October 3, 2016 / 3:27 AM / 10 months ago

Morning News Call - India, October 3

7 Min Read

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    FACTORS TO WATCH
    10:00 am: Trade Minister Nirmala Sitharaman at a healthcare event in New
Delhi.
    
    EMEA LIVECHAT - FX WEEK AHEAD with Reuters FX analyst Jeremy Boulton
    Join Reuters FX analyst Jeremy Boulton at 1530 IST for a look at the week's
top topics and implications for the FX market. To join the conversation, click
on the link: here
    
    
    INDIA TOP NEWS
     India's new central bank chief and panel face close call on rates
    A month into the job, India's new central bank governor will on Monday and
Tuesday chair his maiden policy review, which for the first time will see a
committee set interest rates, though views are divided on whether there will be
any change this time round. 
     State Bank of India chair given extension to drive overhaul
    India has given State Bank of India's Arundhati Bhattacharya a one-year
extension as chairman, the nation's top lender by assets said, allowing her more
time to lead a clean-up of bad assets and oversee a merger of affiliates.
 
     Indians disclose $10 billion in hidden wealth in tax evasion amnesty
    A government amnesty targeting tax evasion in India has prompted tens of
thousands of suspected tax dodgers to disclose nearly $10 billion in undeclared
income, the finance minister said on Saturday. 
     India gets $8 billion worth telecoms spectrum bids on auction's first day 
    India started its biggest ever telecoms airwaves auction on Saturday,
receiving 535.31 billion rupees worth of bids on the first day of the sale, a
senior government official said. 
     Vedanta Resources appoints Arun Kumar as CFO 
    Diversified mining and energy group Vedanta Resources Plc appointed Arun
Kumar, deputy chief financial officer, as its CFO. 
     Militant attack on Indian army base in Kashmir kills one 
    At least six militants attacked an Indian army camp in north Kashmir on
Sunday night, killing one border guard and wounding another, two weeks after a
similar attack killed 19 of its soldiers and ratcheted up tensions between India
and Pakistan. 
     India ratifies Paris climate change deal
    India, the world's third largest emitter of greenhouse gases, formally
joined the Paris agreement on tackling climate change on Sunday, the United
Nations said, taking the global pact a step closer to its enactment. 
     India aviation regulator lifts restrictions on new Samsung Note 7 phones
    India has lifted restrictions placed on using and carrying Samsung
Electronics Co's Galaxy Note 7 mobile phones on commercial airplanes, but only
for devices purchased after Sept. 15, 2016, the country's aviation regulator
said. 
    
    
    GLOBAL TOP NEWS
     Britain's May to trigger EU divorce by end of March
    Prime Minister Theresa May said on Sunday she would trigger the process to
leave the EU by the end of March, offering the first glimpse of a timetable for
a divorce that will redefine Britain's ties with its biggest trading partner.
 
     Japan big manufacturers' mood flat in fragile economic recovery -BOJ
tankan
    Confidence among big Japanese manufacturers was flat in the three months to
September and service-sector sentiment worsened to its lowest in nearly two
years, the Bank of Japan's closely watched tankan survey showed on Monday,
underscoring a fragile economic recovery. 
     Deutsche Bank races against time to reach U.S. settlement
    Deutsche Bank is throwing its energies into reaching a settlement before
next month's presidential election with U.S. authorities demanding a fine of up
to $14 billion for mis-selling mortgage-backed securities. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures were trading at 8,668.50, trading up 0.2 pct from
its previous close. 
     The Indian rupee is poised to open higher against the dollar, as reports
that Deutsche Bank is trying to negotiate a smaller fine with U.S. authorities
and upbeat Chinese factory activity data boosted risk appetite.
     Indian government bonds will likely edge higher in early trade, as
investors expect a rate cut at the monetary policy committee's maiden two-day
meeting that starts today. The yield on the benchmark 7.59 pct bond maturing in
2026 is likely to trade in a 6.92 pct - 6.98 pct band. 
    
    
    GLOBAL MARKETS
     Wall Street rallied on Friday, lifted by a surge in Deutsche Bank shares
and financial stocks after concerns eased about the health of the German
bank. 
     Asian shares got the new quarter off to a firm start, while sterling
tumbled as Britain set a March deadline to start divorce proceedings from the
European Union. MKTS/GLOB]
     The dollar started off the week on a firmer footing as fears about Deutshe
Bank receded and investors looked ahead to this week's U.S. jobs data, while
sterling hit seven-week lows after Britain set a March deadline to begin its
exit from the European Union. 
     U.S. Treasury debt yields rose on Friday as risk appetite improved with
the rebound in Deutsche Bank share prices and the release of generally solid
U.S. economic data that keeps the Federal Reserve on track to raise interest
rates in December. 
     Oil prices fell away from $50 per barrel despite last week's agreement by
exporters to cut output, with traders doubting the step was big enough to rein
in production that has exceeded consumption for the better part of three years.
 
     Gold rose slightly on short covering after a volatile session on Friday as
concerns about Deutsche Bank's health eased. 
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         66.54/66.57  September 30     -$154.5 mln  $58.85 mln
 10-yr bond yield  7.02 pct     Month-to-date    $1.43 bln    $1.50 bln
                                Year-to-date     $7.54 bln    $34.62 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 = 66.61 Indian rupees)

 (Compiled by Nivedita Balu in Bengaluru)

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