Morning News Call - India, December 7

Last Updated: Thu, Dec 07, 2017 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 9:25 am: Power Minister R.K. Singh to inaugurate Conference on Power and Renewable Energy in New Delhi. 10:00 am: Farm Minister Radha Mohan Singh at EIMA Agrimarch India event in New Delhi. 11:00 am: Prime Minister Narendra Modi at inaugural ceremony of Dr. Ambedkar International Centre in New Delhi. 11:00 am: NITI Aayog CEO Amitabh Kant at New Zealand-India Sustainability Challenge in New Delhi. 2:00 pm: Max Insurance Company Director Manik Nangia, Renault MD Sumit Sawhney, Jio Head-Special Projects Tanuja Rai Pradhan at Changing Landscape of Building Strong Brand conclave in Gurugram. 3:30 pm: Regional Provident Fund Commissioner Aditya Shah at Provident Fund Organization meeting in Mumbai. 4:00 pm: Jet Airways 2Q post-earnings conference call in Mumbai. LIVECHAT – INDIA MARKETS We discuss factors to watch in India's market with Vik Mehrotra, CEO and CIO of wealth management firm Venus Capital at 3:30 pm IST. To join the conversation, click here To join the conversation, click on the link: INDIA TOP NEWS • India cenbank chief says state bank recap to be supplemented by reforms Stronger state-run banks will get priority in India's more than $32 billion plan to recapitalise the lenders, central bank chief Urjit Patel said on Thursday, adding the programme will accompany broader reforms. • India's holds rates, eyes inflation and rebounding growth The Reserve Bank of India kept its policy rate steady on Wednesday, as widely expected, after inflation accelerated to a seven-month high and stronger economic growth reduced the need for monetary stimulus. • Infosys seeks settlement with regulator on ex-CFO's severance pay Infosys has sought a settlement with India's market regulator over a disputed severance package awarded to its former chief financial officer. • India stumped in efforts to clear toxic smog as cricketers throw up India's state-run NTPC is launching bids for clean technology for two coal-fired power plants near New Delhi, officials said, as criticism mounts over the country's failure to end a toxic smog which strikes the capital every winter. GLOBAL TOP NEWS • Trump recognizes Jerusalem as Israel's capital, defying allies, foes President Donald Trump on Wednesday reversed decades of U.S. policy and recognized Jerusalem as the capital of Israel, imperiling Middle East peace efforts and upsetting Washington's friends and foes alike. • U.S. Senate votes to pursue tax bill negotiations with House U.S. Senate Republicans agreed to talks with the House of Representatives on sweeping tax legislation on Wednesday, amid early signs that lawmakers could bridge their differences and agree on a final bill ahead of a self-imposed Dec. 22 deadline. • China's growth objectives clash with financial stability goal - IMF China should prioritise financial stability above development goals, as pursuit of regional growth targets and helping firms avoid heavy job losses had led to a surge in debt, particularly at local government level, the International Monetary Fund said. LOCAL MARKETS OUTLOOK (As reported by NewsRise) The SGX Nifty Futures were at 10,070.50, down 0.01 percent from its previous close. Indian government bonds are likely to trade lower in early session after the nation's Monetary Policy Committee kept its policy rate unchanged and retained its neutral stance. The yield on the benchmark 6.79 percent bond maturing in 2027 is likely to trade in a 7.01 percent-7.06 percent band. The Indian rupee will likely open steady against the dollar, as traders await fresh triggers and will keep an eye on the shares’ movement, while lackluster U.S. data may restrict gains in the greenback. GLOBAL MARKETS • The S&P 500 fell a tiny bit on Wednesday, with Microsoft and other technology stocks making modest gains but not quite offsetting losses in energy shares after oil prices dropped more than 2 percent. • Asian shares held close to a two-month low as softer oil and copper as well as U.S. policy uncertainty kept sentiment in check, while high-tech stocks struggled to recover after a searing sell-off. • The dollar edged up against its peers, shaking off earlier losses versus the yen, supported by signs that investors' risk appetite was improving again and optimism on U.S. tax reforms. • U.S. Treasury yields fell across the board on Wednesday as risk appetite slid after a sell-off in some foreign equity markets, with further pressure coming from a batch of largely underwhelming U.S. economic data and geopolitical risks. • Oil prices inched up on a decrease in U.S. crude inventories, but rising gasoline stocks and crude production weighed on the market. • Gold prices edged lower, hovering close to a two-month low hit earlier this week, amid a steady dollar. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 64.48/64.51 December 6 -$188.8 mln $148.17 mln 10-yr bond yields 7.08 pct Month-to-date -$310.91 mln $379.14 mln Year-to-date $8.98 bln $26.11 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 = 64.5200 Indian rupees)

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