Morning News Call - India, February 5
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FACTORS TO WATCH
10:00 am: Reserve Bank of India Governor Shaktikanta Das to announce Monetary Policy Committee’s interest rate decision in Mumbai.
12:00 pm: Shaktikanta Das briefs media post release of monetary policy statement in Mumbai.
9:00 am: Budget session of Parliament continues in New Delhi.
9:15 am: Stove Kraft lists on exchanges in Mumbai.
10:00 am: Defence Minister Rajnath Singh, Defence Secretary G Satheesh Reddy at a PHD Chamber of Commerce webinar on defence sector.
11:00 am: Prime Minister Narendra Modi, Petroleum Minister Dharmendra Pradhan to inaugurate Kochi-Mangaluru natural gas pipeline via video conferencing.
11:00 am: Hindustan Petroleum management at an analyst call post 3Q earnings.
11:30 am: Hero MotoCorp Chief Financial Officer Niranjan Gupta at an analyst call post 3Q earnings.
3:00 pm: Godrej Agrovet management at an analyst call post 3Q earnings.
4:00 pm: Central Drugs Standard Control Organization Deputy Drugs Controller P.B.N Prasad at PHD Chamber of Commerce webinar on medical technology.
4:30 pm: Mahindra & Mahindra management at a conference call post 3Q earnings.
4:30 pm: Cadila Healthcare management at a virtual briefing post 3Q earnings.
5:00 pm: Jubilant Life Sciences management at a conference call post 3Q earnings.
5:00 pm: Brookfield India Real Estate Trust IPO subscription closes in Mumbai.
6:45 pm: Niti Aayog Chief Executive Amitabh Kant, HDFC Vice Chairman and Chief Executive Keki Mistry, Reserve Bank of India former Deputy Governor Viral Acharya, Niti Aayog former Vice Chairman Arvind Panagariya at Columbia Business School webinar.
INDIA TOP NEWS
• SBI cuts credit growth outlook on weak corporate lending
State Bank of India cut its annual loan growth expectations on Thursday as corporate lending remained subdued, while a return to pre-pandemic levels of retail growth drove third-quarter profit well past estimates. nL4N2KA26T
• India warns rising oil prices may dampen global economic recovery
India's oil minister Dharmendra Pradhan warned on Thursday that rising oil prices could hurt global economic recovery in the aftermath of the COVID-19 pandemic that caused most economies to shrink last year. nL4N2KA1VE
• India survey finds a quarter of children may have COVID antibodies, more than average
More than a quarter of Indian children aged between 10 and 17 may have already contracted COVID-19, according to a government serological survey released on Thursday, higher than the 21.5% of the overall population found to have been infected. nL1N2KA0TH
• Indian refiners would buy Iranian oil if sanctions eased- HPCL chief
Indian refiners would resume imports of Iranian oil if the United States eases sanctions against Tehran, the chairman of state-run Hindustan Petroleum Corp said on Thursday. nL4N2KA2XF
• Reliance's unit to sell Marcellus shale assets for $250 million
Reliance Industries said on Thursday its unit will sell its interest in certain upstream assets in the Marcellus shale in the United States for $250 million in cash to Northern Oil and Gas. nL4N2KA11J
• Serum delays vaccines for private sale in Bangladesh; focus on state campaigns
Bangladesh's Beximco Pharmaceuticals said on Thursday the Serum Institute of India (SII) had delayed the first supplies of a COVID-19 vaccine for private sale, instead prioritising government immunisation campaigns. nL4N2KA279
• India lines up deepwater port for rice, exports to surge amid global shortage
India's southern state of Andhra Pradesh will use a deepwater port to export rice for the first time in decades amid a global shortage of the grain, according to a government order seen by Reuters, which could raise shipments this year by a fifth. nL1N2KA0L1
• India's tea output drops in 2020, lifts prices to a record high
Indian tea production in 2020 fell 9.7% from a year ago due to heavy flooding and coronavirus movement restrictions, lifting average prices by nearly a third to a record high, the state-run Tea Board said on Thursday. nL1N2KA18A
GLOBAL TOP NEWS
• U.S. Senate Democrats push ahead on road to new COVID-19 relief
The U.S. Senate, in the throes of a marathon debate over the shape of President Joe Biden's $1.9 trillion coronavirus aid plan, voted overwhelmingly on Thursday to exclude upper-income Americans from a new round of direct payments to help stimulate the economy. nL1N2KA1PF
• GameStop, 'Reddit rally' stocks slide more, Yellen vows scrutiny
Shares of GameStop and others favored recently by retail investors fell further on Thursday, while U.S. Treasury Secretary Janet Yellen said she needed to "understand deeply" the trading frenzy that has gripped Wall Street. nL1N2KA2C1
• Japan's Dec household spending falls as recovery stalls
Japan's household spending fell for the first time in three months in December, in a sign consumer sentiment was weakening even before the government called a state of emergency to control a new wave of the coronavirus in the country. nL4N2KA2EP
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
• SGX Nifty nearest-month futures were trading 0.5% higher at 14,970.50.
• The Indian rupee is expected to weaken against the U.S. currency after the dollar index reached a two-month high despite upbeat risk appetite.
• Indian government bond yields will likely open little changed, as traders eye the Monetary Policy Committee’s rate decision and the central bank’s stance on liquidity amid New Delhi’s elevated borrowing plan. The yield on the benchmark 5.85% 2030 bond is likely to trade in a 6.05%-6.10% band till the policy announcement.
• U.S. stocks rose more than 1% on Thursday and the S&P 500 and Nasdaq posted record closing highs after another batch of upbeat earnings and data suggesting the labor market may be stabilizing. .N
• Japanese shares rose, following Wall Street's rally overnight, as strong earning results of domestic firms and a large U.S. stimulus program boosted market sentiment. nL4N2KB00S
• The dollar headed for its best weekly gain in three months, lifted by growing confidence that the U.S. economic recovery will outpace global peers. FRX/
• Longer-term U.S. Treasury yields were higher on Thursday as investors positioned for a large pandemic relief package from Washington and a stabilizing U.S. labor market. US/
• Oil prices climbed, extending a run of strong gains this week, boosted by the continued commitment of producers to hold back crude supply and positive signs of economic growth in the United States. O/R
• Gold edged up, recovering from its lowest level in more than two months, but is still on course to post its worst week in ten due to a firmer dollar. GOL/
10-yr bond yield
(FII investment numbers are in Indian rupees. Source: National Securities Depository Limited)
For additional data:
India govt bond market volumes INGOIVOL
Stock market reports .BO
Non-deliverable forwards data PNDF
Corporate debt stories [IN CORPD]
Local market closing/intraday levels [IN SNAPSHOT]
Monthly inflows [INFLOWS RTRS TABLE IN]
($1 = 73 Indian rupees)
(Compiled by Nachiket Tekawade in Bengaluru)