December 8, 2016 / 3:13 AM / 8 months ago

Morning News Call - India, December 8

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    FACTORS TO WATCH
    10:30 am: Junior Finance Minister Santosh Kumar Gangwar at an industry event
in New Delhi.
    11:00 am: Winter session of parliament continues in New Delhi.
    
    LIVECHAT - GLOBAL TRADE WITHOUT TPP with Parag Khanna, senior research
fellow at Lee Kuan Yew School of Public Policy, National University of Singapore
    Donald Trump has vowed to withdraw the Trans-Pacific Partnership on Day 1
when he moves into the White House. Khanna, author of "Connectography", will
talk about who may be hurt by the end of the pact, and who may stand to benefit,
at 10:00 am. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
     India unexpectedly keeps rates unchanged even as cash crunch roils economy
    India's central bank unexpectedly kept its key policy rate unchanged at 6.25
percent on Wednesday, despite calls for action in the face of an intense cash
shortage that threatens to slam the brakes on the world's fastest-growing large
economy. 
     Tata Steel sweetens offer to UK workers, moves closer to merger
    Tata Steel UK offered British unions a deal guaranteeing jobs and investment
on Wednesday in return for pension cuts, moving the company closer to merging
its European assets with Germany's Thyssenkrupp. 
     India seeks nod to up net spending by $5.2 billion
    Indian Finance Minister Arun Jaitley sought parliamentary approval on
Wednesday to increase net spending by 351.7 billion Indian rupees ($5.2 billion)
in the current fiscal year that ends in March 2017. 
     Tata seeks shareholder support before vote to remove Mistry from group cos
    Tata Sons' interim chairman Ratan Tata reached out to shareholders of Tata
group companies on Wednesday, seeking their support to remove Cyrus Mistry from
the board of these companies. 
     Indian banks see lower lending rates even as cenbank stays pat
    India's bankers welcomed the central bank's decision to reverse an order
that forced them to surrender all their deposits, saying it would allow them to
lower their lending rates even after interest rates were kept unchanged on
Wednesday. 
     Sun Pharma says U.S. finds more concerns at Halol plant
    Sun Pharmaceutical Industries Ltd, India's largest drugmaker, said on
Wednesday the U.S. health regulator has informed the company of more concerns
found at its Halol manufacturing plant after a recent inspection. 
     ONGC exploring swap deals to import gas from Myanmar
    A unit of India's Oil and Natural Gas Corp Ltd (ONGC) is in early talks with
Gazprom for supply of natural gas through a complex swap involving Russia, China
and Myanmar, the head of the unit said on Wednesday. 
    
    
    GLOBAL TOP NEWS
     Japan Inc warns of global trade contraction under Trump presidency
-Reuters poll
    Corporate Japan is bracing for a rocky ride under incoming U.S. President
Donald Trump, a Reuters poll showed, with well over a third of firms seeing a
contraction in global trade as concerns about a rise in U.S. protectionism
threaten to shatter a fragile economic recovery. 
     'No survivors' after plane crash in northern Pakistan mountains
    There were no survivors after a plane carrying 47 people crashed into a
mountain in northern Pakistan on Wednesday, the airline's chairman said, as
recovery operations continued late into the night at the remote crash site.
 
     Rebels seek ceasefire with Syrian army closer to retaking Aleppo
    Syrian rebels in besieged eastern Aleppo called on Wednesday for an
immediate five-day ceasefire and the evacuation of civilians and wounded, but
gave no indication they were ready to withdraw as demanded by Damascus and
Moscow. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures were trading at 8,211, up 0.87 pct from its previous
close.
     The Indian rupee will likely open higher against the U.S. dollar, tracking
gains across Asian currencies and equities, amid expectations the European
Central Bank will announce an extension to its bond-buying programme at its
policy review today.
     Indian government bonds will likely edge lower after the nation's Monetary
Policy Committee kept the key interest rate unchanged, disappointing investors,
and sounded hawkish on inflation. The yield on the benchmark 6.97 pct bond
maturing in 2026 is likely to trade in a 6.35 pct - 6.45 pct band today.
    
    
    GLOBAL MARKETS
     Wall Street surged on Wednesday, with the Dow industrials and S&P 500
hitting fresh records, as equities continued their march upward after the
election of Donald Trump as U.S. president, and a new high for transportation
stocks added to the bullish tone. 
     Asian shares hopped higher after Wall Street strode to new records and
bonds rallied on wagers the European Central Bank would extend its asset buying
campaign at a policy meeting later in the session. 
     The euro held firm near a three-week high versus the dollar, as investors
turned their attention to the European Central Bank's policy meeting later in
the day, and as the greenback was dragged down by a drop in U.S. bond yields.
 
     U.S. Treasury yields fell, with the 30-year yield on track for its biggest
drop in more than three months, as disappointing overseas economic data reduced
optimism about global growth ahead of a European Central Bank meeting. 
     Oil prices edged up, supported by a weaker dollar ahead of next week's
Federal Reserve meeting and by a drawdown in U.S. crude stocks. 
     Gold edged up slightly, with the U.S. dollar weaker as markets waited for
clues on the future of the European Central Bank's asset purchase programme
later in the day. 
   
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         67.43/67.46  December 7       $28.73 mln   -$246.34 mln
 10-yr bond yield  6.61 pct     Month-to-date    -$87.52 mln  -$2.05 bln
                                Year-to-date     $4.06 bln    -$5.20 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 = 67.63 Indian rupees)

 (Compiled by Sai Sharanya Khosla in Bengaluru)

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