May 7, 2020 / 3:17 AM / 3 months ago

Morning News Call - India, May 7

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    FACTORS TO WATCH
    No major events are scheduled.
    
    LIVECHAT - CORONAVIRUS IMPACT: COMPANY EARNINGS
    Mark Konyn, group chief investment officer at AIA in Hong Kong, will share
his views on global markets, company earnings, the dollar rally, credit markets,
especially the new-found interest in junk bonds, and how fiscal and monetary
interventions could be rolled back eventually. To join the conversation at 9:00
am IST, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India's services activity collapses as coronavirus paralyses global
economy -PMI
    India's services activity suffered a shock collapse in April as the
coronavirus lockdown crippled global demand, causing a historic spike in layoffs
and reinforcing fears of a deep recession in Asia's third-largest economy, a
private survey showed.
    • GSK selling $3.45 billion stake in Hindustan Unilever -term sheet
    GlaxoSmithKline is selling $3.45 billion worth of shares in Unilever's
Indian business on the open market, according to a deal marketing term sheet
seen by Reuters, cashing in late from the sale of the Horlicks brand.

    • Zomato targets push into alcohol deliveries -document
    Zomato aims to branch out into delivering alcohol, according to a document
seen by Reuters, as it seeks to cash in on high demand for booze during the
country's coronavirus lockdown.
    • India plans airlift for 400,000 stranded abroad by virus travel
restrictions
    India will begin flights on Thursday to bring home some 400,000 citizens
stranded overseas by travel restrictions due to the coronavirus pandemic,
prompting some worries over the risk that imported infections could fuel
contagion in the country.
    • Coronavirus spreads among Indian police enforcing world's largest lockdown
    Hundreds of Indian police have tested positive for the coronavirus in recent
days, raising alarm among an over-stretched force as it attempts to enforce the
world's largest lockdown.
    • India to send nearly 1,000 tonnes of paracetamol raw material to Europe
    India will supply Europe with about 1,000 tonnes of the active
pharmaceutical ingredient (API) for common pain reliever paracetamol, a top
exports body said, easing export controls on over-the counter medicines used to
cope with COVID-19 symptoms.
    • Indian state says NMDC diverted CSR money to PM Modi's coronavirus fund
    India's eastern Chhattisgarh state's chief minister has accused federal
government-run NMDC of diverting Corporate Social Responsibility (CSR) money
owed to the state to Prime Minister Narendra Modi's coronavirus fund, according
to a letter seen by Reuters.
    • Three people die after chemical leak at LG Polymers in south India - ANI
    At least three people, including a child, died after a chemical gas leakage
at an LG Polymers facility in a village located near Visakhapatnam in the
southern Indian state of Andhra Pradesh, ANI reported, citing health officials.

    
    
    GLOBAL TOP NEWS
    • U.S. drafts rule to allow Huawei and U.S. firms to work together on 5G
standards -sources
    The U.S. Department of Commerce is close to signing off on a new rule that
would allow U.S. companies to work with China's Huawei Technologies on setting
standards for next generation 5G networks, people familiar with the matter said.

    • Pompeo blames China for hundreds of thousands of virus deaths, denies
inconsistency
    U.S. Secretary of State Mike Pompeo on Wednesday renewed his aggressive
criticism of China, blaming it for the deaths of hundreds of thousands of people
from the coronavirus and demanding again that it share information about the
outbreak.
    • Trump says could say in a week or two whether China adhering to trade deal
    U.S. President Donald Trump said on Wednesday he would be able to report in
about a week or two whether China is fulfilling its obligations under a Phase 1
trade deal the two countries signed in January before the coronavirus spread
globally.
    
    
    LOCAL MARKETS OUTLOOK
    • The SGX April Nifty futures were trading at 9,149, down 1.13% from its
previous close.
    
    
    GLOBAL MARKETS
    • The S&P 500 and the Dow fell on Wednesday as declines in financials and
defensive groups countered gains in tech shares and as data showed U.S. private
employers laid off 20 million workers in April, underscoring the economic
fallout of the coronavirus outbreak.
    • Asian stocks were set to come under pressure as downbeat economic data
pushed investors to safe havens and growing worries about falling demand sent
oil prices lower.
    • The safe-haven yen flirted with a seven-week high against the dollar as
investors limited their exposure to riskier assets amid dire global economic
data, rising trade tensions and concerns over the euro zone.
    • Longer-dated Treasury yields jumped to three-week highs on Wednesday and
the yield curve steepened after the Treasury Department sharply increased the
size of its long-dated debt auctions to help finance its rapidly expanding
deficit.
    • Oil prices rose after U.S. inventories swelled less than expected, but
market watchers predicted further gains could be capped by the ongoing glut in
crude supplies as the coronavirus pandemic crushes fuel demand.
    • Gold rose after a 1% drop in the previous session as grim U.S. economic
data underscored the impact of the coronavirus outbreak, while investors awaited
the weekly jobless claims report from the world's largest economy.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         75.75/75.78  May 6            (323.86) crore  (58.21) crore
 10-yr bond yield  6.03 pct     Month-to-date    1,514 crore     (2,634) crore
                                Year-to-date     (53,400) crore  (85,113) 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 = 76.14 Indian rupees)
 
    Compiled by Haneyl Jacob in Bengaluru; haneyl.jacob@thomsonreuters.com
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