September 29, 2016 / 3:37 AM / a year ago

Morning News Call - India, September 29

To access the newsletter, click on the link: here
    
    
    FACTORS TO WATCH
    9:15 am: Government to sell 7 pct stake in Hindustan Copper via offer for
sale in Mumbai.
    10:15 am: Axis Bank MD Shikha Sharma and LIC MD Usha Sangwan to speak at CII
event in Mumbai.
    
    GMF: ASIA LIVECHAT-POST-FED EM FOCUS: Batur Asmazoglu, Emerging Markets
Portfolio Management, Myndos Capital
    Risk assets are on a roll even as fears of Fed rate hike continue. Batur,
with more than a decade's experience in portfolio management, will join us at
1130 IST to share insights on emerging markets. To join the conversation, click
on the link: here
    
    
    INDIA TOP NEWS
     Wal-Mart in talks to buy stake in India's Flipkart 
    Wal-Mart Stores is in talks to buy a minority stake in India's largest
e-commerce firm Flipkart, two sources familiar with the matter said, as the
world's biggest retailer aims to get a slice of a fast-growing online retail
market. 
     ING selling $300 mln Kotak Mahindra stake
    Dutch financial services company ING Group is selling a $300 million stake
in Kotak Mahindra Bank in a block trade on Thursday, according to a deal term
sheet seen by Reuters. 
     Liberty bid for two Tata Steel UK units worth nearly 100 mln pounds -
source
    Industrial and commodity group Liberty House's bid for Tata Steel TISC.NS
UK's speciality steel and pipe businesses is worth nearly 100 million pounds, an
industry source told Reuters on Wednesday 
     Endurance Tech sets price band for up to $175 million IPO
    Endurance Technologies, an Indian auto parts maker, has set a price band of
467-472 rupees a share for its initial public offering of shares next week that
could raise as much as $175 million, the company said on Wednesday. 
     The cost of cheap drugs? Toxic Indian lake is "superbug hotspot"
    Medak is the heart of India's antibiotics manufacturing business: a district
of about 2.5 million that has become one of the world's largest suppliers of
cheap drugs to most markets, including the U.S. But community activists,
researchers and some drug company employees say the presence of more than 300
drug firms, combined with lax oversight and inadequate water treatment, has left
lakes and rivers laced with antibiotics, making this a giant Petri dish for
anti-microbial resistance. 
     Pakistani rebel chief says would welcome help from arch-rival India
    The elusive leader of a major rebel group fighting for independence in
Pakistan's Baluchistan province said he would welcome cash and other help from
India, words likely to alarm Islamabad which accuses New Delhi of stirring
trouble there. 
     Indian tax drive offers no absolution, to yield little cash for govt
    The Indian government has sent out about 700,000 notices to suspected tax
evaders to coax them to declare hidden income and assets, promising they won't
be pursued by the authorities if they pay a penalty now to clear their name.
 
    
    
    GLOBAL TOP NEWS
     OPEC agrees modest oil output curbs in first deal since 2008
    OPEC agreed on Wednesday modest oil output cuts in the first such deal since
2008, with the group's leader Saudi Arabia softening its stance on arch-rival
Iran amid mounting pressure from low oil prices. 
     Fed's primal divide - Is economy overheating or stuck in a rut?
    Investors may be expecting a U.S. interest rate increase in December, but
Federal Reserve policymakers remain divided over whether the economy is mired in
a rut, strong enough to withstand an immediate hike or hovering somewhere in
between. 
     Clinton enlists former foe Sanders in appeal for youth votes in U.S.
presidential race
    U.S. Democratic presidential nominee Hillary Clinton shared a stage with
former rival Senator Bernie Sanders on Wednesday to appeal for youth votes in
the Nov. 8 election as opinion polls show a close race with Republican Donald
Trump. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures were at 8,795.50, up 0.4 pct from its previous
close.
     The Indian rupee will likely open higher against the U.S. dollar, as risk
appetite improved after the Organization of Petroleum Exporting Countries'
agreement to curb oil output lifted crude prices.
     Indian sovereign bonds will likely edge higher, as investors continue to
bet that the nation's central bank will ease rates next week. However, likely
profit booking on the last trading day of the fiscal first half may cap gains.
The yield on the benchmark 7.59 pct bond maturing in 2026 is likely to trade in
a 6.90 pct - 6.94 pct band.
    
    
    GLOBAL MARKETS
     Wall Street ended higher on Wednesday after an OPEC agreement to limit
crude output fueled a rally in oil and more than offset nervousness about a
tight race for the U.S. presidency. 
     Oil prices extended gains, boosting stock markets, after OPEC members
agreed to curb output in a surprise deal, though investors were wary of chasing
markets higher as the U.S. presidential election nears. 
     The U.S. dollar hit a roughly five-month low against the Norwegian crown
and fell against other commodity-linked currencies after OPEC sources told
Reuters the producing group agreed to reduce its oil output. 
     U.S. long-dated Treasury debt yields edged higher on Wednesday, boosted by
a Reuters report that OPEC has reached a deal to limit oil production, with the
agreement to be implemented in November. 
     Gold prices inched up as the dollar slipped following a deal by oil
producers to curb output. 
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         66.36/66.39  September 28     $11.12 mln   $1.22 bln
 10-yr bond yield  6.97 pct     Month-to-date    $769.80 mln  $2.35 bln
                                Year-to-date     $6.88 bln    $880.48 mln
    
    
    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 = 66.46 Indian rupees)

 (Compiled by Debanjan Bose in Bengaluru)

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