Morning News Call – India, May 14

To access a PDF version of this newsletter, please click here http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_05142020.pdf If you would like to receive this newsletter via email, please register at: http://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH 12:00 pm: The Government is likely to release April wholesale price inflation data in New Delhi. 4:00 pm: Reliance Industries Senior Vice President of Forex Treasury Venkat Thiagarajan will participate in a webinar on ‘Managing FX & Liquidity Risk in Global Crisis’ in Mumbai. LIVECHAT- ESG INVESTING John Elkington, founding partner of Volans Ltd and author of Green Swans:The Coming Boom In Regenerative Capitalism, joins us to discuss what sustainable business models and ESG investing could look like as economies grapple with the impact of coronavirus. To join the conversation at 06:30 pm IST, click on the link: https://refini.tv/2P8N0Wp INDIA TOP NEWS • India unveils major credit line for small businesses, lenders India’s government said on Wednesday it will offer nearly $60 billion of loan guarantees for small businesses, shadow banks and power companies as part of measures to combat the economic damage caused by the novel coronavirus pandemic. • Maruti restarts car output gradually, profit down Maruti Suzuki has begun to resume production, its chairman said, after the company reported lower fourth-quarter profit, dragged down by weak demand, even before the nation went into lockdown. GLOBAL TOP NEWS • In nod to grim U.S. outlook, Fed’s Powell calls for more fiscal support The head of the Federal Reserve warned on Wednesday of an “extended period” of weak economic growth, vowed to use the U.S. central bank’s power as needed, and called for additional fiscal spending to stem the fallout from the coronavirus pandemic. • Trump extends U.S. telecom supply chain order aimed at Huawei, ZTE President Donald Trump on Wednesday extended for another year an executive order signed in May 2019 declaring a national emergency and barring U.S. companies from using telecommunications equipment made by firms posing a national security risk. • Japan expected to end state of emergency for most regions; Tokyo to remain on alert-media Japan is expected to lift the state of emergency for 39 of its 47 prefectures, local media reported, while the capital Tokyo is set to keep restrictions in place until it sees a convincing containment of the coronavirus. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 1.4% lower at 9,259.75. • The Indian rupee is expected to trade little changed against the dollar amid a decline in Asian and U.S. shares after Federal Reserve chief Jerome Powell warned of a significant risk because of the coronavirus pandemic. • Indian government bond yields are likely to edge lower in early session, as traders hope for steps from the central bank to support appetite, after New Delhi announced a massive stimulus plan to shield the economy from the coronavirus impact. The yield on the benchmark 6.45% bond maturing in 2029 is likely to trade in a range of 6.05%-6.12%. GLOBAL MARKETS • Wall Street’s three major indexes closed lower for the second day in a row after Federal Reserve Chairman Jerome Powell warned on Wednesday of extended economic weakness due to the coronavirus pandemic and called for Congress to agree on additional fiscal support. • Asia’s stock markets fell and gold hit a one-week high as worries about a second wave of coronavirus infections and a dour assessment of the way back from the head of the U.S. Federal Reserve dashed hopes for a quick recovery. • The dollar held gains against major currencies after U.S. Federal Reserve Chairman Jerome Powell dismissed speculation that policymakers will adopt negative interest rates. • U.S. Treasury yields were steady on Wednesday after Federal Reserve Chair Jerome Powell gave a solemn assessment of the U.S. economy and investors showed soft demand for a 30-year bond auction. • Oil prices crept up, supported by a surprise decline of U.S. crude inventories, but gains were capped by worries that a potential second wave of the coronavirus pandemic might trigger fresh lockdowns and slam fuel demand once again. • Gold rose as U.S. stimulus talks and Federal Reserve Chair Jerome Powell’s downbeat economic assessments supported the safe-haven metal, while investors awaited U.S. initial jobless claims data due later in the day. CLOSE FII EQUITIES DEBT INVESTMENTS PNDF spot 75.44/75.47 May 13 (1,839.13) crore (4,284.31) crore 10-yr bond 6.09 pct Month-to-date 19,601 crore (12,826) crore yield Year-to-date (35,313) crore (95,305) crore (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 = 75.43 Indian rupees Indian rupees) (Compiled by Priyanka Das in Bengaluru)