May 15, 2020 / 3:11 AM / 3 months ago

Morning News Call - India, May 15

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    FACTORS TO WATCH
    12:00 pm: NITI Aayog Adviser Alok Kumar will participate in ‘Charcha 2020’
webinar in New Delhi.
    4:00 pm: The Health ministry will brief on the COVID-19 situation in New
Delhi.
    6:00 pm: DBS Bank Senior VP & Economist Radhika Rao and Former U.K. Treasury
Minister Jim O’Neill will speak at the Treasury Elite Conclave in Mumbai.
    
    
    INDIA TOP NEWS
    • Clogged cooling system likely cause of gas leak in India, three
investigators say 
    A clogged cooling system was the likely cause of a temperature surge in a
storage tank which led to a gas leak at a chemical plant in India, killing 12
people, three state government investigators told Reuters.
    • UN labour agency warns Indian states on scrapping of workers' rights 
    The U.N. labour agency urged Indian states thinking of relaxing workers'
rights to help industry survive the coronavirus to consult workers first as a
union linked to India's ruling party said it would protest the planned moves. 
 
    • India to provide free food grains to millions of migrant workers 
    India will provide free food grains to millions of migrant workers hardest
hit by a weeks-long lockdown as well as offer employment under a rural jobs
programme, Finance Minister Nirmala Sitharaman said on Thursday. 
    • Health groups ask India to rescind Gilead's patents for COVID-19 drug
remdesivir 
    Two health advocacy groups have written to the Indian government asking it
to rescind patents given to Gilead Sciences for the drug remdesivir so it can be
distributed more fairly to coronavirus patients around the world, particularly
in poorer nations.  
    • India follows China's lead to widen use of coronavirus tracing app
    India is aggressively pushing a state-backed contact tracing app to fight
the spread of COVID-19, raising fears that the world's second-most populous
nation is on its way to Chinese-style methods of high tech social
control.
    
    
    GLOBAL TOP NEWS 
    • Trump says he doesn't want to talk to Xi right now, could even cut China
ties 
    U.S. President Donald Trump signaled a further deterioration of his
relationship with China over the novel coronavirus, saying he has no interest in
speaking to President Xi Jinping right now and going so far as to suggest he
could even cut ties with the world's second largest economy.
    • China's factory output posts first increase for 2020 but consumption still
weak
    China's industrial output rose 3.9% in April from a year earlier, data
showed, expanding for the first time this year as the world's second-largest
economy slowly emerged from its coronavirus lockdown. 
   •  Taiwan's TSMC announces $12 billion U.S. chip factory 
    Taiwan Semiconductor Manufacturing Co, a major supplier to Apple, announced
it will build a $12 billion chip factory in Arizona, in what the company called
a "strong partnership" with the U.S. government. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.6% lower at 9,102.25. 
    • The Indian rupee is expected to trade little changed against the dollar
with market participants focusing on regional risk appetite and fund flows. 
    • Indian government bond yields are likely to edge higher in early session,
as the weekly auction today and debt switch on Monday will boost supply. The
yield on the benchmark 6.45% bond maturing in 2029 is likely to trade in a range
of 6.02%-6.10%. 
    
    
    GLOBAL MARKETS
    • Wall Street surged on Thursday as investors weighed the prospect of
economic recovery against bellicose remarks from President Donald Trump
regarding U.S.-China trade and a whistleblower's dire warnings about the U.S.
response to the coronavirus pandemic.
    • The dollar eased from a three-week high but looked set for a modest weekly
gain as rising Sino-U.S. tensions and worries about a second wave of coronavirus
infections rattled investors.
    • Investors pushed U.S. Treasury yields lower on Thursday as they took stock
of another grim jobs report and tried to gauge the success of efforts to reopen
the economy in the face of the COVID-19 pandemic.
    • Oil prices were mixed after big gains a day earlier when the International
Energy Agency predicted crude stockpiles would start to shrink in second-half
2020 after surging while the coronavirus pandemic slashed fuel demand.
    • Gold rose to hover below a three-week high hit in the previous session,
underpinned by talks of further U.S. stimulus and worsening U.S.-China
relations.
    
    
               CLOSE        FII                EQUITIES     DEBT
                              INVESTMENTS                   
 PNDF spot     75.49/75.52  May 14             131.05       (382.05)
                                                 crore        crore
 10-yr bond    6.05 pct     Month-to-date      19,732       (13,208)
   yield                                         crore        crore
                            Year-to-date       (35,182)     (95,687)
                                                 crore        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 = 75.45 Indian rupees Indian rupees)
    

 (Compiled by Priyanka Das in Bengaluru)
  
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