March 23, 2020 / 3:29 AM / 8 days ago

Morning News Call - India, March 23

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    LIVECHAT - MARKETS UPDATE
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    INDIA TOP NEWS
    • Automakers halt production in India due to coronavirus
    India's biggest automaker Maruti Suzuki India and peers including Mahindra &
Mahindra, Mercedes-Benz, Fiat Chrysler Automobiles (FCA) as well as Hyundai
Motor said they will halt car production in the country due to the coronavirus
outbreak.
    • New Delhi and scores of Indian districts under lockdown to contain
coronavirus spread
    New Delhi will be under lockdown until March 31, the Indian capital's
government announced on Sunday, seeking to keep citizens indoors to prevent the
spread of coronavirus and giving police powers to punish violators.
    • Coronavirus undermines Indian crop prices, derails rural rebound
    Indian farmer Banwarilal Bhardwaj was planning to buy a car after harvesting
his winter-sown crops that were promising bumper returns.
    • India tightens regulations to limit virus-led market volatility
    India's market regulator on Friday halved position limits for certain stock
futures, restricted short-selling of index derivatives and raised margin rates
for some shares in a bid to curb "abnormally high" volatility amid the
coronavirus pandemic.
    • India lays out $6 billion roadmap to boost electronics manufacturing 
    India's cabinet has approved a 480 billion rupees plan to boost electronics
manufacturing and woo large investment to a country which, following Prime
Minister Narendra Modi's Make-in-India drive, has become the world's
second-biggest mobile phone manufacturer.
    • Indian banks seek more time over bad loan classification
Indian banks have asked the banking regulator to allow more time before
labelling a loan as bad debt, and they sought longer deadlines to meet certain
capital standards as the coronavirus pandemic derails businesses, sparking
concern over the financial health of banks.
    • India to give incentives for drug and medical device production
India will provide incentives worth 137.6 billion rupees under four different
schemes to boost production of bulk drugs and medical devices over the next six
years, the government said on Saturday.
    • Walt Disney delays India launch of streaming service
Walt Disney has delayed the March 29 launch of its Disney+ streaming service in
India, where it was gearing up to open another front against global rival
Netflix.
    
    
    GLOBAL TOP NEWS
    • China sees drop in new coronavirus cases; all new cases imported
    Mainland China saw a drop in its daily tally of new coronavirus cases,
reversing four straight days of gains, as the capital Beijing ramped up measures
to contain the number of infections arriving from abroad.
    • Domestic travel, airline hubs the latest hit as coronavirus restrictions
tighten
    Airlines cancelled more flights on Monday as Australia and New Zealand
advised against non-essential domestic travel, the United Arab Emirates (UAE)
halted flights for two weeks and Singapore and Taiwan banned foreign transit
passengers.
    • Coronavirus forces states to order nearly 1 in 3 Americans to stay home
    Nearly one in three Americans was under orders on Sunday to stay home to
slow the spread of the coronavirus pandemic as Ohio, Louisiana and Delaware
became the latest states to enact broad restrictions, along with the city of
Philadelphia.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 12% lower at 7,730.75.
    • The Indian rupee is expected to open lower against the dollar after
several parts of the world’s second-most populous nation were locked down to
slow the spread of the coronavirus.
    • Indian government bonds are seen opening lower tracking the rupee’s likely
fall to another record low that may prompt more foreign fund outflows from local
notes and shares. The yield on the benchmark 6.45% bond maturing in 2029 is
likely to trade in a range of 6.22%-6.30% today, a trader with a private bank
said.
    
    
    GLOBAL MARKETS
    • Wall Street wrapped up its worst week since October 2008, with the Dow
Jones Industrial Average and S&P 500 sliding more than 4% on Friday as tough
restrictions imposed by New York and California to try to limit the spread of
the coronavirus fueled worries about damage to the U.S. economy.
    • Asian shares sank as a rising tide of national lockdowns threatened to
overwhelm policymakers' frantic efforts to cushion what is likely to be a deep
global recession.
    • The dollar rose against major currencies as fresh declines in global
stocks and worries about tightening liquidity amid the worsening coronavirus
crisis accelerated the flight to cash.
    • U.S. Treasury yields fell on Friday as an order for New York state
residents to stay at home reinforced concerns about the economic impact of the
coronavirus pandemic, and the Federal Reserve stepped in with measures aimed at
boosting liquidity.
    • Oil prices fell as governments escalated lockdowns to curb the spread of
the global coronavirus outbreak that has slashed the demand outlook for oil and
threatened a global economic contraction.
    • Gold prices fell as investors liquidated their positions in the safe-haven
metal despite stimulus measures from global central banks to combat economic
damage from the coronavirus outbreak.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot         74.96/74.99  March 20         (3,340.85) crore  2,265.31 crore
 10-yr bond yield  6.26%        Month-to-date    (49,507) crore    (49,228) crore
                                Year-to-date     (35,564) crore    (58,779) crore
 
    (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 = 75.36 Indian rupees)

 (Compiled by Swathi Nair in Bengaluru)
  
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