Morning News Call - India, July 20

To access a PDF version of this newsletter, please click here https://share.refinitiv.com/assets/newsletters/Indiamorning/MNC_IN_07202022.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage INDIA TOP NEWS • India cuts windfall tax on diesel, aviation fuel exports India cut a windfall tax on oil producers and refiners and exempted gasoline from an export levy less than a month after it imposed the two charges. • Unilever's India unit warns of higher prices as costs pressure margins Hindustan Unilever, India's largest consumer goods maker, warned on Tuesday that high inflation will dent its margins in the current quarter and could result in higher prices of its products. • India's PharmEasy plans $200 million fund raising at lower valuation -sources Indian drug and medical services startup PharmEasy is in talks with investors to raise $200 million, but at a valuation that could be 15% or even 25% lower than last year's $5.1 billion, two people with direct knowledge of deal talks told Reuters. • India to invest more in Sri Lanka after crisis support of $3.8 billion -report India is willing to make more investments in neighbouring Sri Lanka after supporting it with $3.8 billion this year, New Delhi's envoy in Colombo told the Indian Express newspaper. GLOBAL TOP NEWS • Netflix soothes Wall Street concerns with customer growth forecast Netflix on Tuesday averted its own worst-case scenario of subscriber losses, posting a nearly 1 million drop from April through June, and predicted it would return to customer growth during the third quarter. • Russia seen restarting gas exports from Nord Stream 1 on schedule Russian gas flows via the Nord Stream 1 pipeline are seen restarting on time on Thursday after the completion of scheduled maintenance, two sources familiar with the export plans told Reuters. • Tesla braces for earnings hit, but EV delivery outlook is key Tesla's second-quarter results on Wednesday are expected to show the strains of China's COVID-19 lockdown and protracted startups of new factories. Investors want to know if the end of the year will be much better. LOCAL MARKETS OUTLOOK • SGX Nifty nearest-month futures were trading 1.26% higher at 16,543. GLOBAL MARKETS • U.S. stocks closed with sharp gains on Tuesday as more companies joined big banks in reporting earnings that beat forecasts, offering respite to investors worried about higher inflation and a tightening Fed denting the corporate bottomline. • Asian shares extended a global rally as strong U.S. corporate earnings and the expected resumption of Russian gas supply to Europe helped lift sentiment and ease fears of a recession. • The U.S. dollar retreated as the euro extended its overnight bounce on relief Europe might be able to avoid the worst fears concerning energy shortages, and on the chance the European Central Bank may deliver a more aggressive rate hike. • U.S. bond yields rose on Tuesday as prices were pressured lower by upbeat sentiment toward equities, with the 10-year Treasury yield hovering near 3% throughout the session. • Oil prices fell slightly, pressured by global central bank efforts to tame inflation and ahead of expected builds in U.S. crude inventories as product demand weakens. • Gold steadied as a pullback in the U.S. dollar balanced pressure from rising bond yields, with investors awaiting key interest rate hike decisions from major central banks, which could present a clearer outlook for bullion. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 79.93/79.95 July 19 219.99 crores 560.74 crores 10-yr bond yield 7.434% Month-to-date (8,847) crores (331) crores Year-to-date (2,26,205) crores (15,201) 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 = 79.90 Indian rupees)