November 1, 2018 / 3:21 AM / 12 days ago

Morning News Call - India, November 1

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    FACTORS TO WATCH
    No major events are scheduled.
    
    LIVECHAT - U.S. MIDTERMS FOCUS
    We discuss U.S. midterm elections with Dr. Christian Lammert, Professor of
North American Politics and Policy, John F. Kennedy Institute, at 0930 IST. To
join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    • Government says central bank independence "essential" as row unnerves
markets
India's government affirmed its belief in central bank autonomy on Wednesday,
calling it "essential" in a bid to calm investors worried by a heated public row
with the Reserve Bank of India.
    • Tata Motors reveals turnaround plan for Jaguar Land Rover after loss
Tata Motors announced a turnaround plan for its luxury car unit Jaguar Land
Rover which has been hit hard by trade tensions between China and the US, low
demand for diesel cars in Europe and worries over Brexit.
    • Smelter closure, weak zinc ops depress Vedanta's profit
Vedanta reported on Wednesday a 34 percent fall in second-quarter net profit,
hit by lower revenue from its zinc operations, rising costs and the shutdown of
a smelter in southern India.
    • EU's Thyssenkrupp, Tata Steel inquiry raises disposal expectations
By opening a deeper investigation into Thyssenkrupp's planned steel joint
venture with Tata Steel, the European Commission (EC) raised expectations on
Wednesday they will have to sell assets to win its approval.
    • Larsen & Toubro Q2 profit jumps 23 percent, beats estimate
Industrial conglomerate Larsen & Toubro posted a 22.6 pct jump in Sept-quarter
net profit, underpinned by higher order intake.
    • IL&FS submits plan for revival to company tribunal
The new board of India's Infrastructure Leasing and Financial Services (IL&FS)
submitted a plan to revive the debt-laden firm to a company law tribunal on
Wednesday, paving the way to a potential resolution of the group's future.

    • Eicher Motors says labour strife hurt Royal Enfield production
Eicher Motors said on Wednesday strike at one of its southern Indian facility
led to a slump in production of 25,000 motorcycles in September-October, after a
part of its workforce "stayed away" from work.
    • Jet Airways gets payment delay notice from aircraft lessors; shares dive
Jet Airways said on Wednesday it has received notices on payment delays from a
few aircraft lessors, adding to the debt-laden airline's woes.
    
    
    GLOBAL TOP NEWS
    • More U.S. tariffs on China goods not 'set in stone' -White House adviser
U.S. President Donald Trump has not "set in stone" any decisions on escalating
tariffs on Chinese goods and may withdraw some duties if there are promising
policy discussions with China, White House economic adviser Larry Kudlow said on
Wednesday.
    • Japan Oct factory activity rebounds, export orders return to growth-PMI
Japanese manufacturing activity expanded at the fastest rate in four months in
October as new export orders returned to growth, a business survey showed, in a
sign the economy is showing some resilience to global trade frictions.

    • Trump contends U.S. Constitution does not cover birthright citizenship
President Donald Trump said on Wednesday the U.S. Constitution does not
guarantee the right to citizenship to everyone born in the country, an assertion
that runs counter to the long-established legal interpretation of the document.

    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.35 percent higher at
10,423.50, from its previous close.
    • The Indian rupee is expected to open higher against the dollar in the wake
of a further decline in crude oil prices and positive regional cues.
    • Indian government bonds are likely to open higher, as crude oil prices
extended their losses with the benchmark Brent crude oil falling below $75 per
barrel, while the central bank’s open market purchase of notes will further aid
appetite. The yield on the benchmark 7.17 percent bond maturing in 2028 may
trade in a 7.81 percent-7.86 percent band today.
    
    
    GLOBAL MARKETS
    • U.S. stocks rebounded for a second day on Wednesday as investors snapped
up beaten-down technology and internet favorites and strong company results
lifted spirits, even as the S&P 500 closed out its worst month in seven years.

    • Asian stocks rose as bruised investor sentiment got some relief from
another robust Wall Street session, while the pound rallied on a report Britain
has secured a deal that would give its financial services firms continued access
to European markets after Brexit.
    • The British pound jumped on a report that UK Prime Minister Theresa May
has struck a deal with Brussels on financial services, while the dollar held
near a 16-month high versus a basket of its key rivals on strong U.S. economic
data.
    • U.S. Treasury yields rose on Wednesday in step with equities, as a
stronger stock market reduced safe-haven demand for U.S. government debt.
    • Oil prices fell, extending losses in previous sessions, amid signs of
rising supply and growing concerns that demand might weaken on the prospect of a
global economic slowdown.
    • Gold prices inched higher in early Asian trade, recovering from a
three-week low hit in the previous session as the U.S. dollar eased.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         73.83/73.86  October 31       -$26.23 mln  $97.36 mln
 10-yr bond yield  7.85 pct     Month-to-date    -$3.70 bln   -$1.34 bln
                                Year-to-date     -$5.87 bln   -$8.09 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 = 73.9500 Indian rupees)

 (Compiled by Yoganand KN in Bengaluru)
  
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