Morning News Call - India, July 17
To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_07172018.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ FACTORS TO WATCH TRADING INDIA FORUM - TRADE WAR EFFECTS ON INDIA Trade wars have begun in earnest with President Trump firing 2nd shots over China with proposed tariffs over imports of $200 billion. India stands at an interesting position amidst all the firing. China and the U.S. are India's top 2 trading partners. How should India respond to President Trump while sharing a complicated relationship with China? Atul Kaushik, former Joint Secretary of Department of Justice (India), talks about it at 11:00am IST. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/">https://forms.thomsonreuters.com/communities/ LIVECHAT- TRADE WARS Rob Carnell, head of research and chief economist for Asia-Pacific at ING Bank, joins us to discuss the fallouts of the United States’ protectionist rhetoric, and how deep China could dig in its ammunition to retaliate. What would this mean for the Chinese, U.S. and other economies, and also for the Fed for its future rate path. To join the conversation at 12:00pm IST, click on the link: https://forms.thomsonreuters.com/communities/">https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • State insurer LIC to take majority stake in IDBI Bank State-run Life Insurance Corp of India's board on Monday approved a proposal to acquire a 51 percent stake in IDBI Bank, in a move that will provide the embattled lender much-needed capital to set aside for bad loans.
• Hindustan Unilever Q1 profit rises but lags estimates Consumer goods maker Hindustan Unilever Ltd posted a 19 percent rise in its first-quarter profit on Monday but slightly missed analysts' expectations as cost of materials climbed.
• Trade ministry urges duty on Chinese solar cells, modules India's trade ministry on Monday recommended imposing a 25 percent duty on imports of solar cells and modules from China for one year to try to counter what it sees as a threat to domestic solar equipment manufacturing.
• Spicejet in talks with planemakers over long-haul options Indian budget airline Spicejet is in talks with aircraft makers over planes that would help its ambitions to fly long-haul, the carrier's chairman said on Monday.
• Telecom regulator recommends stricter data security rules India's telecom regulator on Monday said the existing framework for protection of personal data by companies and service providers was insufficient and recommended stricter rules to tackle data breaches.
GLOBAL TOP NEWS • Trump backs Putin on election meddling at summit, stirs fierce criticism Standing side by side with Vladimir Putin, U.S. President Donald Trump refused on Monday to blame the Russian leader for meddling in the 2016 U.S. election, casting doubt on the findings of his own intelligence agencies and sparking a storm of criticism at home.
• U.S. launches five WTO challenges to retaliatory tariffs The United States launched five separate World Trade Organization dispute actions on Monday challenging retaliatory tariffs imposed by China, the European Union, Canada, Mexico and Turkey following U.S. duties on steel and aluminum.
• Fed's 'good place' U.S. economy heads for congressional review Federal Reserve Chairman Jerome Powell takes his upbeat view of the U.S. economy to Capitol Hill, with markets and many of Powell's colleagues expecting two more interest rate increases this year amid a continued economic expansion.
LOCAL MARKETS OUTLOOK (As reported by NewsRise) SGX Nifty nearest-month futures were down 0.2 percent at 10,926.50.
The Indian rupee is expected to open higher against the dollar after Brent crude extended its fall, dropping to the lowest level since mid-April.
Indian government bonds are likely to open higher tracking an overnight fall in crude oil prices that eases some inflation concerns. The yield on the benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.75 percent-7.81 percent band today.
GLOBAL MARKETS • The S&P 500 ended slightly lower on Monday following a drop in oil prices that weighed on energy shares and offset a jump in financials as Bank of America's results reinforced expectations of a strong U.S. earnings season.
• Asian stocks sagged, weighed by a sharp decline in crude oil prices as Libyan ports reopened, while the dollar steadied ahead of Federal Reserve Chairman Jerome Powell's first congressional testimony.
• The dollar slightly gained against its major peers, as investors awaited Federal Reserve Chairman Jerome Powell's first congressional testimony for any clues on the pace of U.S. interest rate rises.
• U.S. Treasury yields increased on Monday with the two-year yield hitting a near decade peak as domestic retail sales recorded growth for a fifth straight month in June, supporting the view of solid economic growth in the second quarter.
• Brent crude prices rose from a three-month low after more oil workers went on strike in Norway, supporting a market that has been dominated by oversupply issues in recent days.
• Gold prices were steady as the U.S. dollar remained largely unchanged ahead of the U.S. Federal Reserve Chairman Jerome Powell's first congressional testimony.
CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 68.63/68.66 July 16 -$91.33 mln -$15.32 mln 10-yr bond yield 7.80 pct Month-to-date -$178.37 mln -$288.32 mln Year-to-date -$965.80 mln -$6.07 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 = 68.5400 Indian rupees) (Compiled by Yoganand KN in Bengaluru)
