Morning News Call – India, September 19
To access the newsletter, click on the link:
FACTORS TO WATCH
12:15 pm: Moody's senior analysts to talk on Indian banking system outlook
Thomson Reuters/INSEAD Asian Business Sentiment Survey 2016 Q3
Thomson Reuters and graduate business school INSEAD ask Asia-Pacific
companies to rate their six-month business outlook, in a survey which in Q3
yielded a positive sentiment index of 68. The latest survey will be released at
0830 IST on Wednesday, followed by a Q&A at 1200 IST with Reuters reporter
Hyunjoo Jin in the Global Markets Forum, Trading China and Trading India
community chatrooms. To join, please click on the link: here
GMF: EMEA LIVECHAT-FX WEEK AHEAD with Reuters FX analyst Jeremy Boulton
Join Jeremy at 1530 IST for a look at the week's top topics and implications
for the FX market. To join the conversation, click on the link: here
INDIA TOP NEWS
ICICI Pru Life IPO to raise $244 million from anchor investors
ICICI Prudential Life Insurance, which is due to launch on Monday India's
biggest initial public offering of shares in six years, is raising $244 million
by selling shares to 38 anchor investors as part of the IPO.
India blames Pakistan as Kashmir attack kills 17 soldiers
India accused Pakistan of being behind a separatist attack on an army base
near their disputed frontier on Sunday that killed 17 soldiers, in one of the
most deadly attacks in Kashmir in a quarter-century-old insurgency.
Funding to shore up Indian banks constrained by budgets - Jaitley
Indian Finance Minister Arun Jaitley pushed back on Friday against calls to
increase the allocation of funds to recapitalise state banks saddled with the
bulk of the banking sector's $120 billion in sour loans.
India loses WTO appeal in U.S. solar dispute
India lost its appeal at the World Trade Organization in a dispute over
solar power on Friday, failing to overturn a U.S. complaint that New Delhi had
discriminated against importers in the Indian solar power sector.
Booming India helps drive demand for Scotch whisky, trade body says
Scotch whisky exports rose 3.1 percent in the first six months of 2016,
driven by booming demand in India, a market that whisky's trade body says should
be a top trade priority for Britain as it navigates its exit from the European
GLOBAL TOP NEWS
China's central bank sees some success in cutting interbank lending risk
China's central bank can take some measure of success from its attempts to
force small banks to reduce their reliance on risky short-term borrowing, but
uncomfortable memories of a 2013 cash crunch that spooked global markets is
keeping traders on edge.
Venezuela says OPEC, non-OPEC oil stabilizing deal close
Venezuelan President Nicolas Maduro said on Sunday that OPEC and non-OPEC
countries were close to reaching a deal to stabilize oil markets and that he
aimed for a deal to be announced this month.
U.S. officials eye links between weekend bombings
U.S. investigators on Sunday were studying possible links between a pair of
bombs detonated in New York City and New Jersey over the weekend, although no
evidence had yet emerged tying the devices to known extremist groups.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
The SGX Nifty Futures were trading at 8,805.00, trading down 0.03 pct from
its previous close.
The Indian rupee will likely open little changed against the U.S. dollar,
as broad strength in the greenback is expected to offset upbeat regional
sentiment stemming from a rebound in crude oil prices.
Indian government bonds will likely rise in early trading, as sentiment
remains upbeat amid diminished chances of an immediate interest rate increase by
the U.S. Federal Reserve. The yield on the benchmark 7.59 pct bond maturing in
2026 is likely to trade in a 7.03 pct-7.08 pct band.
U.S. stocks fell on Friday as the possibility of a $14 billion fine
against Deutsche Bank weighed on big banks and investors wrestled with lingering
uncertainty about when the U.S. Federal Reserve will hike interest rates.
Asian shares advanced ahead of central bank meetings in the United States
and Japan this week, while oil prices bounced on talk of an OPEC deal on output
and reports of fighting around Libyan oil ports.
The dollar traded near a two-week high against a basket of major
currencies after U.S. consumer prices rose more than expected in August,
bolstering expectations that the Federal Reserve would raise interest rates this
U.S. Treasuries yields rose on Friday after data showed that U.S. consumer
prices increased more than expected in August, raising the odds that the Federal
Reserve will raise rates later this year.
Oil prices rose after Venezuela said that OPEC and non-OPEC countries were
close to reaching an output stabilizing deal and as clashes in Libya raised
concerns that efforts to restart crude exports could be disrupted.
Gold was little changed after touching a two-week low on Friday, as
investors remained cautious ahead of central bank meetings in Japan and the
United States this week.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 66.87/66.90 September 16 $98.72 mln $122.72 mln
10-yr bond yield 7.11 pct Month-to-date $181.36 mln $719.18 mln
Year-to-date $6.29 bln -$747.05 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 = 66.98 Indian rupees)
(Compiled by Debanjan Bose in Bengaluru)