Morning News Call - India, January 13

Last Updated: Fri, Jan 13, 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 5:00 pm: Reserve Bank of India to release weekly foreign exchange data in Mumbai. LIVECHAT-WEEKAHEAD Join Nigel Stephenson at 04:30 pm for the week ahead in Global Markets. To join the conversation, click on the link: INDIA TOP NEWS  Tata Sons names insider Chandrasekaran as new chairman India's $100 billion salt-to-software Tata conglomerate named veteran insider Natarajan Chandrasekaran as the new chairman of its holding company on Thursday, looking to soothe investors after a bruising public spat over the ouster of his predecessor.  India's cash crunch tamps down retail inflation India's retail inflation hit a two-year low in December as businesses resorted to price discounting to boost flagging sales following the government's cash crackdown, fuelling hopes of an interest rate cut by the central bank.  Flipkart reshuffle signals shift to margins over volume Even before he was appointed to run India's biggest e-commerce company, Kalyan Krishnamurthy had signalled a change: as head of sales at Flipkart he focused on profitable "big ticket" items, a shift away from the industry's fixation on growth at all costs.  Tata Consultancy beats third-quarter profit estimates India's biggest software services exporter Tata Consultancy Services Ltd said it would continue to focus on expanding its digital business after beating analyst estimates with a 10.9 percent rise in profit for the quarter to December.  SpiceJet to seal $10 billion deal with Boeing for 737 jets - sources India's SpiceJet is set to seal an order for at least 90 new 737 jets from Boeing, two sources said on Thursday, as the low-cost carrier targets an expansion to tap into the South Asian nation's booming air travel market.  Supreme Court denies Sahara more time to make $88 million payment India's top court on Thursday rejected a request from the Sahara conglomerate to be given more time to deposit 6 billion rupees by Feb. 6, despite the group's argument that a shortage of cash in the country was making it hard to raise the funds.  Bharti Airtel to spend $441 mln to set up payments bank Bharti Airtel Ltd, India's top wireless carrier, on Thursday unveiled a so-called payments bank, committing an initial investment of 30 billion rupees to build a nationwide network.  Louvre Hotels buys majority stake in India's Sarovar Hotels France's Louvre Hotels Group, part of Chinese hotel firm Jin Jiang International, said on Thursday it bought a majority stake in Indian hotel chain Sarovar Hotels for an undisclosed amount, further expanding its international footprint. GLOBAL TOP NEWS  China Dec exports fall more than expected, cap dismal year, but imports top forecasts China's December exports fell by a more-than-expected 6.1 percent from a year earlier, while imports beat forecasts slightly, growing 3.1 percent on strong demand for commodities from coal to iron ore, official data showed.  Samsung leader quizzed for over 22 hours in S.Korea corruption scandal Samsung Group leader Jay Y. Lee left the South Korean special prosecutor's office, more than 22 hours after arriving for questioning on bribery suspicions in an influence-peddling scandal that could topple President Park Geun-hye.  Takata to pay $1 bln to settle U.S. air bag probe -sources Japan's Takata Corp is expected to plead guilty to criminal wrongdoing as early as Friday as part of a $1 billion settlement with the U.S. Justice Department over its handling of air bag ruptures linked to 16 deaths worldwide, sources said. LOCAL MARKETS OUTLOOK (As reported by NewsRise)  The SGX Nifty Futures was trading at 8,439.50, trading up 0.15 pct from its previous close.  The Indian rupee will likely open lower against the dollar, tracking its Asian peers, as disappointing trade data from China renewed concerns about the health of the world's second-largest economy.  Indian sovereign bonds are poised to edge higher, as retail inflation eased to an over two-year low, burnishing chances of monetary easing by the nation's central bank. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.34 pct-6.40 pct band today. The bond had closed at 104.25 rupees, yielding 6.37 pct, yesterday. GLOBAL MARKETS  The three major U.S. stock indexes closed lower on Thursday as investors waited for fourth-quarter corporate earnings and details of U.S. President-elect Donald Trump's economic policy eight days ahead of his inauguration.  Asian shares dipped but remained on track for weekly gains while the dollar was poised for a losing week, as investors weighed whether President-elect Donald Trump would stress growth-boosting steps when he takes office.  The dollar steadied after hitting a five-week low against the yen and the broader basket of currencies, after U.S. President-elect Donald Trump's news conference had disappointed some investors earlier in the week.  A weak $12 billion 30-year bond auction cooled a rally in the U.S. Treasuries market on Thursday, lifting bond yields from their initial lows as traders reduced their bets on inflation and federal borrowing under a Trump administration.  Oil prices edged up, supported by reports on details of OPEC output cuts, although lingering doubts over producer compliance with supply reduction targets weighed on the market.  Gold fell after hitting a seven-week high in the previous session as the dollar edged up and a technical correction set in, but the yellow metal was still on track to end higher for a third straight week. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 68.12/68.15 January 12 -$1.88 mln -$22.18 mln 10-yr bond yield 6.64 pct Month-to-date - $27.41 mln Year-to-date - - 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=68.09 Indian rupees) (Compiled by Sourav Bose in Bengaluru)

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