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Morning News Call – India, July 15

To access a PDF version of this newsletter, please click here http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_07152020.pdf If you would like to receive this newsletter via email, please register at: http://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH 2:00 pm: Federal Bank CEO & MD Shyam Srinivasan at first-quarter earnings virtual press conference. 6:30 pm: Expenditure Secretary T.V. Somanathan and Finance Commission Member Ashok Lahiri at India Policy Forum 2020. LIVECHAT – REUTERS GLOBAL MARKETS FORUM Patrick Reid, Co-founder at the Adamis principle in London, joins us to discuss what’s in store for currencies including safe havens as the pressure on the USD abates after the global dollar crunch appears to be over for now, as central banks rely less on the Fed backstop. Patrick traded derivatives at Europe’s largest prop desk TTG, before co-founding the Adamis principle. To join the conversation at 10:30 am IST, click on the link: https://refini.tv/2P8N0Wp INDIA TOP NEWS • India wholesale prices contract for third month in June by 1.81% year-on-year India’s wholesale price gauge contracted for a third month in June, data released by the Ministry of Commerce and Industry showed on Tuesday, with prices falling 1.81% from a year earlier. • Google in talks to invest $4 billion in Reliance’s digital arm – Bloomberg Alphabet’s Google is in advanced talks to invest $4 billion for a stake in the digital arm of Indian conglomerate Reliance Industries, Bloomberg reported on Tuesday, citing people familiar with the matter. • Flipkart to raise $1.2 billion in Walmart-led funding Flipkart will raise $1.2 billion in funding led by majority owner Walmart, the Indian e-commerce firm said on Tuesday, as it looks to compete better with Amazon.com in a coronavirus-hit market. • India quizzing owners of banned Chinese apps over content and practices Chinese companies such as TikTok-owner ByteDance have been asked by India to answer 77 questions about their apps that have been banned by New Delhi, including whether they censored content, worked on behalf of foreign governments or lobbied influencers. • Bharti Airtel, Verizon tie up on video-conferencing tool Bharti Airtel is partnering with Verizon Communications’ BlueJeans to launch a business-focused video conferencing tool, the Indian wireless carrier said on Tuesday. • Lupin says 18 staff test positive for COVID-19 at drug plant Lupin says 18 staff test positive for COVID-19 at drug Indian drugmaker Lupin has shut one of its manufacturing plants in western Gujarat state after employees at the site tested positive for COVID-19, two government officials said on Tuesday. • India’s auto sales to take 3-4 years to return to peak levels India’s auto sales volume will not return to the peak levels seen in 2018 for another three-to-four years, an industry body executive said on Tuesday, as the COVID-19 pandemic has aggravated disruption in a sector already hit by weak demand. • India’s tech hub, other towns back in lockdown amid COVID-19 surge India’s high-tech hub of Bengaluru will go back into a coronavirus lockdown for a week on Tuesday after a surge of infections, threatening to derail government efforts to revive a stuttering economy. GLOBAL TOP NEWS • Trump ends Hong Kong preferential status, citing ‘oppressive’ Beijing actions against city President Donald Trump on Tuesday ordered an end to Hong Kong’s special status under U.S. law to punish China for what he called “oppressive actions” against the former British colony. • Japan manufacturers’ mood pinned near 11-year lows as pandemic hammers global demand Japanese manufacturers remained close to the most pessimistic they have been in 11 years in July as the coronavirus outbreak hits global demand and deals a punishing blow to the export-reliant economy, the Reuters tankan survey showed. • Moderna Phase 1 results show coronavirus vaccine safe, induces immune response Moderna’s experimental vaccine for COVID-19 showed it was safe and provoked immune responses in all 45 healthy volunteers in an ongoing early-stage study, U.S. researchers reported on Tuesday. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were 0.9% higher at 10,702. • The Indian rupee is expected to strengthen against the U.S. currency tracking upbeat risk appetite and broad dollar weakness following a positive update on development of a coronavirus vaccine. • India bond yields are likely to be largely unchanged in early trade as investors await fresh cues. The yield on the benchmark 5.79% bond maturing in 2030 is likely to trade in a range of 5.80%-5.86%. GLOBAL MARKETS • Wall Street surged on Tuesday, with the Dow Jones Industrial Average ending more than 2% higher as investors bought energy and materials stocks and looked beyond a recent rise in coronavirus cases. • Asian shares jumped as optimism about a coronavirus vaccine bolstered risk appetite while the euro rose to a four-month top on the prospect of stimulus ahead of a crucial EU summit. • The euro rose to a four-month high against the dollar on Wednesday on hopes European Union leaders may agree on stimulus and deepening fiscal integration to shield the economy from the pandemic. • U.S. Treasury yields and inflation expectations both dipped on Tuesday after data showed that core inflation remained well under the Fed’s target in June. • Oil prices rose after a sharp drop in U.S. crude inventories, with the market waiting for more direction from a meeting later in the day on the future level of production by OPEC and its allies. • Gold inched higher, holding firm above the key $1,800 level, as worries over surging coronavirus cases and simmering China-U.S. tensions lifted demand for the safe-haven metal. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 75.42/75.45 July 14 (84.07) crores 493.02 crores 10-yr bond yield 5.82% Month-to-date (3,229) crores 537 crores Year-to-date (21,742) crores (1,06,422) 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 = 75.38 Indian rupees) (Compiled by Siddharth Athreya V in Bengaluru)

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