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Morning News Call - India, November 9

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INDIA TOP NEWS • Indian government set to turn up heat on central bank governor-sources The Indian government intends to keep pressing demands for the country's central bank to relax lending curbs and hand over surplus reserves even if it risks provoking a resignation by the bank's governor, three sources familiar with the government's thinking told Reuters.

• Flipkart and Amazon not abusing market position in India - competition commission Amazon and its rival in India, the Walmart-owned Flipkart, did not break regulations through their selection of merchants and brands, the Competition Commission of India (CCI) said in a ruling late on Tuesday. Also, ride-sharing firms Uber and Ola did not break price-fixing rules, the CCI said in a ruling issued late on Tuesday in response to a complaint about their technological pricing strategy.

• India's finance minister says Mastercard, Visa losing out to local players India's finance minister said on Thursday that Mastercard and Visa were losing market share to domestic payments networks, months after Mastercard complained to the U.S. government that Indian Prime Minister Narendra Modi was using nationalism to promote a local rival.

• India approves sale of state-owned dredging co - minister India has approved the sale of its entire 73.44 percent stake in Dredging Corporation of India to a consortium of four ports, government minister Ravi Shankar Prasad said on Thursday.

• FOCUS-Ford goes local in India, aims for bigger slice of competitive market Ford Motor made a profit in India for the first time in a decade in the last fiscal year, signalling that a strategy conceived two years ago by the U.S. car manufacturer for one of the world's most competitive car markets is starting to show some success.

• India to continue procurement quota for ITI India will continue to force three state-owned telecoms companies to purchase 30 percent of their equipment orders from state-run telecom equipment manufacturer ITI, the government said on Thursday.

GLOBAL TOP NEWS • Fed leaves rates unchanged, says U.S. economy strong The U.S. Federal Reserve held interest rates steady on Thursday but remained on track to keep gradually tightening borrowing costs, as it pointed to a healthy economy that was marred only by a dip in the growth of business investment.

• Japanese firms see U.S. trade talks boosting exports despite Trump rhetoric Half of Japanese companies expect new trade talks with Washington to boost their U.S.-bound exports, a Reuters poll found, despite President Donald Trump's intensifying drive to cut the trade gap between the two major economies.

• China's producer inflation slows again in Oct on ebbing domestic demand China's factory-gate inflation slowed for the fourth month in October amid cooling domestic demand for raw materials and ebbing manufacturing activity, underscoring rising economic pressure in the face of simmering trade frictions with the United States.

LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading at 0.2 percent lower at 10,594.50, from its previous close.

• The Indian rupee is expected to open higher against the dollar after crude oil prices extended losses, helping offset a decline in regional currencies following the U.S. Federal Reserve’s policy decision.

• Indian government bonds are likely to open higher, as continued fall in crude oil prices eased local inflation concerns, while rupee is seen gaining against the U.S. currency. The Federal Reserve’s policy decision as well as U.S. mid-term election results were along the expected lines and are unlikely to have any major impact. The yield on the benchmark 7.17 percent bond maturing in 2028 is expected to trade in a 7.76 percent - 7.81 percent band today.

GLOBAL MARKETS • The S&P 500 and Nasdaq closed slightly lower on Thursday after a Federal Reserve statement, and energy stocks were the biggest drag on the S&P as U.S. crude oil prices fell.

• Asian stocks pulled back from a one-month high as the Federal Reserve appeared poised to deliver another interest rate hike next month, paring gains made earlier this week after U.S. midterm elections triggered a global equities rally.

• The dollar gained against its major peers as the U.S. Federal Reserve kept interest rates steady but reaffirmed its monetary tightening stance, setting the stage for a rate hike in December.

• U.S. Treasury yields rose on Thursday with shorter-dated ones reaching their highest levels in over a decade as the Federal Reserve hinted the U.S. economic expansion remained on track, which warrants further interest rate increases.

• Oil markets remained weak as rising supply and concerns of an economic slowdown pressured prices, with U.S. crude now down by 20 percent since early October.

• Gold prices inched lower as the dollar firmed after the U.S. Federal Reserve kept interest rates steady with a fourth hike for this year expected next month.

CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 72.98/73.01 November 6 -$60.09 mln $14.93 mln 10-yr bond yield 7.79 pct Month-to-date $120.01 mln $529.50 mln Year-to-date -$5.80 bln -$7.58 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 = 72.3700 Indian rupees) (Hrithik Kiran Bagade in Bengaluru)