May 6, 2020 / 3:06 AM / a month ago

Morning News Call - India, May 6

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    FACTORS TO WATCH
    11:00 am: World Bank Country Director for India Junaid Ahmad participates in
a webinar on “The Covid Challenge: India and the World.” in New Delhi.
    3:30 pm: Chief Economic Adviser Krishnamurthy Subramanian participates in
Motilal Oswal’s webinar in New Delhi.
    
    LIVECHAT - CORONAVIRUS IMPACT: DECLINING CRUDE
    Jim Walker, chief economist at Aletheia Capital in Hong Kong, joins us to
discuss his outlook on the markets and global economy as signs of easing
coronavirus-related restrictions emerge in the backdrop of sharply declining oil
prices. To join the conversation at 9:30 pm IST, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Asia coronavirus cases hit 250,000 but pace much slower than U.S., Europe
    Coronavirus cases in Asia rose to a quarter of a million on Tuesday,
according to a Reuters tally, driven by outbreaks in Singapore, Pakistan and
India, even as China, South Korea and Japan significantly slowed the spread of
the disease.
    • India hikes taxes on petrol, diesel; says consumers will be unaffected
    India late on Tuesday increased its taxes and duties on petrol and diesel
instead of passing on the benefit of lower crude oil prices to consumers, as the
government moves to raise revenues in an economy that ground to a halt in the
coronavirus crisis.
    • India's Delhi imposes 70% 'corona tax' on alcohol to deter large crowds
    Officials in India's capital imposed a special tax of 70% on retail liquor
purchases from Tuesday, to deter large gatherings at stores as authorities ease
a six-week lockdown imposed to slow the spread of the coronavirus.
    
    
    GLOBAL TOP NEWS
    • Disney takes $1.4 billion coronavirus hit, sets date to reopen Shanghai
park
    Walt Disney estimated on Tuesday that global measures to contain the
coronavirus pandemic cut profits by $1.4 billion, mostly from its shuttered
theme parks, but said it would reopen Shanghai Disneyland to a reduced number of
visitors next week.
    • Trump urges China to reveal all about origin of coronavirus
    U.S. President Donald Trump on Tuesday urged China to be transparent about
the origins of the novel coronavirus outbreak that has killed more than a
quarter of a million people since it started in the Chinese city of Wuhan late
last year.
    • Senators press Trump pick for top U.S. spy on China in era of coronavirus
    U.S. senators on Tuesday pressed Donald Trump's nominee to lead U.S.
intelligence on whether he would act independently of the president on
hot-button issues like the origins of the coronavirus in China, as lawmakers
held the first public socially distanced hearing during the coronavirus
pandemic.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were little changed at 9,205.30.
    • The Indian rupee is expected to trade lower against the U.S. currency,
tracking a weaker onshore Chinese yuan after a long weekend and strength on the
dollar index.
    • Indian sovereign bonds are likely to open higher, ahead of the auction of
a new 10-year note later this week, even as traders await a fiscal stimulus
package for further cues on government’s borrowings. The yield on the benchmark
6.45% bond maturing in 2029 is likely to trade in a range of 6.03%-6.10%.
    
    
    GLOBAL MARKETS
    • Wall Street's main indexes gained on Tuesday as healthcare stocks rallied,
oil prices surged and a number of countries and U.S. states eased
coronavirus-induced restrictions in an attempt to revive their economies.
    • Shares struggled and the yen gained, with markets in China faltering on
their return from a long holiday as investors fretted over Sino-U.S. tensions,
while oil ended an extended winning streak on oversupply risks amid weak demand.

    • The yen scaled a three-year high against the euro and a seven-week peak on
the dollar, after a court decision challenging German participation in Europe's
stimulus program and worries about a bumpy global recovery spooked investors.

    • U.S. Treasury yields rose as plans to reopen major economies boosted risk
appetite on Tuesday, a day after the Treasury Department announced it would
borrow a record amount of almost $3 trillion this quarter.
    • Oil prices fell, ending a multi-day streak of gains, as investors focused
on oversupply risks after U.S. crude inventories rose more than expected amid a
slump in demand caused by restrictions to halt the coronavirus spread.
    • Gold prices inched lower as equities rose on upbeat risk sentiment
stemming from gradual reopening of many economies, while a firmer dollar also
weighed on prices.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         75.62/75.65  May 5            (934.30) crore  (294.58) crore
 10-yr bond yield  6.07 pct     Month-to-date    1,838 crore     (2,576) crore
                                Year-to-date     (53,076) crore  (85,055) 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 = 75.78 Indian rupees)
    
    Compiled by Haneyl Jacob in Bengaluru; haneyl.jacob@thomsonreuters.com
 
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