May 8, 2017 / 3:21 AM / 6 months ago

Morning News Call - India, May 8

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    FACTORS TO WATCH
    4:30 pm: Union Bank of India earnings press meet in Mumbai.
    
    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 green car plan prioritises electric vehicles over hybrids
    India's most influential government think-tank has recommended lowering
taxes and interest rates for loans on electric vehicles, while capping sales of
conventional cars, signalling a dramatic shift in policy in one of the world's
fastest growing auto markets.
    • Under Patel, Indian cenbank zooms in on 4 pct inflation target
    Under governor Urjit Patel, India's central bank will target inflation of 4
percent, three officials familiar with its thinking said, adopting a narrower
reading of its mandate than markets in a bid to stamp out rampant price rises of
the past.
    • Japan's SoftBank takes driving seat in Indian online shake-up
    After ploughing about $2 billion into minority stakes in Indian e-commerce
businesses over the past few years, Japan's SoftBank is upping the stakes,
looking to play consolidator and take a more active role at a trio of leading
start-ups.
    • India moves resolution of $150 bln bad debt problem into cenbank's court
    India on Friday tweaked its laws to help tackle a record $150 billion in
troubled bank debts, giving its central bank greater power to identify and
enforce resolution on specific soured loans.
    • Norway's wealth fund excludes India's Bharat Heavy Electricals from
investments
    India's Bharat Heavy Electricals has been excluded from the investment
portfolio of Norway's $935-billion sovereign wealth fund, the world's largest,
the Norwegian central bank said on Friday.
    • Ambuja Cements to study merits of merger with ACC
    India's Ambuja Cements Ltd said on Friday it was considering the merits of a
merger with its subsidiary ACC Ltd.
    • India names new bosses for seven state-run banks 
    India named new chief executives for seven state-run banks on Friday, at a
time when regulators are trying to clean up record bad loans in the sector.

    • India's IRB InvIT Fund $782 mln IPO subscribed 8.6 times
    An initial public offering of shares in India's IRB InvIT Fund to raise
50.33 billion rupees ($782 million) was subscribed 8.6 times on the closing day
of the sale on Friday, in what was the country's first infrastructure investment
fund IPO.

    
    
    GLOBAL TOP NEWS
    • Macron wins French presidency, to sighs of relief in Europe
    Emmanuel Macron was elected French president on Sunday with a
business-friendly vision of European integration, defeating Marine Le Pen, a
far-right nationalist who threatened to take France out of the European Union.

    • China's April FX reserves rise, beating market expectations
    China's foreign exchange reserves rose in April for a third straight month,
beating market expectations, as capital controls and a pause in the dollar's
rally helped staunch capital outflows.
    • U.S. Democrats criticize Senate's all-male healthcare group
    U.S. Democrats on Sunday criticized the lack of women on a working group in
the Republican-led Senate that will craft a plan to pass legislation to repeal
and replace Obamacare.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were trading at 9,337.00, up 0.26 pct from its
previous close. 
    • The Indian rupee will likely edge higher against the dollar in early trade
on improved investor sentiment as independent centrist Emmanuel Macron’s win at
the French presidential election eases fears over France’s future with the
European Union.
    • Indian government bonds will likely edge higher, as pro-European Union
Emmanuel Macron won the French presidential election, spurring global risk
appetite. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to
trade in a 6.92 pct - 6.97 pct band today.
    
    
    GLOBAL MARKETS
    • U.S. equity index futures edged higher on Sunday in the wake of a victory
by the centrist candidate in the closely watched presidential French election,
suggesting the benchmark S&P 500 may push further into record territory when
trading reopens on Monday morning.
    • The euro hit a six-month high against the dollar while Asian shares gained
and U.S. stock futures briefly touched a record high, on investor relief after
centrist Emmanuel Macron comfortably won the French presidential election.

    • The euro edged away from highs hit early in the Asian session as investors
took profits from its gains after centrist Emmanuel Macron's victory over the
far-right Marine Le Pen in France's presidential election.
    • The U.S. Treasury yield curve flattened on Friday after jobs growth in
April rebounded and the unemployment rate fell to a near 10-year low,
reinforcing the view that the Federal Reserve is likely to raise interest rates
again in June.
    • Oil prices rose on a growing conviction that an OPEC-led production cut
initially scheduled to end in June would be extended to cover all of 2017,
although a relentless increase in U.S. drilling activity is seen capping gains.

    • Gold firmed as bargain-hunters moved in after prices dipped to seven-week
lows and as the euro strengthened after expected win of pro-EU candidate
Emmanuel Macron in the French presidential election.
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         64.32/64.35  May 5            -$56.61ln    $305.89 mln
 10-yr bond yield  7.20         Month-to-date    -$88.29 mln  $624.94 mln
                                Year-to-date     $6.31 bln    $10.02 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 = 64.37 Indian rupees)

 (Compiled by Sai Sharanya Khosla in Bengaluru)
  

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