February 20, 2017 / 3:25 AM / 7 months ago

Morning News Call - India, February 20

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    FACTORS TO WATCH
    LIVECHAT:INDIAN REAL ESTATE MARKET 
    Niranjan Hiranandani, co-founder of the Hiranandani Group, joins us at 9:30
am to discuss on a variety of topics including the future of high-end luxury
houses, affordable housing, the 'thin capitalisation' concept unveiled in the
latest budget and on smart cities. To join the conversation, click on the link:
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    INDIA TOP NEWS
    • Indian IT industry faces twin challenges of Trump, automation 
    Automation and the new U.S. administration were the big unknowns at the
Indian tech sector's annual shindig this week, with machines threatening to take
away thousands of jobs and concerns over possible visa rule changes in the key
American market. 
    • India may soon allow institutions to trade commodity futures- SEBI chief 
    India could start allowing institutional investors to trade in its annual $1
trillion commodity futures market as soon as in a month, the head of the
country's capital markets regulator said on Friday, as the government targets
deepening of the market.
    • Havells India to buy Lloyd Electric's consumer business for $231 mln 
    Havells India Ltd, a leading maker of lights and fans, has agreed to buy a
unit of Lloyd Electric and Engineering Ltd that sells air conditioners and
televisions in a 15.5 billion-rupee deal, the companies said.
    • Apple to start India manufacturing in coming months with iPhone SE -source
Apple Inc will in the coming months start assembling its lower-priced iPhone SE
models at a contract manufacturer's plant in the southern Indian technology hub
of Bengaluru, an industry source with direct knowledge of the matter said on
Friday.
    • India cbank gov says looking beyond muted headline inflation -report 
    The governor of India's central bank said it needs to look beyond recent
muted headline inflation figures and focus on trends in core inflation, which
excludes more volatile food and fuel prices.
    • India still keen to buy Westinghouse reactors despite Toshiba meltdown 
    India does not expect fallout from the financial meltdown at Toshiba Corp to
halt plans to buy six nuclear reactors from the Japanese company's U.S. nuclear
unit Westinghouse, a senior government official told Reuters on Friday.

    • ArcelorMittal, SAIL's India joint venture talks at an impasse - sources 
    A proposed joint venture between state-owned Steel Authority of India Ltd
and ArcelorMittal SA to build an $897 million automotive steel plant in India
has hit an impasse, with the two disagreeing on key terms, officials said.

    • Chief minister wins stormy confidence vote in India's carmaking state 
    The chief minister of India's southern state of Tamil Nadu won a confidence
vote on Sunday after a brawl in the state assembly, triggered when the speaker
rejected opposition calls for a secret ballot.
    
    
    GLOBAL TOP NEWS
    • Trump administration drafts plan to raise asylum bar, speed deportations
    The Department of Homeland Security has prepared new guidance for
immigration agents aimed at speeding up deportations by denying asylum claims
earlier in the process.
    • Japan export growth slows, Trump's trade policies cloud outlook 
    Japan's exports rose in January at a slower pace than the previous month due
to a decline in shipments to the U.S. and the Lunar New Year holidays and as
concerns about growing trade protectionism cast doubts over the outlook.

    • Kraft walks away from 'friendly' bid for Unilever
    U.S. food company Kraft Heinz Co withdrew its proposal for a $143-billion
merger with larger rival Unilever Plc, the companies said on Sunday, raising
questions about whether Kraft will turn its focus to another target.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were at 8,834.00, up 0.12 pct from its previous
close.
    • The Indian rupee is poised to open lower against the dollar, as growing
political uncertainty in the euro zone keeps risk sentiment subdued. 
    • Indian government bonds will likely trade lower in early session ahead of
a supply of state debt later today. The yield on the benchmark 6.97 pct bond
maturing in 2026 is likely to trade in a 6.83 pct-6.89 pct band today. The paper
had closed at 100.83 rupees, yielding 6.85 pct on Feb. 17. 
    
    GLOBAL MARKETS
    • The Dow Jones Industrial Average barely reached a seventh straight record
high on Friday and the S&P 500 and Nasdaq also closed at a record as gains in
Kraft Heinz helped offset selling in energy stocks.
    • Asian share markets were mixed on Monday as political uncertainty globally
kept the mood cautious, while the U.S. dollar recouped early losses ahead of a
busy week for Federal Reserve speakers.
    • The euro struggled for traction against the dollar and yen after suffering
significant losses at the end of last week on renewed concerns about the
upcoming French elections.
    • U.S. Treasury prices gained on Friday as concerns over the French
presidential election and weak data in Britain added to risk aversion, hurting
stocks and boosting demand for safe haven U.S. debt.
    • Oil prices rose, but gains were minimal as investors gauged whether an
increase in U.S. drilling and record stockpiles would undermine efforts by
producers to cut output and bring the market into balance.
    • Gold prices held steady supported by a weaker dollar and lower equities,
with U.S. markets closed for the Presidents Day holiday.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         67.07/67.10  February 17      $1.20 bln    $53.57 mln
 10-yr bond yield  7.17 pct     Month-to-date    $379.64 mln  $1.11 bln
                                Year-to-date     $373.25 mln  $1 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 = 67.01 Indian rupees)
    
    
    

 (Erum Khaled in Bengaluru)
  

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