September 24, 2019 / 3:18 AM / 2 months ago

Morning News Call - India, September 24

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FACTORS TO WATCH

2:00 pm: India finance ministry and RBI officials likely to meet to discuss 2H borrowing calendar in New Delhi.

LIVECHAT - PRECIOUS METALS FOCUS

Tai Wong, Director, Base & Precious Metals at BMO Capital Markets, examines the outlook for gold, palladium and silver and whether their impressive price performance will continue through the end of 2019. To join the conversation at 8:00 pm IST, click on the link: refini.tv/2P8N0Wp

INDIA TOP NEWS

• India’s corporate tax cut to boost smartphone manufacturing -executives

India’s lower corporate tax rate will help its smartphone industry expand, fuel research and development investment and attract higher-value component makers to the world’s second-biggest smartphone market, four top industry executives said.

• India’s biggest carmaker Maruti sees higher sales in September

India’s biggest automaker, Maruti Suzuki, expects sales of its cars in September to be higher than the previous month, its Chairman R.C. Bhargava told Reuters on Monday.

• Government aims to sell Air India, other firms by March 2020, says official

India aims to sell two or three state-owned firms to local or foreign firms to raise up to 600 billion rupees by March 2020, a senior Finance Ministry official said on Monday.

• India’s steel industry wants 25% duty placed on imports -JSW Steel exec

India’s steel industry wants a 25% safeguard duty placed on all steel imports as steel products sourced from countries with whom India has a free trade agreement have risen substantially, a senior executive from JSW Steel said on Monday.

• India’s state-run cotton buyer could ramp up purchases to support prices

India’s state-run cotton buyer could purchase as much as 10 million bales from farmers in the 2019/20 season to support prices amid an expected sharp increase in production, the head of Cotton Corporation of India said on Monday.

• Traders complain of glitch at India’s NSE towards session end

Trading in India’s National Stock Exchange halted for about 20 minutes before the session ended on Monday, according to several traders, even as markets closed up nearly 3% on hopes that corporate tax cuts would revive the economy.

GLOBAL TOP NEWS

• Trump questions Mnuchin over request Chinese delay U.S. farm trip

U.S. President Donald Trump on Monday questioned a decision by his top trade negotiators to ask Chinese officials to delay a planned trip to U.S. farming regions after trade talks last week, saying he wanted China to buy more American farm products.

• Japan Sept factory activity shrinks most in 7 months, new orders contract -PMI

Japanese manufacturing activity shrank at the fastest pace in seven months in September, underscoring the broadening economic impact of the Sino-U.S. trade dispute and keeping policymakers under pressure to step up stimulus.

• AB InBev Asia unit raises $5 billion in world’s second-largest 2019 IPO -sources

Anheuser-Busch InBev raised about $5 billion after pricing the Hong Kong IPO of its Asia-Pacific business at the bottom of an indicative range, two people with direct knowledge of the matter told Reuters.

LOCAL MARKETS OUTLOOK

(As reported by NewsRise)

• The SGX Nifty nearest-month futures were trading 0.5% higher at 11,654.50.

• The Indian rupee is expected to open higher against the dollar on bets that the cut in corporate taxes would help spur foreign fund inflows into local equities.

• Indian government bonds are likely to fall in early trade ahead of fresh supply of state government debt and as investors await the federal government’s borrowing plan for the second half of the financial year. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.72%-6.78% today.

GLOBAL MARKETS

• U.S. stocks barely budged on Monday, with slight gains in shares of Apple offset by mixed economic data that added to caution over the prolonged U.S.-China trade war.

• U.S. stock futures gained in early Asian trade after U.S. Treasury Secretary Steven Mnuchin said U.S.-China trade talks will resume in early October while the euro struggled in the wake of dismal European manufacturing and services data.

• The euro nursed losses after weak readings on German manufacturing rattled confidence, while the dollar found broad support as investors looked for signs of progress from Sino-U.S. trade negotiations.

• U.S. Treasury yields dropped on Monday, in line with the European bond market, as risk appetite ebbed after softer-than-expected euro zone business activity data fueled recession fears in the region.

• Oil prices eased in early Asian trade as weak manufacturing data from Europe and Japan focused market attention on a gloomy outlook for demand, though lingering uncertainty over Saudi supply disruption braked the drop.

• Gold prices were steady in early Asian trade, after rising to a more than two-week peak in the previous session on global slowdown fears and tensions in the Middle East, while an improved Sino-U.S. trade tone weighed on the yellow metal.

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 = 70.81 Indian rupees Compiled by Nidhi C Sai in Bengaluru

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