June 1, 2017 / 3:34 AM / 4 months ago

Morning News Call - India, June 1

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    FACTORS TO WATCH
    10:30 am: Farm Minister Radha Mohan Singh at an event in New Delhi.
    12:00 pm: Transport Minister Nitin Gadkari at an event in New Delhi.
    7:30 pm: Junior Finance Minister Arjun Ram Meghwal at an event in Mumbai.
    
    GMF: LIVECHAT - MARKET OUTLOOK
    CMC Markets' chief market analyst Michael Hewson joins us for a look at
what's likely to drive direction in the coming month at 2:30 pm IST. To join the
conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • India loses fastest growing economy tag after sharp growth slowdown
    India's gross domestic product data shocked again on Wednesday as economic
growth unexpectedly slumped to its lowest in more than two years in the March
quarter, stripping the country of its status as the world's fastest growing
major economy.
    • India's April infrastructure output growth slows down to 2.5 percent y/y -
govt
    India's annual infrastructure output growth slowed to a three-month low of
2.5 percent in April, mainly dragged down by a slowdown in refinery output and a
contraction in coal production, government data showed on Wednesday.

    • ArcelorMittal, SAIL agree to mediator's proposal to advance Indian venture
    ArcelorMittal and Steel Authority of India Ltd have agreed to a proposal to
export a fifth of the auto-grade steel they aim to make under a planned $913
million joint venture, according to a document obtained by Reuters.
    • Keeping sweet: India sugar output expected to jump on decent monsoon
    India's 2017/18 sugar production will likely jump a quarter from the
previous year to 25 million tonnes as decent monsoon rains are forecast, the
head of an industry body told Reuters.
    • Indian Oil to shut key units at Koyali refinery for maintenance - sources
    Indian Oil Corp. the country's biggest refiner, will shut key units at its
274,000 barrel-per-day Koyali refinery in western Gujarat state from Thursday
for maintenance and upgrade, two sources with knowledge of the plan said.

    • Greek/Indian venture aims to start work on Crete airport in early 2018
    Greek construction group GEK TERNA and India's GMR Infrastructure hope to
start building a new 850 million euro airport on Crete early next year, a source
from GEK TERNA said on Wednesday.
    
    
    GLOBAL TOP NEWS
    • Trump to announce decision on global climate deal on Thursday
    President Donald Trump said he would announce on Thursday his decision
whether to keep the United States in a global pact to fight climate change, as a
source close to the matter said he was preparing to pull out of the Paris
accord.
    • China May factory activity contracts for first time in nearly a year
-Caixin PMI
    China's manufacturing activity unexpectedly contracted in May for the first
time in 11 months and companies shed more jobs as demand weakened and shrinking
factory prices dented profits, a private survey showed.
    • Trump hails deals worth 'billions' with Vietnam
    U.S. President Donald Trump talked trade with Vietnamese Prime Minister
Nguyen Xuan Phuc during a White House visit on Wednesday and welcomed the
signing of business deals worth billions of dollars and the jobs they would
create.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    The SGX Nifty Futures were trading at 9,621.00, down 0.16 percent from its
previous close.
    The Indian rupee will likely edge higher against the dollar, tracking
overnight weakness in the greenback and U.S. Treasury yields, traders said.
    Indian government bonds are expected to rise in early trade as a drastic
fall in economic growth has boosted speculation that the central bank may adopt
a ‘dovish’ policy stance at its meeting next week. The yield on the benchmark
6.79 percent bond maturing in 2027 is likely to trade in a 6.63 percent-6.69
percent band today. 
    
    
    GLOBAL MARKETS
    • U.S. stocks were little changed on Wednesday as financials dropped after
JPMorgan and Bank of America warned of revenue weakness, offsetting gains in
defensive plays.
    • Asian stocks were mostly lower following a subdued lead from Wall Street,
while the dollar pulled up from near two-week lows and sterling languished under
the weight of political fears one week before Britain's election.
    • The dollar languished near a recent 6-1/2 month low against a basket of
major currencies, while sterling slipped after a poll showed a slimmer lead for
Prime Minister Theresa May's ruling party before next week's election.
    • Long-dated U.S. Treasury yields touched their lowest in more than five
weeks and benchmark yields their lowest in nearly two weeks on month-end buying
and U.S. housing data that fanned doubts that the Federal Reserve would raise
interest rates again in 2017 beyond June.
    • Oil futures rose after slumping to a three-week low the previous session,
buoyed by an industry report that showed U.S. crude stockpiles had fallen more
than expected.
    • Gold held steady after hitting a five-week high in the previous session on
geopolitical tensions, but expectations the U.S. Federal Reserve will hike
interest rates next month weighed on prices.
        
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         64.48/64.51  May 31           $162.62 mln  $455.19 mln
 10-yr bond yield  7.07         Month-to-date    $1.37 bln    $4.05 bln
                                Year-to-date     $7.81 bln    $13.44 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 = 64.50 Indian rupees)

 (Compiled by Benny Thomas in Bengaluru)
  

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