March 19, 2020 / 3:33 AM / 14 days ago

Morning News Call - India, March 19

To access a PDF version of this newsletter, please click here here
    
    If you would like to receive this newsletter via email, please register at:
here
    
    
    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 here refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India mulls up to $1.6 billion rescue plan for aviation sector after
coronavirus - sources
    India is planning a rescue package worth as much as $1.6 billion for the
aviation sector, which has been battered after the coronavirus outbreak forced
countries to close borders and brought air travel to a near-halt, two government
sources told Reuters.
    • Supreme Court lashes out at telecoms firms, says no re-evaluation of dues
allowed
    Supreme Court on Wednesday lashed out at mobile phone operators for
self-assessing their outstanding telecoms dues, saying it amounted to a
violation of court orders.
    • Indian banks shelve fundraising as coronavirus derails markets
    Two state-owned Indian banks that were aiming to raise funds to meet growth
targets and build up capital for regulatory requirements have shelved their
plans due to the disruption to markets caused by the coronavirus pandemic,
sources said.
    RBI to buy government bonds in open markets to boost liquidity
    The Reserve Bank of India will buy bonds on the open market for a total of
100 billion Indian rupees on Friday to try to keep all market segments liquid
and stable, the central bank said on Wednesday.
    • India's fuel demand falls 10% in March H1 as coronavirus curbs travel
    Indian state retailers have sold 10-11% less refined fuel in the first two
weeks of March than in the same period of 2019 as coronavirus cut transportation
and industrial activity, the country's top refiner and fuel retailer Indian Oil
said.
    • Tiny Indian rights group piles pressure on Vodafone Idea
    A tiny Indian consumer rights group which has been leading a campaign to
make telecoms companies pay billions of dollars due to the state said on
Wednesday it would oppose a government proposal to allow repayment over 20
years.
    • Flooded toilets, dirty sheets: South Asia quarantine centres worry experts
    When Mrinal Sabharwal and his wife landed in New Delhi with hundreds of
other passengers from Barcelona on Monday, they expected clean coronavirus
quarantine facilities. Instead, after hours of waiting at the airport and on a
bus, they were taken to a converted police training centre.
    • India govt, RBI mull relaxing bad loan rules for sector hit by coronavirus
India's government and RBI are considering giving relief to banks, aviation and
other hospitality sectors hit by the coronavirus outbreak by relaxing bad loan
classification rules, a source familiar with the matter said.
   
    
    CORONAVIRUS IMPACT
    • Rattled world 'at war' with coronavirus as deaths surge in Italy, France
    Hundreds of millions of people faced a world turned upside down on Wednesday
by unprecedented emergency measures against the coronavirus pandemic that is
killing the old and vulnerable and threatening prolonged economic misery.

    • U.S. Senate passes one coronavirus aid package while working on another
    The U.S. Senate overwhelmingly passed legislation on Wednesday providing
billions of dollars to limit the damage from the coronavirus pandemic through
free testing, paid sick leave and expanded safety-net spending.
    • What is essential? Retailers face confusion over government rules on store
closings
    As the United States moves to quickly curb the spread of the coronavirus,
the question of which retailers can stay open - and where - depends on what
government officials deem to be essential.
    • Airline industry turmoil deepens as coronavirus pain spreads
Airline industry turmoil deepened on Thursday as Qantas Airways told most of its
30,000 employees to take leave and India prepared a rescue package of up to $1.6
billion to aid carriers battered by coronavirus, government sources said.

    • Detroit automakers idle U.S. plants to combat coronavirus outbreak
The Detroit Three automakers will shut down their U.S. plants to stop the spread
of coronavirus, bowing to pressure from the union representing about 150,000
hourly workers at those facilities, industry officials said.
   
        
    
    GLOBAL TOP NEWS
    • ECB to print 1 trillion euro this year to stem coronavirus rout
    The European Central Bank launched new bond purchases worth 750 billion
euros at an emergency meeting late on Wednesday in a bid to stop a
pandemic-induced financial rout shredding the euro zone's economy and renew
concerns about the bloc's viability.
    • Japan's Feb inflation slows, coronavirus puts BOJ's focus on growth
    Japan's annual core consumer inflation eased in February as energy prices
fell and the coronavirus outbreak clouded the outlook as consumers grow more
cautious about spending, adding to fears the economy could be sliding into
recession.
    • JPMorgan Chase to close 1,000 Chase branches on coronavirus concerns
    JPMorgan Chase and Co will temporarily shut about 1,000 bank branches,
roughly 20%, to protect employees and reduce the spread of the coronavirus,
according to a memo the bank sent to employees Wednesday.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 3.6% lower at 8,138.00.
    • The Indian rupee is expected to fall to lifetime lows against the U.S.
currency, tracking the broad declines on Asian peers, after safe-haven demand
sent the dollar index to its highest in three years.
    • Indian government bonds may open lower tracking a likely fall in the local
currency and as U.S. Treasury yields continued to rise. The yield on the
benchmark 6.45% bond maturing in 2029 is likely to trade in a range of
6.32%-6.40% today.
    
    
    GLOBAL MARKETS
    • U.S. stocks deepened their selloff on Wednesday and the Dow erased
virtually the last of its gains since President Donald Trump's 2017
inauguration, as the widening repercussions of the coronavirus pandemic
threatened to cripple economic activity.
    • The dollar surged, bonds plunged and global markets struggled to find
their footing as the European Central Bank's latest promise of stimulus provided
only brief solace while the world struggles to contain the coronavirus pandemic.

    • The dollar resumed its relentless climb against major currencies as wild
financial market volatility and worries over tightening liquidity triggered by
the coronavirus pandemic sparked an investor flight into cash.
    • U.S. Treasury yields swung widely in a volatile session on Wednesday as
investors scrambled to make trades in an illiquid market, moving a closely
watched part of the yield curve to its steepest in two years.
    • Oil prices surged as much as nearly 20%, bouncing back from days of heavy
losses in a relief rally that may yet be short-lived, analysts warned, but which
was stoked by economic stimulus efforts to ward off a global coronavirus
recession.
    • Gold prices rose after a steep fall in the previous session, as the
European Central Bank's measures to mitigate the economic effects of the
coronavirus epidemic lifted investor sentiment.    
    
                   CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot         74.35/74.38  March 18         (3,662.96) crore  (8,171.78)
                                                                   crore
 10-yr bond yield  6.29%        Month-to-date    (39,880) crore    (40,154) crore
                                Year-to-date     (25,937) crore    (49,705) 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 = 74.55 Indian rupees)
 

 (Compiled by Pranay Prakash in Bengaluru)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below