Morning News Call - India, September 1

To access a PDF version of this newsletter, please click here https://share.refinitiv.com/assets/newsletters/Indiamorning/MNC_IN_09012021.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH • 10:00 am: Ami Organics, Vijaya Diagnostic Centre IPOs open for subscription in Mumbai. • 11:00 am: Eris Lifesciences holds annual general meeting. • 11:30 am: Eicher Motors Managing Director Siddhartha Lal, Royal Enfield Executive Director B. Govindarajan at launch of a motorcycle. LIVECHAT-REUTERS GLOBAL MARKETS FORUM Huw Van Steenis, Former senior adviser to BOE Governor Mark Carney; Chair-sustainable finance and senior adviser to the CEO at UBS at 2:00 pm IST and Arminio Fraga, founding partner at Gavea Investimentos and former President of the Central Bank of Brazil at 6:30 pm IST. To join the conversations, click here https://www.refinitiv.com/en/products/refinitiv-messenger/global-markets-forum INDIA TOP NEWS • Indian growth jumps in April-June, helped by looser pandemic curbs India's economy rebounded in the April-June quarter even while a devastating second wave of COVID-19 swept the country, with growth of over 20% compared to a year earlier driven by a surge in manufacturing and higher consumer spending. • Maruti production to halve in Sept as chip shortage hits India's top car maker India's biggest car maker Maruti Suzuki warned on Tuesday its vehicle production in September will tumble by 60% due to a chip shortage, joining a slew of global automakers facing a pandemic-led paucity of critical components. • Prosus doubles down on India with $4.7 billion deal for BillDesk Prosus NV doubled down on its investment in India on Tuesday with a $4.7 billion deal for payments platform BillDesk, making it one of the biggest players in the country's fast-growing fintech sector. • MapmyIndia files draft papers for IPO MapmyIndia, which powers Apple maps in India, has filed draft papers with the domestic market regulator for an initial public offering, with existing investors including Qualcomm and Zenrin Co offering up to 7.5 million shares. • India not to be impacted by U.S. Fed's likely liquidity taper - govt official India will not be impacted by the U.S. Federal Reserve's move to tighten liquidity expected later this year, as India's macro-economic fundamentals are strong, Chief Economic Adviser K V Subramanian said on Tuesday. • Coal India ramps up supplies to address shortage at utilities State-run Coal India has ramped up supply of coal over the last five days to address a coal shortage at utilities across the country, the federal coal ministry said on Tuesday. • Disney to move Hotstar content to Hulu, ESPN+ in U.S. Walt Disney Co. said on Tuesday that content from its streaming service Hotstar — home to India's IPL cricket tournament and original shows like "Aarya" — will migrate to its ESPN+ and Hulu streaming platforms in the United States. GLOBAL TOP NEWS • Asia factories hit by pandemic supply chain disruptions Asia's factory activity lost momentum in August as a resurgence in coronavirus cases disrupted supply chains across the region, raising concerns faltering manufacturing will add to the economic woes caused by slumping consumption. • Biden says Afghanistan exit marks the end of U.S nation-building Facing sharp criticism over the tumultuous U.S. withdrawal from Afghanistan, President Joe Biden said on Tuesday it was the best available option to end both the United States' longest war and decades of fruitless efforts to remake other countries through military force. • S.Korea's parliament passes bill to curb Google, Apple commission dominance South Korea's parliament on Tuesday approved a bill that bans major app store operators such as Google and Apple from forcing software developers to use their payment systems, effectively stopping them from charging commissions on in-app purchases. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.1% higher at 17,142.00. • The Indian rupee is expected to trade little changed to the dollar after reaching its highest level in two-and-a-half-months on the back of a dovish Federal Reserve and a “less aggressive” Reserve Bank of India. • Indian federal government bond yields will likely open lower as gross domestic product data for the April-June quarter was broadly in-line with expectation and may not significantly alter the central bank's policy normalisation path. The yield on the benchmark 6.10% bond maturing in 2031 will likely trade in the 6.18%-6.24% band. GLOBAL MARKETS • Wall Street finished marginally lower on Tuesday, although the slightly subdued ending to August failed to detract from a strong monthly performance by its three main indexes, in what is traditionally regarded as a quiet period for equities. • Asian shares gave up some of their recent gains in cautious trading while the dollar inched back from three-week lows, as worries about slowing global growth in several markets returned to weigh on traders' minds. • The dollar traded near its lowest point in nearly three weeks versus major peers, with investors focused on a key U.S. jobs report due on Friday for clues on when the Federal Reserve might begin paring stimulus. • Month-end effects roiled U.S. Treasury market trading on Tuesday, leaving yields higher and the curve steeper despite waves of buying. • Oil prices were stable ahead of an OPEC+ meeting, at which major producers will decide whether to go ahead with their plan to add supply while COVID-19 cases soar in Asia and U.S. refiners assess flood damage in the wake of Hurricane Ida. • Gold prices held steady as investors awaited a key U.S. jobs report for clues on when the Federal Reserve might start reducing its pandemic-era stimulus measures. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 73.07/73.1 August 31 1,714.46 crores 278.62 crores 10-yr bond yield 6.215% Month-to-date 2,083 crores 12,144 crores Year-to-date 51,119 crores (10,789) 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 = 72.97 Indian rupees) (Compiled by Shreya Sabharwal in Bengaluru)