June 11, 2020 / 3:11 AM / a month ago

Morning News Call - India, June 11

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    FACTORS TO WATCH
    11:00 am: Prime Minister Narendra Modi at Indian Chamber of Commerce’s
annual plenary session in New Delhi.
    4:00 pm: Health ministry likely to brief on COVID-19 situation in New Delhi.
        
    
    INDIA TOP NEWS
    • India inflation likely to have hit six-month low in May: Reuters poll
    India consumer price inflation is likely to have moderated to a six-month
low in May on a softer rise in food prices as supply disruptions eased after
businesses reopened from the coronavirus lockdown in many parts of the country,
a Reuters poll found.
    • S&P affirms India's long-term sovereign credit rating, outlook
    Standard and Poor's affirmed its rating on India's long-term foreign and
local currency sovereign credit at the lowest investment-grade level and
retained its stable outlook on the economy on Wednesday.
    • India's fuel demand nearly doubles in May as lockdowns ease
    India's fuel demand nearly doubled in May from the previous month as the
country eased coronavirus-led restrictions, Oil Ministry data showed on
Wednesday, signalling a slow revival of economic activity.
    • Panacea says aiming to make COVID-19 vaccine
    Indian biotech firm Panacea Biotec said on Wednesday it would partner with
U.S.-based Refana to make a potential vaccine for COVID-19.
    • Indians pawn gold for loans as borrowing from banks becomes tougher
    Many Indians are using gold to secure loans, bankers and industry experts
say, as banks are otherwise increasingly unwilling to lend during the
coronavirus pandemic due to fear of the loan souring.
    • Tiny Singapore replaces U.S. as India's top market for engineering exports
    Singapore replaced the United States as India's biggest overseas market for
engineering parts in April, with exports rising 95% to $553 million from a year
earlier, a trade body said, as statistics are upended by coronavirus lockdowns.

    • HPCL delays $3 billion Vizag refinery expansion - source
    Hindustan Petroleum has pushed back the completion of a billion-dollar
expansion at its southeastern Vizag refinery to at least October-November due to
a labour shortage and the onset of monsoon, a company source said.
    • Dutch Tata Steel employees strike over planned job cuts -union 
    Workers at Tata Steel's Dutch operations went on strike on Wednesday to
protest against planned job cuts, the FNV union said.
    
    
    GLOBAL TOP NEWS
    • Fed vows to support U.S. economy's 'long road' to recovery after dire 2020
    The U.S. Federal Reserve on Wednesday signaled it plans years of
extraordinary support for an economy facing a torturous slog back from the
coronavirus pandemic, with policymakers projecting the economy to shrink 6.5% in
2020 and the unemployment rate to be 9.3% at year's end.
    • South Korea June 1-10 exports soar 20.2%, raising global recovery hopes
    South Korea's exports for the first 10 days of June soared 20.2% from the
same period a year earlier, raising hopes for a firm recovery in shipments for
the trade-reliant economy as many countries lift stringent coronavirus lockdown
measures.
    • George Floyd's brother decries 'a modern-day lynching' in testimony to
U.S. Congress
    George Floyd's younger brother took his grief to the U.S. Congress on
Wednesday with an impassioned plea that lawmakers not let his brother's death be
in vain, lamenting that he "didn't deserve to die over $20" in a what he called
a lynching.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)    
    • SGX Nifty nearest-month futures were 0.4% lower at 10,098.
    • The Indian rupee is expected to trade little changed against the dollar
after the U.S. Federal Reserve projected interest rates could remain near zero
till 2022 to help the economy rebound from the coronavirus outbreak, driving the
dollar index, shares, and Treasury yields lower.
    • Indian government bond yields are likely to fall in early session, after
S&P Global Ratings yesterday affirmed the country’s sovereign rating and
maintained its stable outlook. The yield on the benchmark 5.79% bond maturing in
2030 is likely to trade in a range of 5.70%-5.75%.
    
    
    GLOBAL MARKETS
    • The Dow and S&P 500 ended a choppy session lower on Wednesday after the
Federal Reserve reassured investors of its support for the economy but projected
a 6.5% decline in gross domestic product this year.
    • Asian shares eased while bonds rallied after a downbeat economic outlook
from the U.S. Federal Reserve stoked speculation it would have to add to already
historic levels of stimulus to safeguard recovery.
    • The dollar steadied against riskier currencies and the safe-haven yen hit
a one-month high, as the U.S. Federal Reserve's dour economic outlook spooked
investors.
    • U.S. Treasury yields fell on Wednesday after the Federal Reserve repeated
its promise of continued extraordinary support for the economy and kept the size
of its bond purchase program unchanged.
    • Oil prices fell more than 2% on worries about slow demand growth with
coronavirus cases rising, U.S. crude stockpiles hitting an all-time high and the
U.S. Federal Reserve projecting recovery from the pandemic would take years.

    • Gold prices touched a more than one-week high, as bleak economic
projections from the U.S. Federal Reserve boosted demand for the safe-haven
metal.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         75.58/75.61  June 10          476.70        (499.93) crores
                                                 crores        
 10-yr bond yield  5.77 pct     Month-to-date    22,353        (2,091) crores
                                                 crores        
                                Year-to-date     (-17,992)     (1,07,505) crores
                                                 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= 75.59 Indian rupees)
 

 (Compiled by Nachiket Tekawade in Bengaluru)
  
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