July 31, 2020 / 3:23 AM / 14 days ago

Morning News Call - India, July 31

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    FACTORS TO WATCH
    4:00 pm: PMEAC Member Ashima Goyal at ASSOCHAM’s webinar on “Discussion of
Monetary Policy” in Mumbai.
5:00 pm: Government to release June Infrastructure output data in New Delhi.
5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
5:30 pm: Former RBI Governors Y.V. Reddy, D. Subbarao and Former RBI Deputy
Governor Viral Acharya at SAGE’s digital launch of “Quest for Restoring
Financial Stability in India” in Mumbai.
      
    
    INDIA TOP NEWS
    • Reliance's revenue sinks on oil hit, profit up on BP deal gain
Reliance Industries' June-quarter profit rose as the Indian conglomerate booked
a one-time gain from a BP investment, although revenue tumbled as the
coronavirus crisis slammed its refining and petrochemicals businesses.

• China warns India against 'forced decoupling' of their economies
China warned on Thursday that a "forced decoupling" of its economy with India,
following a Himalayan border clash last month that killed 20 Indian soldiers,
would hurt both countries.
• India found cybersecurity lapses at National Payments Corp in 2019 -government
document
A government audit of India's flagship payments processor last year found more
than 40 security vulnerabilities including several it called "critical" and
"high" risk, according to an internal government document seen by Reuters.

• India's 2020 gold demand may hit 26-year low as prices rally - WGC
India's gold demand in 2020 is expected to fall to the lowest level in 26 years
with domestic bullion prices hitting a record high and as falling disposable
incomes could curtail retail purchases, the World Gold Council (WGC) said on
Thursday.
    
    
    GLOBAL TOP NEWS
    • Trump floats election delay, lawmakers in both parties reject idea
President Donald Trump on Thursday raised the idea of delaying the Nov. 3 U.S.
elections, an idea immediately rejected by both Democrats and his fellow
Republicans in Congress - the sole branch of government with the authority to
make such a change.
• Amazon posts biggest profit ever at height of pandemic in U.S.
Amazon.com on Thursday posted the biggest profit in its 26-year history as
online sales and its lucrative business supporting third-party merchants surged
during the coronavirus pandemic.
• Apple delivers blowout earnings amid COVID-19, market shrugs off iPhone delays
Apple on Thursday delivered blowout quarterly results, reporting revenue gains
across every category and in every geography as consumers working and learning
from home during the COVID-19 pandemic turned to its products and services.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.6% higher at 11,146.30. 
• The Indian rupee is expected to trade higher against the U.S. currency after
the dollar index extended losses amid lingering uncertainty over the U.S.
economic recovery. 
• Indian government bond yields will likely trade largely unchanged in early
session, as investors await today’s weekly debt auction that includes a new
10-year paper. 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
    • The S&P 500 and Dow closed lower on Thursday after data painted a worrying
economic picture on a crucial day for corporate earnings reports, while
President Donald Trump exacerbated investor nervousness by floating the
possibility of delaying the U.S. presidential election.
    • Australian shares fell more than 1% on Friday and headed for their second
straight weekly loss a day after the country recorded its deadliest day since
the pandemic's onset, with sentiment further dented by a weak finish on Wall
Street.        
    • The dollar slipped to two-year lows and is on track to post its biggest
monthly decline in 10 years, as investors worried that a recovery in the U.S.
economy could be stymied by a second wave of coronavirus.
    • Traders drove U.S. Treasury yields to their lowest in months on Thursday
after data showed the U.S. economy contracted at its steepest pace in decades
and President Donald Trump tweeted about delaying the Nov. 3 presidential
election.
    • Oil prices rose, recovering further ground after touching three-week lows
in the previous session, hit by a record decline in U.S. growth as the
coronavirus ravaged the world's biggest economy and oil consumer.
    • Gold prices were on track for their best month in more than four years, as
a weaker dollar and worries over the global economic fallout from the mounting
COVID-19 cases drove investors towards the safe-haven metal.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES         DEBT
 PNDF spot         74.80/74.83  July 30          (290.87) crores  (182.77) crores
 10-yr bond yield  5.82%        Month-to-date    6,141 crores     (1,772) crores
                                Year-to-date     (12,372) crores  (1,08,731) 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 = 74.88 Indian rupees)
 
    

 (Compiled by Siddharth Athreya V in Bengaluru)
  
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