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Morning News Call - India, January 18

·6 min read

To access a PDF version of this newsletter, please click here https://share.refinitiv.com/assets/newsletters/Indiamorning/MNC_IN_01182021.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH • Supreme Court to hear petitions challenging constitutionality of farm laws in New Delhi. • 10:00 am: Indian Railway Finance Corporation IPO opens for subscription in Mumbai. • 6:30 pm: Mindtree management at an analyst call post third-quarter earnings.​ 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 at 5:30 pm IST. To join the conversation, click here https://www.refinitiv.com/en/products/refinitiv-messenger/editorial-communities-financial-forums INDIA TOP NEWS • RBI likely to propose stricter rules for shadow banks - sources The Reserve Bank of India (RBI) is likely to propose tightening rules on "shadow banks" in a bid to strengthen solvency and sustainability of a sector that has been showing signs of stress in recent years, two sources said. • 'Go for it,' says first person vaccinated in India's massive COVID-19 campaign Hospital cleaning worker Manish Kumar became the first person in India to be vaccinated against COVID-19 on Saturday, as Prime Minister Narendra Modi launched one of the world's largest immunisation campaigns to bring the pandemic under control. • India's COVID-19 vaccination drive hits bump due to app glitch India's COVID-19 vaccination drive was still facing some delays on Sunday after it hit a bump on the first day due to glitches in an app used to coordinate the campaign, according to officials in some states. • India's December trade deficit widens to $15.44 billion India's trade deficit in goods widened to $15.44 billion in December as imports rose to $42.59 billion, pushed by a surge in gold imports, while merchandise exports were up marginally, revised data released by the government on Friday showed. • DHFL creditors vote in favour of Piramal's $5 billion bid - source Creditors of India's Dewan Housing Finance have voted in favour of a $5.09 billion takeover bid submitted by the Piramal Group for the troubled "shadow" lender, a source with knowledge of their decision said on Sunday. • India's friction with U.S. rises over planned purchase of Russian S-400 defence systems The United States has told India it is unlikely to get a waiver on its planned acquisition of Russian S-400 air defence systems, raising the risk of sanctions similar to those imposed on Turkey for buying that equipment, people aware of the matter said. • Indian government, protesting farmers make no headway in talks, to reconvene Tuesday A ninth round of talks between the Indian government and protesting farmers over three new contentious farm laws made no headway on Friday, but a government minister and union leaders said they would resume discussions on Tuesday. • Amazon faces backlash from Indian ruling party lawmakers over web series 'Tandav' A local official from India's ruling Hindu nationalist party on Sunday registered a police complaint against an Amazon Prime web series alleging it insults Hindu gods and goddesses, and threatened to launch a protest at the company's office in Mumbai. GLOBAL TOP NEWS • China's fourth quarter GDP growth beats forecast, ends 2020 in solid position after COVID-19 shock China's economy grew at a faster-than-expected pace in the fourth quarter of last year, ending a rough coronavirus-striken 2020 in remarkably good shape and remained solidly poised to expand further this year. • Trump administration slams China's Huawei, halting shipments from Intel, others - sources The Trump administration notified Huawei suppliers, including chipmaker Intel, that it is revoking certain licenses to sell to the Chinese company and intends to reject dozens of other applications to supply the telecommunications firm, people familiar with the matter told Reuters. • 'It was a non-event': Pro-Trump protests quiet amid massive police presence across U.S. Law enforcement officers far outnumbered protesters at state capitol grounds on Sunday, as few Trump supporters who believe the president's false claim that he won the 2020 election turned out for what authorities feared could be violent demonstrations. INSIGHT • Big Oil’s flagship plastic waste project sinks on the Ganges A wheelbarrow and a handful of metal grids for capturing litter, emblazoned with the words “Renew Oceans,” sit rusting outside an empty, padlocked office in the Indian city of Varanasi, a short walk from the Ganges. It is all that is left of a programme, funded by some of the world’s biggest oil and chemical companies, that they said could solve a runaway ocean plastic waste crisis which is killing marine life - from plankton to whales - and clogging tropical beaches and coral reefs. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.3% lower at 14,410.00. • The Indian rupee is expected to weaken against the U.S. currency amid the dollar index reaching a near one-month high on risk aversion. • Indian federal government bond yields are likely to edge lower in early trade as the central bank will buy the benchmark note at an outright open market operation this week. The yield on the benchmark 5.77% bond maturing in 2030 is likely to trade in a 5.92%-5.98% band. GLOBAL MARKETS • Wall Street's main indexes finished lower on Friday, weighed down by big U.S. banks after their earnings reports, while the energy fell sharply due to a regulatory probe into Exxon. • Asian share markets pared early losses as data confirmed China's economy had bounced back last quarter as factory output jumped, helping offset recent disappointing news on U.S. consumer spending. • The dollar held late-week gains as softening U.S. economic data and rising coronavirus cases turned investors cautious. • U.S. Treasury yields fell on Friday after retail sales data came in below economists' expectations and following President-elect Joe Biden's proposed $1.9 trillion stimulus program. • Oil prices fell, extending losses that last week ended a rally driven by production cuts and strong Chinese demand, with the market's recovery outlook being called into question as coronavirus infections rise. • Gold prices dropped to their lowest in 1-1/2 months, as a stronger U.S. dollar made bullion expensive for other currency holders, despite expectations of a large COVID-19 relief package in the United States.​ CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 73.15/73.18 January 15 1,611.72 crores (329.25) crores 10-yr bond yield 5.98% Month-to-date 18,490 crores (2,192) 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 = 73.12 Indian rupees) (Compiled by Nidhi C Sai in Bengaluru)