December 17, 2015 / 3:26 AM / 2 years ago

Morning News Call - India, December 17

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    FACTORS TO WATCH
    10:00 am: CBEC Chairman Najib Shah and Special Secretary Rashmi Varma to
speak on GST at an industry event.
    10:00 am: Shipping Secretary Rajive Kumar and RBI CGM C.D. Srinivasan to
attend an event.
    10:00 am: Oil Minister Dharmendra Pradhan at energy security conference.
    11:00 am: Winter session of Parliament continues.
    12:00 pm: DIPP Secretary Amitabh Kant to brief media on Make In India
scheme.
    
    
    EMEA LIVECHAT - CURRENCY MARKETS- Ilya Spivak, currency analyst at Daily FX,
joins us at 3.30 pm IST to discuss the outlook for FX markets in the wake of the
Federal Reserve's interest rate decision and as the trading year draws to a
close. To join the Global Markets Forum, click on the link here
    
       
    
    INDIA TOP NEWS
     To clear air, court bans sales of big diesel cars in Delhi
India's top court has ordered a temporary ban on the sale of large diesel cars
in New Delhi to combat toxic smog in the city, prompting concern in the auto
sector as some carmakers say they may reconsider investment plans in the
country. 
     Modi seen pivoting from roads to fields in next budget
India's Prime Minister Narendra Modi will recalibrate budget priorities in 2016
to focus on social initiatives, such as the country's first major crop insurance
scheme, while capping previously prioritised infrastructure spending, officials
say. 
     Google CEO touts India as key testing ground for new products
New Google leader Sundar Pichai pledged on Wednesday to use India as a testing
ground for its products as the U.S. tech giant targets hundreds of millions of
consumers in the developing world set to move online in the next few years.
 
     India's Jaitley reaches out to opposition to rescue landmark tax reform
India's finance minister on Wednesday extended an olive branch to the opposition
Congress party that has stalled the passage of a landmark tax reform in
parliament, by offering to consider its demand for lower rates and a simpler
structure. 
     Indian tech firm Wipro flags flood hit to Q3 earnings
Wipro, India's third-largest software services exporter, warned investors on
Wednesday that heavy flooding in the southern Indian city of Chennai would hit
revenues and operating margins for the quarter ending on Dec. 31. 
     Blackstone invests $170 mln in India's IBS Software
U.S. private equity firm Blackstone Group LP has bought a minority stake in
India's IBS Software for $170 million from General Atlantic and other
shareholders. 
     India to allow ethanol-only vehicles; response to be muted
India will soon allow automakers to manufacture vehicles that can run entirely
on ethanol, but adoption is likely to be slow as the country has not been able
to source the sugarcane by-product even for its current low gasoline-blending
targets. 
     India to allow more state-run companies to sell coal
India will allow more state-run companies to sell coal to industry, according to
a government statement on Wednesday, in a bid to bolster the country's coal
production and reduce imports. 
    
    
    GLOBAL TOP NEWS
     Fed raises interest rates, citing ongoing U.S. recovery
The Federal Reserve hiked interest rates for the first time in nearly a decade
on Wednesday, signaling faith that the U.S. economy had largely overcome the
wounds of the 2007-2009 financial crisis. 
     China c.bank sees economic growth slowing to 6.8 pct in 2016
China's annual economic growth is likely to slow to 6.8 percent next year from
an expected 6.9 percent this year, the People's Bank of China said in a working
paper published on Wednesday. 
     For Australia & New Zealand, Fed hike may prove a mixed blessing
Central banks in Australia and New Zealand will be among those welcoming higher
U.S. interest rates, hoping it will help weaken their stubbornly high
currencies. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures was trading at 7,781.00, up 0.27 percent from its
previous close.
     The Indian rupee will likely open higher against the U.S. dollar today
tracking gains across global equities following the Federal Reserve's 25
basis-point rate hike and a dovish policy statement that were along expected
lines.
     Indian government bonds are likely to extend gains for a third day, after
the U.S. Federal Reserve raised interest rates on expected lines and signaled
further tightening would be a gradual process, prompting markets to interpret
the authority's stance as dovish. The yield on the benchmark 7.72 percent bond
maturing in 2025 is likely to trade in a 7.67 percent-7.73 percent range.
    
    
    GLOBAL MARKETS
     U.S. stocks rallied on Wednesday after the Federal Reserve announced it is
raising its key policy rate for the first time in nearly a decade in a sign of
confidence in the U.S. economy. 
     Asian stock markets jumped as investors chose to take an historic hike in
U.S. interest rates as a mark of confidence in the world's largest economy,
lifting the dollar and piling on the pain for oil prices. 
     The dollar gained against the euro and yen, rising after the Federal
Reserve's decision to hike interest rates for the first time since 2006 lifted
risk appetite and Treasury yields. 
     Yields on shorter-dated U.S. Treasuries rose sharply on Wednesday after
the Federal Reserve increased its benchmark rate by 0.25 percentage point, its
first hike in nearly a decade, signaling confidence in the strength of the
domestic economy. 
     Crude futures rose in Asian trade recouping some of the losses from the
previous session, when they fell sharply after the Federal Reserve raised rates
and official figures showed a surprise build in U.S. inventories. 
     Gold slipped, giving back some of its overnight gains, in choppy trading
after the Federal Reserve raised U.S. interest rates for the first time in
nearly a decade. 
    
    
 MARKETS            CLOSE         FII INVESTMENTS  EQUITIES       DEBT
 PNDF spot          66.42/66.45   December 16       -$75.60 mln   -$76.43 mln
 10-yr bond yield   7.79 pct      Month-to-date     -$791.99 mln  -$264.65 mln
                                  Year-to-date       $2.82 bln     $9.22 bln
 
    
    
    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 = 67.73 Indian rupees)

 (Reporting by Samarendra Sahoo in Bengaluru)

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