Morning News Call – India, April 8

To access a PDF version of this newsletter, please click here If you would like to receive this newsletter via email, please register at: FACTORS TO WATCH • 9:00 am: Federation of Automobile Dealers Associations to announce March auto registrations data. • 10:00 am: Macrotech Developers IPO continues for subscription. • 12:15 pm: Ministry of New and Renewable Energy Joint Secretary Amitesh Kumar Sinha, Additional Secretary Aniruddha Kumar, Tata Power Chief Executive and Managing Director Praveer Sinha at Mercom conference on solar industry. • 2:30 pm: Association of Mutual Funds in India Chief Executive N.S. Venkatesh at a conference call to announce March mutual funds industry data and outlook. • 6:30 pm: Prime Minister Narendra Modi to meet chief ministers of states on Covid-19 situation. LIVECHAT-REUTERS GLOBAL MARKETS FORUM Rebecca Patterson, Director of Investment Research at Bridgewater Associates joins the forum to discuss the recovery’s rotation into cyclical sectors, the impact of planned U.S. infrastructure spending and how far U.S. bond yields have left to run. To join the conversation, click on the link: INDIA TOP NEWS • India holds rates at record lows amid COVID surge; RBI commits to government bond purchases The Reserve Bank of India (RBI) kept interest rates at record lows but committed to a massive government bond purchase programme, keeping monetary policy accomodative amid concerns rising COVID-19 cases could derail a nascent economic recovery. • Pandemic slows India’s services activity slightly in March – PMI Activity in India’s dominant services industry expanded for the sixth consecutive month in March, supported by strong domestic demand, but some momentum was lost as authorities imposed fresh restrictions following a surge in coronavirus cases, a survey showed. • India’s Serum Institute asks government for $403 million to boost AstraZeneca vaccine output The Serum Institute of India, the world’s biggest vaccine manufacturer, has asked the government for a grant of 30 billion rupees to increase its capacity to make AstraZeneca’s COVID-19 vaccine. • Indian tribunal starts insolvency process against Oyo unit, company appeals India’s company law tribunal has initiated insolvency proceedings against a subsidiary of Softbank-backed hospitality startup Oyo, a public notice showed on Tuesday, a decision the company said it had challenged. • India’s richest man Ambani fined for irregularities in Reliance share issue India’s market regulator fined Reliance Industries Chairman Mukesh Ambani and others 250 million rupees on Wednesday over irregularities in a two-decade-old share issue in the company. • India’s Shilpa Medicare can make 100-200 million doses of COVID-19 vaccine, says executive Indian drugmaker Shilpa Medicare has the capacity to manufacture 100-200 million doses of a protein-based vaccine for COVID-19, a company executive told Reuters on Wednesday. • India’s Barbeque-Nation reverses course after weak opening on debut, shares jump Shares of restaurant chain Barbeque-Nation recovered early losses to rise 18% in their debut trading on Wednesday, helped by a rally in broader Indian markets on the central bank’s decision to stand pat on key interest rates. • Some Indian states warn of vaccine shortage as COVID-19 cases peak India reported a record 115,736 new COVID-19 cases on Wednesday, a 13-fold increase in just over two months, raising pressure on the government to expand its vaccination campaign. GLOBAL TOP NEWS • Prosus raises $14.7 billion from Tencent sale in world’s largest block trade -sources Dutch based technology investor Prosus has sold a 2% stake in Chinese tech giant Tencent at HK$595 per share to raise $14.7 billion in the world’s largest blocktrade, according to two sources with direct knowledge of the matter. • Italy, Britain suggest age limits for AstraZeneca vaccine but still recommend it Italy recommended on Wednesday that AstraZeneca’s COVID-19 shot only be used on those over 60 and Britain that people under 30 should get an alternative, due to possible links between the vaccine and very rare cases of blood clots. • Fed expects to keep supporting economy ‘for some time,’ minutes show Federal Reserve officials remain wary about the ongoing risks of the coronavirus pandemic and are committed to bolstering the economy until its recovery is more secure, minutes of the U.S. central bank’s latest policy meeting showed on Wednesday. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.3% higher at 14,910.00. • The Indian rupee is expected to edge higher against the dollar following its worst session in more than one-and-half years. The Reserve Bank of India’s response to the expected increased volatility is key to the rupee’s outlook, traders said. • Indian sovereign bond yields are likely to open lower following the announcement of the central bank’s note purchase plan, which is expected to keep a lid on long-term borrowing costs. The yield on the benchmark 5.85% bond maturing in 2030 is likely to trade in the 6.05%-6.10% band. GLOBAL MARKETS • Major averages hovered near unchanged on Wednesday, with the S&P 500 closing up slightly after the Federal Reserve released minutes from its most recent meeting that reinforced the U.S. central bank’s position to remain patient before raising rates. • Asian share markets lagged as U.S. stock futures nudged to another record high after the Federal Reserve underlined its commitment to keeping policy super loose even as the economy enjoys a rapid recovery. • The U.S. dollar traded near more than two-week troughs versus major peers, tracking Treasury yields lower, after minutes of the Federal Reserve’s March policy meeting offered no new catalysts to dictate market direction. • U.S. Treasury yields were mostly lower on Wednesday after the Federal Reserve struck a dovish tone in the minutes of its March policy meeting, reinforcing expectations that interest rates will remain low for some time. • Oil prices fell after official figures showed a big increase in U.S. gasoline stocks, causing concerns about demand for crude weakening in the world’s biggest consumer of the resource at a time when supplies around the world are rising. • Gold prices slipped as investors turned to riskier assets after the U.S. Federal Reserve’s latest meeting minutes indicated continued policy support and cemented hopes of a quick economic turnaround. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 74.36/74.39 April 7 (872.97) crores (876.46) crores 10-yr bond yield 6.08 pct Month-to-date (3,227) cores (664) crores Year-to-date 52,515 crores (16,162) 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 = 74.41 Indian rupees) (Compiled by Haneyl Jacob)