February 14, 2018 / 3:52 AM / 2 months ago

Morning News Call - India, February 14

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    FACTORS TO WATCH
    12:30 pm: Commerce Minister Suresh Prabhu, Oil Minister Dharmendra Pradhan
and NITI Aayog CEO Amitabh Kant at IBM event in New Delhi.
    2:00 pm: NITI Aayog Vice-Chairman Rajiv Kumar to speak on post-budget
economic scenario in New Delhi.
    
    
    LIVECHAT - FRONTIER MARKETS
    Frontier markets outlook with Paul Domjan, Global Head of Research, Exotix
Capital at 1530 IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    •Retail inflation slightly eases in January
    India's retail inflation slightly eased in January from a 17-month high in
December but remained above the 4 percent medium-term target of the Reserve Bank
of India for the third straight month.
    •RBI announces new bad-loan-resolution framework
    India's central bank late on Monday tightened its rules around bank loan
defaults, seeking to push more large loan defaulters toward bankruptcy courts
and abolishing half a dozen existing loan-restructuring mechanisms, in its
latest bid to accelerate resolution of the bad loans problem at Indian banks.

    •ArcelorMittal, Russian VTB-led group make bids for India's Essar Steel
    ArcelorMittal and a group led by Russia's VTB have made separate bids for
India's Essar Steel, which is undergoing bankruptcy proceedings and faces claims
of nearly $8 billion.
    •RCom calls bondholders' meet over asset-sale plan
    Debt-laden Indian telecoms carrier Reliance Communications will hold a
meeting of its bondholders on March 6 to seek approvals for asset-sale plans,
the company said in a regulatory filing late on Monday.
    •India cuts stent prices by more than 7 percent
    India has cut prices of some stents by about 7.6 percent, a government body
said on Monday, in the latest setback for the country's $5 billion medical
device industry.
    •BOI reports third-quarter loss as bad loan provisions spike
    State-run Bank of India reported a third-quarter net loss on Monday as the
lender set aside higher provisions for bad loans.
    •Tata to invest in Port Talbot steel plant post Thyssenkrupp merger- sources
    Tata Steel will finance the repair of a blast furnace at Britain's largest
steelworks in Port Talbot, Wales, extending its life by seven years and soothing
concerns about its commitment to Europe's steel sector, four sources told
Reuters.
    •otherson Sumi Systems Q3 profit drops 12 percent, lags expectations
    Auto parts maker Motherson Sumi Systems reported a 12 percent drop in
quarterly net profit and missed expectations, hurt by higher
expenses.    
        
       
    GLOBAL TOP NEWS
    •Japan posts longest growth streak since bubble economy
    Robust consumer spending drove Japan's economy to eight straight quarters of
growth in October-December, its longest continuous expansion since the 1980s
bubble economy, and evidence that Prime Minister Shinzo Abe's campaign to
restore growth after decades of stagnation is bearing fruit.
    •U.S. pushes motion to put Pakistan on global terrorist-financing watchlist
    The United States has put forward a motion to place Pakistan on a global
terrorist-financing watchlist with an anti-money-laundering monitoring group,
according to a senior Pakistani official.
    •Baidu earnings beat expectations as it gambles on AI, content
    Chinese tech giant Baidu Inc posted strong quarterly revenue growth on
Tuesday, beating expectations, on a strong showing from its core search business
and news feed services.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    •The SGX Nifty Futures were trading at 10,548.50, trading up 0.79 percent
from its previous close on Monday, February 12, as markets were closed for Maha
Shivratri on Tuesday, February 13.
    •The Indian rupee will likely open flat to higher against the dollar,
tracking an overnight fall in the greenback and on improved domestic sentiment
following the better-than-expected economic data.
    •Indian sovereign bonds are likely to trade higher in early session after
the nation’s retail inflation cooled. The yield on the 7.17 percent bond
maturing in 2028 is likely to trade in a 7.46 percent-7.51 percent band today.xx
    
    
    GLOBAL MARKETS
    • Wall Street climbed on Tuesday for a third straight session, buoyed by
Amazon.com and Apple, while investors focused on inflation data on Wednesday
that could upset the market's fragile recovery - or clear the way for additional
gains.
    • Asian share markets turned mixed as investor nerves were strained ahead of
a U.S. inflation report that could soothe, or inflame, fears of faster rate
hikes globally.
    • The dollar slid to a 15-month low against the yen, as investors remained
on edge ahead of key U.S. inflation numbers later in the day, underscoring
fragile risk sentiment following the recent shakeout in equity markets.
    • U.S. long-dated Treasury yields slipped on Tuesday in quiet, rangebound
trading, as investors looked to Wednesday's U.S. inflation report that could
shed more light on the pace of future interest rate increases by the Federal
Reserve.
    • Oil prices were stable, supported by healthy economic growth and
expectations that a weaker dollar could spur fuel demand.
    • Gold prices rose for a third straight session to hit a one-week high,
buoyed by a weaker dollar, while investors awaited U.S. inflation data for clues
on the pace of future U.S. interest rate increases.  
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         64.25/64.28  February 12      -$126.67 mln  $28.46 mln
 10-yr bond yield  7.60 pct     Month-to-date    -$771.48 mln  $648.97 mln
                                Year-to-date     $1.27 bln     $2.12 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 = 64.2600 Indian rupees)
    
    
    

 (Compiled by Yoganand KN in Bengaluru)
  
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