January 9, 2017 / 3:37 AM / 6 months ago

Morning News Call - India, January 9

7 Min Read

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    FACTORS TO WATCH
    3:00 pm: Power Minister Piyush Goyal at event in New Delhi to sign pact with
state of Tamil Nadu for UDAY scheme.
    
    LIVECHAT-TRADING INDIA FORUM- Cement Sector with Amey Doshi, Associate
Director - India Ratings & Research
    There have been many sectors that have been affected by demonetization but
the real-estate and cement sectors figure pretty high on the list. Stocks have
corrected sharply and volumes too have fallen by 20-25 pct but where do we go
from here? At 11:00 am, we speak to Amey who tracks the sector closely. To join
the conversation, click on the link: here
    
    LIVECHAT - FX OUTLOOK with Ilya Spivak
We get the year's outlook for currencies from IG Markets strategist Ilya Spivak
at 2:30 pm. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
     Indian public accounts panel to question RBI head on cash crunch
    An Indian parliamentary committee, probing the government's decision to
scrap high-value bank notes, has sent the country's central bank governor a list
of questions on the demonetisation process and asked him to appear before it on
Jan. 20. 
     Supreme Court bars Aircel from changing airwave ownership, potentially
delaying merger
    India's Supreme Court on Friday barred Aircel Ltd from transferring the
ownership of its airwaves while a corruption case centred on a past deal
involving the mobile phone carrier was ongoing, potentially delaying an agreed
merger. 
     Rupee to fall to record low over coming year
    The Indian rupee is expected to fall further against the U.S. dollar this
year to a record low, hit by rising global bond yields and an economic blow from
New Delhi's dramatic currency crackdown launched two months ago, a Reuters poll
found. 
     China nibbles at Samsung share to take 50 percent of India's smartphone
market
    Chinese brands took their largest ever slice of the $10-billion Indian
smartphone market in late 2016, accounting for more than one in every two phones
sold - a growing market share that ate into sales from top-selling Samsung
Electronics. 
     General Motors moving forward on sale of Indian car plant to China's SAIC
    A subsidiary of China's top carmaker SAIC Motor Corp plans to acquire
certain General Motors manufacturing assets in India, a filing with the
country's competition watchdog showed on Friday. 
     Madhya Pradesh aims to raise pulse output to help India reach
self-sufficiency goal
    The Indian state of Madhya Pradesh aims to raise production of pulses by 60
percent in the next three years to help Prime Minister Narendra Modi achieve his
goal of making the country self-sufficient in the staple, the state's chief
minister said. 
    
    
    GLOBAL TOP NEWS
     Trump acknowledges Russia role in U.S. election hacking -aide
    President-elect Donald Trump accepts the U.S. intelligence community's
conclusion that Russia engaged in cyber attacks during the U.S. presidential
election and may take action in response, his incoming chief of staff said on
Sunday. 
     Fiat Chrysler ups the ante as automakers respond to Trump
    Fiat Chrysler Automobiles on Sunday said it will invest $1 billion to
modernize two plants in the U.S. Midwest and create 2,000 jobs, upping the ante
as automakers respond to threats from President-elect Donald Trump to slap new
taxes on imported vehicles. 
     France's Ipsen to buy some Merrimack assets for up to $1 billion
    French drugmaker Ipsen SA said it would buy some assets of U.S. peer
Merrimack Pharmaceuticals Inc, including its pancreatic cancer treatment
Onivyde, for up to $1 billion. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures was trading at 8,276.50, trading up 0.1 pct from its
previous close.
     The Indian rupee will likely open lower against the dollar, tracking its
Asian peers, as a rebound in U.S. hourly wages overshadowed a
weaker-than-expected uptick in December's nonfarm payrolls numbers, lifting
Treasury yields and the greenback.
     Indian sovereign bonds will likely edge higher, as the government lowered
its estimate for gross domestic product growth this fiscal year, sparking
speculation of rate cuts to boost the economy. The yield on the benchmark 6.97
pct bond maturing in 2026 is likely to trade in a 6.34 pct-6.40 pct band today.
The bond had closed at 104.16 rupees, yielding 6.39 pct, on Jan. 6.
    
    
    GLOBAL MARKETS
     The Dow came within one point of 20,000 for the first time on Friday and
the Nasdaq and S&P 500 reached record highs, boosted by Apple, extending a
two-month rally fueled by optimism about U.S. President-elect Donald Trump. 
     Asian stocks edged higher, helped by a strong Wall Street, and the dollar
stood tall against rivals after the latest U.S. payrolls data indicated strong
underlying wage growth, strengthening the case for more rate increases in 2017.
 
     The dollar marked time in Asia after signs of wage pressure in the
December U.S. jobs report proved enough to lift Treasury yields, but with bulls
wary of a setback following last week's wave of profit-taking. 
     U.S. Treasury debt yields rallied from multiweek lows on Friday after data
showed a rebound in U.S. wages last month despite a smaller-than-expected jobs
gain, which could drive the Federal Reserve to consider raising interest rates
as early as the first quarter. 
     Oil prices fell early as Iran increased exports undermining efforts by
other oil producers to curb a global fuel supply overhang and as U.S. drillers
increased activity for a 10th week. 
     Gold prices were little changed early, after dipping from a one-month high
last week on expectations of further interest rate hikes, with investor
attention on more views from the U.S. Federal Reserve. 
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         68.14/68.17  January 6        -$37.42 mln  -$23.10 mln
 10-yr bond yield  6.64 pct     Month-to-date    -            $136.99 mln
                                Year-to-date     -            -
    
    
    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=67.96 Indian rupees)
    

 (Compiled by Sourav Bose in Bengaluru)

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