March 27, 2018 / 3:25 AM / 9 months ago

Morning News Call - India, March 27

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    FACTORS TO WATCH
    9:00 am: Bandhan Bank MD Chandra Shekhar Ghosh at the bank’s listing
ceremony in Mumbai.
    10:00 am: Finance Commission officials to hold conference with members of
Parliament in New Delhi. 
    11:00 am: Budget session of Parliament resumes in New Delhi.
    11:30 am: Commerce Secretary Rita Teotia, BHEL Executive Director V.K.
Chauhan at CII Exim Bank Conclave in new Delhi.
    12:30 pm: All India Gems & Jewellery Trade Council to announce new
initiative in Mumbai. 
    1:00 pm: NITI Aayog CEO Amitabh Kant at Atal Innovation Mission in New
Delhi.
    
    TRADING INDIA FORUM - INDIA FIXED INCOME
    The Indian 10-year had a torrid time towards the end of 2017 and the
beginning of 2018. The latest CPI readings seem to point to an extended pause by
the RBI. What is in store for 2018 and when will (if) the RBI hike rates? We
speak to Suyash Choudhary, Head of Fixed Income at IDFC Asset Management. To
join the conversation, click on the link: here
    
    GMF: LIVECHAT - TRADE & FED FOCUS
Markets in Asia reacted sharply to an alarming rise in protectionist rhetoric
and risk of retaliation in US-China trade ties. The inclusion of a 30-day
consultation period, however, allows time for negotiations and exemptions.
Meanwhile, the Fed is expected to hike rates at least twice more in 2018, though
inflation and other data will continue to guide as earlier. Jim Walker, founder
and MD at Asianomics, will discuss the potential risks and opportunities for
2018 at 09:30 am IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • ICICI Securities IPO raises lower than expected $540 million 
    ICICI Securities' initial public offering raised a lower-than-expected $540
million after the Indian brokerage fell short of covering its order books
against a backdrop of investor caution about rich valuations and a volatile
stock market.
    • JSW Steel to invest $500 million in U.S. operations 
    India's JSW Steel Ltd said on Monday it would spend $500 million to build
out its U.S. operations in Texas, amid heightened global trade tensions
following U.S President Donald Trump's decision to pursue steep import
tariffs.
    • Once hot favourite, India bonds lose their charm for foreign investors
    After betting strongly on Indian bonds last year, foreign investors are
cutting their holdings as a tumbling rupee erodes their returns and economic
risks cloud the outlook of a once-hot emerging market play.
    • China's OPPO embraces Xiaomi's flash sale gambit to grow Indian base 
Chinese smartphone maker OPPO, which has ceded ground to Xiaomi in the Indian
market, is looking to take a page out of its Chinese rival's marketing playbook
with plans to hold its first online flash sale in the country early next
week.
       
    
    GLOBAL TOP NEWS
    • U.S. seeks China trade moves on autos, financials, chips -source
    Top Trump administration officials are asking China to cut tariffs on
imported cars, allow foreign majority ownership of financial services firms and
buy more U.S.-made semiconductors in negotiations to avoid plans to slap tariffs
on a host of Chinese goods and a potential trade war.
    • GM says South Korean unit will file for bankruptcy if no union concessions
by April 20
    General Motors said its loss-making South Korean operations would file for
bankruptcy if its union did not agree to cut labour costs by April 20, the union
said.
    • South Korea says watching Beijing 'very closely' amid reports of Kim visit
    Events are happening quickly on the Korean peninsula with planned summits
between North and South Korea and the United States, a presidential official in
Seoul said, amid reports that North Korean leader Kim Jong Un is in China.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    The SGX March Nifty Futures were trading at 10,165.50, up 0.2 percent from
its previous close.
    The Indian rupee will likely open higher against the dollar as reports of
trade negotiations between U.S. and China boosted regional currencies and risk
assets.
    Indian government bonds are likely gain sharply as the federal government
will borrow a lower-than-expected 2.88 trillion rupees in the first six months
of the next financial year, boosting investor demand. The yield on the benchmark
7.17 percent bond maturing in 2028 is likely to trade in 7.47 percent-7.54
percent band today.

    
    
    GLOBAL MARKETS
    • Wall Street scored its best day in 2-1/2 years and the Dow Jones
Industrial Average saw its third-biggest point gain ever on Monday, as trade war
fears eased on reports the United States and China are willing to renegotiate
tariffs and trade imbalances.
    • Asian share markets rose sharply on Tuesday as reports of
behind-the-scenes talks between the United States and China rekindled hopes a
damaging trade war could be averted, in turn sapping the strength of the dollar
and yen.
    • The safe haven Japanese yen sagged, as optimism that the United States and
China could begin negotiations on trade helped ease concerns about a trade war,
bolstering demand for riskier assets.
    • U.S. Treasury yields rose and the yield curve flattened on Monday
following a lackluster two-year note auction, in a test of investor appetite
following last week's strong run spurred by nervousness about a global trade
war.
    • Oil prices rose, pushed up by concerns that tensions in the Middle East
could lead to supply disruptions.
    • Gold prices inched lower amid reports of trade negotiations between the
United States and China, which eased fears of a trade war and improved
investors' appetite for riskier assets. 
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES   DEBT
 PNDF spot         64.81/64.84  March 26         -          $104.83 mln
 10-yr bond yield  7.72 pct     Month-to-date    $1.97 bln  -$1.01 bln
                                Year-to-date     $2.07 bln  $79.42 mln
 
        
    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 = 64.82 Indian rupees)

 (Compiled by Pathikrit Bandyopadhyay in Bengaluru)
  
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