Morning News Call - India, May 23

To access a PDF version of this newsletter, please click here https://share.refinitiv.com/assets/newsletters/Indiamorning/MNC_IN_05232022.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH • 10:00 am: eMudhra IPO subscription continues. • 2:00 pm: Divi's Laboratories management at fourth-quarter results conference call. PROMOTION LIVECHAT-REUTERS GLOBAL MARKETS FORUM For the first time in two years the World Economic Forum Annual Meeting reconvenes in-person as world leaders ascend to Davos, faced with an uphill climb to tackle multiple global crises guided by this year’s WEF theme: ‘Working Together, Restoring Trust’. To join the discussion with Dave Fredrickson, Executive Vice-President of Oncology of Astrazeneca at 12:30 pm IST; John M. Lervik, Co-founder and chief strategy & development officer of Cognite at 3:30 pm IST; Andy Baldwin, Global Managing Partner of Client Service at Ernst & Young at 6:00 pm; Ling Hai, Co-president, International Markets of Mastercard at 7:15 pm, click here https://www.refinitiv.com/en/products/refinitiv-messenger/global-markets-forum INDIA TOP NEWS • India considering spending additional $26 billion to fight inflation The Indian government is considering spending an additional $26 billion in the 2022/23 fiscal year to cushion consumers from rising prices and fight multi-year high inflation, two government officials told Reuters. • Indian government trims tax on fuel, essential commodities to fight inflation India on Saturday announced a series of changes to the tax structure levied on crucial commodities in a bid to insulate consumers from rising prices amid high inflation. • Inflation crimps Indian firms as rural millions cut spending Surging inflation is forcing many poor Indians to rein in spending, threatening a slowdown for companies such as Godrej Appliances which saw bumper sales as recently as March and April after a brutal heatwave spiked demand for its cooling products. • RBI gives sharply lower surplus of 303 billion rupees to government India's central bank transferred 303.07 billion rupees to the government as a dividend for the fiscal year ending in March 2022 and decided to keep its contingency risk buffer at 5.5%, the bank said on Friday. • General Atlantic plans $2 billion investment in India, Southeast Asia Global private equity firm General Atlantic plans to plough $2 billion into India and Southeast Asia over the next two years after falling valuations made the region's startups more attractive, a senior executive told Reuters. • Indian steelmakers face hit on Europe deals over export tax, Jindal executive says Indian steel firms could be forced to cancel European orders and suffer losses after an overnight decision to impose export taxes on steel products, V R Sharma, managing director at Jindal Steel and Power told Reuters. • Paytm payments bank expects central bank curbs to be lifted in three-five months India's Paytm Payments Bank, which facilitates transactions on mobile commerce platform Paytm, expects the central bank to allow it to resume taking on new customers in the next few months, a top executive told Reuters. • India's top crypto app CoinSwitch calls for regulatory 'peace, certainty' India must establish rules on cryptocurrencies to resolve regulatory uncertainty, protect investors and boost its crypto sector, CoinSwitch CEO Ashish Singhal said on Sunday. GLOBAL TOP NEWS • Ukraine rejects concessions as Russians attack in east and south Ukraine ruled out a ceasefire or any territorial concessions to Moscow as Russia stepped up its attack in the eastern and southern parts of the country, pounding the Donbas and Mykolaiv regions with air strikes and artillery fire. • Australia's new PM Albanese to fly to Quad meet hours after taking reins Australia's Labor Party leader, Anthony Albanese, was sworn in as the country's 31st prime minister, promising a "journey of change" as he vowed to tackle climate change, rising living costs and inequality. • Biden meets Japanese Emperor at start of visit to launch regional economic plan U.S. President Joe Biden, in Japan to launch a regional economic plan to counter China and reaffirm ties with a key Asian ally, began his visit by meeting with Emperor Naruhito. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.1% higher at 16,276 • The Indian rupee is expected to open lower against the dollar on concerns over the fiscal impact of the federal government decision to cut the excise duty on petrol and diesel. • Indian federal government bond yields are likely to spike in early trading session as the government’s decision to cut federal excise duty on gasoline is expected to lead to hefty revenue loss and increase fiscal deficit. The yield on the benchmark 6.54% bond maturing in 2032 is likely to trade in 7.42%-7.48% band today. GLOBAL MARKETS • Wall Street ended mixed on Friday after a volatile session that saw Tesla slump and other growth stocks also lose ground. • Asian stocks came under pressure as persistent worries about inflation and rising interest rates dogged the global economic outlook and fresh selling in technology stocks weighed on Chinese markets. • The dollar began the week on the back foot, following its first weekly loss in nearly two months, as investors cut bets on further dollar gains from rising U.S. rates and turned hopeful that loosening lockdowns in China can help global growth. • U.S. Treasury yields fell for a third straight session on Friday, with benchmark 10-year yields hitting fresh three-week lows, as investors grew concerned about increasing signs of an economic slowdown even as the Federal Reserve vowed to stay aggressive with monetary tightening. • Oil prices rose in early trade with U.S. fuel demand, tight supply and a slightly weaker U.S. dollar supporting the market, as Shanghai prepares to reopen after a two-month lockdown fuelled worries about a sharp slowdown in growth. • Gold prices touched a more than one-week high, as an easing dollar continued to support greenback-priced bullion, although higher U.S. Treasury yields capped gains. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 77.55/77.58 May 20 (3,842.54) crores (46.89) crores 10-yr bond yield 7.359% Month-to-date (35,137) crores (6,133) crores Year-to-date (1,62,299) crores (14,083) 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 = 77.85 Indian rupees) (Compiled by Archak Sengupta)