for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

Morning News Call - India, October 12

To access a PDF version of this newsletter, please click here here
    
    If you would like to receive this newsletter via email, please register at:
here
    
    
    FACTORS TO WATCH
    5:30 pm: Government to release September consumer price inflation data in
New Delhi
    5:30 pm: Government to release August Industrial output data in New Delhi
    
    PROMOTION
    LIVECHAT - REUTERS GLOBAL MARKETS FORUM 
    Reuters FX Buzz Analyst Jeremy Boulton takes questions on G7 currencies and
select EM FX pairs. To join the conversation at 4:30 pm IST, click on the link:
refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • RBI holds rates steady, sees economic recovery taking root
    The Reserve Bank of India left key interest rates unchanged on Friday as
widely expected, while keeping policy accommodative to help pull the
coronavirus-ravaged economy out of its worst slump in four decades.
    • London Stock Exchange in talks with Indian tech firms to list overseas
    London Stock Exchange is in talks with several Indian technology firms for
their overseas stock listings, a senior executive for the British exchange told
Reuters, as New Delhi moves closer to allowing companies to directly access
foreign markets.
    • RBI appeals to Supreme Court to allow NPA classification
    The Reserve Bank of India has appealed to the Supreme Court to let banks
classify loans as nonperforming, saying a ban imposed to help borrowers in the
COVID-19 pandemic could greatly harm the nation's financial system.
    • Modi launches property card scheme to aid rural households
    Indian Prime Minister Narendra Modi launched a property card scheme on
Sunday that he vowed would provide clarity of property rights in villages and
enable farmers to use their property as collateral for loans from financial
institutions.
    • RBI cheers bond market despite keeping rates on hold
    The Reserve Bank of India assured bond markets on Friday that it stands
ready to take whatever measures are necessary to ensure adequate liquidity in
the banking system, sparking a sharp rally.
    • Amazon India's payments unit gets 7 billion rupees from parent ahead of
festive season
    Amazon has invested 7 billion rupees in its Indian payments unit, ahead of
the festive season, data from business intelligence firm Tofler showed.

    • Glenmark's antiviral combination for moderate COVID-19 shows no clinical
benefit 
    Glenmark Pharmaceuticals said on Friday its clinical trial testing a
combination of the antiviral drugs umifenovir and favipiravir in moderate
hospitalized COVID-19 patients did not show any significant benefit.

    • India's September fuel demand posts first monthly gain since June
    India's fuel demand in September rose for the first time since June as
easing coronavirus restrictions supported economic activity and travel, but
consumption remained weaker than a year earlier, government data showed on
Friday.
    
    
    GLOBAL TOP NEWS
    • White House seeks limited coronavirus relief bill, promises further talks
on broader stimulus
    The Trump administration on Sunday called on Congress to pass a
stripped-down coronavirus relief bill using leftover funds from an expired
small-business loan program, as negotiations on a broader package ran into
resistance.
    • Japan's machinery orders extend gains as business spending stabilises
    Japan's core machinery orders unexpectedly rose in August, extending gains
and highlighting resilience in capital spending even as the economy remains
under pressure from the coronavirus pandemic.
    • Trump says he is recovered from COVID-19, prepares for return to campaign
trail
    U.S. President Donald Trump said on Sunday he had fully recovered from
COVID-19 and was not an infection risk for others, freeing him to return to
holding big campaign rallies during the final weeks of the race for the White
House.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.5% higher at 12,004.50. 
    • The Indian rupee is expected to open higher, tracking the dollar’s
weakness amid uncertainty over the U.S. fiscal stimulus.
    • Indian government bond yields are likely to edge lower in early session,
after the central bank last week announced a slew of measures to aid appetite.
The benchmark 5.77% bond maturing in 2030 is likely to trade in a 5.90%-5.95%
band today.
    
    
    GLOBAL MARKETS
    • U.S. stocks rose on Friday and the S&P 500 and Nasdaq registered their
biggest weekly percentage gains since July as optimism over more federal fiscal
aid grew.
    • Asian stock markets began the week with cautious gains, as investors clung
to hopes for U.S. stimulus spending, while the dollar firmed after a Chinese
central bank policy tweak unwound some of the yuan's steep gains.
    • The dollar inched up in early trade as riskier currencies slipped after
negotiation on a U.S. stimulus package ran into resistance and as the yuan
dropped after China's central bank took a measure seen as aimed at curbing its
strength.
    • Yields on Treasury bonds rose modestly on Friday afternoon as market
appetite for risk improved after U.S. President Donald Trump, in a reversal from
earlier this week, said he would like to see a bigger coronavirus stimulus
package than either Democrats or Republicans are offering.
    • Oil prices dropped for a second straight session as U.S. producers began
restoring output after Hurricane Delta weakened, while a strike that had
affected production in Norway came to an end.
    • Gold prices edged lower, after hitting a three-week high earlier in the
session, as the dollar firmed and talks over a new U.S. stimulus package ran
into resistance.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES     DEBT
 PNDF spot         73.13/73.16  October 9        1,225.82     (258.04) crores
                                                 crores       
 10-yr bond yield  5.937%       Month-to-date    5,245        (4,568) crores
                                                 crores       
                                Year-to-date     33,592       (1,13,355) crores
                                                 crores       
 
    (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= 73.01 Indian rupees)
 

 (Compiled by Nachiket Tekawade in Bengaluru)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up