June 24, 2020 / 3:23 AM / 10 days ago

Morning News Call - India, June 24

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    FACTORS TO WATCH
    11:00 am: Prime Minister’s Economic Advisory Council Chairman Bibek Debroy
at FICCI’s webinar on ‘Demand Creation for Manufacturing Led Growth’ in New
Delhi.
    11:00 am: Principal Economic Advisor Sanjeev Sanyal at IMC’s webinar on
‘Economic Policies - Demand Creation in post COVID World’in New Delhi.
    11:30 am: Department of Economic Affairs Additional Secretary K. Rajaraman,
at FICCI’s webinar on “Future of Fintech in light of COVID-19” in New Delhi
5:00 pm: NITI Aayog CEO Amitabh Kant at launch of ‘Decarbonising Transport in
India’ project in New Delhi.
    
    LIVECHAT - REUTERS GLOBAL MARKETS FORUM
    Reuters stocks correspondents in London and New York take a look at the week
in equities on both sides of the Atlantic. To join the conversation at 7:30 pm
IST, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Indian and Chinese military agree to disengage on disputed Himalayan
border
    Indian and Chinese military commanders have agreed to step back from a
confrontation over a disputed stretch of border where a clash last week left 20
Indian soldiers dead, government officials in New Delhi and Beijing said on
Tuesday.
    • Cipla to price remdesivir version for COVID-19 under 5,000 rupees
    Cipla will price its generic version of Gilead Sciences's antiviral drug
remdesivir for use in COVID-19 patients at less than 5,000 rupees, the company
said.
    • India moves to curb sales of Chinese products to govt agencies
    Amid calls for a boycott of Chinese goods after a border clash in which 20
Indian soldiers were killed, India's government instructed sellers to declare
the country of origin for goods and services purchased via a state-run online
portal.
    • Taiwan's Foxconn eyes further India investment, sees bright outlook there
Taiwan's Foxconn is planning further investment in India and may announce
details in the next few months as the world's largest contract manufacturer
views the outlook there very favourably, its chairman said on Tuesday.

    • India's oil imports in May sink to lowest in over 8 years - trade
    India's oil imports in May hit the lowest since Oct 2011 as refiners with
brimming storage cut purchases after a continuous decline in fuel demand,
preliminary data obtained from industry sources showed.
    • India says it may allow some foreign flights to resume after U.S.
criticism
    India's ministry of civil aviation said on Tuesday it was considering
allowing some international carrier flights to resume after Washington accused
India of "unfair and discriminatory practices."
    • India levies charge on some steel imports from China, Korea, Vietnam
    India has imposed an anti-dumping duty on flat rolled steel products that
are plated or coated with alloy of aluminium and zinc originating in, or from
China, Vietnam and South Korea, according to a government order issued on
Tuesday.
    • India exploring global funds for compressed biogas projects -oil minister 
    India is exploring global funds and prioritising lending for compressed
biogas (CBG) projects, Oil Minister Dharmendra Pradhan said on Tuesday, as the
country looks to reduce its crude imports and increase its use of cleaner fuels.

    
    
    GLOBAL TOP NEWS
    • Trump threat to 'decouple' U.S. and China hits trade, investment reality
    Conflicting talk from Trump administration officials about "decoupling" the
U.S. economy from China is running into a challenging reality: Chinese imports
of U.S. goods are rising, investment by American companies into China continues,
and markets are wary of separating the world's biggest economies.
    • New U.S. development agency could loan billions for reshoring, official
says
    U.S. government financing for projects to return critical supply chains to
the United States as part of coronavirus response efforts could reach tens of
billions of dollars and clients may include a projected $12 billion Taiwanese
semiconductor plant, the head of the agency managing the funds told Reuters.

    • BOJ signals pause after months of pandemic-fighting stimulus steps - June
summary
    The Bank of Japan can spend time examining the effects of the stimulus steps
put in place since March, a board member said in a June rate review,
underscoring BOJ's view it has done enough for now to cushion the blow from the
coronavirus pandemic.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.3% lower at 10,452.80.
    • The Indian rupee is expected to trade little changed against the U.S.
currency amid the dollar’s decline against regional currencies and rangebound
Asian equities.
    • Indian government bond yields are likely to trade largely unchanged after
rising in the past three days, even as traders await supportive steps from the
central bank to absorb the heavy debt supply. The yield on the benchmark 5.79%
bond maturing in 2030 is likely to trade in a range of 5.86%-5.93% today.
    
    
    GLOBAL MARKETS
    • Wall Street's three major indexes closed higher on Tuesday as improving
economic data and the prospect of more stimulus bolstered hopes of a swift
recovery, while a jump in technology shares powered the Nasdaq to another record
high.
    • Asian shares crept to a four-month high as investors remained stubbornly
upbeat on the outlook for a re-opening of the global economy even as cases of
the coronavirus looked to be accelerating to new peaks.
    • The dollar was under pressure after upbeat data in Europe boosted the euro
and helped stoke hopes for a global economic recovery, underpinning investor
appetite for riskier currencies.

    • Longer-term U.S. Treasury yields ticked higher on Tuesday as positive
economic reports raised hopes of a swift recovery despite the continued COVID-19
pandemic.
    • Oil futures edged lower, extending losses from the previous day, after
U.S. crude stockpiles grew more than expected, adding to worries about
oversupply, although a fall in gasoline stocks kept the decline in check.
    • Gold prices hit its highest level since October 2012 as demand was boosted
by worries over a jump in coronavirus infections and hopes of more stimulus
measures to combat the economic blow.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES         DEBT
 PNDF spot         75.63/75.66  June 23          430.81 crores    183.19 crores
 10-yr bond yield  5.90%        Month-to-date    22,194 crores    (3,167) crores
                                Year-to-date     (18,151) crores  (1,08,581) 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 = 75.48 Indian rupees)
 

 (Compiled by Pranay Prakash in Bengaluru)
  
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