December 20, 2018 / 3:49 AM / in 3 months

Morning News Call - India, December 20

 (Morning News Call - India edition will not be published through the year-end
holiday season from December 24, 2018 to January 1, 2019. Normal service will
resume from January 2, 2019. Season’s Greetings and Happy New Year.)

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    FACTORS TO WATCH
    11:00 am: Winter Session of Parliament continues in New Delhi.

    
    GMF: LIVECHAT - BONDS FOCUS 
    Reuters interest rate reporter Dhara Ranasinghe delves into government bond
markets at 6:00 pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • CBI arrest PNB officials from Mumbai branch in separate fraud case
The Central Bureau of Investigation said on Wednesday eight employees of
state-run Punjab National Bank and two directors of a Mumbai-based private firm
had been arrested in a $1.4 million fraud case.
    • Interest rate panel sounds cautious on inflation - minutes
India's monetary policy committee sounded cautious on inflation and preferred to
wait for more data to see for how long price pressure and growth momentum would
remain soft, according to minutes of its December 5 meeting published on
Wednesday.
    • Boeing says Indian airfares unsustainably low; lifts country's 20-yr order
forecast
Airfares in the fast-growing Indian market are 10 to 15 percent lower than
breakeven levels for airlines, a Boeing executive said, as the planemaker raised
its long-term jet order forecast for the nation to a record despite market
challenges.
    • J&J says Indian drug regulators visited facilities, took talc samples
Indian drug authorities visited some of Johnson & Johnson's facilities on
Wednesday and took "tests and samples" of its talcum powder, the company said in
a statement.
    • Modi says most goods to be hit with below 18 pct GST 
India will tax most goods at below 18 percent in a further simplification of the
Goods and Services Tax, Prime Minister Narendra Modi said, aiming to shore up
support among businesses that have struggled with the new system.
    • Maruti Suzuki sees sales growth falling short of FY target 
Carmaker Maruti Suzuki India Ltd said on Wednesday it would struggle to meet its
target of double-digit sales growth for the year.
    • IndiGo to upgrade engine software in Airbus A320neos
IndiGo said it will retrofit its entire Airbus A320neo fleet with a new software
upgrade from engine-maker Pratt & Whitney after one of its planes was forced to
make an emergency landing last week due to smoke in the cabin.
    • ONGC board to consider listing of ONGC Videsh on domestic exchanges
-sources
The board of India's top explorer, Oil and Natural Gas Corp, will consider a
proposal this week to list its overseas investment arm, ONGC Videsh, on domestic
bourses, two sources privy to the matter said on Wednesday.

       
    GLOBAL TOP NEWS
    • U.S. Fed raises interest rates, signals more hikes ahead
After weeks of market volatility and calls by President Donald Trump for the
Federal Reserve to stop raising interest rates, the U.S. central bank instead
did it again, and stuck by a plan to keep withdrawing support from an economy it
views as strong.
    • U.S. Congress to push stop-gap funding bill with no border wall money
The U.S. Senate passed legislation to fund several federal agencies through Feb.
8 and avert a partial government shutdown, but without including $5 billion for
a U.S.-Mexico border wall that President Donald Trump demanded.
    • Renault, Nissan execs sought other ways to pay Ghosn -documents
Executives from both carmakers in the Renault-Nissan alliance looked at least
twice at legal ways to pay Chairman Carlos Ghosn undisclosed income through the
partners' shared finances, documents seen by Reuters show.

  
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading down 0.8 percent at
10,898.50, from its previous close. 
    • The Indian rupee, in line with other regional currencies, is expected to
open lower against the dollar, after Asian and U.S. equities declined despite
the Federal Reserve lowering its projections for next year’s interest rate
increases. 
    • Indian government bonds will likely fall in early session as traders may
look to book profits from recent highs, after the U.S. Federal Reserve hiked key
interest rate for the fourth time this year, while Fed members expect two more
hikes in 2019. The yield on the benchmark 7.17 percent bond maturing in 2028 is
likely to trade in a 7.22 percent-7.30 percent band today, a dealer with a
state-run bank said. 
        
    
    GLOBAL MARKETS
    • U.S. stocks declined sharply on Wednesday after the Federal Reserve's
forecast of fewer interest-rate increases in 2019 fell short of investors' hopes
of a more dovish monetary policy.
    • Asian shares retreated after the U.S. Federal Reserve raised rates, as
expected, and kept most of its guidance for additional hikes next year, dashing
investor hopes for a more dovish policy outlook.
    • The dollar was steady in Asian trade, and was off its overnight lows after
the Federal Reserve rowed back from a more aggressive policy tightening path
even as it gave markets the impression of being much less cautious than they had
anticipated.
    • U.S. benchmark Treasury yields fell to more than eight-month lows on
Wednesday after the Federal Reserve lowered projections for rate hikes next year
and Fed Chair Jerome Powell said that balance sheet reduction is on
autopilot.
    • Oil prices fell to erase most of their gains from the day before, resuming
declines seen earlier in the week amid worries about oversupply and the outlook
for the global economy.
    • Gold steadied, after declining about half a percent in the previous
session as the U.S. Federal Reserve did not deliver as dovish a statement as
some investors had expected.
    
    
                   CLOSE            FII            EQUITIES     DEBT
                                    INVESTMENTS                 
 PNDF spot         70.33/70.36      December 19    $171.10 mln  $174.25 mln
 10-yr bond yield  7.22 pct         Month-to-date  $326.9 mln   $631.29 mln
                                    Year-to-date   -$4.73 bln   -$6.52 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 = 70.66 Indian rupees)

 (Compiled by Avina Ajit in Bengaluru)
  
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