May 12, 2020 / 3:09 AM / 19 days ago

Morning News Call - India, May 12

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    FACTORS TO WATCH
    4:00 pm: The Health ministry will brief on the COVID-19 situation in New
Delhi.
    4:15 pm: Finance Minister Nirmala Sitharaman is scheduled to speak at the
36th FLO Annual Session in New Delhi. 
    5:30 pm: The Government will release April consumer price inflation and
March Industrial production data in New Delhi.
    
    LIVECHAT - CORONAVIRUS ECONOMIC IMPACT 
    Lutfey Siddiqi, visiting professor in practice at LSE's London-based foreign
policy think tank IDEAS, previously global head of emerging markets for foreign
exchange, rates and credit at UBS Investment Bank, joins the forum. To join the
conversation at 11:30 am, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India looks to ease lockdown even as coronavirus infections jump 
    India's Prime Minister Narendra Modi said on Monday the country would look
to ease a nearly seven-week lockdown aimed at preventing the spread of the novel
coronavirus, despite also reporting its biggest single-day jump in
cases. 
    • India's automakers warn of up to 45% sales drop as economy slumps amid
pandemic 
    India's automakers have warned that total automobile sales could fall as
much as 45% in the current fiscal year in a worst-case scenario as economic
growth slumps due to the COVID-19 pandemic, and they are seeking government help
through the crisis.  
    • Indian state refiners scale up crude processing as fuel demand improves
    Indian refiners are scaling up crude processing as local fuel demand begins
to improve with a gradual easing of the lockdown aimed at stemming the spread of
coronavirus, company officials said.
    • Indian bond yields surge as govt borrowing balloons 
    India's benchmark 10-year bond yield surged on Monday following the
government's decision to sharply increase market borrowing amid a major hit to
the economy and public finances from the coronavirus pandemic.

    
    GLOBAL TOP NEWS
    • Trump 'not interested' in reopening U.S.-China trade deal after report of
Beijing discontent 
    U.S. President Donald Trump said on Monday he opposed renegotiating the
U.S.-China "Phase 1" trade deal after a Chinese state-run newspaper reported
some government advisers in Beijing were urging fresh talks and possibly
invalidating the agreement.
    • China's factory deflation deepens as pandemic hits demand 
China's factory prices fell at the sharpest rate in four years in April,
highlighting weakening industrial demand in the world's second-largest economy
as the coronavirus pandemic slams global growth. 
    • WeWork directors seek to preserve right to sue owner SoftBank
    A special committee of WeWork board members filed a motion in Delaware on
Monday to prevent it from being disbanded, as it pursues legal action against
majority owner SoftBank Group over an abandoned $3 billion tender offer for the
office space-sharing start-up. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.8% lower at 9,156.
    • The Indian rupee is expected to trade lower against the dollar as tepid
risk appetite amid concerns about a second-wave of coronavirus infections
boosted the U.S. currency.
    • Indian government bond yields are seen lower in early session, on bets
that state-run banks will continue purchases after massive buying yesterday amid
rising yields.The yield on the benchmark 6.45% bond maturing in 2029 is likely
to trade in a range of 6.10%-6.18%. 
    
    
    GLOBAL MARKETS
    • The S&P 500 closed barely higher, eking out a nominal gain on Monday as
investors weighed new spikes in coronavirus infections with expectations that an
economy crippled by mandated shutdowns will soon be re-opened for business.
    • Japan's Nikkei was little changed as investors weighed hopes of economic
re-openings against concerns about further waves of coronavirus
infections.
    • The dollar rose to a two-week high against major peers, propelled by
rising U.S. bond yields and increasing safe-haven demand amid growing fears
about a second wave of coronavirus infections, which sent riskier currencies
lower.
    • Traders pushed U.S. Treasury yields higher on Monday as they anticipated
new government securities being issued to pay for massive stimulus efforts to
prop up the economy amid the COVID-19 pandemic.
    • Oil futures rose, boosted by an unexpected commitment from Saudi Arabia to
deepen production cuts in June to help drain the glut in the global market that
has grown as the coronavirus pandemic crushed fuel demand.
    • Gold prices were steady in early Asian trade after two straight sessions
of falls, as a stronger dollar countered fears of a new wave of coronavirus
infections in many countries.
    
    
                  CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot        75.73/75.76  May 11           2,153.56 crore  (2,441.72) crore
 10-yr bond       6.16 pct     Month-to-date    20,791 crore    (5,265) crore
 yield                                                          
                               Year-to-date     (34,123) crore  (87,744) 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 = 75.87 Indian rupees Indian rupees)
0 : 0
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