Morning News Call - India, July 4

To access a PDF version of this newsletter, please click here https://share.refinitiv.com/assets/newsletters/Indiamorning/MNC_IN_07042022.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage FACTORS TO WATCH • No major events are scheduled for the day PROMOTION LIVECHAT - REUTERS GLOBAL MARKETS FORUM Markets update with Mike Dolan, Reuters Editor-at-Large for Financial Industry & Financial Markets. To join the conversation at 3:30 pm IST, click here https://www.refinitiv.com/en/products/refinitiv-messenger/global-markets-forum INDIA TOP NEWS • China's Great Wall Motor shelves $1 billion India plan -sources China's Great Wall Motor has shelved plans to invest $1 billion in India and laid off all employees at its operations there after failing to obtain regulatory approvals, three sources with direct knowledge of the matter said on Friday. • Toyota charts new course in India with its first mass market hybrid car Toyota Motor on Friday unveiled its first mass market hybrid car for India, a sport utility vehicle (SUV), charting a new course for the Japanese automaker in one of the world's fastest growing car markets. • FOCUS-With a dash of spice, Reliance and Britain's Pret bet on India's changing tastes British snack chain Pret will adapt its menu to local tastes when it opens in Indian cities and airports under a partnership with retail giant Reliance to try to satisfy the nation's growing appetite for upmarket refreshment. • India imposes windfall tax on oil producers, fuel exporters India has imposed windfall tax on oil producers and refiners who have boosted product exports to gain from higher overseas margins as the government seeks to increase local supply of fuels to meet rising demand and increase federal revenues. • India raises import tax on gold to support rupee India has raised its basic import duty on gold to 12.5% from 7.5%, the government said on Friday, as the world's second biggest consumer of the precious metal tries to dampen demand and bring down the trade deficit. GLOBAL TOP NEWS • Ukraine withdraws from battered Lysychansk city; Russia claims major victory Ukraine's forces have withdrawn from the bombed-out city of Lysychansk, prompting Russia to claim full control of the eastern Luhansk region, a key Kremlin war goal, but President Volodymyr Zelenskiy vowed to regain the lost territory. • China central bank upgrades currency swap with HKMA, expands size China's central bank said that it has upgraded a currency swap facility with Hong Kong to a permanent agreement and expanded the size to 800 billion yuan from 500 billion yuan. • China casts giant shadow over emerging nations' chase for debt relief From a $360 million project to expand Zambia's international airport in Lusaka to a $1.4 billion city port in Sri Lanka's capital of Colombo, China is the missing piece in the puzzle of a number of debt talks under way in developing markets. LOCAL MARKETS OUTLOOK (As reported by NewsRise) • SGX Nifty nearest-month futures were trading 0.21% lower at 15,709.50. GLOBAL MARKETS • Wall Street bounced back to a sharply higher close in light trading on Friday as investors embarked on the second half of the year ahead of the long holiday weekend. • Asian share markets started cautiously as a run of soft U.S. data suggested downside risks for this week's June payrolls report, while the hubbub over possible recession was still driving a relief rally in government bonds. • The dollar kept trade-sensitive currencies pinned near multi-year lows and the euro was under pressure as investors sought safety due to worries about slowing global growth. • U.S. Treasury yields tumbled on Friday and the benchmark 10-year note fell the most since COVID-19 roiled markets in March 2020, as investors priced in the likelihood the Federal Reserve will force inflation down to near its target rate. • Oil prices fell, paring gains from the previous session, as fears of a global recession weighed on the market even as supply remains tight amid lower OPEC output, unrest in Libya and sanctions on Russia. • Gold prices edged lower, as an elevated U.S. dollar hurt demand for greenback-priced bullion and also outweighed support from weakening Treasury yields. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 79.08/79.10 July 1 (260.79) crores (185.97) crores 10-yr bond yield 7.424% Month-to-date (261) crores (186) crores Year-to-date (2,17,619) crores (15,056) 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 = 78.93 Indian rupees ) (Compiled by Paulose Joseph)