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Morning News Call - India, December 6

·6 min read

To access a PDF version of this newsletter, please click here https://share.refinitiv.com/assets/newsletters/Indiamorning/MNC_IN_12062021.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH • Prime Minister Narendra Modi and Russia President Vladimir Putin at India-Russia annual summit in New Delhi. • Monetary Policy Committee’s three-day interest rate-setting meeting begins in Mumbai. • Bombay High Court’s division bench to hear Zee Entertainment Enterprises’ activist funds’ plea seeking extraordinary general meeting of shareholders in Mumbai. • 10:10 am: IRDAI member non-life T. L. Alamelu, PFRDA Chairman Supratim Bandyopadhyay, Joint Secretary - Department of Financial Services - Saurabh Mishra at CII's insurance and pension summit. • 12:00 pm: C.E Info Systems (MapmyIndia) virtual IPO press briefing. • 12:45 pm: Shriram Properties IPO press conference in Mumbai. • 5:00 pm: Anand Rathi Wealth IPO subscription closes in Mumbai. PROMOTION LIVECHAT-REUTERS GLOBAL MARKETS FORUM Reuters FX Buzz Analyst Jeremy Boulton looks at the weekly outlook for G7 currencies and select EM FX pairs. To join the conversation at 5:30 pm IST, click here https://www.refinitiv.com/en/products/refinitiv-messenger/global-markets-forum INDIA TOP NEWS • India targets extra spending of $39.87 billion for pandemic relief The Indian government sought parliamentary approval on Friday for net extra spending of $39.87 billion in the current financial year ending in March 2022, that would include spending on free foodgrain and rural jobs for pandemic relief. • India's services activity grew robustly in November; price pressures intensify Activity in India's dominant services sector continued to grow at a robust pace last month supported by a strong recovery in domestic demand, a private survey showed, but elevated price pressures remained a major concern. • ANALYSIS-Modi's farm reform reversal to deter investment in India's agriculture India's repeal of agriculture laws aimed at deregulating produce markets will starve its vast farm sector of much-needed private investment and saddle the government with budget-sapping subsidies for years, economists said. • India detects seven more Omicron cases, making 12 in all India's tally of reported cases of the heavily mutated Omicron variant of the coronavirus rose to 12 on Sunday after the state of Maharashtra said it had detected seven new cases. • Indian salesmen threaten supply disruptions in protest against Reliance India's household goods salesmen have threatened to disrupt supplies to mom-and-pop stores if consumer companies provide products at lower prices to Reliance Industries, according to a letter seen by Reuters. • Indian insurer Star Health cuts IPO size after tepid subscription India's largest private health insurer Star Health will cut the offer for sale portion of its IPO after the offering received a tepid response in its subscription period ending on Thursday, a source said. • India revokes patent for PepsiCo's Lay's potatoes India has revoked a patent for a potato variety grown exclusively for PepsiCo's popular Lay's potato chips, according to an order issued on Friday by the Protection of Plant Varieties and Farmers' Rights (PPVFR) Authority. • Musk's Starlink to apply for India licence by end of January Starlink, the satellite internet division of billionaire Elon Musk's rocket company SpaceX, will apply early next year for a commercial licence in India to provide broadband and other services, its country head said on Friday. GLOBAL TOP NEWS • Omicron variant found in nearly one-third of U.S. states The Omicron variant of the coronavirus has spread to about one-third of U.S. states, but the Delta version remains the majority of COVID-19 infections as cases rise nationwide, U.S. health officials said on Sunday. • China Evergrande shares hit 11-year low after firm says no guarantee it can meet repayments Shares of China Evergrande Group tumbled to an 11-year low after the firm said there was no guarantee it would have enough funds to meet debt repayments, prompting Chinese authorities to summon its chairman. • Saudi Arabia raises January Arab Lt crude price to Asia to near 2-year high Saudi Arabia's state oil producer Aramco raised official selling prices (OSPs) for all crude grades sold to key market Asia for a second straight month in January, tracking robust gains in Middle East spot market last month. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were flat at 17,236. • The Indian rupee will likely decline versus the dollar in early trade, tracking the broader strength of the dollar on bets that the weaker headline U.S. jobs data is unlikely to impact the Federal Reserve’s thinking of quickening the taper. • Indian sovereign bond yields will likely trade mostly unchanged in early session as investor sentiment remains cautious ahead of the Monetary Policy Committee’s rate decision on Wednesday. The yield on the benchmark 6.10% bond maturing in 2031 may trade in the 6.34%-6.40% range today. GLOBAL MARKETS • Wall Street's major indexes closed lower on Friday, with the Nasdaq leading the declines as investors bet that a strong jobs report would not slow the Federal Reserve's withdrawal of support all while they grappled with uncertainty around the Omicron coronavirus variant. • Asian share markets lagged a bounce in U.S. and European futures, while bonds surrendered some of their recent gains. • Riskier currencies fought for a foothold against a dollar, buoyed by uncertainty around the Omicron variant and the expectation of more hot U.S. inflation data putting upward pressure on interest rates. • U.S. Treasury yields tumbled on Friday in choppy trading, with the 10-year yield dropping below 1.4% for the first time since September as a risk-off sentiment took hold in markets, sending Wall Street lower. • Oil prices rose by more than $1 a barrel after top exporter Saudi Arabia raised prices for its crude sold to Asia and the United States, and as indirect U.S.-Iran talks on reviving a nuclear deal appeared to hit an impasse. • Gold prices held steady as market participants weighed the prospect of a faster ending to pandemic-era asset purchases by the U.S. Federal Reserve after data suggested the labour market was rapidly tightening. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 75.01/75.04 December 3 (301.53) crores 669.29 crores 10-yr bond yield 6.369% Month-to-date (8,300) crores 504 crores Year-to-date 36,478 crores 1,944 crores (FII investment numbers are in Indian rupees. Source: National Securities Depository Limited) 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 = 75.22 Indian rupees) (Compiled by Nidhi C Sai in Bengaluru)