May 20, 2020 / 3:38 AM / 17 days ago

Morning News Call - India, May 20

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    FACTORS TO WATCH
    5:00 pm: World Bank India Country Director Junaid Kamal Ahmad will be
present at a webinar on “Impact of COVID-19 to the Indian Economy as well World
Economy.” in New Delhi.
    7:00 pm: Principal Economic Advisor Sanjeev Sanyal will be present at India
Today’s e-conclave on ‘Deconstructing Stimulus 2.0.’ in New Delhi.

LIVECHAT- EQUITIES FOCUS
Reuters stocks correspondents in London and New York discuss how a busy news
week is playing out on equity markets.To join the conversation at 07:30 pm IST,
click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    •India coronavirus infections surge past 100,000, deaths top 3,000 
    Coronavirus cases in India reached 100,000 on Tuesday, matching its number
of intensive care beds, and the rate of increase of new infections showed little
sign of slowing.
    •India resumes purchases of Malaysian palm oil - traders
    Indian buyers have resumed purchases of Malaysian palm oil after a
four-month gap following a diplomatic row, with buying spurred by a fall in
domestic inventories and discounted prices, trade sources said.
    •Hundreds of thousands evacuated as India, Bangladesh brace for super
cyclone
    India and Bangladesh evacuated around half a million people out of the way
of the most powerful storm in a decade ahead of its landfall on Wednesday amid
fears of heavy damage to houses and crops and disruption of road, rail and power
links.
    •NMC founder owes over $250 million to Bank of Baroda-court document 
    Bank of Baroda is seeking to recover loans worth more than $250 million from
NMC founder BR Shetty and his companies and an Indian court has barred him and
his wife from selling or transferring some properties while it hears the case, a
court document showed.
    •WeWork India lays off 20% of workforce as virus lockdowns weigh
    WeWork's India franchise said on Tuesday it laid off 100 employees, or 20%
of its workforce, as the office-sharing startup joins a slew of firms that are
cutting costs and revamping operations as a prolonged nationwide lockdown to
curb the coronavirus has kept people indoors.

    
    GLOBAL TOP NEWS
    •Mnuchin defends U.S. fiscal response to pandemic, seeks payroll loan
extension
    U.S. Treasury Secretary Steven Mnuchin on Tuesday defended the Trump
administration's fiscal response to the coronavirus pandemic and told senators
he was willing to consider extending and modifying a payroll loan program for
small businesses.
    •Japan's March machinery orders fall as damage from pandemic spreads
    Japan's core machinery orders slipped in March, suggesting a widening hit to
the economy from the coronavirus although the pace of decline was offset by a
large number of orders for big-ticket items.
    •China leaves lending benchmark LPR unchanged, as expected
    China held its benchmark lending rate steady as expected, mirroring the
central bank's decision last week to keep borrowing costs on medium-term funding
for financial institutions unchanged.

    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    •SGX Nifty nearest-month futures were trading 0.3% higher at 8,918.
    •The Indian rupee is expected to trade little changed against the dollar as
U.S. stocks fell overnight following a report that deflated the early optimism
on the coronavirus vaccine.
    •The Indian government bond yields will likely trade little changed in early
session as investors await measures by the central bank to support debt market
appetite.The yield on the benchmark 6.45% bond maturing in 2029 is likely to
trade in a range of 6.00%-6.05% today.

    
    GLOBAL MARKETS
    • The S&P 500 closed lower on Tuesday, as investors focused on a report
questioning Moderna's recent coronavirus vaccine early-stage trial results,
wiping out modest gains on the benchmark index in the last hour of trading.
    • Asian stocks struggled to extend the week's rally and gold and bonds
firmed as a sceptical press report dented some hopes for a COVID-19 vaccine and
concerns about bumps in the global recovery from the pandemic returned.

    • The euro held firm, basking in the afterglow of a Franco-German proposal
for a common fund that could move Europe closer to fiscal union.

    • U.S. Treasury yields fell on Tuesday as Federal Reserve Chair Jerome
Powell shed no new light on the government's economic response to the
coronavirus pandemic and the market looked ahead to the return of the 20-year
bond.

    • Oil prices dipped as concerns over the lasting economic fallout from the
coronavirus pandemic outweighed signs of improving demand and production cuts by
major oil producers.
    • Gold prices were steady as a rising dollar offset support for the metal
from easing equities and growing concerns of a global recession.
    
                CLOSE        FII INVESTMENTS  EQUITIES          DEBT
 PNDF spot      75.65/75.68  May 19           (2,522.53) crore  (1,531.30) crore
 10-yr bond     6.04 pct     Month-to-date    12,330 crore      (19,406) crore
 yield                                                          
                             Year-to-date     (42,584) crore    (101,885) 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 = 75.66 Indian rupees)
 


 (Compiled by Prajakta Gadgil in Bengaluru)
  
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