Morning News Call - India, August 11

To access a PDF version of this newsletter, please click here https://share.refinitiv.com/assets/newsletters/Indiamorning/MNC_IN_08112022.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage INDIA TOP NEWS • Indian companies swapping dollar for Asian currencies to buy Russian coal Indian companies are using Asian currencies more often to pay for Russian coal imports, according to customs documents and industry sources, avoiding the U.S. dollar and cutting the risk of breaching Western sanctions against Moscow. • POLL-India's retail inflation likely eased in July, still far from RBI's target India's retail inflation likely eased in July due to a fall in food and fuel prices yet stayed well above the Reserve Bank of India's upper tolerance limit for a seventh consecutive month, a Reuters poll found. • Oil costs spur India to produce ethanol from farm waste India opened its first factory to produce ethanol from rice straw or stubble on Wednesday as part of measures to reduce its reliance on oil imports and meet its net zero carbon goal. • India to lift restrictions on ticket fare prices from Aug. 31 India will remove the fare caps it imposed on domestic airlines in 2020 during the COVID-19 pandemic from Aug. 31, the country's civil aviation ministry said on Wednesday, lifting restrictions on ticket prices. • India cenbank tightens scrutiny over digital lending apps The Reserve Bank of India on Wednesday issued detailed guidelines that will increase scrutiny and supervision over digital lending apps and lenders who engage with them, after several complaints of malpractice against such apps. • India could emerge as Asia's strongest economy in 2022-23, says Morgan Stanley India could emerge as Asia's strongest economy in 2022-2023 as it is best-positioned to generate robust domestic demand, helped by economic policy reforms, a young workforce and business investments, Morgan Stanley economists said. • JSW Energy unit to buy $1.3 bln renewable assets from Mytrah Energy India's JSW Energy said on Wednesday that its unit JSW Neo Energy has agreed to buy some renewable energy capacity from Mytrah Energy (India) for about 105.30 billion rupees. • New credit rating rules could see 100 Indian firms downgraded - Moody's ICRA The Indian unit of credit rating agency Moody's, ICRA, said on Wednesday that nearly 100 companies with debt totalling 350 billion rupees are likely to be downgraded after the central bank tightened rating methodologies. GLOBAL TOP NEWS • Fed may slow rate hikes, but policymakers say more is needed Slowing U.S. inflation may have opened the door for the Federal Reserve to temper the pace of coming interest rate hikes, but policymakers left no doubt they will continue to tighten monetary policy until price pressures are fully broken. • U.S. rethinks steps on China tariffs in wake of Taiwan response -sources China's war games around Taiwan have led Biden administration officials to recalibrate their thinking on whether to scrap some tariffs or potentially impose others on Beijing, setting those options aside for now, according to sources familiar with the deliberations. • Disney tops Netflix on streaming subscribers, sets higher prices Walt Disney edged past Netflix with a total of 221 million streaming customers and announced it will increase prices for customers who want to watch Disney+ or Hulu without commercials. LOCAL MARKETS OUTLOOK • SGX Nifty nearest-month futures were trading 1.22% higher at 17,760. GLOBAL MARKETS • Wall Street surged on Wednesday, putting the Nasdaq more than 20% above its June low, after U.S. inflation slowed more than expected in July and raised hopes the Federal Reserve will become less aggressive on interest rates hikes. • Asian shares tracked Wall Street higher on Thursday after a softer-than-expected U.S. inflation report encouraged bets of less aggressive rate hikes from the Federal Reserve, while the dollar remained bruised after its biggest plunge in five months. • The euro and Japanese yen were sitting pretty after U.S. inflation data overnight came in less hot than feared and sent the dollar tumbling. • U.S. Treasury yields gave back most of an earlier drop on Wednesday as investors evaluated how high the Federal Reserve is likely to raise rates when it meets in September, after data showed inflation gains stalled in July. • Oil prices fell in early Asian trade as traders anticipated more supply of crude entering the market coupled with weaker demand. • Gold prices slipped, as the dollar and Treasury yields rebounded after comments from Federal Reserve officials pointed to aggressive interest rate hikes despite signs of slowing U.S. inflation. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 79.49/79.51 August 10 1,573.51 crores (109.49) crores 10-yr bond yield 7.310% Month-to-date 17,749 crores 878 crores Year-to-date (1,94,620) crores (16,048) 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 = 79.14 Indian rupees)