October 9, 2019 / 3:17 AM / 10 days ago

Morning News Call - India, October 9

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    FACTORS TO WATCH
    No major events are scheduled for the day.    
   
    
    LIVECHAT - EQUITIES FOCUS
    Reuters stocks correspondents in London and New York discuss the upcoming
corporate results season and how it could play out on bourses in each region. 
To join the conversation at 6.30 pm IST, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    •  SoftBank-backed Oyo to raise $1.5 billion led by founder, existing
investors 
    Hospitality startup Oyo, backed by Japanese conglomerate SoftBank Group,
announced on Monday a $1.5 billion deal with its existing investors that will
tighten the founder's control and provide fresh capital to the money-losing
firm.
    • Yes Bank in talks with Microsoft, other tech firms to sell up to 15% stake
- Mint
    Private sector lender Yes Bank is in talks with Microsoft Corp and two other
technology companies as it looks to bring in a strategic shareholder as part of
a strategy to rake in fresh capital, the Mint newspaper reported on
Sunday.
    
    
    GLOBAL TOP NEWS
   • U.S. visa move against China casts pall over talks to end trade war 
    The United States on Tuesday imposed visa restrictions on Chinese officials
for the detention or abuse of Muslim minorities, angering Beijing, but a U.S.
official said high-level trade talks would still take place on Thursday and
Friday as planned.
  • White House says it will refuse to cooperate with impeachment inquiry 
    The White House said on Tuesday it would refuse to cooperate with an
"illegitimate, unconstitutional" congressional impeachment inquiry, setting
Republican President Donald Trump on a collision course with the Democratic-led
U.S. House of Representatives.
 • Powell signals Fed seeking long-term solutions to short-term funding woes
   The Federal Reserve's plan to start adding to its $3.6 trillion bond
portfolio soon is the clearest signal yet that the central bank is looking to
deliver long-term solutions to address recent disruptions in key short-term
funding markets.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading at 11,133.00.
    • The Indian rupee is expected to open lower against the dollar as rising
tensions between the U.S and China ahead of their high-level trade talks damp
risk appetite.
    • Indian government bonds will likely open lower as tensions between the
United States and China rose over trade and foreign policy agreement, while
traders await fresh triggers domestically. The yield on the benchmark 7.26% bond
maturing in 2029 is likely to trade in a range of 6.65%-6.70% today.
    
    
    GLOBAL MARKETS
    • U.S. stocks ended down sharply and near the day's lows on Tuesday as news
that the United States has imposed visa restrictions on Chinese officials
overshadowed comments by Federal Reserve Chairman Jerome Powell suggesting
openness to further interest rate cuts.
    • Asian stocks fell the most in a week as the United States and China's
broadening dispute over trade and foreign policy showed little sign of coming to
an end, weighing on global economic growth.
    • The British pound nursed losses, after hitting a one-month low on reports
that Brexit talks between Britain and the European Union were close to breaking
down, while the dollar weakened slightly on rising trade tensions.
    • The U.S. Treasury yield curve steepened on Tuesday, driven by a falling
two-year yield after Federal Reserve Chair Jerome Powell flagged openness to
further rate cuts and said the Fed would expand its balance sheet to ensure
money markets function smoothly.
    • Oil prices slipped for a third consecutive session as the prospect of the
United States and China striking a trade deal in talks this week dimmed, raising
uncertainties for global economic growth and oil demand.
    • Gold prices firmed as tensions between the United States and China
ratcheted up ahead of crucial trade talks later this week, sapping risk
appetite, while concerns over Brexit added to bullion's safe haven appeal.
   
    
               CLOSE        FII INVESTMENTS    EQUITIES          DEBT
 PNDF spot     71.01/71.04  October 7          (877.54) crore    772.52 crore
 10-yr bond    6.67%        Month-to-date      (3,825) crore     (205) crore
 yield                                                           
                            Year-to-date       52,360 crore      28,981 crore
 
    Source: National Securities Depository Limited
    * FII investment numbers are in Indian rupees
    
    
    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 = 71.21 Indian rupees)
    
    

 (Compiled by Pooja Kesavan in Bengaluru)
  
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