Morning News Call - India, August 1

To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_08012017.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ FACTORS TO WATCH 10:00 am: Cochin Shipyard IPO opens for subscription in Mumbai.

11:00 am: Monsoon session of parliament continues in New Delhi.

11:00 am: IT & Law Minister Ravi Shankar Prasad to inaugurate conference for young Superintendents of Police in New Delhi.

12:30 pm: State Bank of India Managing Director Rajnish Kumar at SBI and Samsung strategic announcement in Mumbai.

3:00 pm: Tech Mahindra annual general meeting in Mumbai.

4:00 pm: NTPC Chairman Gurdeep Singh at annual analysts and investors meet in Mumbai.

4:30 pm: Marico annual general meeting in Mumbai.

6:00 pm: Aviation Minister Ashok Gajapathi Raju and Junior Minister Jayant Sinha at launch of aircraft maintenance engineering program in New Delhi.

INDIA TRADING FORUM - ACCOUNTING STANDARDS - INDIA vs GLOBAL As Indian companies continue to transition to the India AS, problems continue to linger. Recently the IRDAI deferred the execution of IndAS by two years. At 11:00 am IST, we speak to Khushroo Panthaky, a veteran in the field, and current senior partner at Grant Thornton on the challenges companies face and what can be done to lift the quality of Indian corporate governance. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/">https://forms.thomsonreuters.com/communities/ LIVECHAT - FX FOCUS A number of advanced economy central banks are sending increasingly hawkish signals. Currency expert Mark Farrington, portfolio manager and head of Macro Currency Group, joins us to discuss whether these tones are correlated or coordinated, and what that means for the markets. To join the conversation at 11:30 am IST, click on the link: https://forms.thomsonreuters.com/communities/">https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • Snapdeal calls off sale to Flipkart in setback for SoftBank Snapdeal said it had decided to remain independent and was ending all talks regarding a sale, bringing the curtain down on months of discussions around a possible acquisition of the e-commerce firm by bigger rival Flipkart.

• India's April-June fiscal deficit hits 81 percent of full-year target - govt India's fiscal deficit touched 4.42 trillion rupees during April-June period or 80.8 percent of the budgeted target for the current fiscal year that ends in March, government data showed.

• IndiGo parent reports record profit despite Airbus delays InterGlobe Aviation, owner of IndiGo airlines, reported a record quarterly profit powered by growth in passenger revenue but warned that delays in deliveries of Airbus's new A320neo aircraft were affecting margins.

• India raises concerns around Chinese firm Fosun's takeover of Gland-source India has privately raised objections to Chinese firm Shanghai Fosun Pharmaceutical Group's proposed $1.3 billion takeover of Indian drugmaker Gland Pharma, a source familiar with the matter said.

• Tech Mahindra first-quarter profit rises beats estimates Tech Mahindra Ltd reported a better than expected 7 percent rise in first-quarter profit, helped by new clients for its digital services business.

• SBI cuts savings deposit rates to protect margins State Bank of India cut deposit rates on the majority of its savings accounts to a six-year low, just two days ahead of a policy meeting in which the central bank is expected to cut interest rates.

• Boeing expects India to order up to 2,100 aircraft over 20 years Boeing Co said it expects Indian airlines to order up to 2,100 new aircraft worth $290 billion over the next 20 years, calling it the highest-ever forecast for Asia's third-largest economy.

• Max Financial calls off merger with HDFC Standard Life Insurance Max Financial Services called off its proposed merger with HDFC Standard Life Insurance Co Ltd, citing delays in the process.

GLOBAL TOP NEWS • Trump fires communications director Scaramucci in new White House upheaval U.S. President Donald Trump ousted recently hired White House communications chief Anthony Scaramucci on Monday over an obscene tirade, sources familiar with the decision said, in the latest staff upheaval for the six-month-old administration.

• China factory activity accelerates in July on strong export orders - Caixin PMI Growth in China's manufacturing quickened in July, a private survey showed on Tuesday, as output and new orders rose at the fastest pace since February on strong export sales.

• WhatsApp enforcer: Brother of ousted Pakistani PM to bring new style Politics is a family business in Pakistan and ousted leader Nawaz Sharif has looked no further than his brother Shahbaz for a successor, but the prime minister-in-waiting is no carbon copy and is likely to usher in a new style at the top of government.

LOCAL MARKETS OUTLOOK (As reported by NewsRise) • The SGX Nifty Futures were trading at 10,118.50, trading up 0.1 percent from its previous close.

• Indian government bonds are likely to open steady as investors await the outcome of the Monetary Policy Committee’s two-day meeting that starts today. The yield on the benchmark 6.79 percent bond maturing in 2027 is likely to trade in a 6.45 percent-6.49 percent band today.

• The Indian rupee will likely open higher against the dollar, as U.S. political woes and uncertainty over Federal Reserve rate hike continue to weigh on the greenback, while regional shares rally after encouraging China manufacturing data.

GLOBAL MARKETS • The Dow Jones Industrial Average hit a record closing high on Monday, helped by Boeing, while selling in Facebook, Alphabet and other technology companies checked the S&P 500 and pulled the Nasdaq lower.

• Asian shares ticked up as investors looked to a barrage of economic data around the world to confirm recent signs the global economy is in robust health with inflation staying well contained.

• The dollar inched up from a 2-1/2 year low versus the euro, but its outlook remained clouded by U.S. political turmoil and doubts about whether there will be another Federal Reserve rate hike this year.

• U.S. Treasury yields rose on Monday before a heavy week of data, which will culminate in Friday's employment report for July, and as investors waited on Wednesday's refunding announcement for the coming quarter.

• U.S. oil opened above $50 per barrel for the first time since late May on Monday, supported by strong fuel demand, but ongoing high supplies from producer club OPEC kept prices from rising further.

• Gold prices held steady near seven-week highs, supported by political uncertainty and a slump in dollar, after registering their biggest monthly gain in five months in July.

CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 64.14/64.17 July 31 -$186.54 mln $45.03 mln 10-yr bond yield 6.84 pct Month-to-date $578.75 mln $3.14 bln Year-to-date $9.17 bln $21.14 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 = 64.1700 Indian rupees) (Compiled by Erum Khaled in Bengaluru)