Morning News Call - India, February 15

Last Updated: Wed, Feb 15, 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 10:00 am: Power Minister Piyush Goyal and Mines Secretary Balvinder Kumar at national conclave on mines and minerals 2017 in New Delhi. 11:30 am: India Ratings briefs media on macroeconomic and banking sector outlook for next fiscal year in Mumbai. 4:00 pm: State Bank of India Head Arundhati Bhattacharya launches Korea Desk in tie-up with Korea Development Bank in Mumbai. 6:00 pm: Federal cabinet likely to meet in New Delhi. LIVECHAT- TRUMP IMPACT:CHINA FX RESERVES China's foreign exchange reserves have sunk to their lowest level in almost six years, as the country took steps to defend the soft peg between the yuan and dollar. At 9:00 am, Zhou Hao, Senior Emerging Markets Economist, Commerzbank, will assess the effectiveness of this tactic, and the odds of China being labelled 'currency manipulator' by U.S. President Donald Trump on the back of it. To join the conversation, click on the link: INDIA TOP NEWS • Tata Motors posts 96 percent profit plunge Tata Motors has reported a worse than expected 96 percent fall in net profit for its third quarter, citing sharply lower earnings at its British luxury carmaker Jaguar Land Rover and losses in its domestic business. • Sun Pharma's profits drop as U.S. sales hit by pricing, supply issues Sun Pharmaceutical Industries, India's largest drugmaker, reported its first fall in quarterly profits in a year on Tuesday, as pricing issues and supply constraints affected sales in the United States, its largest market. • Infosys seeks to reassure investors over governance IT services group Infosys on Tuesday reassured investors and analysts it was not being distracted by a dispute with its founders over how it was being managed. • Bank of Baroda sees growth in bad loans slowing Bank of Baroda Ltd, India's second-biggest state-controlled lender by assets, expects the rate of growth in bad loans to slow in the coming financial year, a senior banker said on Tuesday. • AIRSHOW-India clears plans to step up production of home-built combat jet India will open a second production line for its light combat aircraft, Defence Minister Manohar Parrikar said on Tuesday, pressing ahead with a home-grown plane the military has had doubts over for years. • Pretender to India's Tamil Nadu leadership jailed for corruption India's Supreme Court convicted a confidante of the late chief minister of Tamil Nadu on Tuesday in a corruption case that will put her behind bars and effectively end her bid to become chief minister of the southern state. • Japan's JERA to invest $200 mln in India's ReNew Power The world's top buyer of liquefied natural gas JERA Co said on Tuesday it has agreed to invest about $200 million to take a stake in Indian renewable power producer ReNew Power Ventures Private Ltd. GLOBAL TOP NEWS • Trump knew for weeks that aide was being misleading over Russia -White House U.S. President Donald Trump knew for weeks that national security adviser Michael Flynn had misled the White House about his contacts with Russia but did not immediately force him out, an administration spokesman said on Tuesday. • S.Korea says believes half-brother of N.Korea leader was murdered South Korea said it believed the half-brother of North Korean leader Kim Jong Un had been murdered, as Malaysian authorities moved the body to another hospital for an autopsy to identify the cause of death, sources told Reuters. • U.S. business in China warms to possible Trump trade policy shake-up "Reciprocity" has become the new buzzword in the U.S. business community in China, with some industry leaders saying they would welcome a tougher approach from the Trump administration in opening up the markets of the world's second-largest economy. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • The SGX Nifty Futures were at 8,836.00, up 0.19 pct from its previous close. • The Indian rupee is poised to open lower against the dollar, tracking its Asian peers, as Federal Reserve Chair Janet Yellen’s indication of an upcoming rate increase boosted demand for the greenback. • Indian government bonds will likely edge higher in early trade after the central bank said it would conduct a buyback of sovereign papers tomorrow. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.83 pct-6.89 pct band today. The bond had closed at 100.65 rupees, the lowest level since Sep. 20, yielding 6.87 pct, yesterday. GLOBAL MARKETS • Major U.S. stock indexes established record highs on Tuesday, led by bank stocks after Federal Reserve Chair Janet Yellen said it would be unwise to wait too long to raise interest rates. • Asian stocks rose early as Wall Street set record highs overnight after Federal Reserve Chair Janet Yellen spoke in support of an interest rate hike next month, while the dollar hovered near three-week highs. • U.S. Treasury yields jumped on Tuesday after Federal Reserve Chair Janet Yellen said it would be unwise to wait too long to raise interest rates, striking a more hawkish tone than investors expected. • Oil prices dipped over concerns that producer club OPEC would not be able to maintain its high compliance so far with output cuts aimed at reining in a global fuel supply overhang. • Gold prices edged lower on an uptick in the dollar after U.S. Federal Reserve Chair Janet Yellen hinted at a hike in interest rates in an upcoming meeting of the central bank. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 66.77/66.80 February 14 -$965,424.3 $176 mln 4 10-yr bond yield 7.21 pct Month-to-date $373.53 mln $1.05 bln Year-to-date $367.14 mln $941.77 mln 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 = 66.93 Indian rupees) (Erum Khaled in Bengaluru)

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