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Morning News Call - India, October 14

To access a PDF version of this newsletter, please click here http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_10142019.pdf If you would like to receive this newsletter via email, please register at: http://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH 9:40 am: Finance Minister Nirmala Sitharaman at CERAWeek's India Energy Forum in New Delhi. 12:00 pm: Finance Minister Nirmala Sitharaman to hold review meeting with heads of state-run banks to discuss credit growth and fund flow to NBFC sector in New Delhi. 12:00 pm: Government to release September wholesale price inflation data in New Delhi. 5:30 pm: Government to release September consumer price inflation data in New Delhi. LIVECHAT - FX WEEK AHEAD Reuters FX Buzz Analyst Jeremy Boulton, examines what the week could hold for the G7 currencies and select EM FX pairs at 5.00 pm IST. To join the conversation, click on the link: https://refini.tv/2P8N0Wp INDIA TOP NEWS • World Bank slashes India's growth forecast to 6% for this fiscal year The World Bank on Sunday slashed its growth forecast for India's current fiscal year to 6%, down from 7.5%, warning that the "severe" slowdown could further weaken the country's stuttering financial sector. • China, locked in trade war with U.S., agrees to tackle India's trade deficit Chinese President Xi Jinping and Indian Prime Minister Narendra Modi agreed at a summit on Saturday to set up a high-level group to tackle India's galloping trade deficit with the world's second-biggest economy, a top Indian diplomat said. • INSIGHT-Realty bites: Indian property slump leaves beleaguered banks exposed India might have thought the worst of a bad loans crisis was past, but a severe cash crunch in the real estate industry could augur fresh strife for its banks. A slump in the residential property market is leaving many builders struggling to repay loans to shadow lenders - housing finance firms outside the regular banking sector that account for over half of the loans to developers. • India investing $60 billion on gas grid to link up nation by 2024 India, one of the world's largest consumers of oil and coal, is investing $60 billion to build a national gas grid and import terminals by 2024 in a bid to cut its carbon emissions, the oil minister said on Sunday. • India's industrial output shrinks at fastest rate in more than six years India's industrial output shrank at its fastest rate in more than six years in August, reflecting the impact of an economic slowdown that could prompt the central bank to cut its key policy rate for the sixth time in December. • Infosys revises forecast on upbeat client demand India's second-largest software services exporter, Infosys, on Friday raised the low end of its revenue forecast for the year on upbeat demand for its digital services from Western clients.] • India's September passenger vehicle sales dive 24% as slowdown persists Passenger vehicle sales slumped 23.7% in September, the eleventh straight month of declines, prompting an industry body to flag more job cuts if sales failed to pick up soon. • India watchdog links over $500 million Bhushan Power assets to fraud probe India's financial fraud agency said on Saturday assets worth 40.25 billion rupees of Bhushan Power & Steel Limited were connected with a money-laundering probe, a move that could scupper the debt-ridden firm's sale to JSW Steel Ltd. • Malaysia to study impact of India's planned trade action Malaysia's Prime Minister Mahathir Mohamad said his government will monitor the trade situation with India, which is reported to be considering trade curbs on the Southeast Asian nation over his criticism of actions in Kashmir, news wire Bernama reported. GLOBAL TOP NEWS • U.S. to pull last troops from north Syria; Syrian army to redeploy on border The United States said on Sunday it will withdraw its remaining 1,000 troops from northern Syria in the face of an expanding Turkish offensive while Syria's army struck a deal with Kurdish forces to redeploy along its border with Turkey, both major victories for Syrian President Bashar al-Assad. • Hunter Biden disputes Trump attacks of his work, wades into impeachment fight Hunter Biden, the son of former U.S. Vice President Joe Biden, for the first time on Sunday defended his work in Ukraine and China, after sustained criticism from Republican President Donald Trump that has in turn embroiled the White House in an impeachment inquiry. • Singapore eases monetary policy for first time in 3 years Singapore's central bank eased monetary policy for the first time in three years, as widely expected, with the city-state's bellwether economy narrowly dodging recession. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.2% lower at 11,289.00. • The Indian rupee is expected to open higher against the dollar after the U.S. and China announced a tentative, limited trade agreement, boosting Asian currencies and equities. • Indian government bonds will likely open lower tracking a sharp rise in U.S. Treasury yields, after the U.S. and China agreed on a partial trade agreement.Investors also await India’s retail inflation data, due later today, which is expected to gain pace.The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.71% - 6.76% today. GLOBAL MARKETS • U.S. stocks ended more than 1% higher on Friday though well off the day's highs after the announcement of a partial trade deal between the United States and China. • Asian share markets firmed as signs of progress in the Sino-U.S. trade standoff whetted risk appetite, though investors were wary of the damage already done to the global economy. • The dollar held near a 2 1/2-month high against the yen after Washington and Beijing announced progress towards a trade deal, while sterling hovered near a three-month peak on hopes for an orderly British exit from the European Union. • The Federal Reserve's preferred measure of the yield curve on Friday uninverted for the first time since mid-July, as progress in U.S.-China trade talks boosted the U.S. economic outlook. • Oil prices were little changed, holding onto 2% gains from Friday amid renewed geopolitical tensions in the Middle East, while a detente in the U.S.-China trade war buoyed market sentiment. • Gold prices eased, extending falls into a third session, as news that the United States and China had made progress in their recent high-level trade talks lifted risk appetite. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 71.02/71.05 October 11 (79.82) crore (794.26) crore 10-yr bond yield 6.73% Month-to-date (4,955) crore (1,262) crore Year-to-date 51,230 crore 27,924 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 = 70.91 Indian rupees) (Compiled by Pooja Kesavan in Bengaluru)