Morning News Call - India, December 2

Last Updated: Fri, Dec 02, 2016 09:00 hrs

To access the newsletter, click on the link: If you would like to receive this newsletter via email, please register at: FACTORS TO WATCH 10:00 am: Finance Minister Arun Jaitley at Hindustan Times leadership summit in New Delhi. 11:00 am: Winter session of parliament continues in New Delhi. 3:00 pm: GST council meets in New Delhi. 5:00 pm: RBI to release weekly foreign exchange data in Mumbai. LIVECHAT - QUIZ EAST The first of our Friday quizzes focuses on Asia and the week's top news. Test your wits and googling speed at 11:00 a.m. To join the conversation, click on the link: INDIA TOP NEWS  EXCLUSIVE-Indian government officials propose break up of Coal India Senior Indian government officials tasked by Prime Minister Narendra Modi with reviewing energy security are recommending the break up of the country's coal monopoly, Coal India Ltd, within a year.  Alibaba is not buying Snapdeal China's Alibaba Group Holding is not buying Indian e-commerce company Snapdeal and is not in talks to do so, a person familiar with the matter said, dampening talk that an acquisition was in the works.  Sales at India's auto makers plunge as cash crunch grips country Indian auto makers' monthly domestic sales plunged in November from the previous month as an intense cash crunch in the country brought a recent recovery in consumer demand to a screeching halt, especially in rural areas.  Indian manufacturing activity cools in November on cash crunch - PMI Indian factory activity decelerated sharply last month after Prime Minister Narendra Modi's currency crackdown led to a rationing of cash and cooled domestic consumption, new orders and production.  Reliance Jio extends free services, as telecoms price war intensifies India's Reliance Industries announced a three-month extension to an offer of free data and voice services by its telecoms unit Jio, signalling that a brutal price war in India's mobile sector that has already hurt its rivals is intensifying.  Vedanta to invest up to $2.9 billion over 3 years in key India plants Vedanta Resources Plc plans to invest as much as 200 billion rupees over three years to expand its alumina and aluminium producing capacity in eastern India's Odisha state, its chairman Anil Agarwal said.  Flipkart's fashion unit Myntra bets on artificial intelligence to drive growth Fashion portal Myntra, part of India's top e-commerce group Flipkart, aims to use smart technology such as artificial intelligence to enhance consumer experience as it looks to drive growth and turn profitable in the next fiscal year.  Indian court quashes govt ban on 344 drugs after industry petitions India's Delhi High Court stayed on Thursday a government ban on 344 drugs that it deemed lacked therapeutic efficacy, after over six months of hearing more than 300 petitions filed by drugmakers against it. GLOBAL TOP NEWS  Trump warns of consequences for U.S. firms sending jobs abroad President-elect Donald Trump warned on Thursday that U.S. companies would face "consequences" for outsourcing jobs abroad, as he touted his early success in persuading an air conditioner maker to keep about 1,000 jobs in the United States rather than move them to Mexico.  Starbucks CEO steps down to focus on high-end coffee, shares fall Starbucks Corp co-founder Howard Schultz will step down as chief executive to focus on new high-end coffee shops, handing the top job to Chief Operating Officer Kevin Johnson, a long-time technology executive.  Australia begins sale of third power grid, restricts foreign offers An Australian state government kicked off the A$4 billion sale of a major stake in electricity network Endeavour Energy, with one source saying no single foreign investor will be able to own more than half of that stake. LOCAL MARKETS OUTLOOK (As reported by NewsRise)  The SGX Nifty Futures were trading at 8,156.50, down 0.64 pct from its previous close.  The Indian rupee will likely open little changed to slightly higher against the dollar, tracking broad weakness in the greenback ahead of U.S. monthly jobs data due later today.  Indian sovereign bonds will likely open steady, as investors await a fresh supply of notes while keeping an eye out for the crucial U.S. nonfarm payrolls data, which, if strong, will further solidify bets of a Federal Reserve rate increase this month. The underlying sentiment, however, remains positive on bets the Reserve Bank of India will deliver a rate cut next week. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.18 pct - 6.25 pct band. GLOBAL MARKETS  A sharp decline in technology stocks pulled both the Nasdaq and the S&P 500 indexes into the red on Thursday, while the Dow managed to notch a record closing high with a lift from bank and energy shares.  Asian shares lost some of their recent gains, after lacklustre sessions on Wall Street and Europe, while 10-year U.S. Treasury yields and crude futures pulled back from multi-month highs hit overnight.  The dollar sagged against its peers as investors were cautious ahead of a looming U.S. jobs report that could set the tone in coming days.  U.S. Treasury yields surged on Thursday with benchmark yields touching their highest levels in roughly a year and a half on expectations that gains in oil prices and U.S. President-elect Donald Trump's policies would fuel higher inflation.  Oil prices slipped as some investors opted to cash out after Brent touched 16-month a high on Thursday, with optimism over this week's OPEC-Russia accord on cutting output giving way to questions on the "sticking point" of implementing the deal.  Gold recovered from its lowest since early February as the dollar drifted lower ahead of U.S. jobs data, but the metal is still on track for a fourth consecutive weekly decline. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 68.21/68.24 December 1 -$59.04 mln -$110.48 mln 10-yr bond yield 6.34 pct Month-to-date - - Year-to-date - -$3.26 bln 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 = 68.34 Indian rupees) (Compiled by Sai Sharanya Khosla in Bengaluru)

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