Morning News Call – India, May 28

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    FACTORS TO WATCH
    3:30 pm: Bank of India post results press conference in Mumbai.
    3:45 pm: Larsen & Toubro post earnings press conference in Mumbai.
    
    
    INDIA TOP NEWS
    Bank of Baroda, IDBI post big Q4 losses as bad loans surge
Bank of Baroda and IDBI Bank reported big fourth-quarter losses on Friday,
continuing the losing streak of state-run lenders which have been hit by tighter
central bank rules on bad loans.
    
    Sun Pharma warns U.S. pricing pressure to hit 2019 profit
    India's largest drugmaker Sun Pharmaceutical Industries said on Friday it
expects its 2019 revenue to come in short of analysts' expectations due to
pricing pressure in its main market, the United States.
    
    Vedanta sticks with plan to expand Indian smelter despite deadly protests
London-listed Vedanta Resources hopes to restart its copper smelter in a
southern Indian city and still wants to double its capacity despite protests
demanding its closure that killed 13 people this week, a company executive told
Reuters on Friday.
    
    Third Indian state checks suspect cases in outbreak of rare brain-damaging
virus
Officials in a third Indian state were checking on Friday if two people had been
infected with the brain-damaging Nipah virus that has killed 12 in southern
Kerala, although the government described the outbreak as minor.
    
    Tech Mahindra Q4 profit tops estimates on more deal wins
Tech Mahindra posted a quarterly profit on Friday that handily beat analysts'
estimates, boosted by a rise in deal wins and the rupee's weakness against the
U.S. dollar.
    
    Brunei sells stake in Jordan Phosphate to Indian firms
Brunei, the largest shareholder in Jordan Phosphate Mines Company (JPMC), has
agreed to sell a 37 percent stake to India's two largest importers and producers
of fertilisers in a deal worth around $130 million, the Amman stock exchange
said on Sunday.
    
    From flipflops to cars: India's obsession with IPL pulls in the advertisers
Advertising rates for this season's Indian Premier League cricket tournament
have shot through the roof with a record 125 brands riding on the country's most
lucrative sports competition, far exceeding expectations of Star India, its new
broadcaster.
    
    ONGC awards tender to sell Brazil's Ostra oil to Shell -sources
India's top explorer Oil and Natural Gas Corp has awarded its first mini-term
tender to sell Brazil's heavy crude oil Ostra in June-November to Shell, three
sources familiar with the matter said.
    
    
    GLOBAL TOP NEWS
    U.S. team in North Korea for talks on summit, Trump says
U.S. President Donald Trump said on Sunday a U.S. team had arrived in North
Korea to prepare for a proposed summit between him and North Korean leader Kim
Jong Un, which Trump pulled out of last week before reconsidering.
    
    China April industrial profit growth rebounds to six-month high
Profits earned by Chinese industrial firms in April rose at their fastest pace
in six months, data from the National Bureau of Statistics (NBS) showed on
Sunday, as factories benefited from higher prices and strong demand.

    
    Italy's president calls in former IMF official amid political turmoil
Italy's president is expected to ask a former International Monetary Fund
official to head a stopgap government amidst political and constitutional
turmoil, with early elections looking inevitable.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    SGX Nifty nearest-month futures were trading up 0.2 percent at 10,632.50.
    
    The Indian rupee will likely open higher against the dollar, helped by the
decline in Brent crude and 10-year U.S. yields to their lowest level in three
weeks.
    
    Indian government bonds are likely to gain in early trade tracking a sharp
fall in crude oil prices and lower U.S. Treasury yields.  The yield on the
benchmark 7.17 percent bond maturing in 2028 is likely to trade in 7.72-7.80
percent band.
    
    
    GLOBAL MARKETS
    • The S&P 500 and the Dow eased on Friday after a steep drop in oil prices
pressured energy stocks, but losses were limited by gains in chipmakers and
retail stocks.
    • U.S. oil futures hit six-week lows on expectations major producers may
ease output curbs, while Asian stocks and U.S. share futures gained on signs the
United States and North Korea were still working towards holding a summit.

    • The euro crawled off a 6-1/2-month low against the dollar, catching its
breath after Italy's president tried to allay investor worries about political
unrest in the country, although the prospect of a near-term election capped
gains.
    • U.S. Treasury yields fell to their lowest level in three weeks on Friday
as concerns about Italy’s new government and a leadership challenge in Spain
boosted demand for low-risk debt.
    • Oil prices fell, extending a steep decline in the previous session, as the
market eyed an increase in output from the world's three top crude producers,
Russia, the United States and Saudi Arabia.
    • Gold prices eased, following their biggest weekly gain in six weeks, as
U.S. President Donald Trump revived hopes of his summit with North Korean leader
Kim Jong-un, after cancelling the meeting last week.
    
    
 CLOSE             FII INVESTMENTS  EQUITIES       DEBT         
 PNDF spot         67.72/67.75      May 25         -$113.4 mln  $69.49 mln
 10-yr bond yield  8.07 pct         Month-to-date  -$1.02 bln   -$2.47 bln
                                    Year-to-date   $160.43 mln  -$4.14 bln
 
    
    
    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 = 67.7300 Indian rupees)

 (Compiled by Nayyar Rasheed in Bengaluru)
  



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