Morning News Call - India, July 4
To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_07042018.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ FACTORS TO WATCH 10:45 am: Federal Cabinet likely to meet in New Delhi.
2:00 pm: Commerce Minister Suresh Prabhu to meet trading houses and major exporters in New Delhi.
2:20 pm: Coal Minister Piyush Goyal and Coal Secretary Inder Jit Singh at an event in New Delhi.
2:30 pm: Micro, Small & Medium Enterprises Minister Giriraj Singh at awards event in New Delhi.
GMF: MARKETS FOCUS Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA, joins us to talk about markets and cues to watch and what next to expect from Asian central banks, especially after Bank Indonesia's surprise 50 bps hike last week at 9:30 am IST. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • EXCLUSIVE-India's PNB to shutter most operations in fraud-hit Mumbai branch India's Punjab National Bank is closing nearly all its operations in a Mumbai branch that was at the heart of a $2 billion fraud, according to four sources with knowledge of the decision.
• India asks WhatsApp to curb spread of false messages India has asked Facebook-owned WhatsApp messenger to take steps to prevent the circulation of false texts and provocative content that have led to a series of lynchings and mob beatings across the country in the past few months.
• Anil Agarwal faces shareholder resistance to $1 billion Vedanta bid Billionaire Anil Agarwal faces investor resistance to his $1 billion bid to buy out minority shareholders in Vedanta Resources and take the London-listed Indian miner private.
• IHH Healthcare submits revised bid for Fortis Healthcare Malaysia's IHH Healthcare Bhd said on Tuesday it had submitted an enhanced binding offer for Indian hospital chain Fortis Healthcare.
• Vedanta seeks to stop Tamil Nadu state's interference with copper smelter Vedanta Ltd has sought a permanent injunction against the Tamil Nadu state government from interfering with the operations of its copper smelter, according to a petition filed with the country's environmental court.
• Maharashtra softens plastic ban after industry lobbying Maharashtra has eased a ban against single-use plastic, just over a week after it was imposed, following what sources said was intense lobbying by multinational companies and plastic industry bodies for softer rules and extensions.
GLOBAL TOP NEWS • Former Malaysian PM pleads not guilty to breach of trust, abuse of power In a stunning fall from grace, Malaysia's former Prime Minister Najib Razak was charged in court as part of an investigation into allegations of extensive corruption and misappropriation at a state fund he founded.
• China services sector grows at fastest pace in 4 months in June - Caixin PMI Growth in China's services sector accelerated in June to a four-month high, buoyed by a pickup in new businesses and a sustained increase in employment, a private survey showed.
• China court bans Micron chip sales in patent case - Taiwan's UMC A Chinese court has temporarily barred Micron Technology Inc from selling 26 chip products in the mainland in a ruling over a patent infringement case with Taiwan's United Microelectronics Corp, UMC said.
LOCAL MARKETS OUTLOOK (As reported by NewsRise) The SGX Nifty nearest-month futures were trading at 10,707.00, down 0.2 percent from its previous close.
The Indian rupee is expected to open higher against the U.S. currency on the back of a Chinese yuan-led rebound in regional currencies. The dollar index’s losses amid decline in long-term U.S. yields added to the positive tone for the rupee.
The Indian government bonds are likely trade with a negative bias tracking firm crude oil prices that worsen the outlook for inflation.The yield on the benchmark 7.17 percent bond maturing in 2028 is likely to trade in a 7.86 percent -7.91 percent band today.
GLOBAL MARKETS • Wall Street dipped on Tuesday, weighed down by Apple, Facebook and other technology stocks, in a trading session ending early ahead of the U.S. July 4 holiday.
• Asian stocks were on shaky ground while the Chinese yuan stood near 11-month lows as the spectre of a Sino-U.S. trade war haunted investors ahead of an end-of-week deadline for U.S. tariffs on billions of dollars worth of Chinese imports.
• Major currencies marked time while the Chinese yuan recovered from 11-month lows, after efforts by authorities the previous day to calm financial markets which had been rattled by worries about trade wars.
• U.S. Treasury yields declined on Tuesday, pinning the yield curve at its flattest level in nearly 11 years as U.S. stocks slipped in a shortened session, stoking a safe-haven bid for U.S. government debt.
• Oil prices edged up, lifted by a report of declining U.S. fuel inventories amid the ongoing crude supply outage at Syncrude Canada in Alberta, which usually supplies the United States.
• Gold prices rose to a one-week high early, rebounding from a seven-month low touched in the previous session, as the dollar weakened against the yen and an end-of-week deadline loomed for U.S. tariffs on Chinese imports.
CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 68.62/68.65 July 3 -$152.16 mln $2.92 mln 10-yr bond yield 7.883 pct Month-to-date - $136.12 mln Year-to-date -$764.37 mln -$5.64 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 = 68.5450 Indian rupees) (Compiled by Priyanka Das in Bengaluru)
