Morning News Call - India, July 18

Last Updated: Tue, Jul 18, 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 11:00 am: Monsoon session of Parliament to continue in New Delhi. 3:30 pm: IDBI Bank and UltraTech Cement annual shareholders meetings in Mumbai. LIVECHAT - FX OUTLOOK Join Credit Agricole currency strategist Manuel Oliveri for a look at the FX markets at 2:30 pm IST. To join the conversation, click on the link: INDIA TOP NEWS • HDFC Life revives IPO plan as Max Life deal struggles HDFC Standard Life Insurance said on Monday it had revived a planned initial public offering, as it struggles to get regulatory approval to buy smaller rival Max Life. • Religare says it suffers cyber attack Several units of Religare financial services group suffered a cyber attack, but its systems, operations and sensitive client information were secure and unaffected, it said on Monday. • SBI Life files for IPO; seen raising more than $1 billion SBI Life Insurance Co Ltd, a unit of State Bank of India, on Monday filed for an initial public offering of shares that bankers have said could raise more than $1 billion. • Court dismisses Essar Steel appeal against bankruptcy proceedings Gujarat High Court on Monday dismissed Essar Steel India's appeal against a central bank order that asked creditor banks to start insolvency proceedings against the steelmaker, lawyers on the case said. • India raises tax on cigarettes India has raised the total tax on cigarettes resulting in an increase of as much as 792 rupees for every 1,000 cigarettes, adding about 50 billion rupees in revenues for the government, finance minister Arun Jaitley said. • Parliament elects president, BJP-backed candidate favourite The parliament began voting on Monday for a new president in an election likely to be won by a candidate backed by the ruling Bharatiya Janata Party, tightening its grip over top political positions. • Resolving regulatory probe of NSE is top priority - CEO The new chief executive of embattled National Stock Exchange said on Monday his immediate priority was to resolve a regulatory investigation facing the country's largest bourse and improve relations with stakeholders. GLOBAL TOP NEWS • Opposition from two more Republicans may sink Senate healthcare effort The U.S. Senate's healthcare overhaul appeared to be in serious trouble on Monday after two more Republicans said they oppose a revised version of the bill. • Asian sovereign investors face off with funds in hunt for private deals Asian sovereign investors are increasingly adding non-public firms to their portfolios amid pricey stock markets, a strategy that could be risky as they compete head-on for such deals with cashed-up private funds. • Netflix beats subscriber targets Netflix crushed Wall Street forecasts by adding 5.2 million new streaming customers in the second quarter and predicted continued momentum as foreign subscriptions topped those in the United States. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • The Indian rupee will likely be little changed against the dollar in early trade, even as the U.S. currency continues to hover at a 10-month low, as local equities are expected to remain weak tracking regional peers. • The SGX Nifty Futures were at 9,912.50, down 0.33 percent from previous close. • Indian government bonds are likely to open lower as the Reserve Bank of India surprised investors by opting to sell an existing paper in this week’s auction, as against the market’s expectation for a new bond maturing in 13 years or 14 years. The yield on the benchmark 6.79 percent bond maturing in 2027 is likely to trade in a 6.44 percent-6.49 percent band today. GLOBAL MARKETS • U.S. stocks closed little changed in low volume on Monday as gains in utilities and consumer stocks offset declines in healthcare, with earnings news filtering out winners and losers across the board. • Asian shares stepped back from more than two-year highs and the dollar extended losses as passage of a U.S. healthcare bill grew doubtful, and as investors bet the Federal Reserve will be more cautious about raising interest rates. • The dollar sank to a 10-month low against a basket of major currencies, hobbled by uncertainty over the pace of the Federal Reserve's policy tightening and worries that President Donald Trump will fail to deliver healthcare reforms. • U.S. Treasury yields drifted lower on Monday, trading in narrow ranges, after falling the previous session on soft U.S. inflation and retail sales data ahead of the Federal Reserve's monetary policy meeting next week. • Oil prices were stable, supported by strong consumption but weighed by ongoing high supplies from producer club OPEC and also the United States. • Gold prices held steady near two-week highs hit in the previous session, as the dollar hovered near multi-month lows on fading prospects for further U.S. rate hikes this year. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 64.37/64.40 July 17 $51.15 mln $124.94 mln 10-yr bond yield 6.83 pct Month-to-date -$64.14 mln $1.61 bln Year-to-date $8.53 bln $19.61 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 = 64.35 Indian rupees) (Compiled by Debanjan Bose in Bengaluru)

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