May 24, 2019 / 3:27 AM / a month ago

Morning News Call - India, May 24

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    FACTORS TO WATCH
    5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
    5:00 pm: India’s outgoing Cabinet likely to meet to pass resolution to
dissolve 16th Lok Sabha in New Delhi.
    5:30 pm: India’s outgoing Council of Ministers likely to meet in New Delhi.
    
    GMF: LIVECHAT - CHARTS & CHAT
    Reuters Stocks Buzz writer and chartist Terence Gabriel calls out risks and
opportunities in global markets via the charts at 8:00 pm IST. To join the
conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • Modi stuns opposition with huge election win
Indian Prime Minister Narendra Modi scored a dramatic election victory on
Thursday, putting his Hindu nationalist party on course to increase its majority
on a mandate of business-friendly policies and a tough stand on national
security.
    • Modi will need to hit the ground running with economy, Pakistan
From a shortage of job opportunities and a stuttering economy to tense ties with
old foe Pakistan, Indian Prime Minister Narendra Modi will face a host of
challenges after winning a big majority on Thursday.
    • Australian state says Adani coal approvals due by mid June
Australia's Queensland state said that the process to obtain final approvals for
Adani Enterprise's controversial Carmichael coal mine must be wrapped up by
mid-June.
    • India's jobs deficit: Project in Gujarat struggling to create employment
When he was chief minister of the Indian state of Gujarat in 2011, Indian Prime
Minister Narendra Modi kicked off an ambitious project to develop a financial
hub in the style of Singapore or Dubai.
    
    
    GLOBAL TOP NEWS
    • Trump says 'dangerous' Huawei could be included in U.S.-China trade deal
President Donald Trump said on Thursday U.S. complaints against Huawei
Technologies might be resolved within the framework of a U.S.-China trade deal,
while at the same time calling the Chinese telecommunications giant "very
dangerous."
    • UK's May hangs on after Brexit gambit backfires
Prime Minister Theresa May was clinging to power on Thursday after her final
Brexit gambit backfired, overshadowing a European election that has shown a
United Kingdom still riven over its divorce from the EU.
    • U.S. regulator sees approval of Boeing 737 MAX to fly as soon as late
June: sources
The Federal Aviation Administration expects to approve Boeing's 737 MAX jet to
return to service as soon as late June, representatives of the U.S. air
regulator informed members of the United Nations' aviation agency in a private
briefing on Thursday, sources told Reuters.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were up 0.5% at 11,737.50.
    • The Indian rupee is expected to open higher against the dollar after crude
oil suffered its biggest decline since late-December.
    • Indian government bonds are likely to rise in early trade as the benchmark
Brent crude oil contract fell below $70 per barrel, raising hopes that inflation
will remain in check. The yield on the benchmark 7.26% bond maturing in 2029 is
likely to trade in a range of 7.20%-7.26% today.
    
    
    GLOBAL MARKETS
    • U.S. stocks slumped on Thursday as investors dumped shares of companies in
growth and cyclical sectors, with energy and technology leading declines, on
fears that the escalating U.S.-China trade war would stymie global economic
growth.
    • Asian shares hobbled near four-month lows and crude oil plunged on worries
the U.S.-China trade spat was developing into a more entrenched strategic
dispute between the world's two largest economies, pushing investors to
safe-haven assets.
    • The dollar held steady, having come off two-year highs on lower U.S.
yields in the previous session amid fears that a trade war with China will hurt
the U.S. economy more than previously thought.
    • U.S. Treasury yields dropped across the board on Thursday as risk appetite
faded amid continued concerns about global growth and a worsening trade conflict
between the United States and China.
    • Oil prices jumped amid OPEC supply cuts and Middle East tensions, but
still did not fully recoup losses earlier in the week on economic slowdown
jitters and swelling inventories - their steepest drops since the start of the
year.
    • Gold prices held steady after rising above $1,280 in the previous session
as weaker U.S. data pushed back the dollar and reignited hopes of a rate cut by
the Federal Reserve this year.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         69.91/69.94  May 23           $194.03 mln   -$17.58 mln
 10-yr bond yield  7.24%        Month-to-date    -$358.67 mln  -$241.07 mln
                                Year-to-date     $9.41 bln     -$2.80 bln
 
    
    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 = 69.68 Indian rupees)

 (Compiled by Karthick Arvinth in Bengaluru)
  
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