May 19, 2020 / 3:36 AM / 19 days ago

Morning News Call - India, May 19

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    FACTORS TO WATCH
    4:00 pm: Health ministry will be briefing on COVID-19 situation in New
Delhi.
    4:30 pm: NITI Aayog CEO Amitabh Kant will be present at a webinar on “Self
Care of Elderly During COVID-19.” in New Delhi. 
    
    LIVECHAT-CORONAVIRUS IMPACT ON SOUTH EAST ASIAN ECONOMIES
    While the coronavirus has ravaged the globe and developed economies are
pushing for fiscal and monetary stimulus, Southeast Asian economies have their
own challenges. Priyanka Kishore, Head of India and South East Asia, Macro and
Investor Services at Oxford Economics, joins us to discuss how
countries in the region cope and what parts of the economy they should be
concentrating on. To join the conversation at 10:00 am IST, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    •India's capital reopens public transport as nearby Chinese-owned factory is
hit by outbreak 
    India's capital New Delhi and some other state governments ordered the
re-opening of public transport on Monday in a further easing of a nearly
two-month coronavirus shutdown.
    •Bharti Airtel reports Q4 loss of 52.37 billion rupees 
    Bharti Airtel Ltd reported a loss for the fourth quarter on Monday, as it
set aside 56.42 billion Indian rupees for one-time spectrum charges.
    •Unions hit out at Tata Steel plans to make Netherlands bear bulk of
European job cuts 
    Labour representatives at Tata Steel's Dutch operations said on Monday that
the company plans to cut 1,000 jobs in the Netherlands and that the subsidiary's
chairman will step down after opposing the layoffs.
    •Swiggy to lay off 1,100 employees as COVID-19 hits online food orders
    Swiggy said on Monday it would lay off 1,100 employees, or nearly 14% of its
workforce, to cut costs, as a weeks-long nationwide lockdown to curb the
coronavirus outbreak hits demand for online food ordering.
    •Diageo exploring options to delist Indian arm - CNBC TV-18
    Diageo, the world's largest spirits maker, is exploring options to delist
its Indian arm, United Spirits, by buying out minority shareholders, CNBC TV-18
reported on Monday.
    •India IOC nears first deal to export fuel to Bangladesh -sources 
    Indian Oil Corp, the country's top refiner, is close to winning its first
contract to supply diesel, jet fuel and gasoline in the second half of this year
to state-run Bangladesh Petroleum Corp, two sources with knowledge of the matter
said.
    •Israel's ICL Group signs potash supply deal with India's IPL
    Israel's ICL Group said on Monday it signed a contract with Indian Potash
Limited (IPL), India’s largest importer of potash, to supply 410,000 metric
tonnes of potash through December 2020.
    
    
    GLOBAL TOP NEWS
    •Promising virus vaccine results reported as Trump takes anti-malaria drug
    The phased reopening of U.S. business and social life gained traction on
Monday with more Americans emerging from coronavirus lockdowns and financial
markets boosted by promising early results from the first U.S. vaccine trial in
humans.
    •U.S. savages WHO as it promises pandemic review, but China pledges $2
billion
    The World Health Organization said on Monday an independent review of the
global coronavirus response would begin as soon as possible and it received
backing and a hefty pledge of funds from China, in the spotlight as the origin
of the pandemic.
    •Uber to focus on core rides, delivery business as it cuts 23% of workforce
    Uber Technologies will concentrate on its core businesses in ride-hailing
and food delivery and cut 23% of its workforce in an attempt to become
profitable despite the coronavirus pandemic, Chief Executive Officer Dara
Khosrowshahi said in an email to employees on Monday.

    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    •SGX Nifty nearest-month futures were trading 1.8% higher at 8,986.50.
    •The Indian rupee is expected to trade higher against the dollar tracking
gains in Asian and U.S. shares after early trials of an experimental vaccine to
combat the coronavirus showed promise. ​
    •The Indian government bond yields are likely to trade little changed in
early session as traders await steps from the central bank to boost appetite,
after New Delhi recently announced a stimulus plan to shield the economy from
the coronavirus impact. The yield on the benchmark 6.45% bond maturing in 2029
is likely to trade in a range of 6.02%-6.08%.
    
    
    GLOBAL MARKETS
    • U.S. stocks jumped on Monday, and the S&P 500 closed at a 10-week high, on
encouraging early-stage data for a potential coronavirus vaccine and on the
promise of more stimulus to lift an economy beaten down by the pandemic.
    • Asian shares jumped and oil extended gains on optimism the global economy
would recover quickly following a successful early-stage trial of a coronavirus
vaccine, while the euro hovered near a two-week top.
    • The dollar nursed losses against major currencies after encouraging
results from the trial of a vaccine for COVID-19 improved sentiment in a boost
to riskier assets.

    • U.S. Treasury yields advanced on Monday, as investors grew optimistic
about a potential vaccine that could help fight the coronavirus pandemic,
boosting overall risk appetite as stocks and oil gained as well.

    • Oil prices rose, extending gains for a fourth straight session, amid signs
that producers are cutting output as promised just as demand picks up, stoked by
more countries easing out of curbs imposed to counter the coronavirus
pandemic.
    • Gold prices inched up, supported by strained Sino-U.S. relations and a
dismal global economic outlook, although positive news from an early-stage trial
for a coronavirus vaccine spurred some risk appetite and capped the metal's
gains.
    
    
               CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot     75.91/75.94  May 18           (2,510.58) crore  965.61 crore
 10-yr bond    6.05 pct     Month-to-date    14,852 crore      (17,875) crore
 yield                                                         
                            Year-to-date     (40,062) crore    (1,00,354) 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 = 75.74 Indian rupees)
 


 (Compiled by Prajakta Gadgil in Bengaluru)
  
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