Morning News Call – India, August 13

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FACTORS TO WATCH
2:00 pm: Minister of Railways Piyush Goyal to release a survey report on
station cleanliness in New Delhi
3:30 pm: IDBI Bank annual general meeting in Mumbai
5:30 pm: Government to release July consumer price inflation data in New
Delhi

GMF: LIVECHAT-ON THE CHARTS
Daryl Guppy is a renowned independent technical analyst and will be
analysing various world markets and currencies for us at 1030 IST.
To join the conversation, click on the link: here

INDIA TOP NEWS
• Top Indian lender SBI eyes return to profitability in Q3
State Bank of India SBI.NS is confident of returning to profitability from
the December quarter onwards as the impact of bad loans eases, its chairman said
after the nation’s top lender by assets plunged to its third straight quarter of
losses.

• Jet Airways says meeting all payment obligations to lenders
Indian carrier Jet Airways Ltd JET.NS sought to reassure investors on
Saturday after the company deferred its earnings a day earlier, saying it is
meeting its payment obligations to lenders and other dues, such as staff
commitments.

• India’s industrial output growth hits 5-month high of 7 percent in June
India’s industrial output INIP=ECI in June grew at its fastest pace in five
months to 7 percent from a year earlier, driven by a pick up in capital goods
manufacturing ahead of festive season, government data showed on Friday.

• India to step up use of biofuels to cut oil import bill
India aims to increase the use of biofuels to cut its oil import bill by 120
billion rupees ($1.7 billion) by 2022 and reduce carbon emissions, Prime
Minister Narendra Modi said on Friday.

• Hetero pulls heart drug from U.S. amid cancer risk probes
A unit of India’s Hetero Drugs is recalling some batches of the blood
pressure and heart medicine valsartan in the United States, a notice on the U.S.
regulator’s website said, amid a wider probe into cancer risks associated with
the drug.

• CreditAccess Grameen $164 million IPO subscribed over 2 times
Indian micro lender CreditAccess Grameen Ltd’s initial public offering (IPO)
to raise 11.31 billion rupees was subscribed more than 2 times on the final day
of sale on Friday.

• Union Bank of India posts surprise first-quarter profit
Union Bank of India UNBK.NS posted a surprise first-quarter profit on Friday
as the state-controlled lender set aside lower provisions for bad loans and
earned more from interest-bearing assets.

• GAIL (India) quarterly profit jumps 23 percent, beats estimates
State-run gas utility GAIL (India) Ltd GAIL.NS reported a 23 percent rise in
first-quarter profit on Friday and beat analysts’ estimates.

• HDFC Bank’s deputy managing director resigns
HDFC Bank HDBK.NS on Friday said its Deputy Managing Director Paresh
Sukthankar has resigned and will vacate his post in 90 days.

GLOBAL TOP NEWS
• Turkey says has action plan to ease market concerns; lira firms from
record low
Turkey has drafted a economic action plan and will start implementing it on
Monday morning to ease investor concerns, Finance Minister Berat Albayrak said
on Sunday, after the lira plunged to a new record low in early Asia Pacific
trade.

• North, South Korea begin talks before possible Pyongyang summit
North and South Korean officials began high-level negotiations on Monday,
with one South Korean newspaper report suggesting the two sides could be
planning for a summit in Pyongyang later this month.

• Singapore revises Q2 GDP q/q growth lower, flags risks from trade
Singapore’s economy grew slower than initial estimates in the April-June
period on a quarter-on-quarter basis, revised data showed on Monday, as the
government flagged a likely moderation in growth in the second half.

LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
• SGX Nifty nearest-month futures were trading at 11,370.50, down 0.5% from
its previous close.
• The Indian rupee is expected to open at record lows against the dollar
after the tumble in Turkish lira spilled over to other emerging market
currencies.
• Indian government bonds are expected to open lower as rupee will likely
touch fresh record-lows against the dollar, while traders remain cautious ahead
of today’s local inflation data. However, a sharp slump in U.S. Treasury yields
may help cap the fall. Yield on the benchmark 7.17 percent bond maturing in 2028
is likely to trade in a 7.74 percent -7.81 percent band today.

GLOBAL MARKETS
• U.S. stocks slid on Friday as a deepening economic crisis in Turkey
dragged on bank shares and triggered a move out of riskier assets.
• Asia share markets skidded and the euro hit one-year lows as a renewed
rout in the Turkish lira drove demand for safe harbours, including the U.S.
dollar, Swiss franc and yen.
• The euro was on the defensive after touching a 13-month low against the
dollar as investors bid up safe havens such as the U.S. dollar and the yen on
worries about the exposure of European banks to crisis-hit Turkey.
• The U.S. Treasury debt market rang up its best day in more than two months
as investors scooped up low-risk government debt on anxiety about Turkey’s
financial problems spreading to other emerging economies and lenders exposed to
the sector.
• Oil prices inched up as U.S. sanctions against Iran pointed towards a
tighter market, although concerns over slowing economic growth amid global trade
tensions kept a lid on gains.
• Gold prices edged down in early trade as the U.S. dollar held firm near a
13-month high against major peers amid financial crisis in Turkey.

CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 68.92/68.95 August 10 -$74.18 mln $39.42 mln
10-yr bond yield 7.75 pct Month-to-date $213.52 mln $868.29 mln
Year-to-date -$365.99 mln -$4.88 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 = 68.8850 Indian rupees)

(Compiled by Nachiket Tekawade in Bengaluru)

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