January 12, 2017 / 3:21 AM / 8 months ago

Morning News Call - India, January 12

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    FACTORS TO WATCH
    10:00 am: Insolvency and Bankruptcy Board Chairman M.S. Sahoo, State Bank of
India Deputy Managing Director Pallav Mohapatra at conference on Insolvency and
Bankruptcy Code 2016 in Kolkata.
    
    11:00 am: Finance Ministry officials to meet Parliamentary standing
Committee on Finance in New Delhi.
    
    5:30 pm: Government to release December consumer price inflation data in New
Delhi.
    
    5:30 pm: Government to release November industrial output data in New Delhi.
    
    LIVECHAT-CHINA BAD DEBTS
    Michael Pettis, senior fellow with Carnegie Asia Program, finance professor
at Peking University's Guanghua School of Management China is poised to take a
deleveraging approach this year to bring down its debt level, which some peg at
about 250 percent of GDP. At 12:00 pm, Pettis will talk about the potential
impacts from this deleveraging and the chances whether it would be successful.
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    INDIA TOP NEWS
     Amazon halts sales of Indian flag doormat after visa threat
    Amazon.com removed doormats resembling the Indian tri-colour flag from its
Canadian website on Wednesday, after an Indian government threat to rescind
visas of the U.S. company's employees if they did not stop selling the product.
 
     Central bank chief urges government to cut borrowing
    Reserve Bank of India Governor Urjit Patel urged the government on Wednesday
to show some progress in cutting high federal and state government borrowing,
just weeks before Prime Minister Narendra Modi's administration is due to unveil
its annual budget. 
     Supreme Court throws out case alleging Modi took cash payments
    India's Supreme Court on Wednesday threw out a case brought by an
anti-corruption lawyer that accused Prime Minister Narendra Modi of accepting
suspicious cash payments, dealing a blow to an opposition leader who had latched
on to the case. 
     Inflation seen cooling in December as cash crunch hit demand
    Inflation in India is expected to have cooled to a two-year low in December
as the government's surprise currency crackdown rattled the economy and severely
hurt consumption, a Reuters poll found. 
     Mistry asks Indian tribunal to block his removal from Tata Sons board
    Cyrus Mistry, the ousted chairman of India's Tata Sons, sought to block the
company from removing him from its board in a petition filed with a national
tribunal on Wednesday. 
     Mahindra group wants to foster in-house start-ups -Chairman
    India's autos-to technology conglomerate Mahindra wants to spur a greater
start-up culture within the group, looking to foster new businesses which will
compliment its existing products and services. 
     Demonetization to hold back India's 2017 fuel demand growth
    India's fuel demand growth is expected to slow by as much as 40 percent in
2017 from last year as a government-induced cash shortage hurts businesses,
industry and car sales. 
     Saudi keeps Feb oil exports steady to most buyers in Asia; cuts India,
Malaysia
Saudi Arabia has cut February term crude supplies to refiners in India and
Southeast Asia, seeking to comply with an OPEC deal, but it has held most of its
exports to the rest of Asia steady for a second month, industry sources said on
Wednesday. 
        
    
    GLOBAL TOP NEWS
     Trump accuses U.S. spy agencies of Nazi practices over 'phony' Russia
dossier
    President-elect Donald Trump escalated a fight with U.S. spy agencies on
Wednesday, just nine days before he takes over their command as president, and
accused them of practices reminiscent of Nazi Germany. 
     Samsung leader Lee arrives for questioning by prosecutors
    Samsung Group leader Jay Y. Lee arrived at the South Korean special
prosecutor's office for questioning over bribery suspicions as part of a
widening influence-peddling scandal that may permanently unseat President Park
Geun-hye. 
     U.S. indicts six as Volkswagen agrees to $4.3 bln diesel settlement
    Volkswagen AG has agreed to pay the largest ever U.S. criminal fine levied
on an automaker to settle charges that it conspired for nearly 10 years to cheat
on diesel emission tests, while prosecutors on Wednesday charged six current and
former senior VW executives for their roles in the scheme. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures was trading at 8,424.00, trading up 0.3 pct from its
previous close.
     The Indian rupee will likely open higher against the dollar, tracking its
Asian peers, as U.S. President-elect Donald Trump did not elaborate on his
fiscal spending plans at a keenly-watched press conference yesterday, dampening
demand for the greenback.
     Indian sovereign bonds are poised to rise, as U.S. President-elect Donald
Trump's maiden press briefing yesterday did not elaborate on his pre-poll
promises of expansionary policies that would warrant a tighter monetary policy
in the world's largest economy. The yield on the benchmark 6.97 pct bond
maturing in 2026 is likely to trade in a 6.36 pct-6.42 pct band today. The bond
had closed at 104.11 rupees, yielding 6.39 pct, yesterday.
    
    
    GLOBAL MARKETS
     U.S. stocks ended higher after a choppy day on Wednesday as energy and
technology gains countered a drop in healthcare stocks after President-elect
Donald Trump said pharmaceutical companies were "getting away with murder" by
charging high prices. 
     The U.S. dollar nursed widespread losses after President-elect Donald
Trump's long-awaited news briefing provided scant clarity on future fiscal
policies, disappointing bulls wagering on major stimulus. 
     U.S. Treasury debt yields fell on Wednesday with benchmark yields briefly
touching the lowest in a month following stellar demand at a 10-year note sale,
while President-elect Donald Trump's remarks spurred safe-haven demand for
bonds. 
     Oil prices dipped on the back of rising U.S. crude inventories and
plentiful supplies, despite emerging output cuts from OPEC and other producers.
 
     Gold edged higher to hold near 7-week highs touched in the previous
session, as the dollar weakened after Donald Trump provided little clarity on
future fiscal policies in his first press conference as U.S. president-elect.
 
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         68.14/68.17  January 11       -$91.99 mln  $50.64 mln
 10-yr bond yield  6.66 pct     Month-to-date    -            $49.59 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=68.32 Indian rupees)
    

 (Compiled by Sourav Bose in Bengaluru)

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