To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_12072018.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ FACTORS TO WATCH 9:00 am: SEBI Chairman Ajay Tyagi and Kotak Mahindra Bank CEO Uday Kotak at Financial Markets Summit in Mumbai.
5:00 pm: RBI to release weekly foreign exchange data in Mumbai.
GMF: Rahul Karunakar, Reuters Polling editor-in-charge discusses the latest forecasts in stocks and FX, and what to expect from the next set of central bank meetings, at 9:30 am IST. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • EXCLUSIVE-Indian central bank delays discussing easing curbs despite government pressure - source A crucial Reserve Bank of India sub-committee did not discuss easing lending curbs facing 11 state-run banks on Thursday despite intense pressure from the nation's government to take a softer stance towards them, a source close to the discussions said.
• IBM to sell some of its software products to HCL for $1.8 billion International Business Machines said on Thursday it will sell some of its software products business to Indian software services exporter HCL Technologies for $1.80 billion.
• Indian court expected to reopen Vedanta copper smelter but appeal likely - sources An Indian court is expected to follow an experts' panel recommendation and order the reopening of a copper smelter closed after 13 people died when police fired on environmental protesters in May, two sources familiar with the matter said.
• Slow train to China: India's trade ties with Beijing taking time to ripen China and India may be talking about improving their trade relationship but there is little action to go with the words.
• India urges training to replicate Lion Air crash for Boeing pilots Pilots flying Boeing's 737 MAX jets in India should be trained on a simulator that replicates the suspected scenario that led to the Lion Air crash, India's aviation regulator said in a statement on Thursday.
• Indian bonds at 8-month high on cenbank bond purchase hopes, inflation comments Indian bonds rose to over 8-month highs as rate hike fears faded after the central bank promised to keep buying government bonds to infuse liquidity, and also mentioned the probability of changing its rate stance if inflation risks do not mature.
• Facebook to check Indian political ads in build-up to vote Indian advertisers wanting to run political ads on Facebook will have to confirm their identity and location to help prevent abuse of the system in the build-up to national elections, the company said on Thursday.
• India to import Iranian oil using rupee payment mechanism India will import crude oil from Iran using a rupee-based payment mechanism, an industry source involved in discussions told Reuters on Thursday, adding that 50 percent of those payments will be used for exporting items to Tehran.
GLOBAL TOP NEWS • White House, Trudeau seek to distance themselves from Huawei move President Donald Trump did not know about plans to arrest a top executive at Chinese telecoms giant Huawei in Canada, two U.S. officials said on Thursday, in an apparent attempt to stop the incident from impeding crucial trade talks with Beijing.
• OPEC tentatively agrees oil cut, waits for Russia to commit OPEC tentatively agreed an oil output cut on Thursday but was waiting for a commitment from non-OPEC heavyweight Russia before deciding the exact volumes for a production reduction aimed at propping up crude prices, two sources from the group said.
• Trump to pick State Department spokeswoman for U.N. ambassador - source President Donald Trump will nominate State Department spokeswoman Heather Nauert as U.S. ambassador to the United Nations, a source familiar with his decision said on Thursday, tapping someone with no prior policy or political experience to deal with some of the world's thorniest issues.
LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading up 0.6 percent at 10,684.00, from the previous close.
• The Indian rupee is expected to open higher against the dollar, helped by a retreat in crude oil prices amid signs that the OPEC may reduce output less than expected.
• Indian government bonds will likely gain in early trade, as sentiment remained positive after Brent crude oil price stayed below $60-per-barrel mark, even while market awaited decision on a production cut from the Organization of Petroleum Exporting Countries. Yield on the benchmark 7.17 percent 2028 bond is likely to trade in a 7.39 percent-7.45 percent band today.
GLOBAL MARKETS • The S&P 500 and Dow industrials ended slightly negative but well above their session lows in volatile trading on Thursday as the arrest of a Chinese technology executive fanned fears of U.S-China tensions over trade, while some beaten-up big technology and internet shares posted gains.
• Asian shares fought to sustain the slimmest of recoveries amid speculation the Federal Reserve might be "one-and-done" with U.S. rate hikes, while oil fell anew as producers bickered over the details of an output cut.
• The dollar struggled to recover against its key rivals in Asian trade, hobbled by renewed speculation of an imminent pause in the Federal Reserve's tightening cycle, perhaps as soon as it delivers a widely expected rate hike later this month.
• U.S. Treasury yields fell on Thursday, with 10-year yields hitting three-month lows, as traders scaled back expectations on the number of rate hikes the Federal Reserve would implement amid weakening economic data and market volatility.
• Oil prices fell, pulled down by OPEC's decision to delay a final decision on output cuts, awaiting support from non-OPEC heavyweight Russia.
• Gold prices rose slightly and were headed for their best week in 15, as the dollar weakened following a decline in U.S. Treasury yields, while investors awaited U.S. nonfarm payroll data for clues about the health of the world's top economy.
CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 71.02/71.05 December 6 $10.23 mln $446.82 mln 10-yr bond yield 7.42 pct Month-to-date -$70.43 mln $347.42 mln Year-to-date -$5.13 bln -$6.80 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 = 70.84 Indian rupees) (Compiled by Hrithik Kiran Bagade in Bengaluru)