To access a PDF version of this newsletter, please click here here If you would like to receive this newsletter via email, please register at: here FACTORS TO WATCH 11:00 am: Finance Minister Nirmala Sitharaman to hold video conference with heads of state-run banks to review credit flow in New Delhi. 12:30 pm: ICRA webinar on the Indian securitisation market in Mumbai. 4:00 pm: Health ministry likely to brief on COVID-19 situation in New Delhi. 4:00 pm: State Bank of India Deputy Managing Director Sujit Verma at PHDCCI’s webinar in New Delhi. PROMOTION LIVECHAT - REUTERS GLOBAL MARKETS FORUM Jim Vogel, Executive VP & Manager, Interest Rate Strategies at FHN Financial, discusses what’s expected at this week’s Federal Reserve meeting, the tools the central bank still has at its disposal as the U.S. economy begins to recover from the coronavirus pandemic, and how these factors will play out on the U.S. yield curve. To join the conversation at 7:30 pm IST, click on the link: refini.tv/2P8N0Wp INDIA TOP NEWS • India government leaders row over hospital beds as coronavirus infections surge Indian federal authorities on Monday struck down an order by the Delhi city government to reserve hospital beds for residents as the country reported a record number of coronavirus infections in a single day. • India plans to hike edible oil import taxes to boost local supply, sources say India is considering raising import taxes on edible oils as the country seeks to become self-reliant by boosting local oilseed production with the help of tax revenues, two government and two industry officials told Reuters. • Indian Oil seeks up to 24 million barrels of U.S. crude to diversify imports Indian Oil, the country's top refiner, is seeking to buy up to 24 million barrels of U.S. oil for delivery between October 2020 and March 2021, tender documents showed, as part of its efforts to diversify supply. GLOBAL TOP NEWS • It's official: U.S. economy entered recession in February The U.S. economy ended its longest expansion in history in February and entered recession as a result of the coronavirus pandemic, the private economics research group that acts as the arbiter for determining U.S. business cycles said on Monday. • Thousands pay tribute to George Floyd as pressure mounts for U.S. police reform Thousands of mourners braved sweltering heat on Monday to view the casket of George Floyd, whose death from a police officer kneeling on his neck ignited worldwide protests against mistreatment of African Americans and other minorities by U.S. law enforcement. • S.Korean court denies arrest warrant request for Samsung heir A South Korean court denied an arrest warrant request for Samsung Group heir Jay Y. Lee after prosecutors accused him of accounting fraud and stock manipulation. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were 0.7% higher at 10,231.00. • The Indian rupee is expected to trade higher against the U.S. currency after the S&P 500 Index wiped off year-to-date losses, pushing the dollar index to near-three-month lows. • Indian government bond yields will likely trade largely unchanged ahead of a fresh supply of state debt, while investors eye yield curve supporting measures from the central bank to absorb excess supply. The yield on the benchmark 5.79% bond maturing in 2030 is likely to trade in a range of 5.78%-5.83% until the auction today. GLOBAL MARKETS • The Nasdaq posted a record closing high on Monday, becoming the first of the major indexes to confirm a new bull market, while the S&P 500 ended in positive territory for the year as expectations for a swift recovery from a coronavirus-driven downturn increased. • Asian stocks rallied for their ninth straight day and oil prices jumped as the lifting of coronavirus lockdowns in many countries fed investor hopes of a relatively quick global economic recovery. • The dollar nursed losses as surging commodity currencies paused for breath and a rising yen pointed to investor trepidation over the U.S. Federal Reserve's next move. • U.S. Treasury yields retrenched a little on Monday from last week's dramatic rise, while an auction of three-year notes was met with solid demand. • Oil prices climbed, paring losses from the previous session, as markets broadly rose on growing confidence in a global recovery with pandemic lockdowns easing. • Gold prices rose as the U.S. dollar hovered near a three-month low and amid fears of a deep economic fallout from the coronavirus crisis, while investors focused on the U.S. Federal Reserve meeting for clues on policy measures. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 75.56/75 June 8 9.50 crores (367.47) crores .59 10-yr bond yield 5.80 pct Month-to-date 20,824 crores (1,556) crores Year-to-date (19,521) crores (1,06,970)crores (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= 75.49 Indian rupees) (Compiled by Nachiket Tekawade in Bengaluru)
