February 5, 2018 / 3:30 AM / 5 months ago

Morning News Call - India, February 5

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    FACTORS TO WATCH
    9:30 am: Finance Minister Arun Jaitley to address the 4th South Asian
Regional Procurement Conference in New Delhi.
    10:00 am: Finance & Revenue Secretary Hasmukh Adhia, CBDT Chairman and CBEC
Chairperson to interact with CII members post Budget in New Delhi.
    4:00 pm: Finance Minister Arun Jaitley, Finance & Revenue Secretary Hasmukh
Adhia, Economic Affairs Secretary Subhash Chandra Garg, Chief Economic Advisor
Arvind Subramanian and other senior government officials at FICCI event in New
Delhi.
    
    LIVECHAT - FX WEEK AHEAD 
    FX Buzz analyst Jeremy Boulton analyses G7 currencies at 1630 IST. To join
the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    
    •India's 'Modicare' to cost about $1.7 billion a year: sources
    Indian Prime Minister Narendra Modi's plan to provide health insurance for
about half the country would require an estimated 110 billion rupees in federal
and state funding each year, sources familiar with the matter said.
    •Union Bank posts $195 mln Q3 loss
    State-run Union Bank of India on Saturday posted a net loss of 12.5 billion
rupees for the third quarter, weighed down by provisions made for borrowers
undergoing bankruptcy proceedings.
    •Bajaj Auto Q3 profit rises 3 percent, but misses estimates
     Bajaj Auto on Friday reported a 3 percent rise in quarterly profit, but
missed estimates, as higher exports during the period were partially offset by
increased raw materials costs.
    •RBI not in talks with govt on debt purchases -source
    The Reserve Bank of India is not in talks with the government to conduct
open market purchases of government bonds, a source familiar with the central
bank's thinking said, denying a media report that the central bank might
consider such steps to boost the debt market.
    •Australian official confirms no federal financing for Adani mine
    There will be no Australian federal financing of a loan facility for Indian
conglomerate Adani Enterprises to build a rail line to its proposed Carmichael
coal project, a government frontbencher confirmed on Sunday.
    •Hindalco Industries Q3 profit jumps 17.7 percent
     India's top aluminium producer Hindalco Industries reported a 17.7 percent
rise in quarterly profit on Friday, helped by higher metal prices.[nL4N1PS2WJ
    •Alibaba deepens India push with BigBasket investment
    China's Alibaba became the biggest shareholder in India's leading online
grocer BigBasket after a $300-million funding round, stepping up its rivalry
with Amazon in the country.
    •India lifts export curbs on onions as prices plunge
    India will allow unrestricted export of onions, the government said in an
order on Friday, as prices of the politically-sensitive vegetable fell over a
third in a month.
    
    
    GLOBAL TOP NEWS
    
    •South Korean appeals court to rule on Samsung scion Lee's conviction and
jail term 
A South Korean appeals court will rule on Samsung Group scion Jay Y. Lee's
conviction and jail term for corruption in a case that led to the ouster of the
nation's president last year.
    •China's service sector grows at fastest pace in nearly 6 years in
Jan-Caixin PMI
    China's services sector got off to a flying start this year, expanding at
its fastest pace in almost six years, as new orders surged and companies rushed
to hire more staff, a private survey showed.
    •Republicans differ with Trump on whether memo undercuts Russia probe
Several Republican lawmakers disagreed on Sunday with President Donald Trump's
assertion that a memo released last week by the House Intelligence Committee
vindicated him in the investigation into Russian meddling in the 2016
presidential election.

    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    
    •The SGX Nifty Futures were trading at 10,612.50, trading down 0.99 percent
from its previous close.
    •The Indian rupee will likely fall against the greenback in opening trade,
tracking a sharp rally in the dollar Friday on the back of upbeat U.S. nonfarm
payrolls data, which also pushed treasury yields higher.
    •Indian sovereign bonds are likely to fall in early session tracking gains
in U.S. Treasury yields, even as demand for debt remains muted amid concerns
about the government fiscal situation. The yield on the 7.17 percent bond
maturing in 2028 is likely to trade in a 7.52 percent -7.60 percent band today.
    
    
    GLOBAL MARKETS
    • Worries about the impact of a tightening job market on the prospects for
inflation and a surge in bond yields sent investors fleeing equities on Friday,
with the Dow Jones Industrials Average swooning almost 666 points, for its
biggest daily percentage loss in 20 months.
    • Asian shares fell the most in over a year as fears of resurgent inflation
battered bonds, toppled Wall Street from record highs and sparked speculation
that central banks globally might be forced to tighten policy more aggressively.

    • The dollar steadied after rallying on upbeat U.S. jobs data, which sent
bond yields surging on the prospects of increasing inflation and hammered
equities.
    • A strong U.S. payrolls report on Friday raised concerns the Federal
Reserve might hasten to increase interest rates to stem inflation, compounding a
bond market rout that pushed the yield on the benchmark 10-year Treasury note to
a four-year high.
    • Oil prices extended declines from the end of last week on the back of a
stronger dollar, with Brent crude falling to its lowest in nearly a month.
    • Gold prices inched down early on a firmer dollar after robust U.S. jobs
data late last week, but a fall in equities cushioned losses.
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         64.02/64.05  February 2       $148.16 mln  $76.49 mln
 10-yr bond yield  7.68 pct     Month-to-date    -            $294.39 mln
                                Year-to-date     $2.22 bln    $1.77 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 = 64.1200 Indian rupees)
    
    
    

 (Compiled by Yoganand KN in Bengaluru)
  
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