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Morning News Call - India, October 13

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    FACTORS TO WATCH
    9.30 am: NITI Aayog CEO Amitabh Kant, Tata Power President - Renewables
Ashish Khanna, Mahindra Group Deputy Managing Director and CFO Anish Shah at
FICCI “LEADS 2020.”
    11:30 am: Road Transport Minister Nitin Gadkari launches 8 national highway
projects in Kerala state. 
    12:00 am: Nippon Paint India virtual media briefing on a strategic
announcement. 
    2:30 pm: Indian Banks’ Association Chief Executive Sunil Mehta, State Bank
of India Chairman Dinesh Khara and other banking heads at IBA webinar.
    4:00 pm: Health Ministry briefing on Covid-19 situation in India. (National
Media Centre) in New Delhi 

        
    INDIA TOP NEWS
    • India announces economic stimulus to boost demand by $10 billion
    India on Monday announced steps to stimulate consumer demand, including
advance payment of a part of the wages of federal government employees during
the festival season and more capital spending as it tries to bolster the
pandemic-hit economy.
    • India's retail inflation picks up in Sept as food prices soar 
    India's retail inflation picked up in September to 7.34%, its highest level
in eight months, as food prices surged ahead of the festival season, increasing
chances of a further delay in a rate cut by the central bank to bolster the
shrinking economy.
    • India in stalemate on borrowing to help out pandemic-hit states
    Spending to help India's pandemic-hit economy is likely to face delays after
the federal government and some states on Monday failed to agree who should
borrow to cover revenue shortfalls.
    • India's Aug industrial contracts 8% y/y -government
    India's industrial output contracted 8% in August from a year earlier,
government data showed, as a monthly measure indicated some recovery in the
sector that was hit by lockdowns imposed to curb the spread of coronavirus.

    • Mumbai's millions get their power back after massive outage
    Millions went without power in India's financial capital Mumbai and
surrounding areas for hours on Monday, after a grid failure triggered its first
major blackout in more than two years.
    • Businessman Shetty seeks India probe of NMC, Finablr ex-CEOs over $6
billion scandal
    Indian entrepreneur BR Shetty has filed a complaint with federal
investigative agencies in India seeking a probe into two former top executives
of his companies and two Indian banks related to a multibillion dollar financial
scandal engulfing his group.
    
    
    GLOBAL TOP NEWS
    • Back on campaign trail, Trump says he feels 'powerful' after COVID
recovery
    President Donald Trump returned to the campaign trail on Monday for the
first time since he announced his COVID-19 diagnosis, touting his management of
the pandemic as opinion polls showed him losing more ground to Democratic rival
Joe Biden.
    • J&J pauses COVID-19 vaccine trials due to unexplained illness in
participant
    Johnson & Johnson said it had temporarily paused its COVID-19 vaccine
candidate clinical trials due to an unexplained illness in a study participant,
delaying one of the highest profile efforts to contain the global pandemic.

    • Japan manufacturers struggle to shake gloom in October - Reuters Tankan
    The pessimism hanging over Japan's manufacturers lifted slightly in October,
suggesting businesses were emerging from the coronavirus pandemic's heavy blow
to activity and earnings but at a glacial pace.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were 0.1% lower at 11,927.80.
    • The Indian rupee is expected to open lower against the dollar, tracking
the decline in regional equities and U.S. futures after a leading coronavirus
vaccine trial was paused.
    • India bond yields are likely to edge higher in early session, as retail
inflation rate quickened at a faster-than-expected pace in September and stayed
above the central bank’s tolerance ceiling. Yields may also rise ahead of a
fresh supply of state debt, traders said. The benchmark 5.77% bond maturing in
2030 is likely to trade in a 5.90%-5.95% band today.
    
    
    GLOBAL MARKETS
    • Wall Street ended sharply higher on Monday, fueled by expectations of a
coronavirus relief package and by a rally in Amazon, Apple and other technology
stocks ahead quarterly earnings season. 
    • Asian shares slipped, brushing off a firmer Wall Street lead as China's
post-holiday rally cooled, although a buoyant tech sector and fresh optimism
about U.S. stimulus are expected to continue to support sentiment.
    • The dollar flirted with three-week lows as investors stuck to hopes that
there will be large U.S. fiscal stimulus after the Nov. 3 election to shore up a
pandemic-hit economy, supporting riskier currencies.
    • Oil prices were steady in early trade, sitting on losses of nearly 3% from
the previous session after supplies began to resume in Norway and the U.S. Gulf
of Mexico and Libya resumed production at its largest oilfield.
    • Gold prices inched lower as the dollar ticked up, although concerns over
rising COVID-19 cases and hopes of a large U.S. fiscal stimulus being eventually
released checked the metal's decline.
    
    
                   CLOSE          FII INVESTMENTS  EQUITIES    DEBT
 PNDF spot         (73.22/73.25)  October 13       (1,254.66)  2,923.73 crores
                                                   crores      
 10-yr bond yield  5.899%         Month-to-date    3,990       (1,644) crores
                                                   crores      
                                  Year-to-date     32,337      (1,10,431) 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= 73.33 Indian rupees)
 

 (Compiled by Nachiket Tekawade in Bengaluru)
  
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