June 4, 2019 / 3:34 AM / 4 months ago

Morning News Call - India, June 4

Morning News Call - India edition will not be published on Wednesday, June 5, as
markets are closed for Id-Ul-Fitr (Ramzan Id)
    
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    FACTORS TO WATCH
    No major events are scheduled for the day.
    
      
    INDIA TOP NEWS
    • Reserve Bank seen cutting rates, may turn "accommodative" after dismal GDP
    A worrying slowdown in India's economy makes a cut in the central bank's
benchmark interest rate highly likely this week, but analysts say policymakers
should also find ways to boost banks' liquidity to ensure they drop their
lending rates too. 
    • India factory activity grows at fastest pace in 3 months in May - PMI
    India's manufacturing sector expanded at its quickest pace in three months
in May on improved output and new orders, according to a private business survey
which also showed a pick up in hiring.
    • Indian industry seeks tax rate cut in state budget as growth slows
    The Confederation of Indian Industry (CII) urged the government on Monday to
cut the corporate tax rate to 25% from the current range above 30% when its
budget for the year ending March 31, 2020 is presented next month. 
           
    
    GLOBAL TOP NEWS
    • U.S. moving toward major antitrust probe of tech giants
    The U.S. government is gearing up to investigate whether Amazon, Apple,
Facebook and Google misuse their massive market power, sources told Reuters on
Monday, setting up what could be an unprecedented, wide-ranging probe of some of
the world's largest companies.
    • Mexico draws red line on asylum as Trump tariff risk rises
    Mexico said on Monday it would reject a U.S. idea to take in all Central
American asylum seekers if it is raised at talks this week with the Trump
administration, which has threatened to impose tariffs if Mexico does not crack
down on illegal immigration.
    • USTR, Treasury say China pursuing 'blame game' on trade talks breakdown
    U.S. President Donald Trump's administration said on Monday that China was
pursuing a "blame game" in recent public statements and a weekend white paper
that misrepresented the trade negotiations between the world's two largest
economies. 
   
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.5% lower at 12,064.00.
    •  The Indian rupee is expected to open higher against the dollar after a
top Federal Reserve official said that a rate cut may be needed amid muted
inflation and intensifying trade worries. 
    • Indian government bonds are likely to rise in early trade, tracking U.S.
    Treasury yields and as investors expect a rate cut by the Indian monetary
authority later this week. The yield on India’s benchmark 7.26% bond maturing in
2029 is likely to trade in a range of 6.90%-6.95% today.  
  
    
    GLOBAL MARKETS
    • The Nasdaq tumbled 1.6% on Monday, confirming a correction as it was
dragged down by Alphabet, Facebook and Amazon.com on fears the companies are the
targets of U.S. government antitrust regulators.
    • Shares in Asia inched higher and safe-haven assets gave up some overnight
gains, as investors paused for breath after a volatile Wall Street session, but
deeper concerns about growth have capped broader improvements in risk sentiment.

    • The dollar was on the defensive after taking a beating against peers such
as the euro and yen, hurt by a sharp slide in U.S. Treasury yields as traders
raised their bets for a near-term rate cut by the Federal Reserve.
    • U.S. Treasury yields fell to their lowest levels since September 2017 on
Monday as investors piled more cash into low-risk debt to seek protection from
market volatility due to growing trade conflicts between the United States and
its trade partners.
    • Oil prices were pressured by an economic slowdown that has started to
impact fuel consumption, although some support came from a Saudi Arabian
statement that consensus was emerging with other producers over extending supply
cuts.
    • Gold prices rose, holding near a more than three-month high hit in the
previous session, as worries over a global recession due to trade conflicts
drove investors to find refuge in safe-haven assets.
    
        
                   CLOSE        FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         69.29/69.32  June 3           --          $76.24 mln
 10-yr bond yield  6.98%        Month-to-date    $1.42 bln   --
                                Year-to-date     $11.19 bln  -$2.05 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 = 69.0970 Indian rupees)
    
    

 (Compiled by Hrithik Kiran Bagade in Bengaluru)
  
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