June 2, 2020 / 3:11 AM / a month ago

Morning News Call - India, June 2

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    FACTORS TO WATCH
    4:00 pm: Health ministry likely media briefing on COVID-19 situation in New
Delhi. 

    
    PROMOTION
    LIVECHAT - REUTERS GLOBAL MARKETS FORUM
    David Trainer, CEO of investment research firm New Constructs, discusses his
outlook for markets as coronavirus-prompted lockdowns begin to ease, but Sino –
U.S. tensions loom on the horizon. To join the conversation at 8.00 pm IST,
click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India's factory slump deepens in May, headcount slides
    India's factory activity contracted sharply in May following a historic
decline in April as a government-imposed lockdown to control the coronavirus
hammered demand, a survey showed, leading firms to cut jobs at the fastest pace
on record.
    • India's coronavirus infections overtake France amid criticism of lockdown
    India's cases of coronavirus crossed 190,000, the health ministry said on
Monday, overtaking France to become seventh highest in the world, as the
government eases back on most curbs after a two-month-long lockdown that left
millions without work.
    • Moody's cuts India's rating to lowest investment grade with negative
outlook
    Moody's Investors Service downgraded India's credit rating to a notch above
junk on Monday, citing a prolonged period of slow growth in Asia's third-largest
economy, rising debt and persistent stress in parts of the financial system.

    • India's May jobless rate at 23.48% - private think-tank CMIE 
    India's unemployment rate in May rose to 23.48%, marginally lower from
23.52% in April, according to data released by the Centre for Monitoring Indian
Economy (CMIE) on Monday, reflecting the impact of coronavirus pandemic.

    • Coal India's May sales driven sharply lower by slump in power demand
    Coal India's sales fell 23.3% in May as utilities refrained from purchases
amid record stockpiles and tepid demand because of a nationwide lockdown to curb
the spread of the coronavirus.
    • Walmart's Flipkart to re-apply for food retail license in India
    Walmart Indian e-commerce unit Flipkart said on Monday it would re-apply for
a food retail license in India after reports said its earlier proposal was
rejected by the government last week.
    • India tells airlines to keep middle seat vacant as far as possible
    Airlines in India will need to keep the middle seat empty if passenger load
factors and seat capacity allow for it, the aviation regulator said in a notice
to domestic and international carriers.
    • India asks internet service providers to block WeTransfer
    India has ordered its internet service providers (ISPs) to block
file-sharing website WeTransfer at a time when hundreds of millions of people
are working from home because of a nationwide lockdown to stop the novel
coronavirus.
    
    
    GLOBAL TOP NEWS
    • Police fire rubber bullets, tear gas to disperse peaceful protest near
White House
    Police fired tear gas and rubber bullets to disperse peaceful demonstrators
near the White House on Monday as U.S. President Donald Trump vowed a massive
show of force to end violent protests over the death of a black man in police
custody.
    • China buys U.S. soybeans after halt to U.S. purchases ordered
    State-owned Chinese firms bought at least three cargoes of U.S. soybeans on
Monday, even as sources in China said the government had told them to halt
purchases after Washington said it would eliminate special treatment for Hong
Kong to punish Beijing.
    • Embraer says China, India are potential partners after failed Boeing deal 
Embraer said on Monday that China and India could be potential new partners,
following a Reuters report last week that said those two countries as well as
Russia were interested in the planemaker's commercial jets division.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading at 0.3% higher at 9,809.0.
    • The Indian rupee is expected to trade little changed against the U.S.
currency amid the dollar index falling to more-than-10-week lows and Moody’s
Investors Service lowering India’s credit rating.
    • Indian federal government bond yields will likely edge higher in early
session after Moody's Investors Service cut the country’s long-term credit
rating by a notch to Baa3, the lowest investment grade score. The yield on the
benchmark 6.45% bond maturing in 2029 is likely to trade in a 6.02%-6.10% range
today.
    
    
    GLOBAL MARKETS
    • U.S. stocks posted gains on Monday as signs of U.S. economic recovery
helped offset jitters over increasingly violent social unrest amid an ongoing
pandemic and rising U.S.-China tensions.
    • Japanese shares hit a more than three-month high, as hopes for global
economic recovery with more countries gradually reopening after
coronavirus-related lockdowns bolstered expectations for corporate earnings.

    • The dollar was on the defensive as investors stuck to hopes of a global
economic recovery despite heightened concerns over U.S.-China tensions and mass
protests in many U.S. cities over the death of a black man in police
custody.
    • Investors pushed longer-dated U.S. Treasury yields higher on Monday as
they tried to forecast how the government would finance massive efforts to
stimulate the economy.
    • Oil prices crawled higher, with traders waiting to see whether major
producers agree to extend their huge output cuts to shore up prices at a meeting
expected later this week.
    • Gold prices inched lower on signs of economic recovery as more countries
ease lockdown curbs, while protests in the United States, Sino-U.S. tensions and
a weaker dollar limited losses.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES  DEBT
 PNDF spot         75.53/75.56  June 1           1,204.69  145.88
 10-yr bond yield  6.04 pct     Month-to-date    1,205     146
                                Year-to-date     (39,140)  (105,268)
 
    (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 = 75.50 Indian rupees)
 

 (Compiled by Pooja Kesavan in Bengaluru)
  
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