Morning News Call - India, November 24

Last Updated: Thu, Nov 24, 2016 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: Winter session of parliament continues in New Delhi. 5:00 pm: RBI Deputy Governor R. Gandhi to speak at banking event in Mumbai. LIVECHAT - TRADING INDIA FORUM - Equity Markets with G Chokkalingam, Founder, Equinomics The sharp downturn in equity markets has spooked investors. Will the demonetization drive push back the 'recovery' in earnings for a couple of quarters? Are HFC's a good entry point after the carnage? For this and more, we speak our equity expert, Mr. G Chokkalingam, at 11:00 a.m. To join the conversation, click on the link: LIVECHAT - FX OUTLOOK with Simon, Head of research at FX Pro Simon returns to the forum at 3:00 p.m to give his outlook on the FX markets. To join the conversation, click on the link: INDIA TOP NEWS  Indian Oil plans $5.5 billion expansion of refinery co-owned by Iran An Indian Oil Corp unit plans to invest $5.5 billion to gradually raise the capacity of its smallest refinery co-owned by Iran to 300,000 barrels per day (bpd), its chairman said, to help meet a surge in demand for refined products in the world's fastest growing major economy.  Zee to buy TV channels, radio stake from Anil Ambani's Reliance India's Zee media group has agreed to buy television channels and a stake in a radio broadcasting business from billionaire Anil Ambani's Reliance Group in a move that would help the latter cut its debt by about 19 billion rupees, the two sides said on Wednesday.  India's market regulator eases norms for angel investors India's market regulator on Wednesday relaxed rules for so-called angel funds in a bid to boost more investments into the country's start-ups, in what has been a key initiative under Chairman U.K. Sinha.  India offers credit facility to support farmers hit by cash clampdown The Indian government on Wednesday offered a credit line to support millions of farmers who have been left short of cash to buy seeds and fertilisers for their winter crops after its decision to cancel 500 and 1,000 rupee bank notes.  Pakistan says 9 civilians, 3 soldiers killed in Indian shelling Indian shelling across the frontier into Pakistani-controlled Kashmir hit a bus, killing at least nine people, and three Pakistani soldiers were killed in cross-border firing, Pakistani officials said on Wednesday.  Toyota aims to sell more hybrid cars in India Toyota Motor Corp expects hybrid cars to make up 20 percent of its total vehicle sales in India by 2020 from less than 2 percent today, a senior company official told Reuters.  Indian railways ask again for safety funds after crash kills 150 The track where an Indian train derailed on Sunday, killing 150 people, was inspected just two days earlier and found to be in good condition, raising more questions about the safety of a network seeking $17 billion in funding to prevent more crashes. GLOBAL TOP NEWS  China will defend WTO rights if Trump moves on tariffs-official China will defend its rights under World Trade Organization tariff rules if U.S. President-elect Donald Trump moves toward executing his campaign threats to levy punitive duties on goods made in China, a senior trade official said on Wednesday.  Singapore downgrades 2016 GDP, exports forecasts after Q3 contraction Singapore downgraded its forecasts on economic growth and exports for 2016 after confirming a contraction in output in the third quarter, raising the risk of a recession amid fresh uncertainty around global trade under U.S. President-elect Donald Trump.  Trump names Haley, a foreign policy novice, as envoy to U.N. Donald Trump on Wednesday named South Carolina Governor Nikki Haley, a former critic with little foreign policy experience, as the next U.S. ambassador to the United Nations at a time of uncertainty over America's international role under his presidency. LOCAL MARKETS OUTLOOK (As reported by NewsRise)  The SGX Nifty Futures were at 7,965.00, down 0.53 pct from its previous close.  The Indian rupee will likely open lower against the dollar, in line with other Asian peers, as a fresh set of U.S. data and the Federal Reserve meeting minutes strengthened bets of a rate increase in the world's largest economy.  Indian sovereign bonds may open little changed, as sufficient liquidity in the domestic banking system and hopes of monetary easing next month may temper impact of increased possibilities of a rate hike in the U.S. following the release of the Federal Reserve's November meeting minutes. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.25 pct - 6.31 pct band. GLOBAL MARKETS  The Dow and the S&P 500 eked out record high closes on Wednesday ahead of the Thanksgiving holiday, helped by gains in industrial stocks, though losses in technology shares limited the advance and weighed on the Nasdaq.  Most Asian stock markets fell as upbeat economic data strengthened the prospect for higher U.S. interest rates, while the dollar's bull run continued as U.S. bond yields hovered near multi-year highs.  The dollar firmed in Asian trading after news of a pickup in U.S. economic growth early in the fourth quarter increased the chances of the Federal Reserve tightening monetary policy.  U.S. Treasury yields fell from multi-year highs on Wednesday after the Treasury Department saw very strong demand for an auction of seven-year notes, and after minutes from the Federal Reserve's November meeting contained no large surprises.  Oil prices were little changed as uncertainty ahead of a planned OPEC-led crude production cut and thin liquidity due to the U.S. Thanksgiving holiday kept traders from making big new bets on markets.  Gold held on to losses from the previous session, when it fell 2 percent, as the dollar remained strong on expectations of a U.S. Federal Reserve rate hike in December. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 68.79/68.82 November 22 -$148.70 mln -$291.57 mln 10-yr bond yield 6.41 pct Month-to-date -$1.74 bln -$1.45 bln Year-to-date $5.02 bln -$2.50 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 = 68.56 Indian rupees) (Compiled by Sai Sharanya Khosla in Bengaluru)

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