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Morning News Call - India, October 17
October 17, 2016 / 3:22 AM / a year ago

Morning News Call - India, October 17

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    FACTORS TO WATCH
    5:30 pm: India to auction INR 93.33 billion of unutilised limits for foreign
investment in sovereign debt in Mumbai.
    
    LIVECHAT - THAI FOCUS with Tim Condon, Asia Chief Economist, ING
    The death of Thai King Bhumibol has come on the back of its economy growing
at the fastest pace since early 2013. Questions over the succession of the
throne has spurred market concerns on potential potential political unrest in
the nation. Condon will join us at 0900 IST to share his view on the baht and
economic outlook. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
     India and Russia sign energy, defence deals worth billions
    India and Russia signed billions of dollars of defence and energy deals on
Saturday at a summit that sought to inject new life into a relationship that has
been tested by shifting global alliances and conflict in the Middle East.
 
     Infosys cuts revenue outlook again as clients slow spending ahead of U.S.
election, Brexit
    Infosys Ltd cut its annual revenue growth target for the second time in
three months as India's software service exporters feel the pinch of major
Western clients holding back on spending as they wait to see how November's U.S.
presidential election and Europe's Brexit drama play out. 
     India's RCom to sell tower arm majority stake to Canada's Brookfield for
$1.7 billion
    India's Reliance Communications is selling a 51 percent stake in its tower
assets to Canada's Brookfield Infrastructure Group for 110 billion rupees ($1.65
billion), in a deal that will help cut the phone carrier's huge debt.
 
     India wants to contain tensions with Pakistan, focus on economy
India wants to limit tensions with Pakistan after what it said was a successful
cross-border strike on militants sheltered there, according to two top
officials, who sought to allay fears of a broader conflict between the
nuclear-armed nations. 
     Stampede kills 24 pilgrims in Varanasi
    At least 24 people died and dozens more were hurt in a stampede in the
ancient northern Indian city of Varanasi on Saturday, officials said.
 
    
    
    GLOBAL TOP NEWS
     China's risk clamp down hits commodity trades, niche broker business
    New rules in China aimed at curbing risk and speculation have triggered an
exodus of institutional cash from the country's commodities futures markets and
hobbled a thriving niche business for brokers. 
     Tepco shares slump after anti-nuclear novice wins Japan election
    Shares in Tokyo Electric Power fell 8 percent on Monday after an
anti-nuclear candidate won an upset victory in a Japanese regional election, in
a blow to its attempts to restart the world's biggest atomic power station and a
challenge to the government's energy policy. 
     Trump charges U.S. election results being rigged 'at many polling places'
    Republican presidential nominee Donald Trump dug deeper in his efforts to
cast doubt on the legitimacy ofthe U.S. election, saying on Twitter on Sunday
that he believed the results were being "rigged" at many polling places.
 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
     The SGX Nifty Futures were trading at 8,565.50, down 0.53 pct from its
previous close.
     The Indian rupee will likely open lower against the dollar, tracking its
Asian peers, as upbeat U.S. retail sales and producer prices data for September
reinforced expectations of a Federal Reserve rate increase this year.
     Indian government bonds are likely to fall in early session, tracking
gains in U.S. Treasury yields and amid concerns of further foreign outflows from
local debt. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely
to trade in a 6.73 pct - 6.78 pct band.
    
    
    GLOBAL MARKETS
     U.S. stocks ended little changed on Friday, losing ground late after
Federal Reserve Chair Janet Yellen's comments on the economy unnerved investors
 
     Asian shares dipped while the dollar held firm near seven-month high
against a basket of major currencies after comments from Federal Reserve Chair
Janet Yellen boosted long-dated U.S. bond yields. 
     The dollar inched up to a seven-month high against a basket of currencies,
retaining momentum from upbeat U.S. data last week that reinforced expectations
of a December interest rate hike by the Federal Reserve. 
     Longer-dated U.S. Treasury yields rose sharply on Friday with 30-year bond
yields reaching a four-month high after the release of solid U.S. and Chinese
economic data and comments from Federal Reserve Chair Janet Yellen, who
suggested the central bank may allow inflation to exceed its 2 percent target.
 
     Oil prices fell, pulled down by a rising rig count in the United States, a
strong dollar and record OPEC-output which comes amid slowing global economic
growth that could erode fuel demand. 
     Gold prices were mostly unchanged on a firmer U.S. dollar after positive
U.S. economic data late last week appeared to raise the chance of an interest
rate hike by year-end. 
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         66.73/66.76  October 14       -$142.10 mln  -$62.52 mln
 10-yr bond yield  6.92 pct     Month-to-date    $55.10 mln    -$971.58 mln
                                Year-to-date     $7.56 bln     -$936.96 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 = 66.70 Indian rupees)

 (Compiled by Sai Sharanya Khosla in Bengaluru)

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