May 8, 2020 / 3:09 AM / 19 days ago

Morning News Call - India, May 8

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FACTORS TO WATCH

• 3:00 pm: Finance Minister Nirmala Sitharaman will participate in India INX’s web conference at the launch of ‘Indian Rupee-US Dollar Futures and Options Contracts’ in New Delhi.

• 4:00 pm: The health ministry will brief on the COVID-19 situation in New Delhi.

• 5:00 pm: RBI to release weekly foreign exchange data in Mumbai.

INDIA TOP NEWS

• Evacuation area around India LG Chem plant widened after deadly gas leak

Indian officials were evacuating more people from the area around a chemical plant in the south of the country that leaked toxic gas, killing at least 11 people and sickening hundreds more.

• Reliance says Vista Equity to invest 113.67 billion rupees in digital arm

Reliance Industries said private equity firm Vista Equity Partners would invest 113.67 billion rupees in its Jio platforms for a 2.32% stake.

• India's coronavirus infections jump past 50,000, fueled by Mumbai, Delhi

Coronavirus cases in India rose past 50,000, the health ministry said on Thursday, with the pace of new infections showing no signs of abating despite a strict weeks-long lockdown in the world's second-most populous country.

• GSK sells $3.4 billion Hindustan Unilever stake in largest India block trade

GlaxoSmithKline has sold its stake in Unilever's Indian business for $3.4 billion, marking India's largest block trade, which will help the British company in its goal of reinvigorating its drug development pipeline.

• Cadila Pharma shuts formulations unit after spate of coronavirus cases at plant

Cadila Pharmaceuticals, one of the largest privately held pharma companies in the country, shut down its formulations manufacturing plant in Ahmedabad on Thursday after more than two dozen of its employees tested positive for the new coronavirus.

• India sugar exports boosted by strong demand from Indonesia, Iran

Sugar exports from India have gained momentum due to strong demand from Indonesia and Iran as the rupee slid to a record low, increasing exporters' margins from overseas sales, five industry officials told Reuters.

• India to roll out COVID-19 app for Reliance's JioPhone in bid to widen use

India will within days roll out a version of its coronavirus contact-tracing application that can run on mobile carrier Reliance Jio's cheap phones, as it looks to increase the reach of the system, a senior government official said on Thursday.

GLOBAL TOP NEWS

• Pandemic sets Japan on course for deep recession as spending, services plunge

Japan's household spending plunged in March and service-sector activity shrank at a record pace in April, reinforcing expectations that the coronavirus pandemic is tipping the world's third-largest economy into deep recession.

• Beijing opens financial markets further amid tension with Washington

China finalised rules on Thursday that would scrap quotas under two major inbound investment schemes, giving qualified foreign institutions unlimited access to Chinese stocks and bonds in the latest step to open the country's financial industry.

• Markets start pricing in negative U.S. interest rates for first time

Financial markets began pricing in a negative U.S. interest rate environment for the first time on Thursday, a place the Federal Reserve is determined not to go, as investors grappled with the economic consequences of the new coronavirus outbreak.

LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

• SGX Nifty nearest-month futures were trading 0.7% higher at 9,266.

• The Indian rupee is expected to rise against the U.S. currency tracking the dollar’s weakness against major and emerging market currencies ahead of a likely dismal job report from the world’s largest economy.

• Indian government bonds are likely to trade higher in early session ahead of the auction of a new 10-year paper that is due later today. The yield on the benchmark 6.45% bond maturing in 2029 is likely to trade in a range of 5.98%-6.05%.

GLOBAL MARKETS

• Wall Street's indexes climbed on Thursday, with the Nasdaq erasing losses for 2020, following a clutch of upbeat earnings reports led by PayPal as investors looked past more weak jobs data caused by the coronavirus-induced economic downturn.

• Asian stocks were set to track Wall Street gains, after upbeat corporate earnings took the focus off upcoming data that is expected show the worst U.S. unemployment rate in more than 70 years.

• The dollar slipped as investors defied a broader sense of doom around upcoming U.S. employment data and found reasons to buy riskier currencies with more governments slowly reopening their economies for business.

• U.S. Treasury yields fell from three-week highs on Thursday as investors adjusted to the prospect of an increase in longer-dated debt supply.

• Oil prices rose as more countries began easing lockdowns set in place to stop the coronavirus spreading, giving hope that demand for fuels will pick up after the economic devastation caused by the pandemic.

• Gold eased as appetite for riskier assets improved after a string of strong corporate earnings, while investors awaited the U.S. jobs report for April to gauge the economic impact of coronavirus-induced restrictions.

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 = 75.79 Indian rupees

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