June 1, 2018 / 3:27 AM / 21 days ago

Morning News Call - India, June 1

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    FACTORS TO WATCH
    12:45 pm: Farm Minister Radha Mohan Singh at an awards event in New Delhi.
    2:00 pm: IMD Director General of Meteorology K.J. Ramesh and Earth Sciences
Secretary M. Rajeevan at media briefing on 'New Ensemble Prediction System for
Severe Weather Intensity Forecast' in New Delhi.
    3:00 pm: Farm Secretary S.K. Pattanayak at Small Farmers Agribusiness
Consortium conference in New Delhi.
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
    
    GMF: LIVECHAT - WEEKAHEAD
Reuters EMEA markets editor Mike Dolan discusses the upcoming week's main market
inflection points at 3:30 pm IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    Indian economic growth hits highest rate in almost two years
The Indian economy grew 7.7 percent year-on-year in January-March, its quickest
pace in nearly two years driven by higher growth in manufacturing, the farm
sector and construction.
    
    Air India sale draws a blank in blow to Modi's divestment target
India's high-profile offer to sell a stake in Air India failed to attract a
single bidder by the Thursday deadline, dealing a blow to Prime Minister
Narendra Modi's target for offloading stakes in government-held firms.

    
    POLL-RBI seen turning hawkish in June, raising rates in August
The Reserve Bank of India (RBI) will hike rates in August on concerns that
already above-target inflation will climb further, according to economists in a
Reuters poll, in contrast to a survey just a month ago which saw an increase
only in the second half of 2019.
    
    Nipah virus death toll rises to 15, two new cases found in Kerala
Two new cases of the deadly brain-damaging Nipah virus have been confirmed in
Kerala, where another two people were killed by the virus, a health official
said on Thursday.
    
    Indian sugar output likely to hit record next season as farmers stay sweet
on cane
India’s sugar output is likely to scale record highs in the next marketing
season, with farmers choosing to plant the crop despite falling prices and
around 200 billion rupees in delayed payments from mills for the current
harvest.
    
    Indian opposition surprises with election wins but BJP unruffled
India’s opposition Congress party and some regional allies made a surprisingly
good showing in slew of by-elections for seats in parliament and state
assemblies on Thursday, raising the prospect of a challenge for Prime Minister
Narendra Modi.
    
    Venezuela halts payments to ONGC, San Cristobal imperiled
Venezuela’s state oil company PDVSA has halted payment to India’s ONGC Videsh
Ltd (OVL), Managing Director N K Verma said on Thursday, a move that could
threaten the future financing of the San Cristobal energy project in the
sanctions-hit South American nation.
    
    Mallya resigns as Force India F1 director
Co-owner Vijay Mallya has resigned as a director of the Force India Formula One
team but will continue to serve as principal and shareholder.
    
    
    GLOBAL TOP NEWS
    U.S. allies hit back at Washington's steel, aluminum tariffs
Canada and Mexico retaliated against the U.S. decision on Thursday to impose
tariffs on steel and aluminum imports and the European Union had its own
reprisals ready to go, reigniting investor fears of a global trade war.

    
    Australian banking in shock as ANZ faces criminal charges
Australian banking was in shock as No. 3 lender Australia and New Zealand
Banking Group faced criminal cartel charges over a $2.3 billion share issue,
along with underwriters Deutsche Bank and Citigroup.
    
    Trump plays down chances of quick breakthrough as North Koreans bring letter
U.S. President Donald Trump on Thursday played down the chances of a quick deal
to get North Korea to abandon its nuclear weapons as a delegation from Pyongyang
headed to meet him with a letter from North Korean leader Kim Jong Un,
suggesting a proposed summit may be back on.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    SGX Nifty nearest-month futures were up 0.1 percent at 10,728.50.
    
    The Indian rupee will likely open little changed against the dollar as
upbeat local gross domestic product data offsets concerns about increased
prospects of a trade war between the U.S. and its allies.
    
    Indian government bonds are likely to edge lower in early trade ahead of a
fresh supply of bonds and as a higher-than-estimated gross domestic product
growth in January-March has increased prospects of monetary tightening. The
yield on the benchmark 7.17 percent bond maturing in 2028 is likely to trade in
7.81-7.86 percent band till the bond auction outcome today.
    
    
    GLOBAL MARKETS
    • U.S. stocks fell on Thursday after the United States moved to impose
tariffs on metal imports from Canada, Mexico and the European Union, prompting
retaliatory measures from some of its trading partners.
    • Asian equities sagged as worries about U.S. trade policy hit global
financial markets, which were already shaken this week by political turmoil in
Italy.
    • The euro seemed set to post its first weekly gain in seven weeks as
worries over Italy's political crisis eased, but the Canadian dollar and Mexican
peso were looking frail after Washington went ahead with stiff tariffs on
imported steel.
    • U.S. Treasury yields on the long end of the curve fell on Thursday after
the United States slapped tariffs on steel and aluminum imports from the
European Union, Canada and Mexico, rekindling fears of a trade war.
    • U.S. crude oil lost more ground, with the market set for a second week of
decline on pressure from record U.S. production and expectations of higher OPEC
output.
    • Spot gold prices edged higher as concerns over a global trade war
increased after the United States imposed tariffs on steel and aluminium imports
from Canada, Mexico and the European Union.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         67.50/67.53  May 31           -$2.27 mln  $29.37 mln
 10-yr bond yield  8.01 pct     Month-to-date    --          -$2.56 bln
                                Year-to-date     --          -$4.22 bln
 
        
    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 = 67.4200 Indian rupees)

 (Compiled by Nayyar Rasheed in Bengaluru)
  
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