To access a PDF version of this newsletter, please click here http://share.thomsonreuters.com/assets/newsletters/Indiamorning/MNC_IN_10292019.pdf If you would like to receive this newsletter via email, please register at: http://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH 10:30 am: Finance Minister Nirmala Sitharaman at National CSR Awards event in New Delhi. LIVECHAT – FED PREVIEW David Beckworth, former international economist for the U.S. Treasury and current senior research fellow at George Mason University’s Mercatus Center, discusses the upcoming Fed meeting and the possible paths of monetary policy in the rest of 2019. To join the conversation at 6:30 pm IST, click on the link: https://refini.tv/2P8N0Wp INDIA TOP NEWS • Indian regulator orders IndiGo to modify Pratt & Whitney engines within 15 days India’s civil aviation regulator on Monday ordered IndiGo to modify its 16 Airbus A320neo aircraft fitted with Pratt & Whitney engines, linked to in-flight shutdowns, within 15 days to avoid their grounding. • SBI profit beats on higher interest income, better asset quality State Bank of India (SBI) reported a three-fold jump in quarterly profit and beat market expectations on Friday as asset quality at the country’s largest lender improved, sending shares up more than 7%. • Reliance to create $15 billion digital unit to pare telecom debt Reliance Industries on Friday said it would invest nearly $15 billion to create a digital services company as it seeks to cut debt at its telecom venture, potentially making way for the entry of a strategic investor. • ICICI Bank quarterly profit falls 28% India’s second-largest private-lender, ICICI Bank, reported a 28% fall in net profit in the quarter ended Sept. 30 due to a one-time charge related to deferred taxes. • JLR parent posts smaller loss as China demand picks up Jaguar Land Rover owner Tata Motors posted a smaller-than-expected loss in the second quarter on Friday as a pick up in sales of its luxury car in China helped it ride out weak vehicles sales in India, its home market. • Vodafone Idea to seek waiver after court ruling on overdue payments Loss-making Indian mobile carrier Vodafone Idea said on Friday it will ask the federal government for relief on payments of at least $4 billion after a court ruling required it to pay overdue levies and interest. • India probe finds AB InBev, Carlsberg, United Breweries colluded on prices – sources The investigations unit of India’s Competition Commission has concluded that Anheuser-Busch InBev, Carlsberg and United Breweries colluded to fix beer prices, two people with direct knowledge told Reuters. GLOBAL TOP NEWS • Trump: ‘ahead of schedule’ on China trade deal U.S. President Donald Trump said on Monday he expected to sign a significant part of the trade deal with China ahead of schedule but did not elaborate on the timing. • Google’s search for sales in cloud, hardware clip Alphabet profit Google parent Alphabet reported quarterly results on Monday that show costs continue to rise faster than revenue as the web search leader seeks to broaden its business, dampening Wall Street’s enthusiasm despite Google’s continued dominance in advertising sales. • EU agrees Brexit delay as British parliament blocks December election The European Union agreed to a Brexit delay of up to three months on Monday, as Prime Minister Boris Johnson said he would push on with his bid to end Britain’s political paralysis with an election on Dec. 12. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.1% higher at 11,678.00. • The Indian rupee is expected to open higher against the dollar amid signs of progress in U.S.-China trade talks. • India government bonds are expected to fall in early trade, tracking a sharp uptick in U.S. Treasury yields as demand for safe-haven assets eased after the European Union agreed to delay Brexit by three months. The yield on the benchmark 7.26% bond maturing in 2029 is likely to trade in a range of 6.66%-6.72% today. GLOBAL MARKETS • The S&P 500 hit a record high on Monday, while the Nasdaq fell just short of its lifetime high touched in late July as a more civil tone between the United States and China lifted hopes for a possible trade deal and investors looked toward a Federal Reserve rate cut later this week. • Asian shares rose to a three-month peak after Wall Street hit all-time highs amid hopes of progress in Sino-U.S. trade talks and for another dose of policy stimulus from the Federal Reserve this week. • Both the dollar and riskier Asian currencies held on to modest overnight gains, amid hopes for an easing in Sino-U.S. trade tensions and as investors waited for direction from this week’s Federal Reserve meeting. • U.S. Treasury yields were higher on Monday ahead of an expected interest rate cut at this week’s Federal Reserve policy meeting and as the latest Brexit developments boosted the British pound and market appetite for risk. • Oil prices edged lower in quiet trade as concerns about slower economic growth overshadowed signs of a thawing in the trade war between Washington and Beijing, while investors awaited U.S. inventory data. • Gold prices tread water, after a sharp fall in the previous session, as markets awaited the U.S. Federal Reserve’s rate decision, while optimism over a U.S.-China trade deal boosted demand for riskier assets. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 70.93/70.96 October 25 (193.38) crore (383.13) crore 10-yr bond yield 6.67% Month-to-date 3,662 crore (261) crore Year-to-date 59,847 crore 28,925 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 = 70.74 Indian rupees) (Compiled by Samrhitha Arunasalam in Bengaluru)
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