June 19, 2020 / 3:23 AM / 16 days ago

Morning News Call - India, June 19

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
    No major events are scheduled. 
    
    
    INDIA TOP NEWS
    • India plans extra tariffs, trade barriers on 300 imported products
-sources
    India plans to impose higher trade barriers and raise import duties on
around 300 products from China and elsewhere, two government officials said, as
part of an effort to protect domestic businesses.
    • Indian PM Modi opens coal mining to private sector
    Indian Prime Minister Narendra Modi on Thursday officially launched the
auction of 41 coal mines with an annual production capacity that is nearly one
third of national total output.
    • Fitch cuts India's sovereign rating outlook to 'negative' 
    Fitch cut its outlook on India's sovereign rating to "negative" from
"stable" on Thursday and forecast a 5% contraction in growth for the current
fiscal year, saying the coronavirus outbreak was extracting a heavy toll on the
economy.
    • India tells two state firms not to use China telecoms gear, source says
    India has told two state-run telecoms firms to use locally-made rather than
Chinese telecom equipment to upgrade their mobile networks to 4G, a senior
government source said on Thursday.
    • Reliance says Saudi's PIF to invest 113.67 billion rupees in Jio
    Saudi Arabia's Public Investment Fund (PIF) will buy a 2.32% stake in
Reliance Industries' digital unit Jio Platforms for 113.67 billion rupees, the
Indian conglomerate said on Thursday.
    • India to launch new rural job programme for migrants
    India will launch a new rural jobs programme on Saturday to alleviate the
distress of hundreds and thousand of migrants who have lost their jobs and
returned to their villages due to the strict lockdown aimed at containing the
spread of the new coronavirus.
    • Satellite images suggest Chinese activity at Himalayan border with India
before clash
    In the days leading up to the most violent border clash between India and
China in decades, China brought in pieces of machinery, cut a trail into a
Himalayan mountainside and may have even dammed a river, satellite pictures
suggest.
    • India's rice output could hit record as farmers expand area
    India's rice production is likely to surge to a record high as farmers are
expanding the area under paddy because of good monsoon rains and after the
government raised the price at which it will buy the new-season crop.

    
    
    GLOBAL TOP NEWS
    • Trump renews threat to cut ties with Beijing, a day after high-level
U.S.-China talks
    President Donald Trump on Thursday renewed his threat to cut ties with
China, a day after his top diplomats held talks with Beijing and his trade
representative said he did not consider decoupling the U.S. and Chinese
economies a viable option.
    • Japan's deflation gathers pace as prices extend declines
    Japan's core consumer prices fell for a second straight month in May,
reinforcing deflation expectations and raising the challenge for policymakers
battling to revive an economy reeling from the coronavirus pandemic.

    • OPEC+ pushes for compliance, undecided on oil cut extension
    An OPEC+ panel pressed countries such as Iraq and Kazakhstan on Thursday to
comply better with oil cuts and left the door open for extending or easing
record production curbs from August.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.5% lower at 10,025.30. 
    • The Indian rupee is expected to trade lower against the U.S. currency,
tracking the dollar index’s rise to near two-week highs amid tepid risk
appetite. 
    • India’s government bond yields are likely to edge higher in early session,
as a weekly auction today will add to supply and on uncertainty about likely
central bank steps to support the debt market. The yield on the benchmark 5.79%
bond maturing in 2030 is likely to trade in a range of 5.80%-5.86% until the
auction outcome today. 
    
    
    GLOBAL MARKETS
    • The S&P 500 closed nominally higher on Thursday as investors weighed a
resurgence in coronavirus infections and the possibility of a new round of
shutdowns as well as data that suggested the U.S. economy might not bounce back
with quick, V-shaped recovery.
    • Asian shares and U.S. stock futures wobbled in choppy trade on Friday as
lingering concerns about an fresh spike in coronavirus cases offset growing
hopes for a quick economic recovery.
    • The dollar headed for its best week in a month as a resurgence in
coronavirus cases knocked confidence in a rapid economic recovery and drove
investors to the safety of the world's reserve currency.
    • U.S. Treasury yields fell on Thursday after cases of the novel coronavirus
rose in several U.S. states, deepening concerns that the economy may not bounce
back as quickly as hoped.
    • Oil prices pushed higher in early trade, building on gains in the previous
session, after OPEC producers and allies promised to meet their supply cut
commitments and two major oil traders said demand was recovering well.
    •  Gold prices were little changed as fears of a second wave of coronavirus
infections buoyed demand for the safe-haven asset, but a stronger U.S. dollar
and hopes of a swift economic recovery limited the upside.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         76.11/76.14  June 18          777.02       (475.72) crores
                                                 crores       
 10-yr bond yield  5.82%        Month-to-date    19,970       (3,143) crores
                                                 crores       
                                Year-to-date     (20,375)     (1,08,557) 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= 76.32 Indian rupees)

 (Compiled by Nachiket Tekawade 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