March 9, 2016 / 3:51 AM / a year ago

Morning News Call - India, March 9

To access the newsletter, click on the link:
 
 here

   FACTORS TO WATCH
   
   10:55 am: DIPP Joint Secretary Atul Chaturvedi at VCCircle summit.
   11:00 am: Budget session of parliament continues.
   12:00 pm: Transport Minister Nitin Gadkari at Maritime India summit.
    
   EMEA LIVECHAT: WHAT'S LEFT IN THE CB TOOLBOX? - Join Pedro da Costa,
Editorial Fellow at the Peterson Institute for International Economics at 8:00
pm (IST). With central banks already employing every trick in the book to
stabilise their economies and currencies, we talk to Pedro da Costa, editorial
fellow at PIIE, to ask what more they can do and even if they should do anything
at all.To join the conversation, click on the link: here
    
    
   INDIA TOP NEWS
    
     Government rolls back pension tax plan after backlash
Prime Minister Narendra Modi's government on Tuesday dropped a controversial
proposal to tax pension withdrawals, caving in after an outcry by salaried
workers threatened to undermine his party's prospects in upcoming state
elections. 
     U.S. industry body says India agreed to not issue 'compulsory' drug
licences
India has given private assurances that it will not grant licences allowing
local firms to override patents and make cheap copies of drugs by big Western
drugmakers, a U.S. business advocacy group said. 
     CBI probes alleged fraud at Syndicate Bank
The Central Bureau of Investigation (CBI) said on Tuesday it was investigating
alleged fraud at the state-run Syndicate Bank amounting to about 10 billion
rupees ($150 million).
     NALCO share buyback delayed to 2016/17 - official 
Indian aluminium company NALCO's plan to buy back up to 32.5 billion rupees
($483 million) of government shares will be delayed to the next fiscal year
because of procedural delays, a government official said Tuesday. 
     Banks ask Supreme Court to ban Vijay Mallya from overseas travel
A group of banks asked the Supreme Court on Tuesday to restrain the founder of
Kingfisher Airlines, liquor baron Vijay Mallya, from leaving the country because
of the hefty debt the now defunct company owes, two lawyers said. 
     India to sell up to 5 pct stake in state-run Container Corp
India will sell an up to 5 percent stake in state-run Container Corp as part of
the government's asset sales programme, in a deal that could fetch about $170
million. 

   
       
    GLOBAL TOP NEWS
    
     China's bigger budget deficit is mainly to finance tax cuts: official
China's wider fiscal deficit budgeted for 2016 will be mainly used to finance
tax cuts, a senior official of China's cabinet research unit said on Wednesday.
 
     Markets expect rate cuts and more QE from ECB, but no inflation
Financial markets expect the European Central Bank to cut its deposit rate by at
least 10 basis points and expand its asset-buying programme this week, but they
still do not expect it to hit its inflation target in the near future.
 
     BoE's Weale says rates still likely to rise, scope for stimulus if needed
The Bank of England (BoE) is still more likely to raise interest rates than to
cut them over the next two years, and has plenty of scope to stimulate the
economy if needed, central bank policymaker Martin Weale said on Tuesday.
 

    
   LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

    The SGX Nifty Futures was trading at 7,432, down 0.34 pct from its previous
close.
    The Indian rupee will likely open lower against the U.S. dollar, tracking
its Asian peers, as risk sentiment remains fragile amid renewed concerns of a
China-led global economic slowdown and as oil prices retreated from recent
multi-week highs.
    Indian government bonds will likely edge lower amid an absence of fresh
positive triggers and as the possibility of an intermeeting policy rate cut
eases, while markets await the central bank's open market purchase of bonds
tomorrow. The yield on the benchmark 7.59 pct bond maturing in 2026 is likely to
trade in a 7.62-7.67 pct range today.
    
    GLOBAL MARKETS
     U.S. stocks ended near the lows of the day on Tuesday as energy shares
tumbled alongside the price of oil and soft Chinese trade data rekindled fears
that the global economy is weaker than anticipated. 
     Asian shares stepped back further from two-month highs as a retreat in oil
prices and weak Chinese trade data revived concerns about the health of the
global economy. 
     The yen was broadly firmer early as demand for the safe-haven currency
picked up after disappointing Chinese trade data took the wind out of a global
risk rally. 
     U.S. Treasury yields fell on Tuesday in line with Japanese yields after
weak Chinese data revived fears of a global economic slowdown, increasing demand
for safe-haven government debt. 
     Oil prices dipped, weighed down by a strengthening U.S.-dollar and
concerns over slowing demand, although falling U.S. production lent crude
markets some support. 
     Gold edged lower, slipping with the euro as expectations that the European
Central Bank is almost certain to ease policy this week weighed on the single
currency. 
  
 MARKETS            CLOSE          FII INVESTMENTS  EQUITIES       DEBT
 PNDF spot          67.35/67.38    March 8          $115 mln       -$66.07 mln
 10-yr bond yield   7.81 pct       Month-to-date    $990.76 mln    -$139.04 mln
                                   Year-to-date     -$1.88 bln     -$1.23 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 = 67.35 Indian rupees)

 (Reporting by Anjali James in Bengaluru)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below