Morning News Call – India, July 8

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FACTORS TO WATCH
4:00 pm: Finance Minister Nirmala Sitharaman meets with the RBI Board of Directors in New Delhi.


INDIA TOP NEWS
• India proposes higher minimum public participation in listed companies
India proposed to increase the minimum public participation required in
companies at 35% against 25%, in a surprise move on Friday that caused concern
there will be a lot of forced share sales.
• PNB detected a fraud of 38 billion rupees
The Punjab National Bank (PNB) said Saturday it reported a loan fraud of an amount of
38.05 Billion Indian Rupees in Bhushan Power & Steel Account in the Country
Central bank.
• India increases import duties on gold and industry fears smuggling surge
India has increased import duties on gold and other precious metals Friday in a time frame of
surprise gesture that, according to industry officials, could curb retail demand and stimulate
smuggled into the world's second largest consumer of bullion.
• India increases import duties and taxes on super rich while it seeks growth
India has increased import duties on nearly 75 items, including gold and auto
parts of his budget on Friday and a tax increase on the rich to help pay for
the recapitalization of banks and the support of small businesses in order to relaunch the downturn
growth.
• The best Mindtree bosses leave town a few days after L & T has taken control.
Mindtree said Friday its key executives, including the general manager of Rostow
Ravanan, submitted their resignations to the board of directors, a few days after the conglomerate
Larsen & Toubro Ltd. (L & T) took a majority stake.
• India offers tax incentives for electric vehicles to promote sales
India on Friday proposed tax exemptions on the purchase of electric vehicles and
removed import taxes on certain automotive components to help boost sales and reduce its
dependence on fossil fuels.
• India will closely monitor the shadow lending sector - Minister
India will closely monitor its shadow lending sector, said Minister of Finance
Saturday, a day after announcing that the central bank would get a lot more
regulatory authority for non-bank financial corporations.
• Jaguar Land Rover will build electric cars in a British factory
Jaguar Land Rover invests several million pounds in the construction of
vehicles in Britain, a major boost for the British government and a sector in crisis
lower diesel sales and Brexit uncertainties.


GLOBAL TOP NEWS
• Deutsche Bank cuts 18,000 jobs as part of € 7.4 billion restructuring
Deutsche Bank will open large areas of its trading desks in one of the largest
reshuffle to an investment bank since the aftermath of the financial crisis,
a restructuring that will create 18,000 jobs and will cost 7.4 billion euros.

• Machine orders in Japan fall the most in 8 months, worrying sign for the economy
Japan's core machinery orders fell to a maximum in eight months, in a worrying context.
sign that global trade tensions are weighing on business investment,
doubts that strong domestic demand can help offset the external pressure on
the economy dependent on exports.
• Iran increases tensions with greater enrichment and attracts warnings
Iran announced Sunday that it would soon increase uranium enrichment above a ceiling
by a historic nuclear deal in 2015, raising a warning of "being cautious" from the United States
President Donald Trump, who lobbied Tehran to renegotiate the pact.



OUTLOOK FOR LOCAL MARKETS
(As reported by NewsRise)
• The SGX Nifty futures contracts of the nearest month traded at 0.4%, at
11,770.00 from its previous closing.
• The Indian rupee should open down against the dollar after a
The report on employment in the United States raises doubts about the pace of the rate of potential interest
reductions by the Federal Reserve.
• Indian government bonds are likely to increase at the beginning of the session, after
government in the federal budget announced plans to contract part of its loans
overseas markets. The yield of the 7.26% Reference Obligation maturing
2029 is likely to trade in a range of 6.62% to 6.70% today.


GLOBAL MARKETS
• US stocks plunged on Friday as the S & P 500 broke through for three days.
closure of the report, following an unexpected report from the US payroll that led
investors to re-evaluate the divergent position that the Federal Reserve might adopt in turn.
next meeting.
• Asian equities fell, after the strength of US job data, which tempered expectations for a rising market.
The Fed's rate has fallen, while the Turkish lira has been close to the lows of two weeks, worried
independence of the central bank.
• The dollar has broadly increased after the strong growth in US employment in June suggested
the Federal Reserve will not aggressively reduce interest rates later this month.

• US Treasury yields rose Friday after data showed
the world's largest economy has created many more jobs than expected in June,
suggesting that the Federal Reserve will not aggressively reduce interest rates
later this month.
• Crude prices have risen, reinforcing gains from the previous session on
data on US jobs better than expected, although worries tempered gains
on the long Sino-US trade war.
• The price of gold decreases, after a sharp decline in the previous session,
strong jobs in the United States report moderate expectations of aggressive interest rate cuts
by the Federal Reserve later this month.


CLOSING FII INVESTMENTS IN SHARES
PNDF Item 68.44 / 68.47 July 5 - US $ 13.06 million US $ 276.66 million
10 Year Bond Yield: 6.69% Month: $ 455.51 million US $ 348.24 million
Cumulative total of the year: $ 10.88 billion - $ 1.05 billion



For additional data:
India Bond Market Volumes
Stock reports
Deliverables not deliverable
Business Debt Stories               [IN CORPD]
    Closing the local market / intraday levels [IN SNAPSHOT]
    Monthly flow                      [INFLOWS RTRS TABLE IN]
    
    
($ 1 = 68.4400 Indian rupees)


(Compiled by Yogan and KN in Bengaluru)