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Morning News Call - India, September 15

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    FACTORS TO WATCH
    9:00 am: The Monsoon session of Parliament continues in New Delhi.
    1:30 pm: Commerce Minister Piyush Goyal is scheduled to participate in the
CII’s annual UK conference.
    6:00 pm: Pharma Secretary P.D. Vaghela is scheduled to participate in the
US-India Strategic Partnership forum.
    The government is scheduled to release August trade data in New Delhi.
    
    PROMOTION
    LIVECHAT - REUTERS GLOBAL MARKETS FORUM
    Dr. Melvin Sanicas, physician-scientist working on vaccines and infectious
diseases - @Vaccinologist on Twitter - joins us to discuss vaccine candidates,
timeline after the AstraZeneca halted its study last week, the spread of the
virus in children, them potentially becoming superspreaders, especially as
schools reopen for the fall semester and the post-recovery effects of
coronavirus on the body. To join the conversation, click on the link: refini.tv/2P8N0Wp
    
    
    INDIA TOP NEWS
    • India's retail inflation eases in August as food prices rise more slowly
    India's annual retail inflation eased slightly in August as food inflation
cooled, but remained above the upper end of the Reserve Bank of India's (RBI)
medium-term target for the fifth straight month, government data showed on
Monday.
    • India's parliament meets after six months as COVID cases surge
    India's parliament met for the first time in six months on Monday, as novel
coronavirus cases across the country rose by more than 90,000 in the space of a
day and the total number of infections neared 5 million. 
    • Indian government to infuse $2.72 billion in state-run banks
    India's government sought parliamentary approval to inject $2.72 billion in
state-run banks in the current fiscal year, to help lenders mitigate the
expected surge in bad loans due to the pandemic. 
    • S&P expects India's economy to contract 9% in fiscal 2021
    S&P Global Ratings said on Monday that it was expecting India's economy to
shrink by 9% in the fiscal year ending March 31, 2021, larger than its previous
estimate of a 5% contraction, as the country reels under the impact of the
COVID-19 pandemic. 
    • Netflix argues for free speech in court spat with Indian tycoons over 'Bad
Boy Billionaires'
    An Indian court's decision to stall the release of a Netflix series on four
Indian tycoons facing fraud allegations "freezes free speech" and hurts the
company financially, the U.S. streaming giant has argued in a court filing seen
by Reuters. 
    • Indian Oil targets textiles in hunt for margins 
    Indian Oil will expand its petrochemicals capacity and integrate it with its
textile business to help offset the impact of low refining margins, the chairman
of India's largest refiner said on Monday. 
    • India's telecoms regulator says no to regulations for OTT players
    India's telecoms watchdog on Monday said over-the-top (OTT) communication
services do not currently need a regulatory framework, casting aside the threat
of potential restrictions on platforms such as Facebook, WhatsApp and
Google.
    • India says China laying cables to bolster communications at border
flashpoint 
    Two Indian officials said Chinese troops were laying a network of optical
fibre cables at a western Himalayan flashpoint with India, suggesting they were
digging in for the long haul despite high-level talks aimed at resolving a
standoff there. 
    
    
    GLOBAL TOP NEWS
    • China's August industrial output accelerates, retail sales turn up in
boost to recovery
    China's industrial output growth accelerated in August, while retail sales
expanded for the first time this year, suggesting the economic recovery is
gathering pace as demand starts to improve more broadly from the coronavirus
crisis. 
    • Japan ruling party head Suga preparing cabinet, continuity in foreground
    Japanese ruling party head Yoshihide Suga, in line to become the next prime
minister, appeared set to continue his predecessor's policies by keeping key
cabinet ministers and party officials in their posts, as he had promised.
 
    • Johnson lashes out at EU as he clears first hurdle for Brexit treaty
breach
   British Prime Minister Boris Johnson lashed out at the European Union on
Monday as he won initial approval for a plan to breach the Brexit treaty, saying
the move was needed because the bloc had refused to take a "revolver off the
table" in trade talks. 
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • SGX Nifty nearest-month futures were trading 0.3% higher at 11,471.20. 
    • The Indian rupee is expected to rise against the U.S. currency, tracking
broad dollar losses amid a rebound on Wall Street. 
    • India's federal government bond yields are likely to edge higher as
inflation stayed above the central bank’s upper tolerance band in August,
denting bets of a rate cut in the coming months. The yield on the benchmark
5.77% bond maturing in 2030 is likely to trade in a range of 6.02%-6.08%. 
    
    
    GLOBAL MARKETS
    • U.S. stocks ended sharply higher on Monday as signs of progress in
developing a COVID-19 vaccine and a spurt of multibillion-dollar deals lifted
investor optimism.
    • The dollar dipped against riskier currencies as hopes for a COVID-19
vaccine and big corporate deals improved investor appetite for assets such as
the yuan and the euro.
    • Investors kept U.S. Treasury yields stable on Monday as they tried to
gauge how the U.S. Federal Reserve will put its new approach to monetary policy
into practice.
    • Oil prices inched lower as a bleaker outlook for global fuel demand
prompted fresh selling, but short-covering ahead of a meeting later this week of
OPEC and its allies, known as OPEC+, limited losses.
    • Gold prices held steady, following a sharp rise in the previous session,
as the dollar remained subdued ahead of the U.S. Federal Reserve's monetary
policy meeting that could provide more clues on stimulus measures and inflation
targeting.
    
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         73.44/73.47  September 14     2,457.77      (413.27) crores
                                                 crores        
 10-yr bond yield  6.03%        Month-to-date    (1,053)       1,008 crores
                                                 crores        
                                Year-to-date     35,077        (1,11,737) 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 = 73.38 Indian rupees)
    

 (Compiled by Priyanka Das in Bengaluru)
  
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