May 22, 2017 / 3:19 AM / in 5 months

Morning News Call - India, May 22

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    FACTORS TO WATCH
    11:30 pm: Farm Minister Radha Mohan Singh to brief media in New Delhi.
    2:45 pm: Bank of India earnings press meet in Mumbai.
    3:00 pm: Textile Minister Smriti Irani to brief media in New Delhi.
    3:00 pm: GAIL India earnings press meet in New Delhi.

    GMF: LIVECHAT - FX WEEK AHEAD
    FX Buzz analyst Jeremy Boulton analyses G7 currencies at 3:30 pm. To join
the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • India's new sales tax leaves service providers worried
    India on Friday unveiled four rate bands under a new sales tax for services
such as telecoms, insurance and restaurants, a move experts said could
complicate compliance and leave businesses at the mercy of an intrusive tax
bureaucracy.
    • India's top bank SBI Q4 net profit jumps but outlook clouded after units'
merger
    State Bank of India reported its highest profit in six quarters on lower
provisions for bad loans last quarter, but investors were wary about the outlook
for its asset quality after the amalgamation of its five subsidiary banks from
April.
    • Tata Power misses 4th-qtr profit estimates as costs rise
India's Tata Power Co Ltd on Friday reported a fourth-quarter adjusted profit
that missed analysts' estimates, as lower recovery on the cost of fuel at one of
its major power plants and higher fuel costs hurt margins.
    • India's "new Silk Road" snub highlights gulf with China 
China invited Indian Prime Minister Narendra Modi and six cabinet colleagues to
its "new Silk Road" summit this month, even offering to rename a flagship
Pakistani project running through disputed territory to persuade them to attend,
a top official in Modi's ruling group and diplomats said.
    • Dassault hopes to sell more Rafales to India 
    French planemaker Dassault Aviation SA hopes to start talks with India by
the end of the year for additional sales of its Rafale fighter jet, before full
negotiations in 2018, Chief Executive Eric Trappier said in Geneva on Sunday.

    • India's state-run HUDCO shares surge nearly 30 percent on trading debut
Shares in India's Housing and Urban Development Corp Ltd (HUDCO) surged nearly
30 percent at their market debut on Friday as investors sought to buy into the
property sector of a country where housing demand is among the highest in the
world.
    • Dr Reddy's sees no impact from pricing regulator notice
Dr Reddy's Laboratories Ltd, India's second-largest drugmaker by sales, said it
expects no impact from a recent government notice that said the company is
selling a high blood pressure drug that lacks the pricing regulator's approval.

    • India Grid Trust IPO fully subscribed on last day of sale
India Grid Trust's initial public offering to raise up to 22.5 billion rupees 
was 1.35 times subscribed on Friday, the last day of the sale, stock exchange
data showed.

    
    
    GLOBAL TOP NEWS
    • Trump tells Middle East to 'drive out' Islamist extremists
    President Donald Trump urged Arab and Islamic leaders on Sunday to unite and
do their share to defeat Islamist extremists, making an impassioned plea to
"drive out" terrorists while toning down his own harsh rhetoric about Muslims.

    • North Korea says missile tests warhead guidance, ready for deployment
    North Korea said on Monday it has successfully tested an intermediate-range
ballistic missile to confirm the reliability of the late-stage guidance of the
nuclear warhead, indicating further advances in the ability to hit U.S. targets.

    • Japan April exports rise again, trade surplus with U.S. narrows
Japan's exports rose in April to mark their fifth straight month of gains, as
shipments of semiconductors and steel expanded, signalling that more robust
overseas demand could underpin a steady economic recovery.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were trading at 9,476.00, up 0.22 pct from its
previous close.
    • The Indian rupee will likely higher against the dollar, as local indices
are expected to track a rebound in regional equity markets, while uncertainty
over U.S. President Donald Trump’s economic agenda remains a drag on sentiment.
    • Indian government bonds will likely edge lower, as states will borrow more
than what they had initially planned via debt auctions tomorrow. The yield on
the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.83
pct-6.88 pct band today.

    
    
    GLOBAL MARKETS
    • U.S. stocks rose but closed on Friday below their session highs on renewed
concerns about Donald Trump's presidency, after two new reports related to a
federal investigation into possible coordination between Russia and Trump's
election campaign.
    • Asian stocks are set to edge higher following cautious gains on Wall
Street, though the dollar is set to come under pressure as Washington's
political turmoil undermines confidence in U.S. economic policy.
    • The dollar struggled to push ahead, holding near six-month lows against a
basket of currencies as investors assessed the impact of U.S. political turmoil
and a resurgent euro.
    • U.S. Treasury yields fell on Friday as investors worried that allegations
against U.S. President Donald Trump would disrupt efforts to cut taxes and
increase spending.
    • Oil prices rose, supported by reports that an OPEC-led supply cut may not
only be extended into next year but might also be deepened to tighten the market
and prop up prices.
    • Gold prices held gains from the previous session amid ongoing political
worries surrounding U.S. President Donald Trump that are expected to keep
weighing on the dollar.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         64.82/64.85  May 19           -$153.19 mln  $112.31 mln
 10-yr bond yield  7.15         Month-to-date    $819.84 mln   $2.41 bln
                                Year-to-date     $7.26 bln     $11.80 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 = 64.64 Indian rupees)

 (Compiled by Pathikrit Bandyopadhyay in Bengaluru)
  

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