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Morning News Call - India, February 23
February 23, 2017 / 3:31 AM / 10 months ago

Morning News Call - India, February 23

(India Morning Newsletter will not be published on Friday, February 24, as
markets are closed for Mahashivratri.)
    
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    FACTORS TO WATCH
    10:00 am: RBI Executive Director Sudarshan Sen, SEBI member G. Mahalingam
and BSE MD & CEO Ashish Kumar Chauhan to speak at an event in Mumbai.
    
    3:00 pm: Junior Finance Minister Santosh Kumar Gangwar at an event in New
Delhi.
    
    6:45 pm: Dena Bank Chairman Ashwani Kumar to launch RFID cards in Mumbai.
    
    LIVECHAT- MARKETS FOCUS
    Positive economic data out of Asia, driven by improving exports and rising
commodity prices, bolstered shares to 19-month highs last week, although
concerns linger that any protectionist threats posed by U.S. President Donald
Trump could reverse the recovery. Uncertainty persists in the FX market about
the timing of the next Fed rate hike, even though Chair Janet Yellen hinted at a
"live" March meeting in her Congressional testimony. Evan Lucas, Market
Strategist, IG, will share his outlook with us at 09:30 am. To join the
conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • RBI policy panel cites concerns about inflation 
    The Reserve Bank of India's six-member monetary policy committee cited
concerns about inflation in holding rates in February, with three mentioning the
need to shift the policy stance to "neutral" from "accommodative," minutes from
the meeting showed.
    • India needs to create 'bad bank' quickly - finmin aide 
    The finance ministry on Wednesday backed a call by the Reserve Bank of India
to set up an institution similar to a "bad bank," saying urgency was needed to
address troubled loans weighing on the banking sector that were hobbling
investment and growth.
    • Snapdeal to cut 600 staff, founders forego salary 
    Online marketplace Snapdeal is to lay off 600 employees and its founders
will forego their salaries as the company struggles to turn a profit in a market
increasingly dominated by rivals Flipkart and Amazon.
    • INTERVIEW-Motor racing-F1 boss Mallya sees no grounds for extradition 
    Vijay Mallya, the one-time billionaire who co-owns the Force India Formula
One team, said on Wednesday Indian authorities had no grounds to extradite him
from Britain and he would not be leaving.
    • India's bankers sceptical over RBI proposal on bad loans 
    Indian bankers on Wednesday poured scepticism on a proposal by the central
bank to set up new private or state companies to buy up bad debt from lenders,
warning that the plan would add more complexity and delay restructuring.

    • India banking bailout cost "manageable" - IMF 
    The cost of recapitalising India's struggling banks would be affordable even
under a negative scenario, the International Monetary Fund said on Wednesday,
urging government steps to strengthen the financial system.
    • Oil-starved India to auction exploration rights by June -source 
India plans to auction some oil exploration blocks by June and will allow
bidders to carve out areas where they want to drill in order to attract greater
interest, a government official told Reuters on Wednesday.
    
    
    GLOBAL TOP NEWS
    • Trump revokes Obama guidelines on transgender bathrooms
    President Donald Trump's administration on Wednesday revoked landmark
guidance issued to public schools in defense of transgender student rights,
reversing course on a signature initiative of former Democratic President Barack
Obama.
    • Nissan says Ghosn to relinquish CEO role, Saikawa to take helm 
    Nissan Motor Co said Carlos Ghosn, who has led the Japanese automaker for
the past 16 years, will step aside as chief executive officer, handing over the
helm to a long-time company veteran.
    • Switzerland's ABB hit by $100 mln South Korean fraud 
    Swiss engineering group ABB on Wednesday said it fell victim to a
"sophisticated criminal scheme" at its South Korean subsidiary, with the chief
suspect an executive responsible for ethics training.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were at 8,922.50, up 0.05 pct from its previous
close.
    • The Indian rupee will likely open higher against the dollar, as the U.S.
Federal Reserve meeting minutes suggested that an interest rate hike was
unlikely next month, damping demand for the greenback.
    • Indian government bonds will likely edge higher, after minutes of the last
Federal Reserve meeting indicated no certainty about an interest rate hike in
the U.S. next month. The yield on the benchmark 6.97 pct bond maturing in 2026
is likely to trade in a 6.90 pct-6.95 pct band today. The paper had settled at
100.24 rupees, the lowest level since Sep. 2, yielding 6.93 pct yesterday. 
    
    
    GLOBAL MARKETS
    • The S&P 500 ended modestly weaker on Wednesday, holding losses after
minutes from the Federal Reserve's last meeting kept alive a potential near-term
interest rate hike, while DuPont shares helped the Dow close at an all-time high
for a ninth straight session.
    • Asian stocks pulled back from a 19-month high, while the dollar tried to
steady from losses suffered in the wake of the U.S. Federal Reserve minutes
indicating a cautious approach to more interest rate increases.
    • U.S. long-dated Treasury debt yields edged lower on Wednesday in choppy
trading, after minutes of the latest Federal Reserve monetary policy meeting
struck a cautious tone on raising interest rates, reducing expectations of a
hike next month.
    • Oil futures rose nearly 1 percent after data released by an industry group
showed a surprise decline in U.S. crude stocks as imports fell, lending support
to the view that a global glut is ending.
    • Gold prices held steady as the U.S. dollar firmed following overnight
losses after the release of minutes from the last U.S. Federal Reserve meeting,
which suggested a cautious approach to interest rate hikes.
    
   
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         66.91/66.94  February 22      -$38.71 mln  -$176.94 mln
 10-yr bond yield  7.24 pct     Month-to-date    $1.29 bln    $925.58 mln
                                Year-to-date     $1.28 bln    $813.50 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 = 66.97 Indian rupees)
    
    

 (Erum Khaled in Bengaluruu)
  

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