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Morning News Call - India, October 26

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    FACTORS TO WATCH
    11:00 am: DPIIT Secretary Guruprasad Mohapatra at FICCI “TechXchange”
webinar.
    4:30 pm: Kotak Mahindra Bank Joint Managing Director Dipak Gupta at virtual
press conference post 2Q earnings.
    5:00 pm: Persistent Systems conference call post 2Q earnings.
    5:30 pm: Prime Minister Narendra Modi, Petroleum Minister Dharmendra Pradhan
at India Energy forum.
    5:30 pm: Torrent Pharmaceuticals conference call post 2Q earnings.
    
    PROMOTION
    LIVECHAT - REUTERS GLOBAL MARKETS FORUM
    Mike Dolan, Reuters Editor at Large, Finance and Markets, discusses themes
in play for the upcoming week. To join the conversation at 3.30 pm IST, click
here here
    
    
    INDIA TOP NEWS
    • Amazon wins arbitration order against Future's deal with Reliance
    A Singapore arbitration panel has put on hold Future Group's $3.38 billion
asset sale to Reliance Industries Ltd RELI.NS, an interim win for Amazon.com Inc
AMZN.O, which had alleged the deal between the Indian firms breached existing
agreements.
    • Indian lenders given deadline to implement interest waiver scheme
    India’s lenders were set a November 5 deadline on Saturday to waive interest
payments on coronavirus support loans in a move that could give relief to
millions of people ahead of one of the country's biggest festivals.
    • India rate setters to keep policy accommodative, but wary of inflation
    A second wave of COVID-19 remains a threat to the Indian economy and the
central bank believes monetary policy needs to remain accommodative despite
inflationary pressures, according to the minutes of the monetary policy
committee's latest meeting, released on Friday.
    • India's central bank chief tests positive for coronavirus
    India's central bank Governor Shaktikanta Das said on Sunday he had tested
positive for the coronavirus, the latest high profile name in the country to
contract the virus.
    • Franklin Templeton needs unit holder approval for scheme wind-ups -Indian
court 
An Indian court ruled on Saturday that Franklin Templeton Mutual Fund will need
to seek approval from unit holders before winding up six schemes with combined
assets of some 280 billion rupees
    • India seeks health worker database for possible COVID-19 vaccination
    India is urgently preparing a database of all government and private health
personnel to quickly vaccinate them against the novel coronavirus once it is
safe to do so, health authorities said on Friday.
    • No more scotch? India moves to ban imported goods at military shops
India has ordered its 4,000 military shops to stop buying imported goods,
according to a document reviewed by Reuters, a move that could send an unwelcome
signal to foreign liquor firms such as Diageo and Pernod Ricard.
    • India's Bharat Biotech in talks to take vaccine candidate global
    India's Bharat Biotech is in discussions with more than 10 countries that
have shown an interest in a potential COVID-19 vaccine it is developing with a
government agency, a company executive told Reuters on Friday.
    
    
    GLOBAL TOP NEWS
    •Pence staff hit by COVID-19 outbreak as Biden says Trump has surrendered to
pandemic
    Vice President Mike Pence campaigned on Sunday despite a COVID-19 outbreak
among his aides and President Donald Trump claimed progress as the United States
set records for daily infections, prompting Democratic challenger Joe Biden to
accuse Trump of surrendering to the pandemic.
    •China to set five-year plan for steering economy through choppy waters
    China's top leaders will chart the country's economic course for 2021-2025
at a key meeting starting on Monday, seeking to balance growth and reforms to
avoid stagnation amid an uncertain global outlook and deepening tensions with
the United States.
    • U.S. sees highest number of new COVID-19 cases in past two days
    The United States has seen its highest ever number of new COVID-19 cases in
the past two days, keeping the pandemic a top election issue as Vice President
Mike Pence travels the country to campaign despite close aides testing positive.

           
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures 0.2% higher at 11,960.80.
    • The Indian rupee is expected to fall against the dollar on lackluster
regional cues amid the deadlock on the U.S. fiscal stimulus and increasing
worries over surging coronavirus infections in the U.S. and Europe.
    • Indian federal government bond yields are likely to edge lower as the
minutes of the Monetary Policy Committee’s latest meeting cemented bets of
future rate cuts. The yield on the benchmark 5.77% bond maturing in 2030 is
likely to trade in a 5.81%-5.86% band today.
    
    
    GLOBAL MARKETS
    • The S&P 500 and Nasdaq closed modestly higher on Friday in choppy trading,
with investors keeping a close eye on negotiations on a U.S. stimulus package
that would ease the economic shock caused by the coronavirus pandemic.
    • Asian shares got off to a subdued start as surging coronavirus cases in
Europe and the United states threatened the global outlook, while China's
leaders meet to ponder the future of the economic giant.
    • The dollar found support as surging coronavirus cases in Europe and the
United States and a lack of progress toward a U.S. stimulus package put traders
in a cautious mood, although hopes for a Brexit trade deal held sterling steady.

    • Benchmark U.S. Treasury yields retraced from four-month highs reached
earlier in the day on Friday as investors waited to learn whether U.S. lawmakers
will strike a deal on new fiscal stimulus.
    • Oil prices fell, extending last week's losses, as a jump in COVID-19
infections in the United States and Europe raised alarms over crude demand,
while the prospect of increased supply also hurt sentiment.
    • Gold prices eased to an over one-week low in early Asia trade as the
dollar firmed and talks over the new U.S. coronavirus aid package showed no
signs of progress.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES         DEBT
 PNDF spot         73.55/73.58  October 23       1,225.46 crores  511.57 crores
 10-yr bond yield  5.84 pct     Month-to-date    15,642 crores    1,513 crores
                                Year-to-date     43,989 crores    (1,07,274) 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 = 69.39 Indian rupees)
 

 (Compiled by Pranay Prakash in Bengaluru)
  
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