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Morning News Call - India, October 17

To access a PDF version of this newsletter, please click here http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_10172019.pdf If you would like to receive this newsletter via email, please register at: http://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH 9:45 am: Junior Finance Minister Anurag Thakur and NITI Aayog Vice Chairman Rajiv Kumar at India Economic Conclave in New Delhi. 12:00 pm: Junior Finance Minister Anurag Thakur at ASSOCHAM’s National Summit on NBFCs in New Delhi. 2:00 pm: NITI Aayog CEO Amitabh Kant at launch of India Innovation Index in New Delhi. LIVECHAT - BREXIT CHAT University of Cambridge Professor of European Law Kenneth Armstrong, writer of the the blog brexittime.com, explains the latest developments and the outlook for the future of UK-EU relations at 2.00 pm IST. To join the conversation, click on the link: https://refini.tv/2P8N0Wp INDIA TOP NEWS • GRAPHIC-Slowing Indian bank lending overshadows economic rebound hopes Credit growth at Indian banks has dropped to its lowest level in nearly two years, the latest Reserve Bank of India data shows, as slowing domestic consumption weighs on demand. • COLUMN-Coal India's woes should boost imports, but steel softness drags: Russell India's coal imports are on track to decline for a third straight month in October, a drop that seems out of kilter with the ongoing struggles of state miner Coal India to boost domestic output. • Malaysia says will work diplomatically with India if palm oil imports curbed Malaysia will work diplomatically with India if it decides to restrict imports of Malaysian palm oil, Prime Minister Mahathir Mohamad said on Wednesday, according to the state news agency Bernama. • Xiaomi says widening India product range to shed budget image China's Xiaomi is shedding its image as a budget brand by widening its India product portfolio to include pricier, high-spec smartphones and smart TVs, a senior company executive said on Monday. • Insurance Australia sells SBI General stake for $432 million Insurance Australia Group said it will sell its 26% stake in SBI General Insurance for about A$640 million to private equity firms as it trims overseas holdings to focus on its domestic market. • Subsidy helps India traders sell sugar to Iran Indian mills are aggressively selling old season sugar to Iran after New Delhi announced a subsidy to help cash-strapped mills export a surplus, five traders said, as Tehran strives to secure food supplies under U.S. sanctions. GLOBAL TOP NEWS • U.S., Chinese teams working on Phase 1 trade deal text-Mnuchin U.S. and Chinese trade negotiators are working on nailing down a Phase 1 trade deal text for their presidents to sign next month, U.S. Treasury Secretary Steven Mnuchin said on Wednesday, adding he was prepared to travel to Beijing for more meetings if necessary. • Last-gasp Brexit deal set to dominate fraught EU summit European Union leaders' two-day summit in Brussels starting on Thursday will be dominated by last-gasp efforts to seal a deal on Britain's exit from the bloc despite a raft of other pressing issues, from the crisis in the Middle East to the bloc's budget. • Three militants, two civilians killed as violence spreads in Kashmir Indian security forces killed three separatists, while suspected militants shot dead two people on Wednesday, one of the bloodiest days in Kashmir since New Delhi revoked the disputed region's autonomy more than two months ago. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading up 0.1% at 11,492.50. • The Indian rupee is expected to open higher against the U.S. currency after disappointing U.S. retail sales data pushed the dollar index to near two-month lows.​ • Indian government bonds will likely open largely unchanged, as investors await fresh triggers ahead of tomorrow’s debt supply and minutes of the rate-setting Monetary Policy Committee’s latest meeting. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a 6.64%-6.70% range today. GLOBAL MARKETS • Wall Street lost ground on Wednesday as weak U.S. economic data and simmering geopolitical tensions spooked buyers away from the equities market, despite a string of generally positive third-quarter earnings reports. • Asian stocks barely moved as soft U.S. retail sales data raised fears about the health of the world's largest economy, sucking the steam out of a five-session rally, while hopes of a Brexit deal kept sterling volatile. • The dollar drifted lower after lacklustre U.S. retail data and gathering doubts about a Sino-U.S. trade deal, while the volatile pound was on edge as Britain and the European Union scrambled to secure a last-minute Brexit deal. • U.S. Treasury yields fell on Wednesday after data showed that U.S. retail sales fell for the first time in seven months in September, adding to concerns that the U.S. economy is slowing. • Oil prices slid after industry data showed a larger-than-expected build-up in stocks in the United States, adding to concerns that demand for oil around the world may weaken amid further signs of a global economic slowdown. • Gold prices held steady as weak United States retail sales data fanned concerns that the country's economy may be feeling the pinch of the long-drawn trade war with China, while palladium held close to a record high hit the previous day. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 71.38/71.41 October 16 2,169.56 crore (448.10) crore 10-yr bond yield 6.66% Month-to-date 2,799 crore (566) crore Year-to-date 58,984 crore 28,620 crore (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 = 71.35 Indian rupees) (Compiled by Pooja Kesavan in Bengaluru)