Morning News Call - India, November 28

Last Updated: Mon, Nov 28, 2016 09:00 hrs

To access the newsletter, click on the link: http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_11282016.pdf If you would like to receive this newsletter via email, please register at: https://forms.thomsonreuters.com/india-morning/ FACTORS TO WATCH 11:00 am: Winter session of parliament continues in New Delhi. LIVECHAT - TRADING INDIA FORUM - Investing Asset Classes with Aashish P Somaiya, MD & CEO, Motilal Oswal AMC In its relatively short existence, Motilal Oswal MF has been in the top tier of equity funds wrt returns. The buy right - sit tight philosophy seems to have worked well. But what about the long term? Is the buffett method the only way to create long term wealth in the stock markets? We speak to Aashish at 11:00 a.m. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ LIVECHAT - FX WEEK AHEAD with Jeremy Boulton, FX Buzz analyst FX Buzz analyst Jeremy Boulton analyses G7 currencies at 4:30 p.m. To join the conversation, click on the link: https://forms.thomsonreuters.com/communities/ INDIA TOP NEWS  Fearing tighter U.S. visa regime, Indian IT firms rush to hire, acquire Anticipating a more protectionist U.S. technology visa programme under a Donald Trump administration, India's $150 billion IT services sector will speed up acquisitions in the United States and recruit more heavily from college campuses there.  India cenbank takes surprise action to soak up liquidity The Reserve Bank of India on Saturday unexpectedly ordered banks to deposit their extra cash with it, in a bid to absorb excess liquidity generated by a government ban on larger banknotes.  India's rural economy hit hard as informal lending breaks down Life was good for Mitharam Patil, a wealthy money lender from a small village in the Indian state of Maharashtra. Small-time financiers like Patil would typically lend cash to farmers and traders every day, providing a vital source of funding for a rural economy largely shut out of the banking sector, albeit at interest rates of about 24 percent.  Tata Steel removes Cyrus Mistry as chairman India's Tata Steel said it removed Cyrus Mistry as chairman at a special board meeting on Friday, the third Tata group company to depose him since his ouster as head of the conglomerate's holding company.  Indian cash crunch hits gold demand during peak wedding season Mumbai resident Shashikant Zhalte's wedding this weekend will be less sparkling than his family had hoped, thanks to a cash shortage following Indian Prime Minister Narendra Modi's shock withdrawal of high-value notes to fight "black money".  Jaguar Land Rover wants to build electric cars in Britain Britain's biggest carmarker Jaguar Land Rover said it wants to build electric cars in Britain in what would be a further boost to the UK automotive sector after the Brexit vote.  India confirms H5N8 bird flu outbreak in Karnataka - OIE India has reported an outbreak of a highly contagious bird flu virus in the southwestern state of Karnataka, the World Organisation for Animal Health (OIE) said on Friday, citing a report from the Indian agriculture ministry. GLOBAL TOP NEWS  Samsung Electronics to consider split - Seoul Economic Daily South Korea's Samsung Electronics Co Ltd will consider splitting itself into two as proposed by activist hedge fund Elliott Management, Seoul Economic Daily reported, citing an unnamed source.  Thatcher admirer Fillon wins French conservative presidential ticket Hardline reformist Francois Fillon scored a resounding win in France's conservative primaries on Sunday, making him favourite to win a presidential election five months from now against the popular far-right and a deeply divided left.  China's October industrial profits get boost from raw material sectors Profit growth in China's industrial sector picked up in October, aided by stronger sales and higher prices, suggesting further strengthening of the world's second-largest economy, though growth was skewed towards high-polluting heavy industry. LOCAL MARKETS OUTLOOK (As reported by NewsRise)  The SGX Nifty Futures were trading at 8,076.50, trading down 0.33 pct from its previous close.  The Indian rupee will likely open higher against the dollar, tracking its Asian peers, as the greenback and U.S. Treasury yields retreated from recent highs.  Indian government bonds are likely to fall sharply, after the central bank's decision over the weekend to increase cash reserve ratio on some deposits to absorb banking system liquidity is expected to reverse the recent rally. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.31 pct - 6.40 pct band. GLOBAL MARKETS  Wall Street's three main indexes closed at record highs on Friday, helped by gains in consumer staples and technology stocks as investors hunted for bargains in a post-election rally.  Oil prices tumbled on Monday on fears that producer countries may fail to agree an output cut, pressuring U.S. stocks and the dollar as traders reversed their "Trumpflation" trade as weak oil prices would reduce pressure on U.S. interest rates to rise.  The dollar gave in to gravity and pulled further away from near 14-year highs as U.S. Treasury yields eased from recent peaks.  U.S. Treasuries were on track for their worst monthly performance in almost eight years on Friday as investors evaluated how much further the sell-off sparked by the surprise election of Republican Donald Trump as U.S. president has to run.  Oil prices fell over 1 percent, extending declines from last Friday as doubts re-emerged over the ability of major producers to cut output at a planned meeting on Wednesday aimed at reining in global oversupply.  Gold regained its footing after dropping to a 9-1/2 month low in the previous session, as the U.S. dollar shed further gains after touching near 14-year highs last week. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 68.51/68.54 November 25 -$54.57 mln -$70.11 mln 10-yr bond yield 6.35 pct Month-to-date -$2.20 bln -$1.63 bln Year-to-date $4.57 bln -$2.68 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 = 68.46 Indian rupees) (Compiled by Sai Sharanya Khosla in Bengaluru)



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