Morning News Call - India, May 9

Last Updated: Tue, May 09, 2017 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 9:15 am: S. Chand and Company lists on stock exchanges in Mumbai. 10:00 am: Railways Minister Suresh Prabhu at a sports event in New Delhi. 10:30 am: Society of Indian Automobile Manufacturers to release sales data for April in New Delhi. 12:15 pm: PSP Projects IPO briefing in Mumbai. 3:30 pm: Dena Bank earnings briefing in Mumbai. LIVECHAT - GOLD FOCUS With the probability of a Fed interest rate hike in June jumps to almost 70 percent and the geopolitical tensions in Northeast Asia continue to rise, investors are watching if the yellow metal can rebound from the 1-month low in near term. Australian Bullion Company chief economist Jordan Eliseo will discuss the outlook of gold price at 10:30 am. To join the conversation, click on the link: INDIA TOP NEWS •A step for India's banks, but no giant leap for bad debt India's move to strengthen the hand of its central bank will help it push reluctant lenders towards writedowns and errant borrowers into insolvency, bankers said, but the country is far from drawing a line under its $150 billion of sour debts. •India's Bharti Infratel Q4 profit falls 17 pct, misses estimates Indian telecom tower company Bharti Infratel Ltd posted a 17 percent drop in its fourth-quarter consolidated net profit, missing analysts' estimate, hurt by higher expenses. •India's Canara Bank posts Q4 profit on lower bad loan provisions Indian public sector lender Canara Bank reported a profit for the fourth quarter, compared with a year-ago loss, on the back of lower provisions for bad loans. •Union Bank of India Q4 profit rises 13 pct, misses estimates Union Bank of India Ltd on Monday posted a 13 percent rise in its fourth-quarter net profit as the gross bad-loan ratio eased sequentially, but fell short of analysts' expectations. •India's top refiner in early talks with Aramco for downstream project India's top refiner said it is in initial talks with Saudi Aramco on downstream investments, including a mega project on its west coast, that could help the OPEC member lock-in customers amid an oil supply glut. •India finmin Jaitley says liberalisation will prevail over protectionism Indian Finance Minister Arun Jaitley on Monday played down fears held among some market participants that protectionism will spread globally and weigh on economies, including that of India. GLOBAL TOP NEWS • South Koreans vote for new leader after months of political vacuum South Koreans began voting on Tuesday to elect a new leader, looking to move on from a corruption scandal that brought down former President Park Geun-hye and shook the political and business elite to the core. •As China's battle with leverage begins to bite, risk bites back A Chinese government campaign to cut leverage in the banking system and limit some risky activities appears to be working, but it is also pushing borrowers back towards alternative funding sources that carry similar risks to the financial system. •France's victorious Macron reminded of huge, immediate challenges Emmanuel Macron was confronted on Monday with pressing reminders of the challenges facing him as France's next president, even as allies and some former rivals signalled their willingness to work closely with him. LOCAL MARKETS OUTLOOK (As reported by NewsRise) •The SGX Nifty Futures was trading at 9,357.50, up 0.13 pct from its previous close. •The Indian rupee will likely edge lower against the dollar, tracking most of its Asian peers amid a lack of fresh triggers and as buying momentum stemming from Emmanuel Macron’s widely-expected French election win slowed. •Indian sovereign bonds will likely edge higher after the federal government announced the issuance of a new 10-year paper this week, which is expected to drag yields lower across the curve.The yield on the benchmark 6.97 pct bond maturing in 2026 is likely to trade in a 6.88 pct-6.95 pct band today. GLOBAL MARKETS • The S&P 500 ended flat on Monday after briefly touching a record high, while Wall Street's "fear gauge" dropped to its lowest in over two decades following centrist Emmanuel Macron's victory in the French presidential election. • Asian stock markets were subdued, taking their cue from a flat Wall Street, as investors searched for the next catalyst following France's presidential election, while oil inched higher on expectations OPEC supply cuts will be extended. • The euro pulled back from recent six-month highs, but remained well-supported as fading worries over political populism and signs of improving economic conditions in Europe bolstered investor confidence. • U.S. Treasury yields rose on Monday with benchmark yields hitting a four-week high in advance of the sale of $62 billion in bond supply at this week's quarterly refunding and following centrist Emmanuel Macron's victory in the French presidential run-off. • Oil prices edged up, driven by anticipation that an OPEC-led pledge to cut production would be extended beyond the first half of the year and into 2018, although overall high supply still weighed on markets. • Gold inched up early as Asian stocks eased, but was sitting near a seven-week low hit in the previous session as Emmanuel Macron's victory in French elections dampened the safe-haven appeal of the metal. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 64.41/64.44 May 8 -$8.42 mln $219.91 mln 10-yr bond yield 7.18 Month-to-date -$126.89 mln $844.85 mln Year-to-date $6.31 bln $10.24 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 = 64.30 Indian rupees) (Compiled by Pathikrit Bandyopadhyay in Bengaluru)