCH
    10:25 am: Brazil President Jair Bolsonaro and Commerce Minister Piyush Goyal
are expected to be present at the India-Brazil business forum 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
    • U.S. pushing India to buy $5-6 bln more farm goods to seal trade
deal-sources 
    The United States wants India to buy at least another $5-6 billion worth of
American farm goods if New Delhi wants to win reinstatement of a key U.S. trade
concession and seal a wider pact, four sources familiar with the talks told
Reuters. 
    • India faces first fall in direct taxes in at least two decades -sources
    India's corporate and income tax collection for the current year is likely
to fall for the first time in at least two decades, several senior tax officials
told Reuters, amid a sharp fall in economic growth and cut in corporate tax
rates. 
    • India likely to raise import duties on more than 50 items next week
    India plans to increase import duties on more than 50 items including
electronics, electrical goods, chemicals and handicrafts, targeting about $56
billion worth of imports from China and elsewhere, officials and industry
sources said.  
    • Indonesia to increase imports from India amid New Delhi-Malaysia spat
-sources 
    Indonesia has agreed to immediately increase imports of Indian buffalo meat,
sugar and auto parts after India boosted purchases of Indonesian palm oil amid a
spat with rival supplier Malaysia, two Indian government sources with direct
knowledge of the matter told Reuters on Friday. 
    • India's rice exports fall sharply as sanctions delay payments from Iran 
    Reluctance among Indian traders to ship premium basmati rice to Iran as U.S.
sanctions hobble its ability to pay has contributed to a sharp drop in overall
exports from the world's biggest supplier of the grain, trade and government
sources said.  
    
    
    GLOBAL TOP NEWS
    • China virus deaths rise to 80 as Hong Kong bans visitors from worst-hit
province 
    The death toll from China's new coronavirus grew to 80 as residents of Hubei
province, where the disease originated, were banned from entering Hong Kong amid
global efforts to halt the rapid spread of the outbreak.   
    • Regulator probes board role in Credit Suisse spying scandal-sources  
    The Credit Suisse spying debacle risks tipping the bank into a crisis that
could engulf its top executives. Switzerland's market supervisor is scrutinising
Credit Suisse's oversight of chief executive Tidjane Thiam and his top
lieutenants as part of a probe into corporate espionage, two people with direct
knowledge of the investigation said.  
    • Former NBA star Kobe Bryant and daughter among 9 killed in helicopter
crash near Los Angeles 
    Kobe Bryant, one of the NBA's all-time greatest players whose international
stardom transcended basketball, was killed at age 41 on Sunday in a helicopter
crash near Los Angeles along with his 13-year-old daughter and seven others on
board, officials said. 

    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.9% lower at 12,162.50. ​ 
    • The Indian rupee is expected to open lower against the dollar as growing
concerns over the impact of the China virus prompted an exit from risk assets.  
    • The Indian government bonds are likely to edge higher tracking a sharp
fall in U.S. Treasury yields and crude oil prices as the further spread of a
virus from China dented investor appetite. The yield on the benchmark 6.45% bond
maturing in 2029 is likely to trade in a range of 6.55%-6.60%.​ 
    
    
    GLOBAL MARKETS
    • Wall Street fell in a broad sell-off on Friday, as investors fled equities
on growing concerns over the scope of the coronavirus outbreak, capping the S&P
500's worst week in six months.
    • Stocks tumbled as investors grew increasingly anxious about the economic
impact of China's spreading virus outbreak, with demand spiking for safe-haven
assets such as the Japanese yen and Treasury notes. 
    • U.S. Treasury prices advanced on Friday, pushing yields lower for a fourth
straight session, as news of the latest coronavirus spreading outside China
continued to undermine risk appetite and spur demand for safe-haven assets.

    • Oil prices slumped a further 2% to multi-month lows on Monday as the
rising number of cases of the new China virus and city lockdowns deepened
concerns about demand for crude, even as Saudi Arabia's energy minister sought
to calm the market.
    • Gold prices climbed to a more than two-week high as rising concerns over
the spread of a virus outbreak in China and its potential economic impact
prompted investors to buy the safe-haven metal. 
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         71.28/71.31  January 24       1,497.17      2,55.51 crore
                                                 crore         
 10-yr bond yield  6.58 pct     Month-to-date    13,304 crore  (11,661) crore
 

    
    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 = 71.07 Indian rupees)
    

 (Compiled by Priyanka Das in Bengaluru)
  
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