October 25, 2019 / 3:18 AM / a month ago

Morning News Call - India, October 25

(Morning News Call - India edition will not be published on Monday, October 28
as markets are closed for Diwali Balipratipada)
    
    
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    FACTORS TO WATCH
    2:30 pm: State Bank of India earnings conference call in Mumbai.
  
    
    INDIA TOP NEWS
    • Malaysia works to resolve spat with India, hopes won't affect 16-nation
trade deal
    Malaysia is working to resolve a spat with India over Prime Minister
Mahathir Mohamad's stance on Kashmir, and hoping that a 16-nation trade pact,
which includes India, will be signed this year despite the strained ties, its
trade minister said.
    • India's ruling BJP wins in big western state, scouts for ally in other
    Indian Prime Minister Narendra Modi's ruling party retained its control over
a big western state on Tuesday and was left scouting for an ally to keep hold of
a northern state, after the two election races turned out to be closer than
forecast.
    • IndiGo reports biggest quarterly loss, cuts expansion targets
    India's biggest airline IndiGo reported its biggest ever quarterly loss on
higher maintenance costs and cut capacity expansion targets, at a time when the
industry is grappling with slowing passenger growth in a sluggish economy.

    • India's mobile operators face $13 billion bill after court ruling
    Top court on Thursday upheld a demand by the country's telecoms department
that wireless carriers pay 920 billion rupees in overdue levies and interest,
sending their shares tumbling.
    • Maruti Suzuki profit dented by Indian auto slowdown
    Maruti Suzuki reported a 39% slump in quarterly profit on Thursday, ahead of
the crucial festive season, as the country's biggest carmaker by market value
struggled with a slowdown in Asia's third-largest economy.
    • U.S. SEC investigates India's Infosys on whistleblower complaints
    Infosys on Thursday said the U.S. Securities and Exchange Commission (SEC)
has launched a probe into whistleblower claims that the Indian software services
firm used 'unethical practices' to boost revenue and profit.
    • India jumps 14 places on World Bank's ease of doing business list
    Faster bankruptcy resolution and issuance of construction permits helped
India jump 14 places in the World Bank's annual ranking of countries for their
ease of doing business, but at 63rd it was still way behind the likes of China
and Malaysia.
    • India eyes energy deals with Saudi Arabia during Modi's visit
    India hopes to sign energy deals with Saudi Arabia that include its
participation in India's strategic petroleum reserve, during Prime Minister
Narendra Modi's visit to the kingdom next week, a government official said on
Thursday.
    • Airbnb bets on women hosts, millennial travellers for growth in India
    Home rental company Airbnb Inc is betting on women in India opening up their
homes to travellers, especially millennials, to fuel its growth in the country,
a senior company executive told Reuters.
    
    
    GLOBAL TOP NEWS
    • British PM Johnson calls for December 12 election to break Brexit deadlock
    Prime Minister Boris Johnson called on Thursday for a general election on
Dec. 12 to break Britain's Brexit impasse, conceding for the first time he will
not meet his "do or die" deadline to leave the European Union next week.

    • Amazon's gloomy holiday forecast misses estimates, shares fall 7%
    Amazon.com on Thursday forecast revenue and profit for the holiday quarter
below expectations, as it faces fierce competition and rising costs from its
plan to speed up delivery times globally. 
    • Samsung heir appears at court for his bribery trial 
    Samsung Group heir Jay Y. Lee appeared at a Seoul courtroom for the start of
a bribery trial that could result in a tougher sentence after South Korea's top
court ordered a review of his graft case.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.3% lower at 11,582.50.
    • The Indian rupee is expected to open little changed against the U.S.
currency as traders await progress in Brexit negotiations and China-U.S. trade
talks.
    • Indian government bonds are expected to trade largely unchanged because of
an absence of triggers ahead of a holiday-truncated week. The yield on the
benchmark 7.26% bond maturing in 2029 is likely to trade in a range of
6.67%-6.72% today.
   
    
    GLOBAL MARKETS
    • The S&P 500 and the Nasdaq rose on Thursday following strong quarterly
reports from several technology companies, including Microsoft, but dour results
from 3M Co stymied the Dow Jones Industrial Average.
    • Asian shares inched up, tracking small gains in world markets as positive
earnings offset economic growth concerns, while sterling weakened as the
prospect of a UK election added fresh uncertainty to Brexit dramas.
    • The British pound fell versus the dollar and the euro after Prime Minister
Boris Johnson's call for an election cast yet more uncertainty over Britain's
divorce from the European Union.
    • U.S. Treasury yields edged higher on Thursday after trading lower for much
of the session, as investors consolidated positions ahead of next week's Federal
Reserve monetary policy meeting that is expected to result in an interest rate
cut for a third time this year.
    • Oil prices stepped back after three straight days of gains, hurt by
renewed concerns about fuel demand in light of gloomy economic growth forecasts.

    • Gold rose to a fresh two-week high, as weak U.S. economic data spurred
expectations for another interest rate cut by the Federal Reserve later this
month.
    
                   CLOSE        FII INVESTMENTS  EQUITIES        DEBT
 PNDF spot         71.00/71.03  October 24       (149.07) crore  (617.57) crore
 10-yr bond yield  6.68%        Month-to-date    3,855 crore     122 crore
                                Year-to-date     60,040 crore    29,308 crore
 
    (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 = 70.96 Indian rupees)
    
    

 (Compiled by Pooja Kesavan in Bengaluru)
  
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