July 19, 2019 / 3:14 AM / in a month

Morning News Call - India, July 19

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    FACTORS TO WATCH
    No major events are scheduled for the day.
    
    
    INDIA TOP NEWS
    • India regulator proposes tighter disclosure for auditors
India's capital markets regulator, Securities and Exchange Board of India
(SEBI), proposed on Thursday ramping up disclosure for auditors of listed
companies, after a number of firms abruptly resigned from audit assignments
without citing sufficient reasons, leaving investors in the dark.
    • India's consumer goods growth slows as rural demand cools- Nielsen
India's consumer goods industry is losing steam as spending in the country's
rural heartland cools and small manufacturers lose competitive advantages in a
slowing economy, market research firm Nielsen said on Thursday.
    • India's monsoon rains below average in past week, raising crop worries
India's monsoon rains were 20% below average in the week ending on Wednesday,
the weather office said, as summer showers turned patchy over the central,
western and southern parts of the country, raising concerns over the progress of
crop plantings.
    
    
    GLOBAL TOP NEWS
    • Japan's core inflation hits 2-yr low, might push BOJ to ease again soon
Japan's core inflation slowed to its weakest in about two years in June, data
showed, underlining the nation's long battle to boost consumer prices and adding
to speculation the Bank of Japan could deliver more stimulus later this month.

    • U.S.-China officials discuss trade; Mnuchin eyes possible in-person talks
U.S. and Chinese officials spoke by telephone on Thursday as the world's two
largest economies seek to end a year-long trade war, with U.S. Treasury
Secretary Steven Mnuchin suggesting in-person talks could follow.
    • U.S. says Navy ship 'destroyed' Iranian drone in Gulf
The United States said on Thursday that a U.S. Navy ship had "destroyed" an
Iranian drone in the Strait of Hormuz after the aircraft threatened the vessel,
but Iran said it had no information about losing a drone.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.3% higher at 11,638.50.
    • The Indian rupee is expected to open higher against the dollar as comments
by two Federal Reserve policymakers boosted the likelihood of a half a
percentage-point U.S. interest rate cut this month.
    • Indian government bonds are likely to open little changed after falling
yesterday, as markets await fresh supply of notes while a rebound in crude oil
prices is also likely to hurt sentiment. The yield on the benchmark 7.26% bond
maturing in 2029 is likely to trade in a 6.35%-6.40% range till the auction
result today.
    
    
    GLOBAL MARKETS
    • U.S. stocks moved higher on Thursday after a slow start as comments from
New York Fed President John Williams helped cement expectations for an interest
rate cut from the U.S. central bank at the end of the month.
    • Asian stocks gained after a top Federal Reserve official all but cemented
expectations of a U.S. interest rate cut later this month.
    • The dollar was on the defensive after Federal Reserve officials bolstered
expectations of an aggressive rate cut this month to address weakening price
pressures.
    • U.S. Treasury yields declined on Thursday after a Federal Reserve official
said policymakers need to add stimulus early to address too-low inflation when
interest rates are near zero and said they cannot wait for economic disaster to
unfold.
    • Oil prices rose more than 1% after the U.S. Navy destroyed an Iranian
drone in the Strait of Hormuz, a major chokepoint for global crude flows, again
raising tensions in the Middle East.
    • Gold prices rose to their highest in more than six years, supported by
fresh tensions in the Middle East and comments from a top Federal Reserve
official that cemented expectations of an interest rate cut.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         68.92/68.95  July 18          -$204.07 mln  -$150.25 mln
 10-yr bond yield  6.38 pct     Month-to-date    -$834.63 mln  $683.34 mln
                                Year-to-date     $10.50 bln    -$717.42 mln
 
    
    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 = 68.8500 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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