July 15, 2020 / 3:19 AM / 23 days ago

Morning News Call - India, July 15

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    FACTORS TO WATCH
    2:00 pm: Federal Bank CEO & MD Shyam Srinivasan at first-quarter earnings
virtual press conference.
6:30 pm: Expenditure Secretary T.V. Somanathan and Finance Commission Member
Ashok Lahiri at India Policy Forum 2020.

    
    LIVECHAT - REUTERS GLOBAL MARKETS FORUM
    Patrick Reid, Co-founder at the Adamis principle in London, joins us to
discuss what's in store for currencies including safe havens as the pressure on
the USD abates after the global dollar crunch appears to be over for now, as
central banks rely less on the Fed backstop. Patrick traded derivatives at
Europe's largest prop desk TTG, before co-founding the Adamis principle. To join
the conversation at 10:30 am IST, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India wholesale prices contract for third month in June by 1.81%
year-on-year 
India's wholesale price gauge contracted for a third month in June, data
released by the Ministry of Commerce and Industry showed on Tuesday, with prices
falling 1.81% from a year earlier.
• Google in talks to invest $4 billion in Reliance's digital arm - Bloomberg
Alphabet's Google is in advanced talks to invest $4 billion for a stake in the
digital arm of Indian conglomerate Reliance Industries, Bloomberg reported on
Tuesday, citing people familiar with the matter.
• Flipkart to raise $1.2 billion in Walmart-led funding
Flipkart will raise $1.2 billion in funding led by majority owner Walmart, the
Indian e-commerce firm said on Tuesday, as it looks to compete better with
Amazon.com in a coronavirus-hit market.
• India quizzing owners of banned Chinese apps over content and practices
Chinese companies such as TikTok-owner ByteDance have been asked by India to
answer 77 questions about their apps that have been banned by New Delhi,
including whether they censored content, worked on behalf of foreign governments
or lobbied influencers.
• Bharti Airtel, Verizon tie up on video-conferencing tool
Bharti Airtel is partnering with Verizon Communications' BlueJeans to launch a
business-focused video conferencing tool, the Indian wireless carrier said on
Tuesday.
• Lupin says 18 staff test positive for COVID-19 at drug plant
Lupin says 18 staff test positive for COVID-19 at drug Indian drugmaker Lupin
has shut one of its manufacturing plants in western Gujarat state after
employees at the site tested positive for COVID-19, two government officials
said on Tuesday.
• India's auto sales to take 3-4 years to return to peak levels
India's auto sales volume will not return to the peak levels seen in 2018 for
another three-to-four years, an industry body executive said on Tuesday, as the
COVID-19 pandemic has aggravated disruption in a sector already hit by weak
demand.
• India's tech hub, other towns back in lockdown amid COVID-19 surge
India's high-tech hub of Bengaluru will go back into a coronavirus lockdown for
a week on Tuesday after a surge of infections, threatening to derail government
efforts to revive a stuttering economy.
    
    
    GLOBAL TOP NEWS
    • Trump ends Hong Kong preferential status, citing 'oppressive' Beijing
actions against city
President Donald Trump on Tuesday ordered an end to Hong Kong's special status
under U.S. law to punish China for what he called "oppressive actions" against
the former British colony.
• Japan manufacturers' mood pinned near 11-year lows as pandemic hammers global
demand
Japanese manufacturers remained close to the most pessimistic they have been in
11 years in July as the coronavirus outbreak hits global demand and deals a
punishing blow to the export-reliant economy, the Reuters tankan survey showed.

• Moderna Phase 1 results show coronavirus vaccine safe, induces immune response
Moderna's experimental vaccine for COVID-19 showed it was safe and provoked
immune responses in all 45 healthy volunteers in an ongoing early-stage study,
U.S. researchers reported on Tuesday.
   
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.9% higher at 10,702.
• The Indian rupee is expected to strengthen against the U.S. currency tracking
upbeat risk appetite and broad dollar weakness following a positive update on
development of a coronavirus vaccine.
• India bond yields are likely to be largely unchanged in early trade as
investors await fresh cues. The yield on the benchmark 5.79% bond maturing in
2030 is likely to trade in a range of 5.80%-5.86%. 
    
    
    GLOBAL MARKETS
    • Wall Street surged on Tuesday, with the Dow Jones Industrial Average
ending more than 2% higher as investors bought energy and materials stocks and
looked beyond a recent rise in coronavirus cases.
    • Asian shares jumped as optimism about a coronavirus vaccine bolstered risk
appetite while the euro rose to a four-month top on the prospect of stimulus
ahead of a crucial EU summit.
    • The euro rose to a four-month high against the dollar on Wednesday on
hopes European Union leaders may agree on stimulus and deepening fiscal
integration to shield the economy from the pandemic.
    • U.S. Treasury yields and inflation expectations both dipped on Tuesday
after data showed that core inflation remained well under the Fed’s target in
June.
    • Oil prices rose after a sharp drop in U.S. crude inventories, with the
market waiting for more direction from a meeting later in the day on the future
level of production by OPEC and its allies.
    • Gold inched higher, holding firm above the key $1,800 level, as worries
over surging coronavirus cases and simmering China-U.S. tensions lifted demand
for the safe-haven metal.
    
    
 CLOSE             FII INVESTMENTS  EQUITIES       DEBT             
 PNDF spot         75.42/75.45      July 14        (84.07) crores   493.02 crores
 10-yr bond yield  5.82%            Month-to-date  (3,229) crores   537 crores
                                    Year-to-date   (21,742) crores  (1,06,422) crores
 (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 = 75.38 Indian rupees)
 

 (Compiled by Siddharth Athreya V in Bengaluru)
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