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Morning News Call - India, September 11

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    FACTORS TO WATCH
    5:30 pm: Government to release July Industrial output data in New Delhi.
    
    
    INDIA TOP NEWS
    • China, India agree to disengage troops on contested border 
China and India said they had agreed to de-escalate renewed tensions on their
contested Himalayan border and take steps to restore "peace and tranquillity"
following a high-level diplomatic meeting in Moscow. Meanwhile, India is
planning to raise surveillance of copper and aluminium imports while developing
policies to curb shipments from China and other Asian nations to protect
domestic producers, said two government sources and an industry official.

    • Pandemic likely to force India to borrow more, deficit monetisation is
last resort -sources
Revenue shortfalls in India, the major economy hardest hit by the coronavirus
pandemic, are likely to force the government to borrow more, but it will only
consider monetising its deficit as a last resort, sources familiar with
discussions told Reuters.
    • Reliance approaches digital unit backers to invest in retail arm - sources
Reliance Industries has approached investors in its digital business about
potentially buying stakes in its retail arm, two sources with direct knowledge
of the matter said on Thursday.
    • Automakers seek delays, exemptions to India's planned new rules for parts
-sources
Foreign automakers are seeking delays and exemptions to India's planned new
quality rules for imported auto parts, arguing the regulations will increase
costs, hurt sales and disrupt supply chains, sources with direct knowledge of
the matter told Reuters.
    • Zomato raises $160 million from Tiger Global, Temasek unit; plans IPO in
2021
Food delivery startup Zomato has raised $160 million from U.S. hedge fund Tiger
Global Management and a unit of Singapore's Temasek, and plans to file for an
initial public offering in the first half of 2021.

    
    
    GLOBAL TOP NEWS
    • Microsoft: Foreign hackers are targeting Biden and Trump camps
Hackers linked to Russia, China, and Iran are trying to spy on people tied to
both U.S. President Donald Trump and Democratic challenger Joe Biden, Microsoft
said on Thursday.
    • Trump says there will be no extension of TikTok deadline
President Donald Trump said on Thursday the deadline set for Chinese company
ByteDance to sell its popular short-video app TikTok's U.S. assets would not be
extended.
    • Rio Tinto bows to investor pressure over cave blast as CEO, executives
depart
Rio Tinto parted ways with its CEO and two senior executives, bowing to mounting
shareholder criticism of the destruction of two significant Aboriginal
rockshelters and the global miner's limited initial response.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.4% lower at 11,427.00.
    • The Indian rupee is expected to trade little changed to the dollar amid
tepid risk appetite and de-escalation in the India-China border row.
    • Indian government bond yields are expected to edge higher in early session
ahead of a fresh supply of papers at a weekly debt auction today. The yield on
the benchmark 5.77% bond maturing in 2030 will likely trade in a 6.04%-6.10%
range until the auction.
    
    
    GLOBAL MARKETS
    • U.S. stocks closed lower after a choppy trading session on Thursday as
heavyweight tech-related stocks resumed their decline following a sharp rebound
the previous session, while elevated jobless claims reminded investors of a
still-difficult recovery ahead.
    • Japanese shares inched higher, tracking strength in U.S. stock futures and
as the capital city of Tokyo dropped its coronavirus alert by one notch from the
highest level as COVID-19 cases continue to trend down.        
    • The dollar clung to gains after a rout in stocks sent nervous investors to
its safety, while sterling was poised for its worst week since March as British
plans to break a divorce treaty with Europe rekindled the spectre of a no-deal
Brexit.
    • U.S. Treasury yields fell on Thursday and the yield curve flattened after
the government sold $23 billion in 30-year bonds to solid demand, the final sale
of $108 billion in new coupon-bearing supply this week.
    • Oil prices extended declines, under pressure from a surprise rise in U.S.
stockpiles and ongoing weak demand from the coronavirus pandemic.
    • Gold prices fell after a sharp rise in the previous session as the dollar
regained lost ground, although doubts over a swift global economic recovery kept
bullion on track for a weekly gain.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES         DEBT
 PNDF spot         73.44/73.47  September 10     (959.98) crores  480.44 crores
 10-yr bond yield  6.053 pct    Month-to-date    (4431) crores    1,405 crores
                                Year-to-date     31,699 crores    (111,340) 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 = 73.43 Indian rupees
 

 (Compiled by Yoganand KN in Bengaluru)
  
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