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Morning News Call - India, September 28

·6 min read

To access a PDF version of this newsletter, please click here https://share.refinitiv.com/assets/newsletters/Indiamorning/MNC_IN_09282021.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH 9:30 am: Reserve Bank of India Deputy Governor T. Rabi Sankar, RBI former Executive Director G Padmanabhan at IAMAI Global FinTech fest 2021. 9:30 am: Niti Aayog Chief Executive Amitabh Kant, Godrej Consumer Products Chairperson and Managing Director Nisaba Godrej, Apollo Tyres Vice Chairman and Managing Director Neeraj Kanwar, Tata Chemicals Managing Director and Chief Executive R. Mukundan, and other corporate heads at Economic Times SDG summit 2021. 10:00 am: Petroleum Secretary Tarun Kapoor, Indian Oil Chairman S.M. Vaidya at Federation of Indian Petroleum Industry webinar. 10:00 am: Bharat Electronics to hold annual general meeting. 10:30 am: NTPC to hold annual general meeting. 10:30 am: Steel Authority of India to hold annual general meeting. 11:00 am: Mahanagar Gas to hold annual general meeting. 11:00 am: PVR to hold annual general meeting. 11:30 am: Indraprastha Gas to hold annual general meeting. 12:00 pm: Gujarat Gas to hold annual general meeting. 1:30 pm: Principal Economic Adviser Sanjeev Sanyal, Niti Aayog Chief Executive Amitabh Kant at industry body CII summit. 3:00 pm: Petronet LNG to hold annual general meeting. INDIA TOP NEWS • India sticks to market borrowing plan despite rise in tax receipts India's government said on Monday it would stick to its borrowing plan for the current fiscal year despite an uptick in tax collection, suggesting New Delhi will continue to spend to revive Asia's third largest economy. • India market regulator tightens risk management rules for mutual funds India's market regulator on Monday tightened risk management rules for mutual funds, including specifying guidelines to identify, measure and report various risks, in an effort to protect the interest of investors in a fast-growing industry. • Zee Entertainment investors renew board reshuffle demand - Business Standard Top shareholders of Zee Entertainment Enterprises renewed their call for an extraordinary general meeting to remove Chief Executive Punit Goenka from the board, the Business Standard reported, citing a letter. • BPCL aims to invest $13.6 billion to diversify Indian refiner Bharat Petroleum will invest $13.55 billion over five years to strengthen its petrochemicals, renewables and alternatives fuels businesses to de-risk itself from volatility in global markets, company Chairman A.K. Singh said. • India antitrust body accepts Google's confidentiality request - judge India's antitrust watchdog has agreed to Google's request to keep confidential some information the company provided during an investigation into its business, though the regulator denied allegations it leaked a report on the probe to the media, a judge said on Monday. • Indian multiplex shares surge as states set to unlock movie halls Shares of India's top cinema chain operators, PVR and INOX Leisure, on Monday surged past their highest levels from pre-lockdown days after the states of Maharashtra and Karnataka took steps to reopen movie halls. • Indian farmers stage nationwide protests against reforms Indian farmers opposed to reforms they say threaten their livelihoods renewed their push against the changes with nationwide protests on Monday, a year after laws on the liberalisation of the sector were introduced. GLOBAL TOP NEWS • U.S. Senate fails to advance debt ceiling, government funding measure A sharply divided U.S. Senate failed on Monday to advance a measure to suspend the federal debt ceiling and avoid a partial government shutdown, as Republican lawmakers denied the bill the votes necessary to move forward. • China's industrial profit growth slows for sixth month in August Profits at China's industrial firms grew at a weaker pace in August from a year earlier, slowing for a sixth consecutive month, as manufacturers struggled with high commodity prices, COVID-19 outbreaks and shortages in some key components. • PBOC promises to protect consumers as China Evergrande teeters China's central bank vowed to protect consumers exposed to the housing market on Monday and injected more cash into the banking system as the Shenzhen government began investigating the wealth management unit of ailing developer Evergrande, the clearest sign yet the authorities could move to contain contagion risks. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.1% higher at 17,878.00. • The Indian rupee is expected to trade little changed to the dollar amid long-term Treasury yields reaching their highest level in three months on U.S. Federal Reserve’s taper outlook. • Indian sovereign bond yields are likely to open sharply lower, as concerns over debt supply eased after New Delhi maintained its annual borrowing target amid buoyancy in tax collections, and said it will not borrow additional funds as compensation for states. The yield on the benchmark 6.10% bond maturing in 2031 is likely to trade in the 6.14%-6.20% band today. GLOBAL MARKETS • The S&P 500 and Nasdaq indexes ended lower on Monday with investors pivoting to value as tech shares, hurt by rising Treasury yields, weighed on equities in the quarter's final week. • Asian shares drifted lower as investors continued to fret over China Evergrande Group's unsolved debt crisis and eyed the potential impact of a widening power shortage in China. • The yen traded near an almost three-month low to the dollar and reached a two-week trough versus the euro, as rising bond yields in the U.S. and Europe lured Japanese investors. • U.S. Treasury yields resumed their march higher on Monday, with 10-year yields hitting their highest level in three months on solid economic data and signals the Federal Reserve is shifting toward a more hawkish policy. • Oil markets rose, reversing earlier losses and extending their rally into a sixth session, amid continued concerns over tight supply at a time when demand is picking up with the easing of COVID-19 pandemic restrictions. • Gold prices eased, hurt by a stronger dollar and rising U.S. Treasury yields, while investors awaited more cues from Federal Reserve officials on the central bank's monetary policy shift. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 73.65/73.68 September 27 570.45 crores 1,032.71 crores 10-yr bond yield 6.209% Month-to-date 14,107 crores 8,469 crores Year-to-date 65,226 crores (2,320) 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)