Morning News Call - India, June 19

Last Updated: Mon, Jun 19, 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: Rural Development Minister Narendra Singh Tomar at an event in New Delhi. 2:30 pm: Trade Minister Nirmala Sitharaman at an event in New Delhi. 2:30 pm: Power Minister Piyush Goyal at an event in New Delhi. GMF: LIVECHAT - FX WEEK AHEAD FX Buzz analyst Jeremy Boulton analyses G7 currencies at 3:30 pm IST. To join the conversation, click on the link: INDIA TOP NEWS • India's Bhushan, Essar Steel among 12 firms being moved to insolvency courts -sources India's central bank has asked lenders to initiate bankruptcy proceedings against a dozen companies, including Essar Steel, Bhushan Steel Ltd, Monnet Ispat and Energy Ltd, sources with direct knowledge of the matter said. • India's Lanco Infratech confirms RBI order on insolvency process Lanco Infratech Ltd confirmed on Saturday that India's central bank had directed the company's lead lender IDBI Bank to initiate a corporate insolvency resolution process under the country's bankruptcy laws. • Bank of Maharashtra put under RBI "corrective action" due to bad loans India's central bank has initiated "prompt corrective action" for state-run Bank of Maharashtra Ltd because of its high level of bad loans, the lender said in a stock exchange filing on Saturday. • Tata Sons to buy Tata Steel stake in Tata Motors on or after June 23 Tata Sons Ltd, the holding company of India's salt-to-software Tata conglomerate, plans to buy out Tata Steel Ltd's stake in Tata Motors Ltd on or after June 23, it said in a regulatory filing on Saturday. • India to allow late filing in first two months of GST - Jaitley India will launch a new national Goods and Services Tax (GST) as planned on July 1, Finance Minister Arun Jaitley said on Sunday, but will let companies file late returns for the first two months so that they can adapt to a new online filing system. • INTERVIEW-India ready for GST, anti-profiteering rules soon - Adhia India is ready to launch the Goods and Services Tax (GST) on July 1, the official steering the process told Reuters, saying the technology that will drive it is robust and dismissing fears the tax is too complicated. • India's Tejas Networks up to $120 million IPO oversubscribed 1.9 times India's Tejas Networks Ltd's up to $120 million initial public offer (IPO) of shares was oversubscribed 1.88 times on the last day of the sale on Friday, stock exchange data showed. • India's 2017 diesel imports may rise to highest since at least 2011 India's diesel imports this year may rise to the highest since at least 2011 as refiners shut down to upgrade their units to meet new fuel standards and as warmer temperatures spur demand, said five industry sources. GLOBAL TOP NEWS • Several injured when vehicle rams people leaving London mosque -witnesses Several people were injured in north London when a van rammed into worshippers leaving a mosque, witnesses said, in what British police described as a "major incident". • Macron wins strong parliamentary majority, estimates show President Emmanuel Macron won a commanding majority in France's parliamentary election on Sunday, sweeping aside traditional parties and securing a powerful mandate for pro-business reforms. • Japan's May exports rise at fastest in 2 years, set to sustain growth Japan's exports surged in May by the fastest in more than two years on bigger shipments of cars and steel, an encouraging sign that robust overseas demand will support economic growth. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • The SGX Nifty Futures were trading at 9,633.00, trading up 0.45 percent from its previous close. • The Indian rupee will likely open slightly higher against the dollar, tracking gains in most other Asian currencies, as soft U.S. economic data weighed on the dollar. However, investors will closely track the start of talks over the terms of Britain’s exit from the European Union in Brussels today, and Federal Reserve officials’ speeches to gauge whether the authority will stick to its projected three rate increases this year. • Indian government bonds will likely edge higher in early trade, as U.S. Treasury yields continue to stay depressed, keeping emerging-market assets attractive for investors. The yield on the benchmark 6.79 percent bond maturing in 2027 is likely to trade in a 6.47 percent-6.51 percent band today. GLOBAL MARKETS • Major U.S. stock indexes ended little changed on Friday even as's $13.7 billion deal to buy upscale grocer Whole Foods roiled the retail sector and rocked shares of an array of companies including Wal-Mart and Target. • Asian stocks rose, shaking off Wall Street's uninspiring performance on Friday, while sterling was mostly steady after a van rammed into pedestrians in London even as markets braced for the start of Brexit talks. • The dollar steadied against a basket of currencies after slipping on soft U.S. economic data, with investors awaiting comments by a top Federal Reserve official for clues on whether recent strength can be sustained. • U.S. Treasury yields edged lower on Friday, with all maturities posting weekly declines, after weaker-than-expected U.S. housing data fueled doubts that the Federal Reserve will be able to raise interest rates again this year. • Oil prices fell, weighed down by high supplies despite an OPEC-led initiative to cut production to tighten the market. • Gold slipped on a firm dollar as markets awaited comments by a top Federal Reserve official for clues on whether recent strength can be sustained, after last week's soft economic data. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 64.44/64.47 June 16 -$118.6 mln $51.22 mln 10-yr bond yield 6.84 Month-to-date $448.04 mln $3.38 bln Year-to-date $8.43 bln $16.82 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 = 64.4300 Indian rupees) (Compiled by Nayyar Rasheed in Bengaluru)

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