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Morning News Call - India, December 3

To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_12032018.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ FACTORS TO WATCH 9:45 am: Finance Minister Arun Jaitley to speak at the Policy Commission meeting of World Customs Organisation in Mumbai.

GMF: John Noonan, Head of IFR FX Watch Asia, analyses cues and views for market moves for the month ahead, at 9:30 am IST. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • India's economic growth slows as Modi prepares for re-election India's economic growth fell to a worse-than-expected 7.1 percent in the July-September quarter, dragged down by a slower consumer spending and farm growth, in a setback for Prime Minister Narendra Modi who faces a national election by May.

• India's quarterly GDP 'seems disappointing' - finmin official India's growth in the July-to-September quarter "seems disappointing," Economic Affairs Secretary Subhash Chandra Garg said in a tweet on Friday.

• INTERVIEW-HDFC Life favours high-yield Indian corporate bonds over government debt HDFC Standard Life Insurance is looking to invest in high-yielding Indian corporate bonds rather than longer-term government securities, saying a recent easing of inflation may not last and fiscal worries linger.

• Tata Motors falls; Jaguar Land Rover to temporarily cut jobs at UK plant Shares of Tata Motors's fell on Friday after its British unit Jaguar Land Rover said it is going to cut 500 jobs temporarily at its plant in central England.

• Employees of IL&FS held by Ethiopian staff say fears for safety Employees of Infrastructure Leasing & Financial Services (IL&FS) taken hostage by local staff in Ethiopia say they fear for their safety, with some confined to a company campus north of the capital Addis Ababa.

• Angry Indian farmers march on parliament to denounce their plight Tens of thousands of Indian farmers and rural workers marched to the Indian parliament in the capital, New Delhi, on Friday in a protest against soaring operating costs and plunging produce prices that have brought misery to many.

• Maverick accountant Gurumurthy shaking up India's central bank To his supporters, new Reserve Bank of India board member Swaminathan Gurumurthy is a philosopher who will set India on a path of self-reliance. His detractors paint him as an ideologue who has pushed the government into a series of policy blunders.

GLOBAL TOP NEWS • G20 sealed landmark deal on WTO reform by ducking 'taboo words' Many delegates from the world's 20 largest economies arrived at a summit in Argentina this week determined to clinch an agreement to reform the global trade system, pushed to a breaking point by tensions between the United States and China.

• China Oct factory activity up a touch but client demand ebbs - Caixin PMI China's factory activity grew slightly in November, a private survey showed, though new export orders extended their decline in a further blow to the sector already hurt by the Sino-U.S. trade frictions.

• Australia's GrainCorp mulls $1.8 bln takeover approach, shares surge Australia's largest listed bulk grain handler GrainCorp said it received an unsolicited A$2.38 billion takeover approach from a little-known asset manager, catapulting its shares nearly a third higher.

LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.7 percent higher at 10,981.50, from the previous close.

• The Indian rupee is expected to open lower against the dollar amid a jump in crude oil prices and a weaker-than-expected domestic GDP data, which overshadowed a ceasefire in the trade war between the U.S. and China.

• Indian government bonds are likely to trade lower in early session, after posting their best month in this financial year in November, as crude oil prices jumped sharply. Yield on the benchmark 7.17 percent 2028 bond is likely to trade in a 7.60 percent-7.66 percent band today.

GLOBAL MARKETS • U.S. stock index futures jumped on Sunday, suggesting Wall Street was set rise further after its biggest weekly gain last week in nearly seven years as China and the United States agreed to shelve any new tariffs and reset discussions.

• Asian shares rallied after U.S. and Chinese leaders brokered a truce in their trade conflict, a relief for the global economic outlook and a tonic for emerging markets.

• The dollar weakened across the board as investor demand for riskier assets rose after China and the U.S. agreed to a ceasefire in their trade war that has shaken global markets.

• U.S. Treasury futures slipped as trading for the week ahead kicked off late on Sunday with investors back in a risk-taking mood after China and the United States agreed to shelve any new tariffs and reset discussions.

• Oil prices shot higher after the United States and China agreed a 90-day truce in their trade conflict and ahead of a meeting by producer club OPEC this week that is expected to result in a supply cut • Gold prices were steady early as the dollar weakened on U.S.-China trade truce that revived investor demand for riskier assets.

CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 69.87/69.90 November 30 -$47.82 mln -$43.45 mln 10-yr bond yield 7.61 pct Month-to-date $891.11 mln $956.49 mln Year-to-date -$5.03 bln -$7.15 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 = 69.6400 Indian rupees) (Compiled by Hrithik Kiran Bagade in Bengaluru)