Morning News Call - India, August 13

To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_08132018.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ FACTORS TO WATCH 2:00 pm: Minister of Railways Piyush Goyal to release a survey report on station cleanliness in New Delhi 3:30 pm: IDBI Bank annual general meeting in Mumbai 5:30 pm: Government to release July consumer price inflation data in New Delhi GMF: LIVECHAT-ON THE CHARTS Daryl Guppy is a renowned independent technical analyst and will be analysing various world markets and currencies for us at 1030 IST.

To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • Top Indian lender SBI eyes return to profitability in Q3 State Bank of India SBI.NS is confident of returning to profitability from the December quarter onwards as the impact of bad loans eases, its chairman said after the nation's top lender by assets plunged to its third straight quarter of losses.

• Jet Airways says meeting all payment obligations to lenders Indian carrier Jet Airways Ltd JET.NS sought to reassure investors on Saturday after the company deferred its earnings a day earlier, saying it is meeting its payment obligations to lenders and other dues, such as staff commitments.

• India's industrial output growth hits 5-month high of 7 percent in June India's industrial output INIP=ECI in June grew at its fastest pace in five months to 7 percent from a year earlier, driven by a pick up in capital goods manufacturing ahead of festive season, government data showed on Friday.

• India to step up use of biofuels to cut oil import bill India aims to increase the use of biofuels to cut its oil import bill by 120 billion rupees ($1.7 billion) by 2022 and reduce carbon emissions, Prime Minister Narendra Modi said on Friday.

• Hetero pulls heart drug from U.S. amid cancer risk probes A unit of India’s Hetero Drugs is recalling some batches of the blood pressure and heart medicine valsartan in the United States, a notice on the U.S. regulator's website said, amid a wider probe into cancer risks associated with the drug.

• CreditAccess Grameen $164 million IPO subscribed over 2 times Indian micro lender CreditAccess Grameen Ltd's initial public offering (IPO) to raise 11.31 billion rupees was subscribed more than 2 times on the final day of sale on Friday.

• Union Bank of India posts surprise first-quarter profit Union Bank of India UNBK.NS posted a surprise first-quarter profit on Friday as the state-controlled lender set aside lower provisions for bad loans and earned more from interest-bearing assets.

• GAIL (India) quarterly profit jumps 23 percent, beats estimates State-run gas utility GAIL (India) Ltd GAIL.NS reported a 23 percent rise in first-quarter profit on Friday and beat analysts' estimates.

• HDFC Bank's deputy managing director resigns HDFC Bank HDBK.NS on Friday said its Deputy Managing Director Paresh Sukthankar has resigned and will vacate his post in 90 days.

GLOBAL TOP NEWS • Turkey says has action plan to ease market concerns; lira firms from record low Turkey has drafted a economic action plan and will start implementing it on Monday morning to ease investor concerns, Finance Minister Berat Albayrak said on Sunday, after the lira plunged to a new record low in early Asia Pacific trade.

• North, South Korea begin talks before possible Pyongyang summit North and South Korean officials began high-level negotiations on Monday, with one South Korean newspaper report suggesting the two sides could be planning for a summit in Pyongyang later this month.

• Singapore revises Q2 GDP q/q growth lower, flags risks from trade Singapore's economy grew slower than initial estimates in the April-June period on a quarter-on-quarter basis, revised data showed on Monday, as the government flagged a likely moderation in growth in the second half.

LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading at 11,370.50, down 0.5% from its previous close.

• The Indian rupee is expected to open at record lows against the dollar after the tumble in Turkish lira spilled over to other emerging market currencies.

• Indian government bonds are expected to open lower as rupee will likely touch fresh record-lows against the dollar, while traders remain cautious ahead of today’s local inflation data. However, a sharp slump in U.S. Treasury yields may help cap the fall. Yield on the benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.74 percent -7.81 percent band today.

GLOBAL MARKETS • U.S. stocks slid on Friday as a deepening economic crisis in Turkey dragged on bank shares and triggered a move out of riskier assets.

• Asia share markets skidded and the euro hit one-year lows as a renewed rout in the Turkish lira drove demand for safe harbours, including the U.S. dollar, Swiss franc and yen.

• The euro was on the defensive after touching a 13-month low against the dollar as investors bid up safe havens such as the U.S. dollar and the yen on worries about the exposure of European banks to crisis-hit Turkey.

• The U.S. Treasury debt market rang up its best day in more than two months as investors scooped up low-risk government debt on anxiety about Turkey's financial problems spreading to other emerging economies and lenders exposed to the sector.

• Oil prices inched up as U.S. sanctions against Iran pointed towards a tighter market, although concerns over slowing economic growth amid global trade tensions kept a lid on gains.

• Gold prices edged down in early trade as the U.S. dollar held firm near a 13-month high against major peers amid financial crisis in Turkey.

CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 68.92/68.95 August 10 -$74.18 mln $39.42 mln 10-yr bond yield 7.75 pct Month-to-date $213.52 mln $868.29 mln Year-to-date -$365.99 mln -$4.88 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 = 68.8850 Indian rupees) (Compiled by Nachiket Tekawade in Bengaluru)