Morning News Call - India, December 15

To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_12152017.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: Junior Aviation Minister Jayant Sinha, Info Edge India Executive Vice Chairman Sanjeev Bhikchandani, Bharti Enterprises Chairman Sunil Bharti Mittal, Agriculture Secretary Shobhana Pattayanayak at TieCon event in New Delhi.

11:00 am: Winter session of parliament starts in New Delhi.

5:30 pm: Pre-budget meeting of banks and financial institutions in New Delhi.

LIVECHAT – QUIZ EAST The first of our Friday quizzes focuses on Asia and the week's top news. Tests your wits and googling speed at 11:00 am IST. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • Alphabet's X sells new wireless internet tech to Indian state Alphabet Inc's X research division said on Thursday that India's Andhra Pradesh state government would buy its newly developed technology that has the potential to provide high-speed wireless internet to millions of people without laying cable.

• Indian tycoon's extradition hearing told of abuse of UK "Chennai Six" One of the "Chennai Six" group of ex-British soldiers jailed in India was dragged to a psychiatric hospital and force-fed anti-psychotic tablets during his time in jail, a London court considering whether to extradite Indian tycoon Vijay Mallya was told on Thursday.

• India PM Modi's party seen sweeping state polls in popularity boost Indian Prime Minister Narendra Modi's ruling group will sweep an election in his home state of Gujarat, surveys showed on Thursday, shaking off the most serious challenge yet from a combined opposition.

• India's SEBI chairman says banks should disclose corporate defaults Securities and Exchange Board of India Chairman Ajay Tyagi said on Thursday banks should disclose defaults in corporate loans, similar to the system in place for corporate bonds, saying it was an issue that regulators would need to address.

• Tata Group, GE partner to make LEAP engine components in India Steel-to-software conglomerate Tata Group and General Electric Co entered into a partnership in November to manufacture components for engine-maker CFM International in India, the two companies said in a statement on Thursday.

• India's top court allows Vodafone to begin second arbitration in $2 bln tax dispute India's top court on Thursday allowed Britain's Vodafone to initiate a second arbitration process under an India-UK investment pact over a long-running $2 billion-plus tax dispute with New Delhi.

• In-flight sexual assaults often unreported; airlines need to step up When a 17-year-old Bollywood actress took to social media this week alleging she was sexually assaulted on an airplane, she appeared to catch the airline industry off-guard.

GLOBAL TOP NEWS • U.S. regulators ditch net neutrality rules as legal battles loom The U.S. Federal Communications Commission voted along party lines on Thursday to repeal landmark 2015 rules aimed at ensuring a free and open internet, setting up a court fight over a move that could recast the digital landscape.

• Disney buying Fox film, TV units for $52 billion in digital push Walt Disney Co has struck a deal to buy film, television and international businesses from Rupert Murdoch's Twenty-First Century Fox Inc for $52.4 billion in stock, giving the world's largest entertainment company an arsenal of shows and movies to combat growing digital rivals Netflix Inc and Amazon.com Inc.

• Japan's big manufacturers' mood hits 11-year high - tankan Big Japanese manufacturers' business confidence improved for a fifth straight quarter in the three months to December to hit a 11-year high, a central bank survey showed, a sign the economy is gathering momentum from robust exports and booming corporate profits.

LOCAL MARKETS OUTLOOK (As reported by NewsRise) The SGX Nifty Futures was at 10,352.00, trading up 0.62 percent from its previous close.

Indian government bonds are likely to trade higher after exit polls predicted that Prime Minister Narendra Modi’s Bharatiya Janata Party would comfortably win Gujarat state elections. The yield on the benchmark 6.79 percent bond maturing in 2027 is likely to trade in a 7.09 percent-7.15 percent band.

The Indian rupee will likely edge higher against the dollar, after exit polls showed Prime Minister Narendra Modi’s Bharatiya Janata Party winning Gujarat and Himachal Pradesh state elections, boosting investor sentiment.

GLOBAL MARKETS • Major U.S. stock indexes fell on Thursday, with the S&P 500 down the most in a month, as investor worries over potential roadblocks to the Republicans' tax overhaul more than offset optimism over strong retail sales data.

• Asian shares edged higher, on track for weekly gains, though sentiment was kept in check by Wall Street's weakness on concerns about the progress of U.S. tax reform.

• The dollar was on the defensive after wrangling over a bill to change the U.S. tax code dented confidence, while the euro sagged after the European Central Bank signalled it would maintain stimulus for as long as needed.

• The gap between U.S. shorter-dated and longer-dated Treasury yields shrank on Thursday as surprisingly strong data on retail sales in November supported the view the Federal Reserve would raise interest rates further to keep the economy from overheating.

• Oil markets were stable as the Forties pipeline outage in the North Sea and the ongoing OPEC-led production cuts supported prices, while rising output from the United States kept crude from rising further.

• Gold prices were steady, poised for their first weekly gain in four, as the dollar sagged on concerns about the progress of U.S. tax reform.

CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 64.28/64.31 December 14 $361.01 mln $71.50 mln 10-yr bond yields 7.18 pct Month-to-date -$463.14 mln $233.64 mln Year-to-date $8.23 bln $25.97 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 = 64.3300 Indian rupees)