Morning News Call - India, October 14

Last Updated: Fri, Oct 14, 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 12:00 pm: Government to release September wholesale price inflation data in New Delhi. 3:00 pm: Trade Minister Nirmala Sitharaman interacts with media in New Delhi. 5:00 pm: RBI to release weekly foreign exchange data in Mumbai. LIVECHAT - THE WEEKAHEAD with Reuters markets editor Mike Dolan Join Mike as he goes through the key macroeconomic and political themes for the coming week at 1630 IST. To join the conversation, click on the link: INDIA TOP NEWS  Indian inflation cools to one-year low, offers room for more rate cuts India's retail inflation cooled to a 13-month low in September, helped by moderating food prices, giving room for the central bank to cut interest rates again if needed.  India chief warns of risks from Brexit, U.S. elections India and fellow BRICS countries need to be prepared to confront potential "political risk" events such as Britain's exit from the European Union and the U.S. presidential elections, Reserve Bank of India Governor Urjit Patel warned on Thursday.  Tata Consultancy expects to fare better in next two quarters after sales hiccup Indian IT outsourcing group Tata Consultancy Services Ltd said its next two quarters will be better after clients held back on spending in the three months to September.  South Asian tensions seen dominating Indian BRICS summit India will take its drive to isolate Pakistan and rally the international community against cross-border militancy to a summit of emerging market powers this weekend, when it hosts BRICS nations in the western state of Goa.  India Fin Min warns against growing protectionism India's finance minister warned on Thursday against the dangers of protectionist tendencies in developed economies spreading to other parts of the world and hurting global growth.  India may seek $7.5 billion in extra spending to spur growth India may seek parliamentary approval to spend about $7.5 billion more on roads, railways and other public programmes over the next five months, two government sources said, as Prime Minister Narendra Modi looks to spur growth and create jobs.  Rosneft, Trafigura and UCP to buy India refiner for $12-$13 billion-sources A group led by Russian oil major Rosneft will acquire India's Essar Oil in a $12-$13 billion deal including debt, two sources privy to the deal said, giving the Kremlin access to the South Asian nation's growing fuel market.  Russia and India to sign delivery deal for S-400 missiles on Saturday Russia and India will sign an agreement on Saturday for Moscow to deliver S-400 surface-to-air missiles to New Delhi, a Kremlin aide said on Thursday. GLOBAL TOP NEWS  China September producer prices rise for first time in nearly 5 years China's producer prices unexpectedly rose in September for the first time in nearly five years thanks to stronger commodity prices, welcome news for the government as it struggles to whittle down a growing mountain of corporate debt.  Samsung flags $5.3 billion profit hit from Note 7 failure Samsung Electronics Co Ltd said it expected to take a hit to its operating profit of about $3 billion over the next two quarters due to the discontinuation of its fire-prone Galaxy Note 7 smartphone.  Saudi Arabia, SoftBank plan $100 billion tech fund - one of the world's biggest Saudi Arabia and Japan's SoftBank Group said they will create a technology investment fund that could grow as large as $100 billion, aiming to create one of the world's largest private equity funds. LOCAL MARKETS OUTLOOK (As reported by NewsRise)  The SGX Nifty Futures were trading at 8,596.50, trading up 0.24 pct from its previous close.  The Indian rupee will likely open higher against the dollar, tracking a recovery across Asian assets as better-than-expected economic data out of China propped up risk appetite.  Indian government bonds are likely to gain in early session, after domestic retail inflation in September rose at the slowest pace in more than a year, giving room to the nation's central bank for further interest rate cut. The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.98 pct - 6.74 pct band. GLOBAL MARKETS  U.S. stocks slipped on Thursday led by falls in financial shares and following weak Chinese economic data but a late-day rebound in oil prices limited the day's decline.  Asian stocks and the dollar bounced on Friday, erasing some losses from the previous day, as stronger-than-expected Chinese inflation data eased some concerns about the health of world's second-biggest economy.  The dollar held below this week's highs but is still on track for a weekly gain, as investors awaited U.S. retail sales data and remarks from Federal Reserve officials that could cement expectations of a U.S. interest rate hike this year.  U.S. Treasury prices rose on Thursday as weak Chinese data pushed investors to buy safe-haven government debt after two straight days of selling.  Oil prices edged up, pushed by a tighter U.S. fuel market and as technical indicators attracted buying from financial players.  Gold prices edged lower in Asian trade as stocks firmed and the U.S. dollar rose on expectations the Federal Reserve would raise interest rates by year-end. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 66.78/66.81 October 13 -$137 mln -$273.72 mln 10-yr bond yield 6.89 pct Month-to-date $181.66 mln -$909.06 mln Year-to-date $7.69 bln -$874.42 mln 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 = 66.93 Indian rupees) (Compiled by Sai Sharanya Khosla in Bengaluru)

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