Morning News Call - India, November 25

Last Updated: Fri, Nov 25, 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 to release weekly foreign exchange data in Mumbai. LIVECHAT - QUIZ EAST The first of our Friday quizzes focuses on Asia and the week's top news. Test your wits and googling speed at 11:00 a.m. To join the conversation, click on the link: INDIA TOP NEWS  Indian rupee hits record low as emerging market rout intensifies The Indian rupee fell to a record low of 68.8650 on Thursday, pressured by a rallying U.S. dollar, capital outflows from emerging markets, and worries about the country's demonetisation drive.  EXCLUSIVE-Indian state-owned firms resist pressure to help banks with bad debt India's government is pushing state-owned steel, power and shipping firms to take over assets of private companies that have defaulted on loans, but faces resistance from them, leaving it scrambling to clear a $135 billion pile of stressed loans from banks' books.  India's reform architect trashes PM Modi's cash crackdown Former Indian Prime Minister Manmohan Singh on Thursday tore into his successor Narendra Modi's clampdown on the cash economy, calling it an "organised loot and legalised plunder" of the country.  Adani to spend $300 million on two solar plants in Australia India's Adani Group has secured land to build two solar farms in Australia, together worth A$400 million ($300 million) as part of a five-year drive to construct 1,500 megawatts of solar energy plants in the country.  Thyssenkrupp CEO says new Tata management still wants steel deal Thyssenkrupp has personal assurances from the new management of Tata that the Indian conglomerate is still interested in merging its European steel business with that of the German group, Thyssenkrupp's chief executive said.  Indian infrastructure group JSW plans to make electric cars- sources Indian billionaire Sajjan Jindal's steel-to-power JSW Group plans to diversify into electric car manufacturing, two sources told Reuters, as Prime Minister Narendra Modi's government boosts support for non-polluting vehicles.  India says to stop over the counter exchange of old currency notes India will stop over-the-counter exchange of old currency notes, which were made illegal earlier this month, after midnight on Nov 24, the country's finance ministry said on Twitter.  India imposes safeguard duties on some steel imports India has imposed anti-dumping duties on hot rolled flat sheets and plates of alloy or non-alloy steel to curb cheaper imports into the country, a government notification said on Thursday. GLOBAL TOP NEWS  Japan October consumer prices continue slide, yen falls may help BOJ Japan's core consumer prices marked their eighth straight month of annual declines in October, illustrating the sheer scale of the central bank's struggle to beat deflation and stagnant growth with diminishing policy options.  Foreigners pile back into Australian property, reignite bubble fears Australia's 'spring-selling' real estate season is seeing a defiant return of Chinese buyers, undaunted by lending restrictions aimed at curbing their interest in the country's sky-rocketing housing market.  Wells Fargo asks U.S. court to dismiss account scandal lawsuit Wells Fargo & Co has asked a U.S. court to order dozens of customers who are suing the bank over the opening of unauthorized accounts to resolve their disputes in private arbitrations instead of court, according to legal documents. LOCAL MARKETS OUTLOOK (As reported by NewsRise)  The SGX Nifty Futures were at 8,026.50, up 0.68 pct from its previous close.  The Indian rupee will likely open steady to lower against the dollar, as U.S. Treasury yields resumed gains in Asian trade after the Thanksgiving holiday on continued expectations of a Federal Reserve rate increase next month.  Indian government bonds will likely rise in early trade, as banks may see more deposits flowing in after New Delhi yesterday suspended over-the-counter exchange of old currency notes of 500 and 1,000 rupees that were earlier rendered invalid. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.15 pct - 6.20 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.  Asian stocks steadied as the Thanksgiving break in the United States pegged the dollar's relentless surge that had sucked capital out of most emerging markets.  The dollar rose to an 8-month high against the yen, lifted by U.S. bond yields which resumed their rise in Asia after the Thanksgiving break shut markets in the United States.  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 trading was static as uncertainty ahead of a planned OPEC-led crude production cut and thin liquidity after the U.S. Thanksgiving holiday kept traders from taking big new positions.  Gold held on to losses from the previous session as a strong U.S. dollar and Federal Reserve rate hike expectations weighed heavily on the metal. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 68.74/68.77 November 24 -$292.38 mln -$111.01 mln 10-yr bond yield 6.31 pct Month-to-date -$1.90 bln -$1.56 bln Year-to-date $4.86 bln -$2.61 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 = 68.73 Indian rupees) (Compiled by Sai Sharanya Khosla in Bengaluru)

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