July 20, 2020 / 3:22 AM / 23 days ago

Morning News Call - India, July 20

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Mike Dolan, Reuters Editor at Large, Finance & Markets, joins the forum to
discuss events and trends to look out for in the week ahead. To join the
conversation at 3:30 pm IST, click on the link: refini.tv/2P8N0Wp
    • HDFC Bank June qtr profit rises by a fifth, warns of higher defaults
The net profit of India's largest private lender, HDFC Bank, grew by nearly a
fifth, it said on Saturday, driven by higher interest income and lower costs.

• Over 1 million: India joins U.S., Brazil in grim coronavirus club
India on Friday became the third country in the world to record more than one
million cases of the new coronavirus, behind only the United States and Brazil,
as infections spread further into the countryside and smaller towns.

• U.S. passenger flights to India can resume July 23
The government of India has agreed to allow U.S. air carriers to resume
passenger services in the U.S.-India market starting July 23, the U.S.
Transportation Department said on Friday.
• U.S. energy secretary signs initial agreement with India on emergency oil
The United States and India signed a preliminary agreement on Friday on
cooperating on emergency crude oil reserves, including the possibility of India
storing oil in the U.S. emergency stockpile, officials said.
• Indian defence minister hoping for a resolution to border row with China
India's defence minister said on Friday he hoped talks could bring some sort of
resolution to a border standoff with China that led to a deadly clash last
month, though India would not cede an inch of territory.
• Cadila aims to complete trial of coronavirus vaccine by March
Zydus Cadila plans to complete late-stage trials for its novel coronavirus
vaccine candidate by February or March and could produce up to 100 million doses
a year initially if it is successful, the company chairman said Friday.

• India's petrol, diesel demand falls due to high prices, lockdown
Indian state refiners' petrol and diesel sales declined in the first half of
July from the same period last month, according to preliminary data, as a
renewed lockdown in parts of the country and rising retail prices hit demand.

    • Japan exports sink again in June, raises economic risks at home and
Japan's exports suffered a double-digit decline for the fourth month in a row in
June as the coronavirus pandemic took a heavy toll on global demand, reinforcing
expectations that the economy has sunk into its deepest recession in decades.

• China keeps lending benchmark LPR steady for 3rd month, as expected
China kept its benchmark lending rate steady for the third straight month,
matching market expectations, amid signs that the world's second-largest economy
is recovering from the shock coronavirus pandemic.
• EU leaders struggle with "mission impossible" at deadlocked recovery summit
EU leaders stood at an impasse on Monday after three days of haggling over a
plan to revive economies throttled by the COVID-19 pandemic, but the chairman of
their near-record-length summit urged them to make one last push on "mission

    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.4% lower at 10,892.50.
• The Indian rupee is expected to trade little changed against the U.S currency
amid focus on foreign fund flows even as the dollar index rebounded from
more-than-four-month lows.
• India bond yields will likely trade little changed in early session ahead of a
debt switch auction later today, while broad market awaits measures from the
central bank to absorb excess supply. The yield on the benchmark 5.79% bond
maturing in 2030 is likely to trade in a range of 5.78%-5.83%.
    • The S&P 500 ended higher on Friday as investors weighed the prospect of
more fiscal stimulus against fears of further business disruptions due to a
record rise in COVID-19 cases.
    • Asian shares began warily as investors eyed efforts to stitch together
more fiscal stimulus in the eurozone and United States to help economies ride
out the effects of a record jump in COVID-19 cases globally.
    • The euro hovered near four-month highs against the dollar as investors
held on to hopes that European leaders would break a deadlock and hammer out an
economic rescue deal as their marathon summit reached a record length.
    • U.S. Treasury yields rose on Friday as investors weighed the prospect of
new economic damage from shutdowns meant to stem the spread of COVID-19 against
the possibility that the worst has passed.
    • Oil prices dipped, weighed down by the prospect that a rise in the pace of
coronavirus infections could derail a recovery in fuel demand.
    • Gold held firm above the psychological level of $1,800 per ounce, as a
weaker dollar and concerns over surging COVID-19 cases around the globe kept the
safe-haven metal underpinned.
                   CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot         75.01/75.04  July 17          (1202.38) crores  (613.28) crores
 10-yr bond yield  5.80%        Month-to-date    (6,058) crores    193 crores
                                Year-to-date     (24,571) crores   (1,06,766) 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 = 74.90 Indian rupees)

 (Compiled by Siddharth Athreya V in Bengaluru)
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