Morning News Call - India, August 21

To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_08212017.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ FACTORS TO WATCH 9:30 am: Statistics Minister D.V. Sadananda Gowda at National Consultation on Data Generation for Gender indicators of Sustainable development goals in New Delhi.

2:15 pm: ICRA to conduct webinar on Indian microfinance sector in Mumbai.

3:00 pm: Indian Hotels annual general meeting in Mumbai.

LIVECHAT - FOREX FOCUS The dollar weakness has prompted almost all other currencies to rally as the market questioned the commitment of a third interest rate hike this year by the Fed after the FOMC meeting minutes. With the odds of a December hike now fall to around 30 percent, Stephen Innes from Oanda will discuss investment strategies of G7 currencies for September at 11:30 am IST. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • Infosys approves up to $2 billion buyback of shares India's second-biggest IT firm Infosys said on Saturday it will buy back shares worth up to 130 billion rupees ($2 billion), a day after Vishal Sikka resigned as chief executive after a long-running feud with the company's founders.

• After CEO's dramatic exit, Infosys faces recruitment headache The dramatic departure of Vishal Sikka as chief executive of Infosys, following a months-long public battle with the tech giant's founders, has left the company with another messy problem: how to find someone willing to replace him.

• Rosneft, partners to announce acquisition of India's Essar Oil completed A consortium led by Russian oil major Rosneft will announce on Monday completion of a $12.9 billion deal to acquire Indian private refiner Essar Oil, strengthening ties between the world's largest oil producer and the fastest growing fuel consumer. ] • India's central bank governor says state banks need more capital State-run banks will need more capital to resolve bad loan problems weighing on their balance sheets, Reserve Bank of India Governor Urjit Patel said on Saturday, adding his voice to calls for increased capital injections into lenders.

• India investigates after fourth big train accident in past year kills 23 India began investigating on Sunday a train crash in which 23 people were killed, the fourth major accident over the past year on the world's fourth biggest rail network which is grappling with chronic under-investment and over-crowding.

GLOBAL TOP NEWS • Ten sailors missing after U.S. warship collides with tanker near Singapore Ten sailors are missing after a U.S. warship collided with an oil tanker east of Singapore on Monday, the U.S. Navy said, the second accident involving U.S. Navy destroyers in Asian waters in little more than two months.

• Trump to lay out U.S. strategy for Afghanistan on Monday night President Donald Trump will lay out his long-awaited U.S. strategy for the war in Afghanistan in a prime-time television address to the American people on Monday night, the White House said on Sunday, with a modest increase in U.S. troops possible.

• Japan manufacturers most optimistic in decade as economy grows -Reuters Tankan Confidence at Japanese manufacturers rose to its highest level in a decade in August led by materials producers, a Reuters poll showed, a further sign of broadening recovery in the economy.

LOCAL MARKETS OUTLOOK (As reported by NewsRise) • The SGX Nifty Futures was trading at 9,858.00, trading up 0.1 percent from its previous close.

• Indian government bonds are likely to trade steady tracking flat U.S. Treasury yields, ahead of routine debt sales this week. The yield on the benchmark 6.79 percent bond maturing in 2027 is likely to trade in a 6.48 percent-6.54 percent band.

• The Indian rupee will likely open higher against the dollar, in line with most Asian currencies, even as investors remain cautious about any flare-up of tensions the U.S. and North Korea, amid a political turmoil in the Washington.

GLOBAL MARKETS • U.S. stocks lost ground late to end lower on Friday following a White House-focused week that raised more questions about the Trump administration's ability to implement its pro-growth agenda.

• Asian shares were tentative as investors remained unconvinced about U.S. President Donald Trump's ability to fulfil his economic agenda, even as the departure of his controversial policy strategist raised hopes of some progress.

• The dollar edged up in early Asian trading, moving tentatively away from the four-month low against the yen plumbed in the previous session on concerns that White House personnel changes will impair President Donald Trump's ability to pass tax reform and stimulus measures.

• U.S. Treasury yields were little changed as the exit of senior White House adviser Stephen Bannon, known for his economic nationalist views, revived the appetite for stocks and reduced it for lower-yielding bonds.

• Oil markets were stable, holding on to Friday's big gains even though rising U.S. output weighed on hopes the market will tighten with crude inventories down 13 percent since March.

• Gold prices held steady as the dollar firmed, with the precious metal trading below an intra-day nine-month high hit on Friday when political and security concerns jangled investors' nerves and stoked demand.

CLOSE FII EQUITIES DEBT INVESTMENTS PNDF spot 64.09/64.12 August 18 -$340.46 mln $180.54 mln 10-yr bond yield 6.8 pct Month-to-date -$1.19 bln $1.16 bln Year-to-date $7.79 bln $22.13 bln 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 = 64.0900 Indian rupees) (Compiled by Erum Khaled in Bengaluru)