Morning News Call - India, June 1

To access a PDF version of this newsletter, please click here https://share.refinitiv.com/assets/newsletters/Indiamorning/MNC_IN_06012022.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH • 9:15 am: eMudhra lists on stock exchanges. INDIA TOP NEWS • India's March quarter GDP growth at one-year low as prices hit consumers India's economic growth slowed to the lowest in a year in the first three months of 2022, hit byweakening consumer demand amid soaring prices that could make the central bank's task of taming inflation without harming growth more difficult. • India expected to see normal monsoon rains, could boost crop output India is likely to see normal monsoon rains in 2022, the state-run weather office said on Tuesday, the fourth straight year of normal or above normal summer rains that spur farm and overall economic growth in Asia's third-biggest economy. • India expects lower rainfall in coal-producing areas, potentially easing power crisis India expects rainfall in the biggest coal-producing areas of its east-central region to be below the long-term average this year, potentially easing utilities' coal shortages as there could be fewer disruptions to mining activity due to flooding. • Operation of nuclear power unit in India's western Gujarat state delayed Construction of Nuclear Power Corp of India Ltd's (NPCIL) Kakrapara plant's fourth unit, scheduled to start commercial generation this year, has not been completed and is running more than a year late, a government memo showed. • Japan's Chubu Elec to buy stake in India's OMC Power Japan's Chubu Electric Power Co said on Tuesday it will spend up to $39 million to buy a 20% stake in India's rural renewable energy service company, OMC Power Private Ltd, through a third-party allotment of shares. • India's top e-recycler Attero to spend $1 billion to expand as EVs take off India's largest electronics recycling firm Attero Recycling will spend $1 billion in the next five years and add plants in Poland, Ohio and Indonesia starting this year, its CEO told Reuters, aiming to tap into a global boom for electric vehicles. • India's 2021-22 sugar output up 15% year-on-year -industry India's sugar mills have so far produced a record 35.2 million tonnes of the sweetener in the current season to September 2022, the National Federation of Cooperative Sugar Factories Ltd, a producers' body, said on Tuesday. GLOBAL TOP NEWS • U.S. agrees to send advanced rockets to Ukraine • Russian troops fought to take complete control of the eastern industrial city of Sievierodonetsk as the United States said it will provide Ukraine with advanced rockets to help it force Moscow to negotiate an end to the war. • U.S. investigates Chinese companies over export sanction issues U.S. Commerce Secretary Gina Raimondo said on Tuesday the Biden administration is actively considering adding new Chinese companies to the government's economic blacklist as it investigates what it calls efforts by China to evade U.S. sanctions. • China says it conducted 'readiness patrol' around Taiwan The Chinese military said it had conducted a combat "readiness patrol" in the seas and airspace around Taiwan in recent days, saying it was a necessary action to respond to "collusion" between Washington and Taipei. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.2% lower at 16,532. • The Indian rupee is expected to open little changed to the dollar amid a slight pullback on crude oil prices and higher Treasury yields. • Indian federal government bond yields may ease in the early session, tracking a reversal in crude oil prices and on better-than-expected growth in January-March. The yield on the benchmark 6.54% bond maturing in 2032 is likely to trade in 7.38%-7.44% today. GLOBAL MARKETS • Wall Street's three major indexes closed lower on Tuesday, following a rally last week, as volatile oil markets kept soaring inflation in focus and investors reacted to hawkish comments from a Federal Reserve official. • Stocks steadied in Asia as Shanghai emerged blinking from two months of lockdown and a dip in oil prices dangled the prospect of a respite from rising energy prices, but nerves about inflation kept investors and bond markets on edge. • The U.S. dollar strengthened across the board on Tuesday as Treasury yields climbed and worries over a further acceleration in global inflation depressed investors' risk appetite. • U.S. Treasury yields rose sharply on Tuesday, with most maturities hitting one-week highs, as investors re-focused on inflation risks after euro zone inflation climbed to a record high this month and after upbeat U.S. economic data. • Oil prices rose after European Union leaders agreed to a partial and phased ban on Russian oil and China ended its COVID-19 lockdown in Shanghai. • Gold hit its lowest in nearly two weeks, although prices were confined to a tight range as safe-haven demand for bullion helped offset some sustained pressure from a firmer dollar and elevated U.S. Treasury yields. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 77.54/77.57 May 31 2,281.21 crores 374.93 crores 10-yr bond yield 7.415% Month-to-date (39,993) crores (5,506) crores Year-to-date (1,67,155) crores (13,456) 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 = 77.57 Indian rupees) (Compiled by Archak Sengupta)