February 10, 2017 / 3:25 AM / 6 months ago

Morning News Call - India, February 10

8 Min Read

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    FACTORS TO WATCH
    3:00 pm: State Bank of India Chairman Arundhati Bhattacharya on
third-quarter earnings conference call in Mumbai.
    
    4:15 pm: Dena Bank Head Ashwani Kumar briefs media after third-quarter
earnings in Mumbai.
    
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai. 
    
    5:30 pm: Government to release December industrial output data in New Delhi.
    
    6:00 pm: Bank of Baroda Managing Director P.S. Jayakumar briefs media on
October-December earnings in Mumbai.
    
    LIVECHAT- WEEKAHEAD
    Currencies are in focus as U.S. President Donald Trump expressed concern
about the dollar's strength, and he and his team unleashed a barrage of
criticism against Germany, Japan and China, saying they were engaged in
devaluing their currencies. At 01:00 pm, Aurelija Augulyte, senior analyst and
macro strategist at Nordea Markets, will share her outlook on currencies,
including the pound which has been gaining recently thanks solid data and
greater political certainty on Brexit. To join the conversation, click on the
link: here
    
    
    INDIA TOP NEWS
     Indian IT firm Infosys downplays governance concerns
    Software services exporter Infosys Ltd firmly backed its chief executive on
Thursday, downplaying corporate governance concerns and an alleged rift between
the firm's founders and its board. 
     India's United Breweries asks Vijay Mallya to step down from board
    United Breweries, India's top brewer which is part-owned by global giant
Heineken NV, has asked liquor tycoon Vijay Mallya, its non-executive chairman,
to step down from the board, the company said. 
     Drugmaker Lupin posts strong Q3; warns competition to drag next year 
    Drugmaker Lupin Ltd reported a better-than-expected quarterly profit, helped
by higher sales of its diabetes products in the United States, but cautioned
growth in the next fiscal year would be muted due to rising competition.
 
     India's longer-tenor bond yields and rupee seen rising after policy change
    The unexpected change in the Reserve Bank of India's monetary policy stance
to "neutral" from "accommodative" could spell an end to a rally in the country's
long-tenor bonds, although the rupee could be supported if interest rates remain
on hold. 
     Bank of India sees further improvement in bad loans in Q4
    Bank of India Ltd does not expect any additional bad loans in the current
quarter on a net basis, its chief said on Thursday, as India's sixth-biggest
lender by assets reported its second consecutive quarter of profit after a
stretch of losses. 
     EXCLUSIVE-Lockheed says U.S. may take "fresh look" at its India F-16 plan 
    U.S. defence firm Lockheed Martin wants to push ahead with plans to move
production of its F-16 combat jets to India, but understands President Donald
Trump's administration may want to take a "fresh look" at the proposal.
 
     India may allow state pension fund to buy more stocks - minister
    India is considering allowing the state-run social security and pension fund
to invest more in the stock market, Labour Minister Bandaru Dattatreya said on
Thursday. 
     Tata Steel UK agrees to sell speciality steel business to Liberty House
    Tata Steel UK has signed a 100 million pound deal to sell its speciality
steel business to Liberty House Group, as the firm's Indian owner Tata Steel Ltd
presses on with restructuring its European operations. 
    
    
    GLOBAL TOP NEWS
     In setback for Trump, U.S. judges reject travel ban
    U.S. President Donald Trump suffered a legal blow on Thursday when a federal
appeals court refused to reinstate a temporary travel ban he had ordered on
people from seven Muslim-majority countries. 
     EXCLUSIVE-Trump border 'wall' to cost $21.6 bln, take 3.5 years to build -
internal report
    President Donald Trump's "wall" along the U.S.-Mexico border would be a
series of fences and walls that would cost as much as $21.6 billion, and take
more than three years to construct, based on a U.S. Department of Homeland
Security internal report seen by Reuters on Thursday. 
     Ethics review sought after Trump adviser touts Ivanka Trump products
    A Congressional committee said on Thursday it was seeking a review into
whether senior White House adviser Kellyanne Conway had violated ethics rules by
using her position to promote product lines of President Donald Trump's daughter
Ivanka, a day after he attacked a retailer for dropping them. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures were at 8,824.00, up 0.28 pct from its previous
close.
     The Indian rupee is poised to open slightly higher against the dollar, as
gains in global indexes stemming from U.S. President Donald Trump's comments
about upcoming tax reforms will likely boost local shares.  
     Indian government bonds will likely edge lower ahead of a fresh supply of
debt later today. The yield on the benchmark 6.97 pct bond maturing in 2026 is
likely to trade in a 6.80 pct-6.90 pct band today. The bond closed at 100.79
rupees, the lowest level since Sep. 29, yielding 6.86 pct, yesterday. 
        
    
    GLOBAL MARKETS
     Wall Street's three main indexes surged to fresh record highs on Thursday
after President Donald Trump said he would make a major tax announcement in a
few weeks. 
     Asian shares were close to 18-month highs, tracking a rally on Wall Street
after U.S. President Donald Trump promised to unveil a major tax announcement to
lower the burden on businesses. 
     The dollar stood atop large gains early after soaring broadly overnight on
comments by U.S. President Donald Trump that he would announce the most
ambitious tax reform plan since the Reagan era in the next few weeks. 
     U.S. Treasury yields rose on Thursday as optimism wrapped markets
following comments from President Donald Trump that he would reveal plans for
U.S. tax reform in the coming weeks. 
     Oil prices were stable with OPEC-led production cuts supporting the market
while soaring U.S. fuel inventories were weighing on crude. 
     Gold fell to extend losses of nearly 1 percent from the previous session,
with the dollar firming following robust U.S. economic data that boosted
expectations of a U.S. rate hike. 
    
 
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         66.74/66.77  February 9       $53.49 mln   $127.17 mln
 10-yr bond yield  7.2 pct      Month-to-date    $153.71 mln  $712.72 mln
                                Year-to-date     $147.32 mln  $600.64 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 = 67.84 Indian rupees)
    
    

 (Erum Khaled in Bengaluru)

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