Morning News Call - India, September 2

To access a PDF version of this newsletter, please click here https://share.refinitiv.com/assets/newsletters/Indiamorning/MNC_IN_09022022.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage PROMOTION LIVECHAT - TRADING INDIA FORUM Prof. Jayanth R. Varma, Member – Monetary Policy Committee, Reserve Bank of India will join the forum. To join the discussion at 11:00 am IST, email savio.shetty@tr.com INDIA TOP NEWS • India's manufacturing growth stayed strong in August, inflation eases Factory activity in India grew robustly again in August as an improvement in demand and easing input cost inflation boosted output and buoyed business confidence, a private survey showed. • India's Q1 growth may not deter RBI from raising rates -analysts India's lower-than-expected economic growth in April-June is unlikely to alter the course for the Reserve Bank of India that is anchored to taming inflation with more rate hikes, analysts said. • India's monsoon seen above-average in Sept; distribution remains a concern India is likely to receive 9% more rainfall than the average in September, the weather office said on Thursday, although uneven distribution could trim yields of summer-sown crops in Asia's third biggest economy that relies on farming to boost growth and generate jobs. • India wants local settlement if its bonds join global index India wants global bond index operators to consider the local settlement of its government securities if they are included in their indexes, a government official said on Thursday. • RBI unlikely to accept shadow bank' requests for bad-loan exemptions - sources India's central bank is unlikely to give "shadow banks" exemptions from stricter bad-loan rules coming into force, sources told Reuters, essentially ending an advantage the non-bank financial firms have had over standard banks. • Adani rejects NDTV claims that stake sale needs tax nod India's Adani group rejected claims by New Delhi Television that a major stake sale by its founders would require clearance from India's tax authorities, as a public wrangle to take control of the popular news network intensified. • Boeing expects more orders from India as airlines boost capacity Boeing expects more orders for its planes from Indian airlines as they boost their capacity to keep pace with rising demand in the world's fastest-growing major aviation market, an executive said on Thursday. • Dish TV shares surge as chairman set to exit after Yes Bank tussle Dish TV shares surged up to 20% on Thursday after the broadcast satellite service provider said Chairman Jawahar Lal Goel would not seek a reappointment, signalling a win for top shareholder Yes Bank in its push for a board overhaul. GLOBAL TOP NEWS • U.S. judge signals willingness to appoint special master in Trump search case A federal judge on Thursday appeared sympathetic to former President Donald Trump's request to appoint a special master to review the documents the FBI seized from his home in August, though she declined to issue a ruling immediately on the matter. • U.N. inspectors assess damage to Ukraine nuclear plant in high-stakes visit United Nations nuclear experts who crossed into Russian-held territory in Ukraine to assess the safety of Europe's biggest atomic energy plant were seeking on Friday to assess physical damage to the facility, where both sides warn of possible disaster. • U.S. CDC backs use of redesigned Omicron COVID boosters The U.S. Centers for Disease Control and Prevention (CDC) on Thursday recommended the use of redesigned COVID-19 booster shots for people aged 12 years and older to target the BA.4 and BA.5 Omicron subvariants of the coronavirus. LOCAL MARKETS OUTLOOK • SGX Nifty nearest-month futures were trading 0.01% lower at 17,565. GLOBAL MARKETS • A late rally helped the S&P 500 snap a four-session losing skid on Thursday with investor focus turning to a key report on the labor market on Friday. • Asian shares were mixed ahead of a key U.S. jobs report as investors braced for more aggressive rate hikes from the Federal Reserve, while commodities took an overnight dive amid new China lockdowns. • The dollar was headed for a third weekly gain in a row and stood near its highest levels for decades on the euro and yen, with investors in little mood for selling ahead of U.S. labour data that could bolster the case for interest rate hikes. • U.S. Treasury yields surged in a volatile trading session on Thursday as investors anticipated strong job reports that could spur further aggressive monetary tightening by the U.S. Federal Reserve as it seeks to fight four-decade-high inflation. • Oil prices climbed on bets that OPEC+ will discuss output cuts at a meeting on Sept. 5, but the benchmarks were still on track to post their worst weekly drop in four on fears COVID-19 curbs in China and weak global growth will hit demand. • Gold edged up but was headed for a third straight weekly drop, as data pointing at a resilient U.S. economy bolstered the likelihood of Federal Reserve keeping interest rates higher for longer and pinned the dollar near recent peaks. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 79.54/79.56 Sept. 1 4,259.67 crores (8.98) crores 10-yr bond yield 7.215% Year-to-date (1,56,905) crores (13,090) 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 = 79.71 Indian rupees) (Compiled by Archak Sengupta)