Morning News Call - India, September 12

Last Updated: Tue, Sep 12, 2017 08:59 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 9:00 am: Coal Secretary Sushil Kumar, NTPC Chairman Gurdeep Singh and other executives at Coal Markets conference in Kolkata 9:45 am: Environment Minister Harsh Vardhan at a campaign launch in New Delhi. 9:45 am: IT Minister Ravi Shankar Prasad at e-governance application launch in New Delhi. 10:00 am: Information & Broadcasting Minister Smriti Irani to inaugurate Inclusive India Summit 2017 in New Delhi. 10:30 am: Bharat Petroleum annual general meeting in Mumbai. 10:30 am: GAIL India annual general meeting in New Delhi. 11.30 am: Steel Minister Chaudhary Birendra Singh, Steel Secretary Aruna Sharma, JSW Steel Director Jayant Acharya, SAIL Chairman PK Singh and other industry executives at conference on raw materials for steel & power in New Delhi. 3:30 pm: Federal Cabinet scheduled to meet in New Delhi. 5:30 pm: Government to release August consumer price inflation data in Mumbai. 5:30 pm: Government to release July Industrial output data in Mumbai. LIVECHAT - FX FOCUS The latest Reuters survey shows the yuan will weaken at a more modest pace than expected earlier after having risen more than 6 percent this year, provided the Fed continues to tighten policy giving the dollar a lift. Similarly, bets in favour of the Indian rupee were in place, though strategists see it softening over the next 12 months. Reuters polling editor in charge Rahul Karunakar will walk us through the findings and what they signal at 9:30 am IST. To join the conversation, click on the link: INDIA TOP NEWS • POLL-India Aug inflation seen at 5-month high on rising food costs India's retail inflation is expected to have picked up to a five-month high in August, largely driven by higher food costs, a Reuters poll showed, easing pressure on the central bank to cut interest rates again after poor growth data. • Thyssenkrupp may reach preliminary Tata Steel deal this month Thyssenkrupp may reach an agreement in principle this month to merge its European steel business with that of Tata Steel, the group said on Monday, adding talks were constructive and had entered the final stretch. • Supreme Court moves to protect Jaypee Infratech home buyers The Supreme Court moved on Monday to protect buyers of homes sold by builder Jaypee Infratech, which is being pursued in a bankruptcy court over unpaid loans, telling its parent Jaiprakash Associates to deposit 20 billion rupees with it by Oct. 27. • IndusInd Bank in talks to buy microlender Bharat Financial IndusInd Bank Ltd has entered into exclusive talks to acquire microlender Bharat Financial Inclusion Ltd, in a deal that will help the private sector bank to expand its consumer business. • Janalakshmi Financial raises $161 million from TPG, others Microlender Janalakshmi Financial Services, which is setting up a so-called small finance bank, has raised 10.30 billion rupees from existing and new investors in a fresh round of funding led by TPG. GLOBAL TOP NEWS • U.N. Security Council unanimously steps up sanctions on North Korea The United Nations Security Council unanimously stepped up sanctions against North Korea on Monday over the country's sixth and most powerful nuclear test conducted on Sept. 3, imposing a ban on the country's textile exports and capping imports of crude oil. • Floridians return to storm-battered homes as Irma flooding spreads Storm-shocked Floridians returned to shattered homes on Monday as the remnants of Hurricane Irma pushed inland, leaving more than half of all state residents without power and city streets underwater from Orlando and Jacksonville into coastal Georgia and South Carolina. • U.S. high court justice temporarily preserves Trump refugee ban U.S. Supreme Court Justice Anthony Kennedy on Monday provided a temporary reprieve for President Trump's order blocking most refugees from entering the United States, putting on hold a lower court's ruling loosening the prohibition. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • The SGX Nifty Futures were at 10,062.50, trading up 0.4 percent from its previous close. • Indian government bonds are likely to edge lower ahead of a fresh supply of notes and inflation data due today. The yield on the benchmark 6.79 percent bond maturing in 2027 is likely to trade in a 6.52 percent-6.58 percent band. • The Indian rupee will likely open slightly lower against the dollar, in line with most other Asian currencies, as Hurricane Irma turned out to be less calamitous than initially feared and North Korea decided against conducting another missile test over the weekend, pushing back demand for safe havens and lifting the greenback. GLOBAL MARKETS • The S&P 500 surged over 1 percent to a record high close on Monday as tropical storm Irma caused less damage than expected in Florida, and after North Korea did not test-fire missiles over the weekend, which some had feared. • Asian shares hit a 10-year peak with investors breathing a sigh of relief as North Korean fears eased slightly and the worst-case scenario from Hurricane Irma looked to have been avoided. • The dollar held to large gains following a sharp rebound against the yen and euro, lifted by improving investor risk sentiment as worries over North Korea and Hurricane Irma receded. • U.S. Treasury yields rose on Monday after a quiet weekend unmarred by expectations of negative news about North Korea that had pushed risk appetite higher, and a lackluster three-year note auction also pressured bond prices. • Oil prices edged down in early Asian trading, as traders weighed up the dampening effect on demand of Hurricane Irma versus refinery restarts following Hurricane Harvey that should lead to more crude oil processing. • Gold extended losses from the previous session, with equities strengthening and the dollar holding gains as investor appetite for risk showed signs of picking up. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 63.86/63.89 September 11 -$61.47 mln $51.78 mln 10-yr bond yield 6.82 pct Month-to-date -$551.69 mln $380.46 mln Year-to-date $6.46 bln $23.52 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 = 63.9300 Indian rupees) (Compiled by Erum Khaled in Bengaluru)

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