Morning News Call - India, June 20

Last Updated: Tue, Jun 20, 2017 09:00 hrs

To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_06202017.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ FACTORS TO WATCH 9:00 am: Aviation Minister Ashok Gajapathi Raju, Junior Aviation Minister Jayant Sinha at Airport Investments Summit in Mumbai. GMF: LIVECHAT - FIXED INCOME FOCUS We get a funding outlook with Eila Kreivi, Director and Head of The Capital Markets Department, European Investment Bank, at 3:00 pm IST. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS • EXCLUSIVE-Ahead of Modi visit, U.S. lawmakers ask India to rethink price cap on stents A group of U.S. lawmakers has backed medical device makers by urging India to reconsider its decision to cap prices of heart stents, raising the issue ahead of Prime Minister Narendra Modi's visit to the United States later this week. • Indian investors ride out big-pharma slump with small-cap drugmakers Investors in Indian pharmaceutical stock, hit by quality-related sanctions against drugmakers operating abroad and reduced pricing power in more profitable markets, have adopted a new mantra: patience and pickiness. • SpiceJet in provisional deal for 40 Boeing 737 MAX 10 jets Indian low-cost carrier SpiceJet signed a provisional deal on Monday to buy 40 of Boeing's newly launched 737 MAX 10 jets, becoming an inaugural customer of an aircraft designed to blunt strong sales of rival planemaker Airbus' A321neo. • Lockheed signs pact with Tata to make F-16 planes in India Lockheed Martin signed an agreement with India's Tata Advanced Systems on Monday to produce F-16 fighter planes in India, pressing ahead with a plan to shift its Fort Worth, Texas plant to win billions of dollars worth of order from the Indian military. • Tata Motors says no plans to list Jaguar Land Rover India's Tata Motors Ltd said on Monday it had no plans to list its luxury British car brand Jaguar Land Rover after Bloomberg reported that the automaker was considering an initial public offering of the unit. GLOBAL TOP NEWS • U.S. student held prisoner by North Korea dies days after release An American university student who had been held prisoner in North Korea for 17 months died at a Cincinnati hospital on Monday, just days after he was released from captivity in a coma, his parent said. • Japan business mood up, points to better BOJ tankan -Reuters Tankan Confidence among Japanese manufacturers bounced in June to match a decade-high level recorded in April and is expected to rise for several months, a Reuters survey found, providing more evidence of economic recovery. • Tech CEOs meet with Trump on government overhaul President Donald Trump met on Monday with the heads of 18 U.S. technology companies including Apple Inc, Amazon.com Inc and Microsoft Corp, seeking their help to make the government's computing systems more efficient. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • The SGX Nifty Futures were trading at 9,673.50, little changed from its previous close. • The Indian rupee is poised to open lower against the dollar, in line with most Asian currencies, after New York Fed President William Dudley said U.S. wages and inflation may trend higher, boosting expectations the Federal Reserve will meet its projection of three rate increases for the year. • Indian government bonds will likely edge higher in early trade, as investors may continue adding positions amid optimism the central bank will ease monetary policy in coming months. The yield on the benchmark 6.79 percent bond maturing in 2027 is likely to trade in a 6.45 percent-6.50 percent band today. GLOBAL MARKETS • U.S. stocks rose on Monday, with the S&P 500 and the Dow hitting record highs with growth sectors such as technology in favor again as investors appeared to regain confidence in the economy after upbeat comments from Federal Reserve officials. • Japan's Nikkei rose more than 1 percent to hit a near two-year high following a rebound in U.S. hi-tech shares as investors bet on solid growth in the economy and corporate profits globally. • The dollar hit a three-week high against the yen, after an influential Federal Reserve official said U.S. inflation should rise alongside wages, supporting expectations for the Fed to keep raising interest rates. • U.S. Treasury yields jumped on Monday after New York Federal Reserve President William Dudley struck a hawkish tone on monetary policy, bolstering expectations that the U.S. central bank will continue to boost interest rates. • Oil markets held around seven-month lows as investors focused on persistent signs of rising supply that are undermining attempts by OPEC and other producers to support prices. • Gold edged higher after hitting near five-week lows in the previous session when the dollar rose as an influential Federal Reserve official reaffirmed the central bank's hawkish stance. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 64.37/64.40 June 19 -$38.8 mln $273.63 mln 10-yr bond yield 6.83 Month-to-date $340.58 mln $3.65 bln Year-to-date $8.32 bln $17.09 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 = 64.4700 Indian rupees) (Compiled by Nayyar Rasheed)



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