July 23, 2020 / 3:21 AM / 15 days ago

Morning News Call - India, July 23

To access a PDF version of this newsletter, please click here here
    
    If you would like to receive this newsletter via email, please register at:
here
    
    
    FACTORS TO WATCH
    10:00 am: Economic Affairs Secretary Tarun Bajaj and Finance Secretary Ajay
Bhushan Pandey at FICCI’s Capital Market Conference in Mumbai.
10:30 am: Central Board of Indirect Taxes and Customs’ Member A.K. Pandey and
GST Council’s Joint Secretary S.K. Rahman at ASSOCHAM’s e-conclave on “3 Years
of GST” in Mumbai.
6:00 pm: PNB Housing Finance first-quarter earnings conference call in Mumbai.
    
    LIVECHAT - REUTERS GLOBAL MARKETS FORUM
    Reuters European government bonds correspondents look at the state of play
in European govvies. To join the conversation at 4:00 pm IST, click here refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • Pompeo urges India to reduce dependence on China
U.S. Secretary of State Mike Pompeo urged India on Wednesday to focus on
domestic supply chains and reduce its dependence on China for telecommunications
and medical supplies, as Washington's ties with Beijing deteriorate
dramatically.
• India watchdog bans former Deloitte partner over IL&FS unit audit
India's National Financial Regulatory Authority on Wednesday imposed a
seven-year audit ban on a former partner of Deloitte's India unit for lapses in
the audit of an infrastructure lender whose debt defaults sparked a credit
crisis in 2018.
• Facebook's WhatsApp to partner with more Indian banks in financial inclusion
push
Facebook's WhatsApp plans to team up with more Indian lenders to expand banking
services in rural areas and for lower income individuals, the messaging
platform's country head said on Wednesday.
• Glenmark's favipiravir version shows promise in late-stage COVID-19 trial 
Glenmark Pharmaceuticals said on Wednesday its version of anti-flu drug
favipiravir showed promise in a late-stage study of 150 patients with mild to
moderate coronavirus infection.
• Mylan gets Indian regulatory approval for tuberculosis drug
Mylan said on Wednesday it has received Indian regulatory approval to make
tuberculosis treatment pretomanid available in a country that accounts for a
quarter of the world's cases.
• Zee Media says Punit Goenka resigns from board of directors
Indian news group Zee Media said on Wednesday that Punit Goenka, chairman and
managing director of Zee Entertainment, had resigned as a non-executive,
non-independent director of its board.
  
    
    GLOBAL TOP NEWS
    • U.S. gives China 72 hours to shut Houston consulate, Trump says other
closures 'always possible'
The United States gave China 72 hours to close its consulate in Houston amid
accusations of spying, marking a dramatic deterioration in relations between the
world's two biggest economies.
• Australia forecasts biggest postwar fiscal deficit on virus-driven stimulus
Australia reported its biggest budget deficit since World War Two on Thursday as
the coronavirus crisis knocks the country into its first recession in three
decades.
• South Korea enters recession as exports plunge by most since 1963
South Korea plunged into recession in the second quarter in its worst economic
decline in more than two decades as the coronavirus pandemic battered exports
and social distancing curbs paralysed factories.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading little changed at 11,121.50.
• The Indian rupee is expected to trade higher against the U.S. currency after
the dollar retreated further against its major peers and Asian currencies.
• Indian government bond yields will likely trade little changed in early
session, as traders await fresh triggers including bond-supportive measures from
the central bank to soothe concerns of excess supply. The yield on the benchmark
5.79% bond maturing in 2030 is likely to trade in a range of 5.80%-5.85%.
    
        
    GLOBAL MARKETS
    • Wall Street ended higher on Wednesday after a see-saw session as investors
digested mixed quarterly results and contentious stimulus negotiations in
Washington.
    • Asian shares slipped as investors' worries over rising tensions between
Washington and Beijing overcame hopes for more stimulus, after the United Sates
ordered the closure of China's consulate in Houston amid accusations of
spying.
    • The dollar crept off milestone lows against other majors and held on to
gains against the yuan, as heightened Sino-U.S. tension put a bit of caution
into currency markets.
    • Yields of long-term U.S. Treasuries bounced off session lows on Wednesday
after an auction of $17 billion of 20-year bonds that analysts dubbed neutral to
a bit weak.
    • Oil prices ticked higher, although gains were limited by a surprise
increase in U.S. crude oil reserves as the coronavirus pandemic hit fuel
consumption.
    • Gold rose to its highest in nearly nine years, driven by an escalation in
U.S.-China tensions, while expectation of more stimulus measures lifted the
metal's appeal as an inflation-hedge.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES         DEBT
 PNDF spot         74.73/74.76  July 22          2,090.21 crores  (1,810.69) crores
 10-yr bond yield  5.81%        Month-to-date    (1,517) crores   (1,185) crores
                                Year-to-date     (20,030) crores  (1,08,144) 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 = 74.60 Indian rupees)
 

 (Compiled by Siddharth Athreya V in Bengaluru)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below