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Morning News Call - India, January 14

·5 min read

To access a PDF version of this newsletter, please click here https://share.refinitiv.com/assets/newsletters/Indiamorning/MNC_IN_01142022.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH • 12:00 pm: AGS Transact Technologies media briefing to announce Initial Public Offering. • 1:30 pm: SIAM to release December auto industry sales data followed by press conference. INDIA TOP NEWS • LIC to open India's biggest IPO issue by mid-March Life Insurance Corporation (LIC), India's largest insurer, could publish key details of its mammoth initial public offering (IPO) this month and begin issuing public shares by mid-March, government and banking officials told Reuters on Thursday. • Britain and India aim to finalise FTA agreement by year-end Britain and India formally launched free trade agreement talks in New Delhi on Thursday with the aim of wrapping up a deal by the end of the year that could boost annual bilateral trade by billions of pounds. • India's Reliance intensifies green push with $80 billion investment in Gujarat India's Reliance Industries said it would invest $80.49 billion to set up green energy projects and bolster its retail and telecom arms in the western state of Gujarat, as it targets net-zero carbon emissions by 2035. • India's Wipro shares fall over 6% as quarterly profit, outlook disappoint Shares of Wipro fell as much as 6.3% on Thursday, a day after the Indian IT services provider reported subdued growth in quarterly profit while larger peers posted strong results amid upbeat demand outlook. • South Korea's POSCO, India's Adani eye steel mill project in $5-billion pact Indian billionaire Gautam Adani's infrastructure group and South Korean steel major POSCO aim to invest about $5 billion on projects that include setting up an integrated steel mill in the western state of Gujarat, the companies said. • Tesla's Musk says 'working through challenges' with India government Tesla is "still working through a lot of challenges with the government" in India, its billionaire chief executive Elon Musk said on Twitter on Thursday, responding to a question on when it would launch its electric cars in the country. • ANALYSIS-India's new COVID-19 rules aim to free up resources but carry risks India has eased its COVID-19 rules on testing, quarantine and hospital admissions in a bid to free up resources for its neediest people, a strategy hailed by experts even though it carries the risk of a heavy undercount of infections and deaths. GLOBAL TOP NEWS • China growth seen slowing to 5.2% in 2022, modest policy easing expected China's economic growth is likely to slow to 5.2% in 2022, before steadying in 2023, a Reuters poll showed, as the central bank steadily ramps up policy easing to ward off a sharper downturn. • BOJ debates messaging on eventual rate hike as inflation perks up Bank of Japan policymakers are debating how soon they can start telegraphing an eventual interest rate hike, which could come even before inflation hits the bank's 2% target, sources say, emboldened by broadening price rises and a more hawkish Federal Reserve. • Singapore's UOB to buy Citi retail operations in 4 countries for $3.65 billion Singapore lender United Overseas Bank (UOB) has agreed to buy Citigroup's C.N consumer businesses in Indonesia, Malaysia, Thailand and Vietnam for about$3.65 billion, funding the purchase with the bank's excess capital. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.3% lower at 18,253.00. • The Indian rupee is expected to decline versus the dollar after U.S. equities tumbled following more hawkish comments by Federal Reserve officials. • Indian sovereign bond yields are likely to fall today after the central bank lowered the absorption of surplus liquidity from the banking system ahead of a sovereign debt auction later in the day. The yield on the benchmark 6.10% bond maturing in 2031 is likely to trade in the 6.50%-6.56% band. GLOBAL MARKETS • Wall Street's major indexes closed lower on Thursday with Nasdaq's 2.5% drop leading the losses as investors took profits, particularly in technology stocks after a three-day rally, while multiple Federal Reserve officials were out talking about inflation and interest rate hikes. • Asian shares took a beating after a fresh salvo of hawkish remarks from Federal Reserve officials solidified expectations that U.S. interest rates could rise as soon as March, leaving markets braced for tighter monetary conditions. • The dollar headed for its largest weekly fall in eight months as investors trimmed long positions and deemed, for now, that several U.S. rate hikes this year are fully priced in. • U.S. Treasury yields on Thursday fell, as risk appetite soured with stocks lower and investors consolidating positions that pushed 2- and 5-year rates to two-year highs earlier in the week, as they prepared for an interest rate hike in March and at least two more by the end of the year. • Oil prices eased for a second session on growing concerns that Washington may soon act to cool prices, while movement controls in China to rein in a COVID-19 outbreak weighed on fuel demand. • Gold prices were poised for their best weekly gain since last November, as investors await economic data that could provide clarity about U.S. Federal Reserve's tapering policy, while a weaker dollar and Treasury yields supported bullion. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 73.91/73.94 January 13 (725.47) crore 323.34 crore 10-yr bond yield 6.554% Month-to-date 3,227 crore 285 crore Year-to-date --- --- (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 = 73.94 Indian rupees) (Compiled by Ananya Roy)