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 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)
Our Standards: The Thomson Reuters Trust Principles.