Morning News Call - India, August 10

To access a PDF version of this newsletter, please click here https://share.refinitiv.com/assets/newsletters/Indiamorning/MNC_IN_08102022.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage INDIA TOP NEWS • India's July fuel demand rises 6.1% year-on-year India's fuel demand in July rose 6.1% year-on-year, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed on Monday. • India could scrap wheat import duty to cool domestic prices, say sources India could scrap a 40% duty on wheat imports and cap the amount of stocks traders can hold to try to dampen record high domestic prices in the world's second-biggest producer, government and trade officials told Reuters on Monday. • RBI may hike repo rate to 6.00%, pace may slow - analysts The Reserve Bank of India is likely to raise its key policy rate by upto 60 basis points by the end of 2022, before pausing, but the pace of rate hikes is likely to slow down, analysts said. • SpiceJet loans 'high risk' for some lenders, say sources Three Indian banks have internally categorised loans to SpiceJet as being at "high risk" though the airline has not defaulted, people with knowledge of the matter said, drawing a denial from the airline. • Bharti Airtel posts 22% rise in quarterly revenue Bharti Airtel, India's second-biggest telecom operator, on Monday reported a 22.2% increase in quarterly revenue, boosted by 4G subscriber additions and higher data consumption. • India considers restricting sale of sub-$150 phones by Chinese firms -Bloomberg News India is seeking to restrict Chinese companies from its sub-$150 phone market in a bid to revive the prospects of domestic players, Bloomberg News reported on Monday, citing unidentified sources. • Paytm jumps as quarterly revenue surges Shares of Indian digital payments firm Paytm jumped on Monday to their highest levels in nearly six months, after the company's parent firm One 97 Communications Ltd posted an 89% surge in its quarterly revenue. • Chennai Petroleum cuts crude runs by 25% at southern India refinery India's Chennai Petroleum Corp said on Tuesday it had cut crude processing by a quarter at its 201,000 barrels per day Manali refinery in southern India, following an order by the Tamil Nadu state pollution control board. GLOBAL TOP NEWS • Trump uses FBI search of his Mar-a-Lago home to solicit campaign donations Former U.S. President Donald Trump on Tuesday tried to turn the news that the FBI had searched his Florida estate to his benefit, citing the investigation in text messages and emails soliciting political donations from his supporters. • China's July factory-gate inflation hits 17-month low China's factory-gate inflation eased to its weakest since February 2021, as raw material prices fell due to already slower construction activity, while consumer prices rose gently, bucking the sharp increases seen elsewhere. • Biden signs bill to boost U.S. chips, compete with China President Joe Biden on Tuesday signed a landmark bill to provide $52.7 billion in subsidies for U.S. semiconductor production and research and to boost efforts to make the United States more competitive with China's science and technology efforts. LOCAL MARKETS OUTLOOK • SGX Nifty nearest-month futures were trading 0.19% lower at 17,508. GLOBAL MARKETS • The Nasdaq closed down on Tuesday after a dismal forecast from Micron Technology pulled chip makers and tech stocks lower as investors await U.S. inflation data that could lead the Federal Reserve to further tighten its efforts to curb inflation. • Asian shares fell and the dollar steadied as investors waited for a key U.S. report on inflation to provide hints to the Federal Reserve's plans for future monetary tightening. • The dollar traded firmly in anticipation of U.S. inflation data, which even if it comes in softer-than-expected is still likely to be so red hot that steep U.S. interest rate rises will be required to rein it in. • U.S. Treasury yields edged higher as investors waited on highly anticipated inflation data on Wednesday, which will be scrutinized for how aggressively the Federal Reserve might continue to raise interest rates. • Oil prices edged lower, after industry data showed U.S. crude inventories unexpectedly rose last week, signaling a potential hiccup in demand. • Gold prices struggled for momentum, as investors refrained from making big bets ahead of U.S. inflation data that is expected to influence the pace of Federal Reserve rate hikes. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 79.58/79.60 August 8 1,999.91 crores 757.86 crores 10-yr bond yield 7.348% Month-to-date 16,175 crores 988 crores Year-to-date (1,96,194) crores (15,938) 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 = 79.56 Indian rupees)