July 21, 2020 / 3:24 AM / 21 days ago

Morning News Call - India, July 21

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    FACTORS TO WATCH
    5:00 pm: Axis Bank Chief Executive and Managing Director at first-quarter
earnings conference call.​
    
    LIVECHAT - REUTERS GLOBAL MARKETS FORUM
    Indigo Ellis, Head of Africa Risk Insight at Verisk Maplecroft, joins the
GMF to discuss the risks of social unrest in Nigeria and DR Congo due to their
weakening food stability situations and the implications of COVID-19 on the
policy response. To join the conversation at 3:30 pm IST, click here refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India seeks new preferential treatment from U.S. on drugs, other
goods-sources
India is seeking concessions for generic drugs it exports to the United States
in return for opening its dairy markets and slashing tariffs on farm goods as
the two sides seek to shore up a new trade deal, three sources said.
• IndiGo to cut 10% of workforce due to COVID-19 impact
IndiGo, India's biggest airline, said it will cut 10% of its workforce as it
grapples with declining revenues due to the fallout from the COVID-19 pandemic.

• India plans to reduce number of state-owned banks to just five - sources
India is looking to privatise more than half of its state-owned banks to reduce
the number of government-owned lenders to just five as part of an overhaul of
the banking industry, government and banking sources said.
• Indian police arrest 14 for black market remdesivir as COVID-19 cases jump
Indian police have arrested 14 people on suspicion of selling locally made doses
of Gilead Sciences' remdesivir at five times the maximum retail price as a surge
of novel coronavirus cases boosts demand for the antiviral drug.
• IL&FS says aims to resolve nearly 60% of debt despite pandemic delays
Infrastructure Leasing & Financial Services (IL&FS) said on Monday it expected
to resolve about 57% of its near trillion rupee debt pile even as the pandemic
delayed the resolution process in some of the group companies.
• Amazon says exports from India-based sellers cross $2 billion
Amazon.com's total exports from small and medium sellers in India, part of a
company programme to export products to global markets, have crossed the $2
billion mark, two company executives said on Monday.
• Glenmark shares fall as India's drug regulator sends notice on overpricing
India's drug regulator has sent a notice to Glenmark Pharmaceuticals on
overpricing and false claims of its generic version of favipiravir, FabiFlu,
local media reports said, sending shares down on Monday.

        
    GLOBAL TOP NEWS
    • Wave of promising study results raise hopes for coronavirus vaccines
Early data from trials of three potential COVID-19 vaccines released on Monday,
including a closely-watched candidate from Oxford University, increased
confidence that a vaccine can train the immune system to recognize and fight the
novel coronavirus without serious side effects.
• Japan's core consumer prices flat, deflation risks remain
Japan's core consumer prices snapped two straight months of declines in June but
risks remain for a prolonged economic slump from the coronavirus crisis, which
has depressed consumption and raised concerns about a return to deflation.

• EU leaders in 'home stretch' to recovery deal after days of squabbling
European Union leaders appeared close to agreement on a massive stimulus plan
for their coronavirus-blighted economies late on Monday after the chairman of
their fractious four-day summit presented a new proposal to bridge gaps between
them.
  
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 1% higher at 11,116.80.
• The Indian rupee is expected to trade higher against the U.S currency as
promising early human trials of a closely watched coronavirus vaccine weighed on
the safe-haven dollar.
• Indian government bond yields are likely to trade little changed in early
session, ahead of a fresh supply of state debt. The yield on the benchmark 5.79%
bond maturing in 2030 is expected to trade in a 5.78%-5.83% range.
    
    
    GLOBAL MARKETS
    • Wall Street gained ground on Monday and surging technology shares pushed
the Nasdaq to a record closing high, as promising trial results from potential
COVID-19 vaccines helped investors look beyond spiraling new cases of the
disease.
    • Asian shares advanced as prospects of a deal by European Union leaders to
jointly fund recovery of their economies and hopes for a coronavirus vaccine
lifted risk appetite.
    • Progress toward both a coronavirus vaccine and a fiscal rescue package in
Europe put the dollar under pressure and supported commodity currencies and the
euro.
    • U.S. Treasury yields on the long end of the curve were a touch lower on
Monday amid strengthening stocks and ahead of new supply this week.
    • Oil prices were little changed, trapped in the narrow trading band of the
past three weeks as investors gauged hopes for a recovery in oil demand against
fears of new lockdowns due to a growing number of coronavirus cases.
    • Gold edged up after scaling a near nine-year high in the previous session,
as demand was boosted by worries over a spike in COVID-19 cases and expectations
of higher inflation from more stimulus measures to mitigate the economic
blow.
 
           
                   CLOSE        FII INVESTMENTS  EQUITIES         DEBT
 PNDF spot         74.95/74.98  July 20          802.31 crores    65.42 crores
 10-yr bond yield  5.79%        Month-to-date    (5,255) crores   258 crores
                                Year-to-date     (23,768) crores  (1,06,701) 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 = 74.74 Indian rupees)
 

 (Compiled by Siddharth Athreya V in Bengaluru)
  
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