March 9, 2020 / 3:23 AM / 20 days ago

Morning News Call - India, March 9

(Morning News Call - India edition will not be published on Tuesday, March 10,
as markets are closed for Holi)
    
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    FACTORS TO WATCH
    No major events are scheduled.
    
    LIVECHAT - MARKETS FOCUS
    Mike Dolan, Reuters Editor at Large, Finance and Markets, looks at
market-moving factors and events for the upcoming week at 3:30 om IST. To join
the conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Yes Bank founder remanded in police custody on money-laundering charges
    An Indian court on Sunday remanded the founder and former managing director
Rana Kapoor of crisis-hit Yes Bank in police custody until March 11 after he was
arrested on money-laundering charges.
    • SBI would need to invest $331 million in Yes Bank rescue
    State Bank of India said on Saturday it would need to invest up to $331
million to buy a 49% stake in Yes Bank Ltd as part of the initial phase of a
rescue deal for the troubled lender.
    • Tata Motors warns of JLR profit hit due to coronavirus
    Tata Motors warned on Friday of lower profit at its British luxury car brand
Jaguar Land Rover for the fiscal year as the coronavirus outbreak has hit sales
in China.
    
    
    GLOBAL TOP NEWS
    • Confirmed Coronavirus may force Americans to avoid crowds and cancel
cruises; U.S. cases near 550
Older Americans, especially those with chronic medical concerns, should probably
avoid big social gatherings and airline flights, given the rapid spread of
coronavirus, a top U.S. health official said on Sunday, as investors braced for
another volatile week in financial markets.
    • Saudi Arabia to hike oil output above 10 million bpd in April after OPEC+
deal collapse
    Saudi Arabia, the world's top oil exporter, plans to raise its crude oil
production significantly above 10 million barrels per day (bpd) in April, after
the collapse of OPEC's supply cut agreement with Russia, two sources told
Reuters on Sunday.
    • Japan's economy shrinks faster than estimated as virus compounds recession
risks
    Japan's economy shrank more than initially estimated in the fourth quarter -
by the most since the 2014 sales tax hike - exacerbating fears for economic
prospects at a time when the impact of the coronavirus outbreak is increasing
recession risk.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 2.7% lower at 10,603.00.
    • The Indian rupee is likely to fall against the dollar, tracking a slump in
Asian currencies and equities after Brent crude contract tumbled to its lowest
in more than four years. 
    • Indian government bonds are likely to jump in early trade, as crude oil
prices slumped after producers were unable to decide on cutting production,
while U.S. Treasury yields fell to record low. The yield on the benchmark 6.45%
bond maturing in 2029 is likely to trade in a range of 6.10%-6.15% today.
    
    
    GLOBAL MARKETS
    • U.S. stocks fell on Friday as fears of economic damage from the spread of
the coronavirus intensified, though Wall Street's major indexes ended well above
their session lows.
    • Global share markets tumbled as panicked investors fled to bonds to hedge
the economic shock of the coronavirus, and oil plunged more than 20% after Saudi
Arabia slashed its official selling price.
    • The safe-haven yen soared, the euro jumped after U.S. Treasury yields
dropped and export sensitive currencies fell to multi-year lows as coronavirus
fears routed global markets.
    • U.S. Treasury prices surged on Friday, pushing long-dated yields to record
lows, as worries that the coronavirus outbreak will hammer the world economy
sent investors fleeing to assets seen as safe havens in turbulent times.
    • Oil fell by the most since 1991 after Saudi Arabia started a price war
with Russia by slashing its selling prices and pledging to unleash its pent-up
supply onto a market reeling from falling demand because of the coronavirus
outbreak.
    • Gold prices jumped past the $1,700 per ounce level for the first time
since late 2012 as a widening coronavirus outbreak and a plunge in crude oil
hammered equities and sent investors scurrying for safe havens.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot         73.76/73.79  March 6          (2,237.68) crore  307.08 crore
 10-yr bond yield  6.18%        Month-to-date    (8,997) crore     (4,072) crore
                                Year-to-date     4,946 crore       (13,623) 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 = 74.01 Indian rupees)
 

 (Compiled by Pranay Prakash in Bengaluru)
  
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