March 2, 2017 / 3:26 AM / 6 months ago

Morning News Call - India, March 2

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    FACTORS TO WATCH
    9:30 am: Railway Minister Suresh Prabhu to launch freight sector initiatives
via video conference in New Delhi.
    
    10:00 am: Trade Minister Nirmala Sitharaman and Chief Economic Adviser
Arvind Subramanian at conference on Economics of Competition Law in New Delhi.
    
    LIVECHAT-CMC MARKETS OUTLOOK
    CMC Markets' chief market analyst Michael Hewson joins us at 3.30 pm for a
look at what's likely to drive direction in the coming month. To join the
conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • Freight and fridge sales: Indian economists seek GDP clues amid data
doubts
    Surprised again by India's strong official growth statistics, economists are
relying increasingly on high-frequency indicators like bank credit and rail
freight to gauge the real health of Asia's third-largest economy.
    • TCS says founders to participate in share buyback 
    Tata Consultancy Services, which plans to buy back shares worth up to 160
billion rupees, said on Wednesday the founder group of the company intended to
participate in the proposed buyback.
    • Singapore's GIC in talks to take stake in Indian property firm owned by
DLF 
    Singapore sovereign wealth fund GIC is in talks to buy a 40 percent stake in
a property rental company owned by India's biggest listed real estate developer
DLF Ltd, DLF said on Wednesday.
    • India factory activity expands at a slightly faster pace in February 
    Indian factory activity expanded for a second straight month in February,
while an increase in raw material costs pushed firms to raise prices at the
fastest rate in nearly three and a half years, a business survey showed on
Wednesday.
    • Avenue Supermarts sets price range for up to $280 mln IPO 
    Avenue Supermarts Ltd will sell shares in its initial public offering of up
to 18.7 billion Indian rupees in a price range of 295-299 rupees a share, it
said in a public notice on Wednesday.
    • India considers reinstating 25 pct wheat import tax -sources
    India could impose a 25 percent import tax on wheat by the middle of March,
two government sources said on Wednesday, reinstating the tariff after a gap of
nearly three months in response to recent large purchases from overseas. 

    • San Francisco university lays off IT workers, jobs head to India 
    The University of California, San Francisco on Tuesday laid off 49
information technology (IT) employees and outsourced their work to a company
based in India, ending a year-long process that has brought the public
university under fire.
    
    
    GLOBAL TOP NEWS
    • Trump administration has found only $20 mln in existing funds for wall
-document
    President Donald Trump’s promise to use existing funds to begin immediate
construction of a wall on the U.S.-Mexico border has hit a financial roadblock,
according to a document seen by Reuters.
    • Fed tees up March rate hike as key policymaker shifts tone
    The Federal Reserve is setting the stage for a U.S. interest-rate increase
later this month, with the central bank's leading voice on international
economics saying the global economy seems to have turned a corner, clearing the
way for a hike "soon."
    • China Feb factory growth beats expectations as global demand improves 
    China's factory activity expanded faster than expected in February as
domestic and export demand picked up, adding to signs that the global economy is
regaining momentum even as fears grow of a surge in trade protectionism.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were trading at 9,009.50, trading up 0.4 pct from
its previous close.
    • Indian rupee is poised to open higher against the dollar, helped by
expectations that local shares will track gains in other Asian markets after
Wall Street indices soared to fresh record highs. 
    • Indian government bonds are poised to open lower tracking a rise in U.S.
Treasury yields, as investors fret over growing possibility of an interest rate
increase by the Federal Reserve this month. The yield on the benchmark 6.97 pct
bond maturing in 2026 is likely to trade in a 6.91 pct-6.96 pct band today. The
paper had settled at 100.69 rupees, yielding 6.93 pct, yesterday. 
    
    
    GLOBAL MARKETS
    • The Dow on Wednesday blasted through the 21,000 mark for the first time
after U.S. President Donald Trump's measured tone in his first speech to
Congress lifted optimism and investors viewed a looming interest rate hike as a
glass half full.
    • Asian shares rose as investors were encouraged by President Donald Trump's
less combative tone in his first speech to Congress, which sent Wall Street
stocks sharply higher, while growing bets on a U.S. rate hike this month buoyed
the dollar.
    • The dollar stood tall near a seven-week high on growing signs the Federal
Reserve is seriously considering raising interest rates this month, boosting the
U.S. currency's yield allure.
    • U.S. Treasury yields rose broadly on Wednesday, with the 2-year's hitting
a more than seven-year high, on increased expectations that the Federal Reserve
will raise U.S. overnight interest rates at its March meeting.
    • Crude oil fell for a third consecutive session as a record build-up in
U.S. stockpiles weighed on the market, with producers boosting shale oil
production.
    • Gold prices slipped after the dollar firmed on hawkish comments from U.S.
Federal Reserve officials that stoked expectations of a U.S. interest rate hike
in March.
    
   
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         66.68/66.71  March 1          -$29.62 mln  $46.24 mln
 10-yr bond yield  7.24 pct     Month-to-date    $1.56 bln    -
                                Year-to-date     $1.56 bln    $1.36 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 = 66.83 Indian rupees)
    
    

 (Erum Khaled in Bengaluru)
  

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