Morning News Call - India, September 22

To access a PDF version of this newsletter, please click here https://share.refinitiv.com/assets/newsletters/Indiamorning/MNC_IN_09222022.pdf If you would like to receive this newsletter via email, please register at: https://solutions.refinitiv.com/MNCIndiaSubscriptionpage PROMOTION LIVECHAT - REUTERS GLOBAL MARKETS FORUM Carbon Collective Chief Investment Officer Zach Stein to examine investment opportunities in companies addressing climate-related issues. To join this discussion at 7 pm IST, click here https://www.refinitiv.com/en/products/refinitiv-messenger/global-markets-forum INDIA TOP NEWS • India government 'in no hurry' on medium-term inflation target India's government is in no hurry to push inflation - now hovering near 7% and eight-year highs - back to the central bank's 4% medium-term target, for fear that aggressive rate hikes could hurt economic growth, two sources with direct knowledge of the matter said. • India's banking system liquidity may remain in deficit in second half - analysts Liquidity in India's banking system is likely to remain in deficit in the second half of this financial year as credit growth picks up and the circulation of currency notes rises, analysts said. • Indian banks see bad loans falling to decade low of 4% by FY24 end Indian banks are likely to see a 90 basis points fall in gross non-performing assets (NPAs) to 5% in this fiscal year to March and further improve to 4% by end of March 2024, rating agency Crisil said on Wednesday. • India expects at least $25 billion investment under semiconductor incentive scheme India is expecting to court a total investment of at least $25 billion as a result of its incentive scheme meant to boost local manufacturing of chip and display panels, junior IT minister Rajeev Chandrasekhar told reporters on Wednesday. • Apple may move a quarter of iPhone production to India by 2025 -JPM Apple may make one out of four iPhones in India by 2025, JPMorgan analysts said on Wednesday, as the tech giant moves some production away from China, amid mounting geopolitical tensions and strict COVID-19 lockdowns in the country. • Reliance Retail in talks for rights of beauty retailer Sephora Reliance Retail, run by Indian billionaire Mukesh Ambani's conglomerate Reliance Industries, is in advanced talks to get the rights for beauty retailer Sephora in India, the Mint newspaper reported on Wednesday, citing two people familiar with the matter. • HDFC Bank signs multi-year data and technology deal with Refinitiv HDFC Bank on Wednesday signed a multi-year data and technology agreement with Refinitiv, a London Stock Exchange Group business, as the Mumbai-based lender looks to reach more customers and cut costs. • India govt likely to extend its free food programme for poor India is likely to extend its free food programme for the poor by three to six months, CNBC TV18 reported on Wednesday, a move that could cost the government $10 billion more and make it challenging for it to meet its fiscal deficit target. GLOBAL TOP NEWS • Fed delivers another big rate hike; Powell vows to 'keep at it' Federal Reserve Chair Jerome Powell vowed on Wednesday that he and his fellow policymakers would "keep at" their battle to beat down inflation, as the U.S. central bank hiked interest rates by three-quarters of a percentage point for a third straight time and signaled that borrowing costs would keep rising this year. • Zelenskiy calls for punishment of Russia including loss of U.N. veto President Volodymyr Zelenskiy demanded a special United Nations tribunal impose "just punishment" on Russia for its invasion of Ukraine, including financial penalties and stripping Moscow of its veto power in the Security Council. • Iran, U.S. clash at U.N. on nuclear deal, human rights issues The United States and Iran clashed on security and human rights on Wednesday, with Iran's president demanding U.S. guarantees to revive the 2015 Iran nuclear deal and the U.S. president vowing Tehran would never get an atomic bomb. LOCAL MARKETS OUTLOOK • SGX Nifty nearest-month futures were trading 0.87% lower at 17,562. GLOBAL MARKETS • Wall Street's main indexes see-sawed before slumping in the final 30 minutes of trading to end Wednesday lower, as investors digested another supersized Federal Reserve hike and its commitment to keep up increases into 2023 to fight inflation. • The dollar surged and Asian stocks hit a two-year low as the prospect of U.S. interest rates rising further and faster than expected spooked investors. • The U.S. dollar pushed to a fresh two-decade high versus major peers, propelled by the Federal Reserve's hawkish outlook for interest rates and Russian President Vladamir Putin's mobilisation of more troops for the war in Ukraine. • The U.S. bond yield curve inverted further on Wednesday after the Federal Reserve hiked rates by 75 basis points and signaled more increases to come, adding to fears about an economic downturn. • Oil prices edged lower in after the U.S. Federal Reserve raised interest rates significantly to curb inflation, with fears for the global economy casting a shadow over future fuel demand. • Gold prices fell 1% as the dollar rose sharply after the U.S. Federal Reserve increased interest rates by another 75 basis points and flagged more hikes. CLOSE FII INVESTMENTS EQUITIES DEBT PNDF spot 80.25/80.27 Sept. 21 1,804.05 crores (247.49) crores 10-yr bond yield 7.233 % Month-to-date 1,11,44 crores 7,424 crores Year-to-date (1,50,021) crores (5,657) 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 = 79.91 Indian rupees) (Compiled by Anjana J. Nair in Bengaluru)