February 3, 2020 / 3:51 AM / 19 days ago

Morning News Call - India, February 3

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    FACTORS TO WATCH
    11:00 am: Budget session of parliament continues in New Delhi.
    3:30 pm: NITI Aayog CEO Amitabh Kant will be present at FICCI’s National
Executive Committee meeting in New Delhi. 
    5:00 pm: Finance Minister Nirmala Sitharaman, Finance Secretary Rajiv Kumar,
Economic Affairs Secretary Atanu Chakraborty, Central Board of Indirect Taxes &
Customs Chairman John Joseph will be present at FICCI’s National Executive
Committee meeting in New Delhi. 
    
    LIVECHAT- MARKETS FOCUS
Mike Dolan, Reuters EMEA Markets Editor, traces weekly themes for EMEA
markets.To join the conversation, click on the link: refini.tv/2P8N0Wp

   
    INDIA TOP NEWS
    •Modi's guarded stimulus unlikely to revive Indian growth
    India's new federal budget is unlikely to drag Asia's third- biggest economy
out of its worst slowdown in more than a decade as the government has proposed
only moderate spending increases and small cuts in personal taxes, economists
said on Sunday.
    •India steps up farm support, offers tax cuts to revive faltering growth
    India sought to boost growth in a federal budget on Saturday that raised
spending on farms and expressways and offered cuts in personal taxes, but the
measures fell short of market expectations and battered stocks.
    •India raises import taxes in move set to spook some foreign firms
    India on Saturday raised taxes on imports of goods such as electronic items,
toys and furniture, aiming to give impetus to domestic manufacturing in a move
that will hit Sweden's IKEA and other foreign firms.
    •After record profit, India's biggest bank looks to curb bad loan additions
    State Bank of India, the country's largest lender, expects to curb growth in
bad loans in the current quarter, its chairman said on Friday, after the bank
reported its biggest quarterly profit.
    •India to sell stake in insurance company, sets steep divestment target
    The Indian government on Saturday announced its plans to divest a part of
its stake in Life Insurance Corp (LIC) in a move that could result in the
partial listing of the country's largest insurance company.
    •INDUSTRY VIEWS-India budget focuses on tax cuts, farm spending to revive
growth
    Indian Finance Minister Nirmala Sitharaman on Saturday unveiled the budget
for fiscal 2020/21, vowing to boost income of Indians and their purchasing
power, in a bid to revive domestic economic growth.India estimates economic
growth this fiscal year, which ends on March 31, will slip to 5% - its weakest
pace since the global financial crisis of 2008-09. Here are some reactions from
Indian businesses, economists and analysts.
    •India bans export of protective masks, clothing amid coronavirus outbreak
    India on Friday banned the export of personal protection equipment such as
masks and clothing amid a global coronavirus outbreak.
    •India bets on barren land, rail tracks to raise solar capacity
    India aims to boost solar power generation by encouraging the installation
of panels along rail tracks and on barren land, the finance minister said on
Saturday as the country looks to cut its carbon footprint and accelerate clean
energy production.

    GLOBAL TOP NEWS
    •China virus toll rises as Chinese markets set to reopen after holiday
The death toll from the new coronavirus in China's Hubei province rose by 56 to
350 , Chinese state television reported citing official figures, as investors
braced for volatility when Chinese markets reopen after the Lunar New Year
break.
    •China to inject $174 billion of liquidity on Monday as markets reopen
China's central bank said it will inject $174 billion worth of liquidity into
the markets via reverse repo operations as its stock markets prepare to reopen
amid an outbreak of a new coronavirus.
    •China's industrial profits post first annual decline in 4 years
    China's industrial firms posted their first annual decline in profits in
four years in 2019, as the slowest economic growth in almost 30 years and a
bruising trade war with the United States hit the country's
factories.

    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    •SGX Nifty nearest-month futures were trading down 2.6% at 11,677.50.
    •The Indian rupee is expected to open lower today, weighed by the selloff in
local equities after the federal budget. The onshore Chinese yuan’s fall after
mainland market reopened is further expected to damp the rupee.
    •Indian government bonds are likely to rise today as the federal government
did not raise its market borrowing for the current financial year, and as it
plans to issue special securities that will not cap foreign investment and pave
the way for listing on global bond indices.

    
    GLOBAL MARKETS
    • Wall Street's major averages tumbled more than 1.5% on Friday, sealing its
worst week in six months, as the spreading coronavirus outbreak, coupled with
sluggish U.S. economic data and a mixed batch of corporate earnings, fueled
concerns about global growth.
    • Asian markets are set for another bumpy ride on fears about the hit to
world growth from the rapidly spreading coronavirus, with all eyes on China
where trading resumes following the Lunar New Year break.
    • China's yuan and its proxy, the Australian dollar, were poised for
vulnerable day of trade on Monday in favour of safe-harbour currencies, in
reaction to authorities' drastic steps worldwide to curb the spread of a new
virus which originated in China.
    • Benchmark 10-year Treasury yields dropped to more than three-month lows on
Friday and two-year note yields fell to their lowest levels since 2017 as
concerns about the spreading coronavirus boosted demand for safe-haven assets.

    • Oil prices extended their losses, dragged down by worries about lower
demand in China, the world's largest oil importer, following a coronavirus
outbreak there.
    • Gold eased after scaling a near four-week peak, as China's central bank
injected liquidity into its markets to help support firms hit by a coronavirus
epidemic, with a stronger dollar holding back bullion as well.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         71.30/71.33  January 31       625.92 crore  308.71 crore
 10-yr bond yield  6.59 pct     Month-to-date    12,123 crore  (11,648) crore
 
    (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  = 71.07 Indian rupees)
 


 (Compiled by Prajakta Gadgil in Bengaluru)
  
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