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FACTORS TO WATCH
11:00 am: Budget session of parliament continues in New Delhi.
3:00 pm: Trade Minister Nirmala Sitharaman briefs media on budget proposals
in New Delhi.
FX Buzz analyst Jeremy Boulton analyses G7 currencies at 4:30 pm. To join
the conversation, click on the link: here
INDIA TOP NEWS
Budget raises India's capital market ambitions
The Indian government has unveiled its most ambitious target for public
share sales so far, looking to capitalise on the robust domestic capital markets
to cut its annual deficit.
India Dr. Reddy's Dec quarter net profit fell 16 pct
Dr Reddy's Laboratories, India's second-largest drugmaker by sales, reported
a 16 percent fall in its third quarter profit although it beat
Indian services activity contracts for a third month in January
Activity in India's services industry contracted for a third straight month in
January, although at a slower pace, as firms struggled to recover from Prime
Minister Narendra Modi's shock currency crackdown, a survey showed.
India's BSE exchange soars in market debut after $185 mln IPO
Shares of India's second-biggest stock exchange, BSE Ltd, jumped as much as
49 percent on their market debut on Friday, after the exchange raised about $185
million in an initial public offering that had been heavily over-subscribed.
Wistron plant in Indian tech hub solely for iPhone: source
An assembly plant that Apple's Taiwanese manufacturing partner Wistron Corp
is setting up in Bengaluru will focus solely on assembling iPhones, a source
familiar with the matter said on Friday.
Battered Toshiba seeks exit from UK, India in nuclear retreat
Toshiba plans to withdraw from its lead role in projects to build nuclear
plants in Britain and India, sources with direct knowledge of the matter said,
marking a retreat as it wrestles with an imminent multi-billion dollar
GLOBAL TOP NEWS
Trump faces uphill battle to overcome court's hold on travel ban
U.S. President Donald Trump faces an uphill battle to overcome a federal
judge's temporary hold on his travel ban on seven mainly Muslim countries, but
the outcome of a ruling on the executive order's ultimate legality is less
Toyota, Suzuki poised to unveil partnership on Monday
Toyota Motor and Suzuki Motor appeared poised to unveil a wide-ranging
partnership that could include the development of new technologies and
China services sector continues strong expansion in January-Caixin PMI
Growth in China's services sector remained strong in January, a private
survey showed, as companies reported a solid increase in orders.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
The SGX Nifty Futures were at 8,794.50, up 0.41 pct from its previous
The Indian rupee will likely open higher against the dollar, tracking most
of its Asian peers, as a smaller-than-expected increase in U.S. hourly wages in
January dampened chances of a rate increase by the Federal Reserve next month.
Indian sovereign bonds are likely to trend higher in opening trade, as
weaker U.S. wage growth increased possibilities of a delay in Federal Reserve
rate hike. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely
to trade in a 6.39 pct-6.44 pct band today. The bond had closed at 103.97
rupees, yielding 6.41 pct, on Feb 3.
U.S. stocks climbed on Friday, with the S&P 500 closing just short of a
record high, boosted by gains in financial shares as President Donald Trump
moved ahead with deregulation action and by a strong payrolls report.
Asian shares edged ahead as Wall Street gathered momentum into a busy week
of earnings with more than 100 major companies due to report, while the dollar
was again hobbled by a lack of progress on U.S. fiscal stimulus.
The dollar started the week on the back foot, after U.S. data showed a
smaller-than-expected rise in wages in January that reinforced expectations the
Federal Reserve will refrain from raising interest rates next month.
The U.S. Treasury yield curve was the steepest in one-and-a-half months on
Friday after the jobs report for January showed disappointing wage growth,
indicating inflation is not rising at a pace that would lead the Federal Reserve
to raise rates in the near-term.
Oil prices edged up on fears that new U.S. sanctions against Iran could be
extended to start affecting crude supplies, but markets were capped by further
signs of growing U.S. production.
Gold prices crawled higher on a weaker dollar after mixed U.S. jobs data
late last week lowered expectations for near-term interest rate hikes.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 67.17/67.20 February 3 $52.70 mln $104.50 mln
10-yr bond yield 6.71 pct Month-to-date $117.79 mln $228.24 mln
Year-to-date $111.40 mln $116.16 mln
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 = 67.31 Indian rupees)
(Erum Khaled in Bengaluru)