May 26, 2016 / 3:32 AM / 2 years ago

Morning News Call - India, May 26

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   GMF:ASIA LIVECHAT - COMMODITIES FOCUS with Gavin Wendt, Founding Director &
Senior Resource Analyst, MineLife
With questions being raised on more Fed rate hikes this year, Gavin joins us at
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   INDIA TOP NEWS
     Indian banks still resisting rate cuts as liquidity row with RBI drags on
RBI has stepped up fund injections in the two months since Governor Raghuram
Rajan pledged to gradually erase a cash deficit in the financial system, but
commercial banks say it is still not enough for them to sharply lower interest
rates. 
     India's markets regulator to draft proposals on high frequency trading
soon 
The head of India's capital markets regulator said on Wednesday it would
increase monitoring of brokers and auditors and issue draft proposals for high
frequency trading, laying out an ambitious agenda for itself in the year
ahead. 
     Samsung Elec says launching iris-recognition tablets in India
South Korean tech giant Samsung Electronics Co said on Wednesday that it is
launching a new tablet device in India for government and enterprise use
equipped with iris-recognition technology. 
     L&T looks at new markets, forecasts faster order growth 
Larsen & Toubro Ltd said it is bidding for projects in Far East and Africa to
counter a slowdown in its key Middle East market, which has been hurt by lower
oil prices, as the industrial group forecast faster sales growth. 
   
    GLOBAL TOP NEWS
     Japan's Abe to take G7 leaders to shrine as economy tops summit agenda
Japanese Prime Minster Shinzo Abe was set to escort Group of Seven (G7) leaders
to the Shinto religion's holiest site on Thursday before a summit covering
topics from risks to the global economy to refugees and China's maritime
assertiveness. 
     Takata hires Lazard, seeks cash infusion after air bag deaths
Takata Corp confirmed on Wednesday it has hired investment bank Lazard Ltd to
lead a financial restructuring in an effort to resolve costs stemming from its
recall of tens of millions of faulty air bags linked to at least 13 deaths and
more than 100 injuries worldwide. 
     Trump fires his national political director -campaign sources
U.S. Republican presidential candidate Donald Trump has fired his national
political director after six weeks on the job, campaign sources said on
Wednesday. 
    
   LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures was trading at 7,958.00, up 0.18 pct from its
previous close.
     The Indian rupee will likely open slightly higher against the U.S. dollar,
as traders squared off greenback positions on caution ahead of Federal Reserve
Chair Janet Yellen's upcoming comments as they await cues on future rate
increases. 
     Indian government bonds will likely edge lower, as investors looking for
fresh positive triggers have to contend with rising crude oil prices ahead of a
fresh supply of sovereign papers tomorrow.The yield on the benchmark 7.59 pct
bond maturing in 2026 is likely to trade in a 7.45 pct-7.49 pct range.
    
   GLOBAL MARKETS
     Wall Street rose robustly for a second straight session on Wednesday,
helped by higher oil prices and investors becoming more comfortable with the
prospect of an interest rate hike as early as next month. 
     Brent crude oil rose above $50 a barrel for the first time in nearly seven
months but Asian shares struggled to gain traction, with worries about U.S.
interest rates and China's slowing economy keeping many investors on the
sidelines. 
     The yen surged, taking some of the wind out of the sails of the recently
buoyant dollar and leaving investors scrambling to cover positions. 
     U.S. Treasury prices fell on Wednesday with short- and medium-dated yields
hitting 10-week highs, prompted by a solid advance in Wall Street stock prices
and traders booking profits on curve-related positions. 
     Brent oil futures climbed above $50 a barrel for the first time in nearly
seven months, boosted after U.S. government figures showed a
sharper-than-expected drawdown in crude stocks last week. 
     Gold inched higher early, but continued to linger near a seven-week low
touched in the previous session as positive U.S. economic data boosted
expectations the Federal Reserve would raise interest rates sooner rather than
later. 
        
                   CLOSE        FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         67.30/67.33  May 25           $73.5 mln   -$39.21 mln
 10-yr bond yield  7.66 pct     Month-to-date    $44.18 mln  -$939.64 mln
                                Year-to-date     $1.84 bln   -$1.30 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 = 67.33 Indian rupees)

 (Reporting by Nishit Kunal in Bengaluru)

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