Morning News Call - India, May 12
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FACTORS TO WATCH
• 10:00 am: KEC International management at an investor call post 4Q earnings.
• 11:00 am: SIAM to announce April auto industry sales data in New Delhi.
• 2:00 pm: Godrej Consumer Products management at an investor call post 4Q earnings.
• 4:30 pm: Voltas management at an investor call on 4Q earnings.
• 5:30 pm: Government to release April consumer price inflation data in New Delhi.
• 5:30 pm: Government to release March Industrial output data in New Delhi.
• 6:00 pm: Asian Paints management at an investor call on 4Q earnings.
INDIA TOP NEWS
• Indian oil refiners cut output, imports as pandemic hits demand
India's top state oil refiners are reducing processing runs and crude imports as the surging COVID-19 pandemic has cut fuel consumption, leading to higher product stockpiles at the plants, company officials told Reuters on Tuesday. nL1N2MY0ES
• Foxconn's iPhone output in India down amid COVID surge-sources
Production of the Apple iPhone 12 at a Foxconn factory in India has slumped by more than 50% because workers infected with COVID-19 have had to leave their posts, two sources told Reuters. nL1N2MY0BX
• Indian PM Modi to skip G7 meet in Britain due to COVID-19 crisis
Indian Prime Minister Narendra Modi will not travel to Britain for the Group of Seven (G7) summit next month because of the coronavirus situation in the country, the foreign ministry said late on Tuesday. nL4N2MY3ZX
• Bodies float down Ganges as nearly 4,000 more die of COVID in India
Scores of bodies are washing up on the banks of the Ganges as Indians fail to keep pace with the deaths and cremations of around 4,000 people a day from the novel coronavirus. nL1N2MY0R1
• Indian April fuel demand dips, coronavirus wave clouds outlook
India's April fuel demand slipped from the previous month as the world's third largest oil consumer bore the brunt of raging coronavirus infections, with the prospect of further restrictions weighing on the outlook. nL4N2MY465
• POLL-Benign food prices likely dragged India's April inflation to three-month low
Indian retail inflation likely eased to a three-month low in April on softening prices for vegetables and other perishable foods, a Reuters poll suggested, bringing the headline rate closer to the midpoint of the Reserve Bank of India's medium-term target. nL4N2MX1VG
• Second COVID wave could crimp India's long-term growth -Moody's
India's severe second wave of coronavirus infections will slow near-term economic recovery and could weigh on longer-term growth dynamics, rating agency Moody's Investors Service said in a note on Tuesday. nL4N2MY3S3
• Walmart's Flipkart in early talks to raise $1 bln -ET
Walmart-owned Indian e-commerce firm Flipkart is in early talks with investors to raise at least $1 billion, the Economic Times reported on Tuesday, citing people familiar with the matter. nL4N2MY1E3
GLOBAL TOP NEWS
• Pipeline outage causes U.S. gasoline supply crunch, panic buying
Gas stations from Florida to Virginia began running dry and prices at the pump rose on Tuesday, as the shutdown of the biggest U.S. fuel pipeline by hackers extended into a fifth day and sparked panic buying by motorists. nL1N2MY0WQ
• 35 killed in Gaza, 5 in Israel, as violence escalates
Hostilities between Israel and Hamas escalated overnight, with at least 35 killed in Gaza and five in Israel in the most intensive aerial exchanges for years. nL1N2MZ03B
• Qatar pivots to LNG-hungry China in strategy shift
Qatar is in talks to make Chinese firms partners in its liquefied natural gas expansion project, the world's largest, in a shift from the Gulf state's reliance on western majors for technology and global outreach, industry sources said. nL8N2MT8LO
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
• SGX Nifty nearest-month futures were trading down 0.1% at 14,831.50.
• The Indian rupee is expected to weaken against the U.S. currency on broad dollar strength amid more inflation-related losses for regional equities.
• Indian sovereign bond yields will likely open little changed as investors may defer bets ahead of the release of April retail inflation data, due post market hours today. The yield on the benchmark 5.85% bond maturing in 2030 is likely to trade in the 5.99%-6.03% band.
• U.S. stocks closed lower on Tuesday as rising commodity prices and labor shortages fed fears that despite reassurances from the U.S. Federal Reserve, near-term price spikes could translate into longer-term inflation. .N
• Asian shares fell for a second straight session to one-month lows as investors speculated surging commodity prices and growing inflationary pressure in the United States could lead to earlier rate hikes and higher bond yields globally. MKTS/GLOB
• The U.S. dollar hovered near its lowest levels of the year as traders hung on to bets that the Federal Reserve would remain steadfast in its easy policy settings ahead of data expected to show a sharp rise in annual U.S. inflation. FRX/
• U.S. Treasury yields climbed on Tuesday as inflation concerns helped drive a sell-off in equity markets while investors girded for a closely watched reading on consumer prices on Wednesday. US/
• Oil prices rose, extending overnight gains, after industry data showed a drop in U.S. crude inventories, which reinforced OPEC's robust demand outlook, and as the shutdown of the biggest U.S. fuel pipeline headed into a sixth day. O/R
• Gold prices fell, as a rise in U.S. Treasury yields and a firmer dollar dented the metal's safe-haven appeal, while investors awaited U.S. consumer price index data due later in the day.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 = 73.36 Indian rupees)
(Compiled by Shreya Sabharwal in Bengaluru)