Morning News Call – India, June 25

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No major events are scheduled for the day.

Reuters Polling Editor in Charge Rahul Karunakar examines the outlook for
major global economies and what analysts believe central banks could do next. To
join the conversation at 3:30 pm IST, click on the link:

• India, U.S. nearing industrial security pact for defence tech transfers
India and the United States are closing in on an industrial security
agreement that will allow the transfer of defence technology, sources said on
Monday, ahead of U.S. Secretary of State Mike Pompeo’s talks in New Delhi this
week to promote strategic ties.
• Filling Iran oil gap in India: U.S. supplies outshine Middle East crude
A surge in India’s oil imports from the United States outpaced growth in
shipments from its traditional suppliers in the Middle East, after Washington
imposed sanctions on Tehran in November, according to tanker arrival data
obtained from sources.
• Water shortage could cut India’s food exports, minister warns
A water shortage could cut food exports from India, which has emerged as a
leading supplier of a number of food products to the world, the water resources
minister warned on Monday.
• RBI plans for transferring excess reserves opposed, delayed – sources
A senior Indian government official has opposed and delayed proposals from a
Reserve Bank of India (RBI) panel that the central bank keep most of its
so-called “excess reserves” rather than hand them to the central government,
sources familiar with discussions said.
• Indian builders woo buyers with cleaner, greener, “smart” homes
When Arkesh Mishra, 33, and his wife Anasuya scouted for a new home in
India’s tech hub of Bengaluru this year it was not the old real estate adage of
“location, location, location” that was their main consideration – it was “peace
of mind”.
• Monsoon covers half of India, to accelerate crop sowing
India’s annual monsoon rains have covered nearly half of the country and
conditions are favourable for further advancement into the central and western
parts this week, a weather department official said on Monday.
• Insurance Australia Group in talks over SBIG stake sale
Insurance Australia Group said it has held talks with external parties on
the potential sale of all or part of its 26% stake in India’s SBI General
Insurance Company.
• India taking more U.S. coking coal, pushing out Australia -Xcoal
India is buying more U.S. coking coal after disruptions in top supplier
Australia, and as U.S. miners seek new markets due to declining demand from
America’s steel industry, an executive at Xcoal Energy & Resources India said on

• Trump puts sanctions on Iranian supreme leader, other top officials
U.S. President Donald Trump targeted Iranian Supreme Leader Ayatollah Ali
Khamenei and other top Iranian officials with sanctions on Monday, taking a
dramatic, unprecedented step to increase pressure on Iran after Tehran’s downing
of an unmanned American drone.
• Trump ‘comfortable with any outcome’ from pivotal Xi talks -official
U.S. President Donald Trump views this week’s meeting with Chinese President
Xi Jinping as a chance to see where Beijing stands on the two countries’ trade
war, and is “comfortable with any outcome” from the talks, a senior U.S.
official said on Monday.
• BOJ debated cost of easing in clarifying rate guidance – April meeting
Bank of Japan policymakers debated the need to be vigilant over the rising
cost of prolonged monetary easing when they adopted in April a pledge to keep
ultra-low interest rates for at least a year, minutes of their rate review

(As reported by NewsRise)
• SGX Nifty nearest-month futures were little changed at 11,718.50.
• The Indian rupee is expected to open higher against the U.S. currency,
helped by the dollar index’s fall to fresh three-month lows.
• Indian government bonds are likely to fall in early trade ahead of fresh
supply of state debt. The yield on the benchmark 7.26% bond maturing in 2029 is
likely to trade in a range of 6.84% – 6.90% today.

• The S&P 500 edged lower on Monday as losses by healthcare companies
overshadowed gains in the technology sector, while investors awaited U.S.
President Donald Trump’s meeting with Chinese President Xi Jinping at the G20
summit this week.
• Japan’s Nikkei share average edged down amid brewing U.S.-Iran tensions
and with a stronger yen weighing on exporters, but losses were limited ahead of
a G20 summit, which could determine near-term risk appetite direction.
• The dollar remained shackled by the prospects of monetary easing by the
Federal Reserve while the safe-haven Swiss franc and gold were supported by
simmering tensions between Washington and Tehran.
• U.S. Treasury yields fell on Monday, holding just above almost three-year
lows, ahead of trade talks between the U.S. and China later this week.
• Oil prices were steady, supported by worries over conflict between Iran
and the United States but pressured by concerns about a potential decline in
demand for crude.
• Gold prices rose to their highest level in nearly six-years as the dollar
sat near multi-month lows and the announcement of fresh U.S. sanctions on Iran
boosted interest in the safe-haven metal.

PNDF spot 69.43/69.46 June 24 $29.87 mln -$115.46 mln
10-yr bond yield 6.85% Month-to-date -$161.17 mln $634.66 mln
Year-to-date $11.03 bln -$1.50 bln

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 = 69.3040 Indian rupees)

(Compiled by Samrhitha Arunasalam in Bengaluru)

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