July 16, 2018 / 3:40 AM / 5 months ago

Morning News Call - India, July 16

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    FACTORS TO WATCH
    10:00 am: Interim Finance Minister Piyush Goyal at an event in New Delhi.
    12:00 pm: Government to release June wholesale price inflation data in New
Delhi.
    
    
    LIVECHAT-MARKETS FOCUS
    Michael Howell, managing director at CrossBorder Capital, joins us to
discuss the recent sell-off in EM currencies, which has set the cat among the
pigeons, and how to navigate such troubled waters. With looming trade wars and a
scenario of rising interest rates, world markets seem to be set for a difficult
second half of 2018. To join the conversation at 0230 pm IST, click on the link:
here
    
    
    INDIA TOP NEWS
    • India's trade deficit widens to more than 5-year high in June
India's trade deficit widened to its highest in more than five years in June,
the trade ministry said on Friday, driven largely by a surge in oil prices and a
weaker rupee.
    • Infosys retains revenue forecast as seeks recovery
India's second-biggest IT firm Infosys Ltd retained its revenue outlook for the
fiscal year to March, with its chief executive upbeat about demand for the
company's services in the key markets of United States and Europe.
    • India says twice-delayed strategic talks with U.S. to be held in September
India will hold a top-level strategic dialogue with the United States in the
first week of September, India's defence minister said on Friday, after the
United States last month postponed the meeting for a second time this year.

    • Indivior wins preliminary injunction against generic rival
A U.S. court has granted Indivior a preliminary injunction blocking India's Dr.
Reddy's Laboratories from selling cut-price versions of the British drugmaker's
best-selling opioid addiction treatment in the United States, Indivior said on
Friday.
    • India's capital market regulator proposes tighter rules for auditors,
valuers
India's capital market regulator has proposed amendments to tighten laws
governing auditors and other third-party individuals hired by listed companies
for auditing financial results, among other things.
    • India's social media monitoring plan worries Supreme Court
A government plan to monitor social media could turn India into a "surveillance
state", the Supreme Court was cited as saying on Friday as it asked the
government to respond to such worries within two weeks, a lawyer involved in the
case said.
    
    
    GLOBAL TOP NEWS
    • China Q2 GDP growth cools as factory output weakens, trade row flares
China's economic growth slowed as expected in the second quarter as the
government's efforts to tackle debt risks crimp activity and an intensifying
trade war with the United States threatens to knock exports.
    • Trump and Putin to hold first summit talks as twitchy West looks on
After months of exchanging long-distance compliments, Donald Trump and Vladimir
Putin sit down for their first ever summit, a potential political minefield at
home for the U.S. president but a geopolitical win for his Russian counterpart.

    • China looks to get cozy with EU in annual talks as Trump tariffs bite
The European Union will open an annual meeting with China, and will be looking
to fend off overtures for an anti-U.S. alliance as China seeks a European
counterbalance to U.S. tariffs.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were little changed at 11,026.50.
    • The Indian rupee is expected to edge lower against the dollar after the
country’s trade deficit widened to its highest in more than five years.
    • Indian government bonds are likely to open little changed, as steady crude
oil prices and mixed inflation data provided little cues. The yield on the
benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.76
percent-7.82 percent band today.
    
    
    GLOBAL MARKETS
    • U.S. stocks rose slightly on Friday, putting the S&P 500 at its highest
closing level in more than five months, as gains in industrials and other areas
offset a drop in financials after results from three of the big banks mostly
disappointed.
    • Asian shares were lower after data from China showed the world's
second-largest economy slowed slightly in the second quarter, and as investors
remain cautious over the impact of the heated Sino-U.S. trade war.
    • Major currencies held around recent ranges thanks to a lull in China-U.S.
trade skirmishing and as investors await key data from the world's two biggest
economies to determine whether global growth is running out of puff.
    • Treasury prices moved higher on Friday after the Federal Reserve
reinforced views of strong U.S. economic growth in a report to Congress.
    • Oil prices fell as concerns about supply disruptions eased and Libyan
ports resumed export activities, while traders eyed potential supply increases
by Russia and other oil producers.
    • Gold prices nudged higher in early trade amid a softer U.S. dollar and
slightly weaker Asian shares, after sliding to their lowest in seven months in
the previous session.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.44/68.47  July 13 2018     -$161.34 mln  -$114.22 mln
 10-yr bond yield  7.79 pct     Month-to-date    -$172.40 mln  -$273 mln
                                Year-to-date     -$959.83 mln  -$6.05 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 = 68.4900 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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