October 5, 2016 / 3:32 AM / a year ago

Morning News Call - India, October 5

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    FACTORS TO WATCH    
    10:00 am: Federal cabinet likely to meet in New Delhi.
    1:00 pm: Junior Aviation Minister Jayant Sinha to deliver opening address at
Greenovation exhibition in New Delhi.
    
    ASIA LIVECHAT - CENTRAL BANKS FOCUS: Arup Raha, Chief Economist, CIMB
    Arup Raha thinks there is still no case for a Fed rate hike, even though
December is back in play after Jackson Hole. He expects the BOJ to stay on its
easing path though it may not go as far as distributing helicopter money. We'll
also get views from Raha on what to expect in the rest of Asia at 1030 IST. To
join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
     RBI's new regime cuts rates
    India's newly minted monetary policy committee delivered a surprise
25-basis-point cut in the repo rate on Tuesday to 6.25 percent, as Reserve Bank
of India Governor Urjit Patel presided over his first policy review since his
appointment last month. 
     E-commerce firms slug it out as Indian festival season kicks off
    India's two largest e-commerce players are looking to use the country's
biggest festive sales season this week to bolster their valuations as they seek
fresh capital and look to fend off Amazon's growing inroads into the domestic
market. 
     RBI to be firm but pragmatic in tackling banks' non-performing loans
    India's central bank will be firm yet pragmatic in tackling the bad loans of
commercial lenders, Reserve Bank of India Governor Urjit Patel said on Tuesday,
adding that more work was needed to resolve the issue of stressed assets.
 
     India to develop its own palm oil sustainability framework-trade body
    India, the world's biggest importer of edible oils, will develop its own
sustainability framework for palm oil production considering the domestic
ecology, a leading trade body said on Tuesday. 
     Hyundai Motor to recall 7,657 Eon cars in India
    A local unit of Korean automaker Hyundai Motor Co will recall 7,657 cars
sold in India to inspect "clutch cable fouling with battery cable", the company
said in a statement via email on Tuesday. 
     India tries to hasten U.S. defence deals amid election uncertainty
    India is trying to hasten a deal with the United States to buy Predator
drone aircraft for military surveillance, one of several defence and nuclear
projects the two sides are pursuing in the final months of the Obama
administration. 

    GLOBAL TOP NEWS
     U.S. vice presidential contenders Kaine, Pence blast Trump, Clinton at
debate
    Democrat Tim Kaine and Republican Mike Pence quickly launched attacks on
presidential nominees Donald Trump and Hillary Clinton on Wednesday at a debate
between the two vice presidential contenders. 
     Japan's Sompo to buy Endurance Specialty for about $6.5 billion -sources
    Japanese insurer Sompo Holdings Inc could announce a deal to buy U.S.
casualty insurer Endurance Specialty Holdings Ltd for about $6.5 billion on
Wednesday, sources familiar with the matter said. 
     Google takes on Apple, Amazon with new hardware push
    Alphabet Inc's Google on Tuesday announced a new "Pixel" smartphone and a
suite of new consumer electronics products for the home, planting itself firmly
in the hardware business and challenging Apple Inc's at the high end of the $400
billion global smartphone market. 
       
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures was trading at 8,794.00, little changed from its
previous close.
     The Indian rupee will likely open lower against the dollar, tracking its
Asian peers, as reports of the European Central Bank possibly planning to taper
its quantitative easing program dampened risk appetite. 
     Indian government bonds will likely consolidate after yesterday's rally
triggered by a rate cut, as investors may defer purchases after yields fell to
fresh seven-year lows. The yield on the benchmark 7.59 pct bond maturing in 2026
yield is likely to trade in a 6.82 pct-6.88 pct band today.
        
    
    GLOBAL MARKETS
     U.S. stocks dropped on Tuesday as investors fretted about Britain's exit
from the European Union and the prospect of a Federal Reserve interest rate hike
in coming months. 
     Asian shares and gold retreated on Wednesday and bond yields were near
two-week highs after markets were rattled by a report flagging the possible
withdrawal of global stimulus measures. 
         The dollar hovered near a two-month high against a basket of
currencies, lifted by hawkish comments from a Federal Reserve official and a
sharp rise in U.S. Treasury yields. 
     U.S. Treasury prices dropped and yields jumped on Tuesday, to almost
two-week highs after a report that the European Central Bank may taper asset
purchases spooked investors. 
     Oil prices rose after a report that U.S. fuel inventories may have fallen
for a fifth straight week, but contracts remained near the $50 marker where many
traders currently see fair value for crude. 
     Gold edged higher early, after falling 3.3 percent in the prior session to
its lowest in more than three months, as the dollar eased back and equities
fell. 
        
                   CLOSE        FII INVESTMENTS  EQUITIES   DEBT
 PNDF spot         66.57/66.60  October 4        $51.6 mln  $88.78 mln
 10-yr bond yield  6.88 pct     Month-to-date    -          -$24.75 mln
                                Year-to-date     $7.53 bln  $9.87 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 Sai Sharanya Khosla in Bengaluru)

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