March 5, 2020 / 3:18 AM / a month ago

Morning News Call - India, March 5

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    FACTORS TO WATCH
    No major events are scheduled.
    
    LIVECHAT - BONDS FOCUS 
    Reuters bonds correspondents join us from London to talk about the week in
European govvies. To join the conversation at 5:00 pm IST, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • RBI may use unconventional tools to combat coronavirus impact, sources say
    RBI is considering using unconventional policy tools to spur lending, three
government officials told Reuters, amid fears that the coronavirus outbreak will
derail any revival of economic growth.
    • India services growth at over 7-year high on strong export demand
    Growth in India's dominant service sector accelerated at a pace not seen in
over seven years last month, boosted by a recovery in foreign demand and solid
business confidence, a private survey showed on Wednesday.
    • India's coronavirus cases nears 30, hits Paytm
    The total number of known coronavirus cases in India rose sharply to 29 on
Wednesday, including 16 Italian tourists who had tested positive for the disease
as well as an employee of a digital payments company who had travelled to Italy.

    • Supreme Court strikes down RBI banking ban on cryptocurrency
    Supreme Court on Wednesday allowed banks to handle cryptocurrency
transactions from exchanges and traders, overturning a central bank ban that
dealt the thriving industry a major blow.
    • Europe 'panicking' over India's pharmaceutical export curbs - industry
group
    India's top pharmaceuticals export group said a government curb on some drug
exports as the coronavirus outbreak spreads has caused panic in Europe and will
"severely impact" businesses in the sector.
    • India pushes state banks to boost lending as coronavirus fears grow -
sources
    India is pushing state-run banks to approve new loans amounting to 500-600
billion rupees by the end of March, according to two government sources, as
authorities seek to shore up a stuttering economy as the coronavirus spreads.

    • Indian tax officials threaten to cut workload in protest over working
conditions
    Indian tax officials on Wednesday threatened to cut their workloads in
protest over working conditions, a move that could dent New Delhi's tax
collection just as the government scrambles to fill coffers before the fiscal
year ends on March 31.
   
    
    GLOBAL TOP NEWS
    • California declares emergency over coronavirus as death toll rises in U.S.
    The U.S. death toll from coronavirus infections rose to 11 on Wednesday as
new cases emerged around New York City and Los Angeles, while Seattle-area
health officials sought to allay anxiety and discourage social gatherings amid
the nation's largest outbreak.
    • Data show U.S. economy on solid footing as coronavirus fears mount
    U.S. services sector activity jumped to a one-year high in February,
suggesting strength in the economy before a recent escalation of recession fears
ignited by the coronavirus epidemic that prompted an emergency interest rate cut
from the Federal Reserve.
    • Biden's Super Tuesday surge reshapes Democratic race, Bloomberg drops out
    The search for a Democrat to challenge Republican President Donald Trump in
the Nov. 3 election narrowed on Wednesday to a choice between Bernie Sanders and
Joe Biden, who staged a comeback in Super Tuesday voting to become the
undisputed standard-bearer of the party's moderate wing.
   
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.3% lower at 11,218.00.
    • The Indian rupee is expected to decline against the dollar amid worries
over the increasing number of coronavirus cases in the South Asian nation.
    • Indian government bonds are likely to open higher, on increasing bets of
policy support from the central bank amid worries over the potential economic
impact from the coronavirus. The yield on the benchmark 6.45% bond maturing in
2029 is likely to trade in a range of 6.18%-6.24% today.
    
    
    GLOBAL MARKETS
    • Wall Street roared back to life on Wednesday, with both the Dow and the
S&P 500 surging more than 4%, after former Vice President Joe Biden's strong
showing in the Super Tuesday Democratic primary contests injected a dose of
confidence.
    • Asian shares were looking to rally for a fourth straight session as U.S.
markets swung sharply higher and another dose of central bank stimulus offered
some salve for the global economic outlook.
    • The dollar found its footing as upbeat jobs data helped it recoup a little
of its slide against the euro and it steadied on the yen after the U.S. Federal
Reserve's surprise rate cut.
    • U.S. benchmark Treasury 10-year yields climbed above 1% on Wednesday as
stronger U.S. equities blunted safety-bid moves to fixed income.
    • Oil prices rose more than 1%,  recouping losses from the previous day on a
smaller-than-expected rise in crude oil inventories in the United States,
although the gains were capped by uncertainties over cuts by major oil
producers.
    • Gold prices were little changed as stronger equities and upbeat U.S. data
countered fears that the fast-spreading coronavirus outbreak would slow the
global economy.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot         73.32/73.35  March 4          (2,328.89) crore  (1,585.67) crore
 10-yr bond yield  6.22 pct     Month-to-date    (5,970) crore     (5,834) crore
                                Year-to-date     7,973 crore       (15,385) 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 = 73.53 Indian rupees)
 

 (Compiled by Pranay Prakash in Bengaluru)
  
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