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Morning News Call – India, July 11

Morning News Call - India, July 11

To access a PDF version of this newsletter, please click here here If you would like to receive this newsletter via email, please register at: here FACTORS TO WATCH 11:00 am: Axis Bank MD & CEO Amitabh Chaudhry to brief media on new business initiative in Mumbai. LIVECHAT – FX IN FOCUS Jane Foley, senior FX strategist at Rabobank, looks at currency markets and what central banks such as the Fed, the ECB and the RBA could do next. To join the conversation at 3:30 pm IST, click on the link: refini.tv/2P8N0Wp INDIA TOP NEWS • Row between founders hits shares in IndiGo parent An escalating dispute between IndiGo‘s co-founders sparked falls in its parent firm’s shares on Wednesday as investors fretted about the potential impact on India‘s largest airline. • India receives above normal rains this week, spurring crop planting India‘s monsoon rains in the week ending on Wednesday were above average for the first time since the start of the season on June 1, helping farmers to accelerate the planting of summer-sown crops and easing concerns of drought. • India passenger vehicle sales slump in June India‘s passenger vehicles sales slumped 17.54% in June, an auto industry body said on Wednesday, resulting in an 18.4% fall in sales in the first quarter. • Qatar leads $150 million funding for Indian education startup Byju’s Indian online tutoring startup Byju’s said on Wednesday it had raised $150 million from investors led by the Qatar Investment Authority (QIA), which a source familiar with the matter said valued it at more than $5.5 billion. • Airtel Africa drops 10% in early trade after Lagos listing Airtel Africa shares fell sharply on Wednesday, a day after its debut $4.4 billion flotation in Lagos, mirroring a similar decline on the London stock market where the telecoms firm has its primary listing. GLOBAL TOP NEWS • Powell testimony, Fed meeting highlight case for ‘insurance’ A confidence shock driven partly by the U.S. trade war is at the center of an increasingly persuasive argument for Federal Reserve policymakers seriously considering cutting rates for the first time in a decade. • Iranian boats ‘harass’ British tanker in the Gulf -U.S. officials Five boats believed to belong to Iranian Revolutionary Guards approached a British oil tanker in the Gulf on Wednesday and asked it to stop in Iranian waters close by, but withdrew after a British warship warned them, U.S. officials said. • China’s 2019 growth seen slowing to 6.2% as trade war weighs China’s economic growth is expected to slow to a near 30-year low of 6.2% this year, a Reuters poll showed on Wednesday, despite a flurry of support measures to spur domestic demand amid a bruising trade war with the United States. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.4% higher at 11,545.50, from its previous close. • The Indian rupee is expected to open higher against the dollar after Federal Reserve Chair Jerome Powell flagged a possible interest rate cut amid trade tensions and concerns over the strength of the global economy. • Indian government bonds are likely to trade lower in early session tracking an overnight surge in crude oil prices. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a 6.51%-6.58% range today. GLOBAL MARKETS • U.S. stocks ended higher and the S&P 500 index briefly crossed the 3,000-point mark for the first time on Wednesday as remarks by Federal Reserve Chairman Jerome Powell reassured investors about the potential for an interest rate cut later this month. • Asian stocks gained and the dollar drooped after Federal Reserve Chair Jerome Powell reinforced prospects of a U.S. interest rate cut later this month. • The dollar was soft after Federal Reserve Chairman Jerome Powell set the stage for a rate cut later this month, vowing to “act as appropriate” to ensure the world’s biggest economy will be able to sustain a decade-long expansion. • The U.S. Treasury yield curve steepened on Wednesday after the Federal Reserve’s concerns about global growth increased expectations that the U.S. central bank may cut rates more sharply than expected in July. • U.S. oil futures hit their highest in over a month as a potential hurricane threatened crude output in the Gulf of Mexico and as an incident involving a British tanker in the Middle East highlighted ongoing tensions there. • Gold prices rose to their highest in over a week as the dollar pulled back from multi-week highs after comments from Federal Reserve Chairman Jerome Powell bolstered expectations for an interest rate cut later this month. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 68.57/68.60 July 10 -$88.52 mln -$52.53 mln 10-yr bond yield 6.54 pct Month-to-date -$543.89 mln $505.51 mln Year-to-date $10.80 bln -$895.25 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 = 68.3460 Indian rupees) (Compiled by Yoganand KN in Bengaluru)