May 4, 2017 / 3:19 AM / 4 months ago

Morning News Call - India, May 4

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    FACTORS TO WATCH
    10:00 am: Road Transport Minister Nitin Gadkari, Trade Minister Nirmala
Sitharaman and Railways Minister Suresh Prabhu at India Integrated Transport and
Logistics Summit in New Delhi.
    10:30 am: Heavy Industries Minister Anant Geete at an event in New Delhi.
    12:00 pm: DSP BlackRock to release outlook for equity and fixed income
markets in Mumbai.
    12:30 pm: Power Minister Piyush Goyal to brief media in New Delhi.
    2:00 pm: HDFC Ltd. earnings press meet in Mumbai.
    
    LIVECHAT
    CMC Markets' chief market analyst Michael Hewson joins us at 2:30 pm, for a
look at what's likely to drive direction in the coming month. To join the
conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • ICICI Bank sees bad loan additions falling significantly
    India's ICICI Bank Ltd expects additions to its bad loans to be
"significantly lower" this financial year, its chief executive said on
Wednesday, as the lender reported a smaller than expected rise in quarterly
profit.
    • India's cabinet makes local steel mandatory in govt projects
    India's cabinet on Wednesday approved a proposal to make the use of local
steel mandatory for government's infrastructure projects, Finance Minister Arun
Jaitley said, aimed at boosting the sales of local companies.
    • Adani agrees $54 million steel supply agreement with Arrium
    India's Adani Enterprises has agreed a $54 million steel supply agreement
with Australia's Arrium to be used in a rail line for the proposed Carmichael
coal mine, a source told Reuters.
    • Mahindra pulls the plug on electric car sales in UK
    Mahindra & Mahindra has stopped selling electric cars in the United Kingdom
due to weak sales and is winding up sales operations there, according to a
document seen by Reuters, in a new setback to the Indian automaker's global
ambitions.
    • Thyssenkrupp steelworkers protest against Tata merger plan
    Thousands of Thyssenkrupp steelworkers protested on Wednesday against the
German industrial group's plan to merge its European steel operations with those
of India's Tata Steel.
    • Ordinary Indians rush into stocks, spurring a rally as well as risks
    With red-and-white headphones draped around her neck, 22-year-old Indian IT
security consultant Abdhija Sharma looks like she would be more at home
discussing the latest music or Bollywood movies than compound returns on equity
investments.
    • India's cabinet takes decision on banking sector -finance minister
    India's cabinet has taken significant decisions on the country's banking
sector, Finance Minister Arun Jaitley said, declining to give further details,
saying it needed a Presidential accord.
    
    
    GLOBAL TOP NEWS
    • Trump gains traction on healthcare bill, vote set for Thursday
    President Donald Trump's effort to roll back Obamacare gained momentum on
Wednesday as Republican leaders scheduled a vote in the House of Representatives
on Thursday on a fresh version of legislation.
    • Squeezed by global powers, South Koreans seek "Korea first" in new leader
    Frustration - and a growing desire that politicians put "Korea first" -
could drive a near-record number of people to the polls in the May 9 election to
find a successor for former president Park Geun-hye, ousted in March over
corruption charges.
    • Fed holds interest rates steady, downplays economic weakness
    The U.S. Federal Reserve kept interest rates unchanged on Wednesday and
downplayed weak first-quarter economic growth while emphasizing the strength of
the labor market, in a sign it was still on track for two more rate rises this
year.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were trading at 9,326.50, trading down 0.11 pct from
its previous close.
    • The Indian rupee will likely open little changed to slightly lower against
the dollar, as expectations of a Federal Reserve rate increase in June gathered
pace after the central bank downplayed a slowdown in first-quarter U.S. economic
growth.
    • Indian government bonds will likely edge lower after a hawkish Federal
Reserve policy statement increased bets of a U.S. rate hike next month. The
yield on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a
6.93 pct - 6.99 pct band today.
    
    
    GLOBAL MARKETS
    • Wall Street ended slightly lower on Wednesday after the U.S. Federal
Reserve held interest rates unchanged and investors digested another heavy round
of earnings reports.
    • Asian stocks retreated, taking their cues from a subdued session on Wall
Street, while the dollar retained gains made after the Federal Reserve delivered
a hawkish policy statement.
    • The dollar hit a six-week high against the yen, after the U.S. Federal
Reserve downplayed weak first-quarter economic growth and was seen as leaving
the door open to raising interest rates in June.
    • Benchmark U.S. Treasury yields rose after the Federal Reserve kept
interest rates unchanged and downplayed weak first-quarter economic growth,
keeping a rate increase in June on the table.
    • Crude oil lost ground, falling for a third out of four sessions and
trading near its lowest since late March after data showed a lower than expected
decline in U.S. inventories.
    • Gold inched up, but held near a six-week low hit in the previous session
as expectations that the U.S. Federal Reserve may raise interest rates as early
as June boosted the dollar.
    
                   CLOSE        FII INVESTMENTS  EQUITIES   DEBT
 PNDF spot         64.14/64.17  May 3            -          $11.22 mln
 10-yr bond yield  7.21         Month-to-date    -          $126.62 mln
                                Year-to-date     $6.39 bln  $9.52 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 = 64.15 Indian rupees)

 (Compiled by Sai Sharanya Khosla in Bengaluru)
  

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