Morning News Call - India, September 27

To access a PDF version of this newsletter, please click here https://share.refinitiv.com/assets/newsletters/Indiamorning/MNC_IN_09272021.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH 11:00 am: Prime Minister Narendra Modi to announce nationwide launch of Pradhan Mantri Digital Health Mission via video conferencing. 11:50 am: Housing Minister Hardeep Puri at event to celebrate seven years of government's Swachh Bharat Mission-Urban programme in New Delhi. 3:00 pm: Bharat Petroleum Corp. Chairman and Managing Director Arun Kumar Singh and Director - Finance V.R. Gupta at virtual media briefing post annual general meeting. 3:00 pm: Bharat Dynamics to hold annual general meeting. 3:00 pm: LIC Housing Finance to hold annual general meeting. 3:30 pm: Ujjivan Small Finance Bank to hold annual general meeting. LIVECHAT-REUTERS GLOBAL MARKETS FORUM Mike Dolan, Reuters Editor at Large, Finance & Markets, takes a look at the major themes and key events to watch in the week ahead. To join the conversation at 3:30 pm IST, click here https://www.refinitiv.com/en/products/refinitiv-messenger/editorial-communities-financial-forums INDIA TOP NEWS • Quad leaders press for free Indo-Pacific, with wary eye on China Leaders of the United States, Japan, India and Australia vowed on Friday to pursue a free and open Indo-Pacific region "undaunted by coercion" at their first in-person summit, which presented a united front amid shared concerns about China. • RBI to retain cash surplus, may announce GSAP auction -sources Reserve Bank of India (RBI) is likely to retain a surplus of liquidity in the banking system and announce another round of bond purchases, but will avoid adding incremental cash in the near future, two sources said on Friday. • India antitrust body fines United Breweries, Carlsberg in price fixing case India's antitrust watchdog on Friday imposed a penalty of $102 million on Heineken-controlled beer giant United Breweries and $16 million on the local unit of Denmark's Carlsberg in a case related to cartelisation of beer prices in the country. • India needs more big banks the size of largest lender SBI -finmin India needs at least four or five banks of a size matching its biggest lender, the State Bank of India, to meet the growing needs of its economy, Finance Minister Nirmala Sitharaman said on Sunday. • Ford India head quits after company says to stop making cars in India Ford Motor's India head Anurag Mehrotra has quit the company to pursue other career opportunities, days after the U.S. automaker said it would stop making cars in the Asian nation, taking a hit of $2 billion. • India's crude imports rebound in August on strong demand outlook India's crude oil imports rose to a three-month peak in August, rebounding from a near one-year low hit in July, as refiners stocked up to boost runs in expectation of higher demand around the festival season. • Shilpa Medicare to produce Cadila's COVID-19 shot Indian drugmaker Shilpa Medicare said on Friday it had agreed to produce Cadila Healthcare's three-dose COVID-19 vaccine. • Amazon launches service aggregating video streaming apps in India Amazon.com launched in India on Friday eight global and local streaming services on its video platform, in a move aimed at boosting subscriptions. GLOBAL TOP NEWS • China Evergrande's electric car unit's shares tumble after warning Shares of China Evergrande's electric car unit plunged after it warned it faced an uncertain future unless it got a swift injection of cash and after it said it will not proceed with plans to issue RMB shares. • Pelosi sets Thursday vote on infrastructure, eyes smaller social spending bill U.S. House of Representatives Speaker Nancy Pelosi on Sunday set a vote on the $1 trillion bipartisan infrastructure bill for Thursday and voiced confidence it would pass. • BP says nearly a third of its UK fuel stations running on empty BP said nearly a third of its British petrol stations had run out of the two main grades of fuel on Sunday as panic buying forced the government to suspend competition laws and allow firms to work together to ease shortages. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.5% higher at 17,950.50. • The Indian rupee is likely to weaken against the U.S. currency, tracking a jump in crude oil prices to the highest in almost three years amid dollar weakness and upbeat risk appetite. • Indian federal government bond yields will likely open marginally higher, tracking the benchmark Brent crude oil contract’s climb to near $80 per barrel, while market awaits the borrowing calendar for the second half of this financial year. The yield on the benchmark 6.10% bond maturing in 2031 is likely to trade in the 6.16%-6.21% band today. GLOBAL MARKETS • The Dow and S&P 500 edged higher on Friday and ended a turbulent week with slight increases, helped by gains in Tesla and Facebook that offset a tumble by Nike. • Asian shares got off to a cautious start as a jump in oil prices to three-year highs could inflame inflation fears and aggravate the recent hawkish turn by some major central banks. • The safe-haven yen sank to its lowest in nearly three months, while the risk-sensitive Australian dollar continued to recover from an almost one-month low, as fears of widespread contagion from China Evergrande Group receded. • U.S. Treasury yields jumped again on Friday as a repricing of portfolios continues in the wake of the Federal Reserve's decision to soon begin tapering its massive bond purchases, a move that could lead to higher interest rates next year. • Gold prices edged higher as persistent concerns over the fate of debt-laden property giant China Evergrande and its broader impact bolstered the precious metal's safe-haven appeal. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 73.69/73.72 September 24 615.68 crores 1,348.84 crores 10-yr bond yield 6.181% Month-to-date 13,536 crores 7,436 crores Year-to-date 64,655 crores (3,353) 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 = 73.81 Indian rupees) (Compiled by Yoganand KN in Bengaluru)