Morning News Call – India, January 13


To access a PDF version of this newsletter, please click here If you would like to receive this newsletter via email, please register at: FACTORS TO WATCH • Prime Minister Narendra Modi to hold virtual meeting with chief ministers of states on Covid-19 situation in New Delhi. • 1:30 pm: Britain’s Secretary of State for International Trade Anne-Marie Trevelyan and Trade Minister Piyush Goyal at virtual press conference on launch of India – UK trade negotiations. • 4:00 pm: Niti Aayog Vice Chairman Rajiv Kumar, Piramal Group Chairman Ajay Piramal at Bombay Chamber of Commerce Foundation Day event. PROMOTION LIVECHAT-REUTERS GLOBAL MARKETS FORUM Summit Global Advisors CIO Dave Harden discusses U.S. equities and commodities markets. To join the conversation at 7:30 pm IST, click here INDIA TOP NEWS • India Dec retail inflation climbs to five-month high of 5.59% India’s retail inflation accelerated to a five-month high in December, but the central bank is widely expected to hold on key policy rates next month amid concerns the fast-spreading Omicron variant of COVID may impact economic activities. • Bharat Biotech says Covaxin booster shot neutralises Omicron Bharat Biotech said on Wednesday a booster shot of its Covaxin COVID-19 vaccine administered six months after the last of two doses neutralises both the Omicron and Delta variants of the coronavirus. • IT leaders TCS and Infosys confident on digital services growth Infosys raised its revenue forecast and Tata Consultancy Services (TCS) predicted robust demand on Wednesday as the Indian IT giants said they expect tech spending to continue, particularly for digital services such as the cloud. • Foxconn India’s iPhone plant restarts production after December protests Apple supplier Foxconn restarted production at its plant in southern India on Wednesday, a company official said, over three weeks after it was closed because of protests over workers falling sick. • Britain and India to formally launch trade talks Britain and India will on Thursday formally launch free trade agreement talks in New Delhi, seeking freer movement of goods and people with a deal projected to increase bilateral trade by billions of pounds. • Mercedes-Benz to assemble flagship electric sedan in India Luxury carmaker Mercedes-Benz plans to start assembling the electric version of its flagship S-Class sedan, the EQS, in India, the head of the company’s local unit said, part of a broader strategy to electrify its portfolio in the country. • India’s Dec palm oil imports drop, soft oils rise – Reuters News India’s palm oil imports in December fell from a year ago as a steep rally in prices reduced its discount to rivals, prompting refiners to increase imports of soyoil and sunflower oil, a leading trade body said on Wednesday. GLOBAL TOP NEWS • U.S. central bankers set sights on March rate hike With inflation running at its highest in nearly 40 years, U.S. central bankers are coalescing around a plan to start tapping the brakes on economic growth as soon as March, with further monetary policy tightening likely as the year goes on. • Indonesia relaxes export ban to allow 37 coal vessels to depart Indonesia, the world’s biggest thermal coal exporter, has allowed 37 loaded coal vessels to depart after they secured approvals from authorities, the Coordinating Ministry of Maritime and Investment Affairs said. • Crown says likely to back improved $6.5 billion Blackstone buyout offer Australia’s biggest casino operator, Crown Resorts, said its board was likely to back an improved $6.46 billion buyout proposal from U.S. private equity firm Blackstone unless a higher offer emerged. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.8% higher at 18,369.00. • The Indian rupee is expected to advance against the U.S. currency as the dollar index dropped to a two-month low after inflation in the world’s largest economy quickened. • Indian sovereign bond yields are likely to edge higher today as consistent rise in crude oil prices stoked concerns about inflation. The yield on the benchmark 6.10% bond maturing in 2031 is likely to trade in the 6.56%-6.61% band. GLOBAL MARKETS • U.S. stock indexes rose on Wednesday after data showed that while U.S. inflation was at its highest in decades, it largely met economists’ expectations, cooling some fears that the Federal Reserve would have to pull back support even more forcibly than already expected. • Asian shares were mixed on Thursday, while the dollar slipped as global investors assessed that strong U.S. inflation data was not worrying enough to change the Federal Reserve’s already hawkish rates outlook. • The dollar was below key support levels on Thursday, having hit new lows overnight, after data showing U.S. consumer prices rose at their fastest rate in nearly 40 years was not deemed worrying enough to change an already hawkish rates outlook. • Longer-dated U.S. Treasury yields dipped on Wednesday after a reading on inflation was largely in line with expectations and did not alter views on the path of Federal Reserve policy. • Oil prices slipped on Thursday, trimming big gains from the previous two sessions, amid uncertainty over near-term demand as cases of the highly contagious Omicron variant of the coronavirus surge around the globe. • Gold prices on Thursday held near a one-week high hit in the previous session, as the U.S. dollar and Treasury yields retreated after inflation data came in line with expectations and reiterated the need for a quicker interest rate hike. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 73.98/74.01 January 12 403.31 crore 270.10 crore 10-yr bond yield 6.593% Month-to-date 3,953 crore (38) crore Year-to-date — — (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 = 73.84 Indian rupees) (Compiled by Ananya Roy)


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