Morning News Call - India, August 31

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    5:00 pm: Government to release July Infrastructure output data in New Delhi.
    5:30 pm: Government to release April-June GDP data in New Delhi.
    Wayne Cole, Reuters Chief Treasury Correspondent in Sydney, joins us to
discuss the themes to watch for markets in the week ahead. To join the
conversation, click on the link:
    • Indian economy likely to see record quarterly slump as pandemic hits
India's economy likely suffered its largest quarterly slump on record, data is
expected to show, as coronavirus-related lockdowns add to already-declining
consumer demand and investment.
    • India sets global record with single-day rise in coronavirus cases
    India on Sunday reported the biggest single-day jump in coronavirus
infections of any nation in the COVID-19 pandemic, as the epicentre shifts to
the south Asian giant.
    • Defying trade tensions, Chinese buyers snap up Indian steel
    India's steel exports more than doubled between April and July to hit their
highest level in at least six years, boosted by a surge of Chinese buying in
defiance of tensions between Beijing and New Delhi.
    • Reliance to buy Future Group's retail arm for $3.38 billion
    Mukesh Ambani-led Reliance Industries said on Saturday it has agreed to
acquire the retail and wholesale business and the logistics and warehousing
business of Future Group in a deal valued at $3.38 billion, including debt.

    • Indian banks panel names official for State Bank of India top job
    A state-run banks appointment panel on Friday recommended Dinesh Kumar
Khara, one of the State Bank of India's four managing directors, as the next
chairman of India's top lender.
    • India to reopen underground train networks even as coronavirus cases jump
    India will reopen underground train networks and allow sports and religious
events in a limited manner from next month as part of the government's efforts
to revive the economy, even as coronavirus infections soar.
    • Hundreds protest against exams in India as virus cases hit new peak
    Hundreds of masked protesters demonstrated in major Indian cities on Friday
against a government plan to hold exams for millions of students during the
coronavirus pandemic, as the daily tally of infections hit a record.

    • China's slower factory growth eclipsed by robust services in boost to
economic recovery
    China's factory activity grew at a slower pace in August as floods across
southwestern China disrupts production, but the services sector expanded at a
solid rate in a boost to the economy as it continues to recover from the
coronavirus shock.
    • Democrats oppose Trump Wisconsin visit, president says 'strength' only
    Democrats said Donald Trump should not visit the Wisconsin city where
protests erupted last week after a Black man was shot in the back by a white
police officer, while the Republican president said "strength" was the only way
to deal with unrest.
    • Warren Buffett looks to Japan, takes 5% stakes in five biggest trading
    Berkshire Hathaway said it has acquired slightly more than 5% of the shares
in five large Japanese companies, marking a departure for Chairman Warren
Buffett as he looks outside the United States to bolster his conglomerate.

    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.6% higher at 11,754.00.
    • The Indian rupee is expected to add to last week’s surge against the U.S.
currency amid upbeat risk sentiment on bets that central banks will continue
with supportive monetary policies.
    • India government bond yields are likely to fall in early session on bets
that the central bank may not allow yields to rise further, while investors
await the country’s gross domestic product data for the April-June quarter for
further cues. The yield on the benchmark 5.79% bond maturing in 2030 is likely
to trade in a range of 6.06%-6.13%.
    • Wall Street advanced on Friday, with technology stocks driving the S&P 500
to its sixth record closing high since confirming a bull market on Aug. 18.
    • Asian shares notched a 29-month high as investors wagered monetary and
fiscal policies globally would stay super stimulatory, while an upbeat reading
on China's service sector augured well for continued recovery there.
    • The dollar was poised to register its fourth consecutive monthly decline,
its longest streak since the summer of 2017, while the yen steadied after a
longtime lieutenant of Shinzo Abe reportedly joined the race to succeed him as
Japan's leader.
    • Longer-term U.S. Treasury yields rose on Friday as U.S. Federal Reserve
officials fleshed out the central bank's new approach to inflation, while
investors rebalanced intermediate-dated debt following large auctions earlier
this week.
    • Oil prices nudged up, with Brent futures set to post a fifth straight
monthly gain, as global stimulus measures underpin prices even as demand
struggles to return to pre-COVID levels in a well supplied market. 
    • Gold prices rose to their highest level in nearly two weeks, as demand was
boosted by a weaker dollar and the U.S. Federal Reserve's new policy framework
suggested that interest rates would remain low for some time.
              CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot    73.39/73.42  August 28        1,432.59        (1,320.88) crores
 10-yr bond   6.097%       Month-to-date    46,602 crores   (1,425) crores
                           Year-to-date     35,652 crores   (1,10,860) crores
    (FII investment numbers are in Indian rupees. Source: National Securities
Depository Limited)

    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 = 73.13 Indian rupees)

 (Compiled by Pooja Kesavan in Bengaluru)