March 13, 2020 / 3:42 AM / 22 days ago

Morning News Call - India, March 13

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    FACTORS TO WATCH
    10:00 am: Finance Minister Nirmala Sitharaman and Chief Economic Adviser
Krishnamurthy V. Subramanian at India Today Conclave in New Delhi.
    
    LIVECHAT - GLOBAL EQUITY MARKETS
    Frank Benzimra, Head of Asia Equity Strategy, Societe Generale, discusses
his outlook for equities. To join the conversation at 11:00 am IST, click on the
link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India's retail inflation moderates, paves way for RBI action
    India's retail inflation eased to a two-month low in February, helped by a
smaller increase in food prices, paving the way for a potential interest rate
cut by the central bank amid concerns of economic activity losing steam due to
the coronavirus.
    • SBI to invest $977 million in troubled lender Yes Bank
    The State Bank of India said on Thursday it would invest $977 million for an
initial stake in Yes Bank as part of a rescue deal for the troubled lender.

    • Indian airline shares tumble on visa restrictions, domestic travel worries
    More than $825 million was wiped off the value of listed Indian airlines on
Thursday, after the government said it was restricting visit visas to halt the
spread of coronavirus and investors worried that domestic travel would fade.

    • India's current account deficit shrinks sharply in October-December
quarter
    India's current account deficit narrowed further in the October-December
quarter on the back of a contraction in the trade deficit and rise in net
services receipts, the central bank said on Thursday.
    • India faces revenue fall as coronavirus bites economy - sources
    India faces a sharp decline in government revenues and economic growth for
at least two quarters as the coronavirus hits economic activity and a fall in
investor sentiment impacts privatisation plans, government and industry sources
said.
    • India's fuel demand grows 4.5% in February, after 2 months of decline
    India's fuel demand grew 4.5% in February from a year earlier, the first
increase in two months, government data showed, indicating some recovery in the
country's industrial activity over the last month.
    • RBI seeks to ensure dollar liquidity amid coronavirus rout
    The Reserve Bank of India has adequate dollar reserves and will conduct
sell/buy swaps in the foreign exchange market to ensure adequate dollar
liquidity amid the current global rout in markets, it said in a statement on
Thursday.
    
    
    CORONAVIRUS IMPACT
    • Policymakers ramp up support as coronavirus shreds markets
    Governments and central banks readied more emergency measures to tackle the
economic impacts of the coronavirus on Friday as Asian markets suffered their
worst weekly crashes since the 2008 financial crisis.
    • Fed provides massive liquidity injection to calm markets amid signs of
stress
    The Federal Reserve moved to stem a market meltdown on Thursday with offers
of $1.5 trillion in short-term loans that some analysts say could point to more
aggressive action from the central bank in coming days to stimulate the economy
and stabilize the financial system.
    • ECB ramps up stimulus for virus-hit Europe but keeps some powder dry
    The European Central Bank rolled out yet another stimulus package on
Thursday to help fight off the coronavirus pandemic but kept some of its powder
dry, putting the onus firmly on governments and sending markets into a tailspin.

    • SPECIAL REPORT - Italy and South Korea virus outbreaks reveal disparity in
deaths and tactics
    In Italy, millions are locked down and more than 1,000 people have died from
the coronavirus. In South Korea, hit by the disease at about the same time, only
a few thousand are quarantined and 67 people have died. As the virus courses
through the world, the story of two outbreaks illustrates a coming problem for
countries now grappling with an explosion in cases.
    • Travel industry under siege as coronavirus contagion grows
    The fallout from the coronavirus spread across the Pacific on Friday, with
travel companies in Australia and New Zealand issuing profit warnings as U.S.
airlines rushed to cut flights to Europe in the wake of new U.S. travel
restrictions.

    
    GLOBAL TOP NEWS
    • U.S. shale urges service firms offer 'at least' 25% price cuts -
executives, letter
    U.S. shale producers are seeking sharp service costs cuts to deal with
plummeting prices and shrinking demand, according to executives and a letter
sent to top providers, driving home the oil industry's desperate efforts to cope
with a market dive.
    • U.S. wages retaliatory strikes against Iran-backed militia in Iraq after
deadly attack
    The United States waged a series of precision air strikes on Thursday
against an Iran-backed militia in Iraq that it blamed for a major rocket attack
a day earlier that killed two American troops and a 26-year-old British soldier.

    • France to allow some Huawei gear in its 5G network - sources
    France will authorise the use of some of Huawei's equipment in the rollout
of its 5G network, two sources close to the matter told Reuters, despite U.S.
calls to exclude the Chinese telecoms giant from the West's next-generation
communications.
     
        
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futureswere trading 7.3% lower at 8,786.00.
    • The Indian rupee is expected to fall against the dollar in the wake of
another rout in Asian and U.S. shares on mounting concerns over the impact of
the coronavirus.
    • Indian government bonds may open higher, after slower pace of retail price
gains in February aided rate cut bets amid concerns over the economic impact
from coronavirus. The yield on the benchmark 6.45% bond maturing in 2029 is
likely to trade in a range of 6.20%-6.27% today.
    
    
    GLOBAL MARKETS
    • Wall Street tanked on Thursday, slamming the book on the longest-ever U.S.
bull market after new travel restrictions to curb the coronavirus spread spooked
investors and rattled world markets.
    • Asia's stock markets crashed as panic gripping world financial markets
deepened, and even haven assets such as gold and bonds were ditched to cover
losses in the wipeout.
    • The dollar stood tall as investors scrambled for the world's most liquid
currency amid deepening panic about the coronavirus while the euro nursed losses
after the European Central Bank disappointed by not cutting rates.
    • Longer-dated U.S. Treasury yields rose on Thursday after the New York
Federal Reserve took dramatic steps to boost liquidity in the banking system, in
an attempt to address liquidity concerns in the Treasury market.
    • Oil prices fell for a third day, with Brent crude set for its biggest
weekly drop since 1991 and U.S. crude heading for the worst week since 2008 as
panic about plunging demand from the coronavirus outbreak grips the market.
    • Gold prices fell further and were on track to post their biggest weekly
drop in nearly seven years, as a rout in global equities forced investors to
cover margin calls.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot         74.16/74.19  March 12         (3,483.72) crore  (7,950.40) crore
 10-yr bond yield  6.23%        Month-to-date    (22,974) crore    (11,061) crore
                                Year-to-date     (9,031) crore     (20,612) 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 = 74.56 Indian rupees) 


 (Compiled by Pranay Prakash in Bengaluru)
  
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