Tue. Sep 29th, 2020

To access a PDF version of this newsletter, please click here http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_09152020.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH 9:00 am: The Monsoon session of Parliament continues in New Delhi. 1:30 pm: Commerce Minister Piyush Goyal is scheduled to participate in the CII’s annual UK conference. 6:00 pm: Pharma Secretary P.D. Vaghela is scheduled to participate in the US-India Strategic Partnership forum. The government is scheduled to release August trade data in New Delhi. PROMOTION LIVECHAT – REUTERS GLOBAL MARKETS FORUM Dr. Melvin Sanicas, physician-scientist working on vaccines and infectious diseases – @Vaccinologist on Twitter – joins us to discuss vaccine candidates, timeline after the AstraZeneca halted its study last week, the spread of the virus in children, them potentially becoming superspreaders, especially as schools reopen for the fall semester and the post-recovery effects of coronavirus on the body. To join the conversation, click on the link: https://refini.tv/2P8N0Wp INDIA TOP NEWS • India’s retail inflation eases in August as food prices rise more slowly India’s annual retail inflation eased slightly in August as food inflation cooled, but remained above the upper end of the Reserve Bank of India’s (RBI) medium-term target for the fifth straight month, government data showed on Monday. • India’s parliament meets after six months as COVID cases surge India’s parliament met for the first time in six months on Monday, as novel coronavirus cases across the country rose by more than 90,000 in the space of a day and the total number of infections neared 5 million. • Indian government to infuse $2.72 billion in state-run banks India’s government sought parliamentary approval to inject $2.72 billion in state-run banks in the current fiscal year, to help lenders mitigate the expected surge in bad loans due to the pandemic. • S&P expects India’s economy to contract 9% in fiscal 2021 S&P Global Ratings said on Monday that it was expecting India’s economy to shrink by 9% in the fiscal year ending March 31, 2021, larger than its previous estimate of a 5% contraction, as the country reels under the impact of the COVID-19 pandemic. • Netflix argues for free speech in court spat with Indian tycoons over ‘Bad Boy Billionaires’ An Indian court’s decision to stall the release of a Netflix series on four Indian tycoons facing fraud allegations “freezes free speech” and hurts the company financially, the U.S. streaming giant has argued in a court filing seen by Reuters. • Indian Oil targets textiles in hunt for margins Indian Oil will expand its petrochemicals capacity and integrate it with its textile business to help offset the impact of low refining margins, the chairman of India’s largest refiner said on Monday. • India’s telecoms regulator says no to regulations for OTT players India’s telecoms watchdog on Monday said over-the-top (OTT) communication services do not currently need a regulatory framework, casting aside the threat of potential restrictions on platforms such as Facebook, WhatsApp and Google. • India says China laying cables to bolster communications at border flashpoint Two Indian officials said Chinese troops were laying a network of optical fibre cables at a western Himalayan flashpoint with India, suggesting they were digging in for the long haul despite high-level talks aimed at resolving a standoff there. GLOBAL TOP NEWS • China’s August industrial output accelerates, retail sales turn up in boost to recovery China’s industrial output growth accelerated in August, while retail sales expanded for the first time this year, suggesting the economic recovery is gathering pace as demand starts to improve more broadly from the coronavirus crisis. • Japan ruling party head Suga preparing cabinet, continuity in foreground Japanese ruling party head Yoshihide Suga, in line to become the next prime minister, appeared set to continue his predecessor’s policies by keeping key cabinet ministers and party officials in their posts, as he had promised. • Johnson lashes out at EU as he clears first hurdle for Brexit treaty breach British Prime Minister Boris Johnson lashed out at the European Union on Monday as he won initial approval for a plan to breach the Brexit treaty, saying the move was needed because the bloc had refused to take a “revolver off the table” in trade talks. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.3% higher at 11,471.20. • The Indian rupee is expected to rise against the U.S. currency, tracking broad dollar losses amid a rebound on Wall Street. • India’s federal government bond yields are likely to edge higher as inflation stayed above the central bank’s upper tolerance band in August, denting bets of a rate cut in the coming months. The yield on the benchmark 5.77% bond maturing in 2030 is likely to trade in a range of 6.02%-6.08%. GLOBAL MARKETS • U.S. stocks ended sharply higher on Monday as signs of progress in developing a COVID-19 vaccine and a spurt of multibillion-dollar deals lifted investor optimism. • The dollar dipped against riskier currencies as hopes for a COVID-19 vaccine and big corporate deals improved investor appetite for assets such as the yuan and the euro. • Investors kept U.S. Treasury yields stable on Monday as they tried to gauge how the U.S. Federal Reserve will put its new approach to monetary policy into practice. • Oil prices inched lower as a bleaker outlook for global fuel demand prompted fresh selling, but short-covering ahead of a meeting later this week of OPEC and its allies, known as OPEC+, limited losses. • Gold prices held steady, following a sharp rise in the previous session, as the dollar remained subdued ahead of the U.S. Federal Reserve’s monetary policy meeting that could provide more clues on stimulus measures and inflation targeting. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 73.44/73.47 September 14 2,457.77 (413.27) crores crores 10-yr bond yield 6.03% Month-to-date (1,053) 1,008 crores crores Year-to-date 35,077 (1,11,737) crores crores (FII investment numbers are in Indian rupees. Source: National Securities Depository Limited) 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 = 73.38 Indian rupees) (Compiled by Priyanka Das in Bengaluru)


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