Morning News Call – India, June 17

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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 3:00 pm: Prime Minister Narendra Modi to discuss COVID-19 situation with chief ministers of states via video conferencing in New Delhi. LIVECHAT – REUTERS GLOBAL MARKETS FORUM Jonathan Barratt, Chief Investment Officer at Probis Group in Sydney, joins us to discuss equities and commodities, and what to expect next in these markets, with worries of a second wave of COVID-19 infections taking over sentiment. To join the conversation at 9:30 am IST, click on the link: INDIA TOP NEWS • India, China troops clash at Himalayan border, ‘casualties on both sides’ India’s army said on Tuesday 20 of its soldiers had been killed in clashes with Chinese troops at a disputed border site, in a major escalation of a weeks-long standoff between the two Asian giants in the western Himalayas. • India investment body backs incentives for 53.67 billion rupees Samsung display plant – letter Samsung Electronics should get tax and other incentives from India’s northern state of Uttar Pradesh as the South Korean company looks to invest some 53.67 billion rupees in a smartphone display manufacturing plant in the state, India’s lead investment promotion body said in a letter. • India asks oil and gas producers to use more local steel in infrastructure India has asked domestic oil and gas companies to raise the share of domestically manufactured steel they use in future infrastructure projects worth billions of dollars to cut its dependence on imports, boost the economy and create jobs. • IOC awards U.S. crude purchase tenders to Trafigura -sources Indian Oil Corp, the country’s top state refiner, has awarded two tenders to buy U.S. crude between October 2020 and March 2021 to European trader Trafigura, two sources said on Tuesday. GLOBAL TOP NEWS • Beijing on heightened alert as coronavirus cases mount Beijing officials reported several new COVID-19 cases for the sixth consecutive day, extending an outbreak that has forced the Chinese capital’s authorities to reinstate strict defences against the coronavirus. • Steroid drug hailed as ‘breakthrough’ for seriously ill COVID-19 patients A cheap and widely used steroid called dexamethasone has become the first drug shown to be able to save the lives of COVID-19 patients in what scientists said is a «major breakthrough» in the coronavirus pandemic. • Green shoots welcome but recovery still a long road, Fed’s Powell says A full U.S. economic recovery will not occur until the American people are sure that the novel coronavirus epidemic has been brought under control, Federal Reserve Chair Jerome Powell said on Tuesday, as he began the first of two days of hearings before U.S. lawmakers. Thomson Reuters/INSEAD Asian Business Sentiment Survey 2020Q2 Business sentiment of Asian companies sank to an 11-year low in the second quarter, a Thomson Reuters/INSEAD survey found, with some two-thirds of the firms polled flagging a worsening COVID-19 pandemic as the biggest risk over the next six months. To read more, click here here LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were 0.5% lower at 9,840.25. • The Indian rupee is expected to extend losses against the dollar following the deadliest border clashes between Indian and Chinese armies in decades. • Indian government bond yields are likely to edge higher in early session on geopolitical tensions between India and China. The yield on the benchmark 5.79% bond maturing in 2030 is likely to trade in a range of 5.82%-5.88% today. GLOBAL MARKETS • Wall Street advanced on Tuesday as the prospect of additional stimulus and a record jump in retail sales suggested the U.S. economy could bounce back sooner than expected, five months into its pandemic-inflicted recession. • Asian share markets took a breather as a resurgence of coronavirus cases challenged market confidence in a rapid economic recovery, even as the rebound in U.S. retail sales in May broke all records. • The dollar held firm against many of its rivals after U.S. retail sales jumped far more than expected in May, while risk-sensitive currencies were hobbled by concerns about the coronavirus and diplomatic tensions in Asia. • U.S. Treasury yields rose on Tuesday as hopes of further fiscal stimulus boosted risk appetite, and after data showed a record rise in U.S. retail sales in May. • Oil prices retreated, weighed down by an increase in U.S. crude inventories and worries about a potential second wave of the coronavirus pandemic. • Gold prices held steady, as fears of a second wave of coronavirus infections offset optimism around a potential COVID-19 drug and a stronger U.S. dollar. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 76.19/76.22 June 16 (2,662.97) (165.45) crores crores 10-yr bond yield 5.85% Month-to-date 20,672 (2,154) crores crores Year-to-date (19,673) (1,07,568) crores 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= 76.29 Indian rupees) (Compiled by Nachiket Tekawade in Bengaluru)