February 1, 2018 / 3:48 AM / 3 months ago

Morning News Call - India, February 1

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    FACTORS TO WATCH
    9:30 am: Power Minister R. K. Singh to inaugurate India Energy Congress in
New Delhi.
    11:00 am: Finance Minister Arun Jaitley to present the federal budget for
next FY in New Delhi.
    7:00 pm: Oil Minister Dharmendra Pradhan at India Energy Congress in New
Delhi.
    
    LIVECHAT - MARKETS OUTLOOK
    Monthly market outlook with Michael Hewson, chief market analyst, CMC
Markets at 1530 IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • As India unveils budget, all eyes on fiscal deficit target
    As India's government gets set to unveil its 2018-19 budget, all eyes will
be on whether the authorities stay the course on containing the fiscal deficit,
or whether they throw caution to the wind with a populist set of spending
priorities.
    • ICICI Bank posts smallest profit in seven quarters
    India's third-largest lender by assets, reported its smallest profit in
seven quarters on lower treasury income and as provisions rose from a year
earlier but said bad loan additions were slowing.
    • Larsen & Toubro Q3 profit surges 53 percent, beats estimates
    Industrial group Larsen & Toubro reported a 53 percent rise in third-quarter
profit, beating analysts' expectations, as new orders rose, mainly in the
infrastructure and hydrocarbon segments.
    • JSW Steel Q3 profit more than doubles
    JSW Steel reported a 140 percent surge in third-quarter profit on Wednesday,
beating analyst expectations, as the steelmaker marked its highest ever
quarterly steel sales.
    • Vedanta Q3 profit slips, lags estimates
    Vedanta, the Indian unit of diversified miner Vedanta Resources Plc,
reported an about 4 percent fall in third-quarter profit on Wednesday, missing
analysts' estimates.
    • NTPC Q3 profit falls 4 percent, misses expectations
    Power producer NTPC reported a 4 percent fall in quarterly profit on
Wednesday, missing analysts' estimates.
    • Indian Oil to boost Panipat refinery capacity by two thirds
    Indian Oil Corp plans to increase the capacity of its Panipat refinery by
two thirds to 500,000 barrels per day at a cost of 231.16 billion rupees, the
country's largest refiner said on Wednesday.
    • IDBI Bank Q3 loss narrows
    IDBI Bank posted a fifth straight quarterly loss on Wednesday as provisions
for bad loans rose in the period. 
    
    
    GLOBAL TOP NEWS
    • Fed leaves rates unchanged, sees inflation rising this year
    The U.S. Federal Reserve kept interest rates unchanged on Wednesday but said
inflation likely would rise this year, bolstering expectations borrowing costs
will continue to climb under incoming central bank chief Jerome Powell.

    • Japan PMI shows factory activity growth at 4-year high
    Japanese manufacturing activity expanded at the fastest pace in almost four
years in January, a survey showed, with solid output and employment growth
supporting a firm recovery in the world's third-largest economy.
    • Microsoft's cloud computing business grows, stock edges up
    Microsoft Corp beat Wall Street's profit forecast on Wednesday, helped by
growth in its cloud computing business, but took a $13.8 billion one-time charge
due to the new U.S. tax law.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were trading at 11,087.50, trading up 0.26 percent
from its previous close.
    • The Indian rupee will likely open weaker against the dollar, in line with
most Asian peers, as risk appetite remained soft following a hawkish Federal
Reserve policy.
    • Indian government bonds are likely to remain steady as investors await the
federal budget presentation later in the day.  The yield on the 7.17 percent
bond maturing in 2028 is likely to trade in a 7.41 percent - 7.45 percent band
till the budget announcement. 

    
    
    GLOBAL MARKETS
    • U.S. stocks finished marginally higher on Wednesday as indexes gave up
early gains after the Federal Reserve said it sees inflation rising this year,
signaling it remains on track to boost interest rates again in March.
    • Asian shares eked out modest gains, clawing back sharp losses from earlier
this week, however, rising U.S. bond yields and interest rates could dampen
investors' optimism toward the global economic outlook.
    • The dollar kept modest gains against its peers after the Federal Reserve
signalled its confidence about inflation and growth in the world's biggest
economy, with traders now waiting on a host of indicators including non-farm
payrolls for further catalysts.
    • The spread between longer-dated U.S. Treasury yields and short-dated ones
contracted to the slimmest in over a decade on Wednesday as the government
favored selling more short-dated debt than longer-dated issues to finance the
projected rise in its budget deficit.
    • U.S. oil prices extended gains as OPEC's strong compliance with a supply
reduction pact offset news that U.S. production topped 10 million barrels per
day for the first time in nearly half a century.
    • Gold prices inched down after the U.S. Federal Reserve left interest rates
unchanged but hinted at hikes later this year.   
    
                   CLOSE        FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         63.64/63.67  January 31       -$21.4 mln  $43.10 mln
 10-yr bond yield  7.55 pct     Month-to-date    $2.08 bln   $1.47 bln
                                Year-to-date     $2.08 bln   $1.47 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 = 63.5400 Indian rupees)
    
    
    

 (Compiled by Yoganand KN in Bengaluru)
  
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