Morning News Call – India, February 18

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FACTORS TO WATCH
9:30 am: HDFC Bank Managing Director Aditya Puri at launch of 5,000th branch
in Mumbai.

INDIA TOP NEWS
India proposes more than $12 billion of pollution-reducing incentives
India has proposed incentives worth 885 billion rupees ($12.4 billion) to
encourage power plants to install equipment to curb emissions and to develop
infrastructure for electric vehicles (EVs), a government statement said on
Friday.

India detains 23 men with suspected links to group behind deadly Kashmir
attack
Indian forces have detained 23 men suspected of links to the Pakistan-based
militant group that masterminded the bombing of an Indian security convoy that
killed 44 paramilitary police, a top police official said on Sunday.

GLOBAL TOP NEWS
U.S. blocks North Korean air traffic revival ahead of Trump-Kim summit –
sources
The United States has blocked efforts by a U.N. agency to improve civil
aviation in North Korea at a time when Pyongyang is trying to reopen part of its
airspace to foreign flights, three sources familiar with the matter told
Reuters.

Saudi crown prince begins Asia tour with $20 billion Pakistan investment
pledge
Crown Prince Mohammed bin Salman on Sunday said Saudi Arabia has signed
investment agreements worth $20 billion during his high-profile visit to
Pakistan, where tensions were flaring up with nuclear-armed rival India.

Japan’s machinery orders slump as trade frictions bite
Overseas orders for Japanese machinery posted their biggest decline in more
than a decade in December and manufacturers expect orders to fall further this
quarter as trade friction weigh on global demand.

LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
SGX Nifty nearest-month futures were 0.2 percent higher at 10,778.50, from
its previous close.

The Indian rupee is expected to underperform regional peers and fall against
the dollar after the nation’s trade deficit in January widened from the prior
month. Brent crude’s climb to a fresh three-month high is also expected to
pressure the local currency.

Indian government bonds are expected to open lower, as crude oil prices
continued to gain, with the benchmark Brent crude oil staying above $65 a
barrel, while state debt auction will boost supply. The yield on the benchmark
7.17 percent bond maturing in 2028 will likely trade in a 7.58 percent – 7.64
percent band today.

GLOBAL MARKETS
• Wall Street rallied on Friday, with the Dow and the Nasdaq posting their
eighth consecutive weekly gains as investors grew hopeful that the United States
and China would hammer out an agreement resolving their protracted trade war.

• Asian share markets bounced broadly as investors dared to hope for both
progress at Sino-U.S. trade talks in Washington this week and more policy
stimulus from major central banks.
• The dollar fell versus a basket of its peers as rising expectations of a
U.S.-Sino trade deal led investors to shift away from the safety of the
greenback into riskier assets.
• U.S. Treasury yields rose slightly on Friday but held in the middle of
their recent range as investors digested mixed economic data for signals of
Federal Reserve interest rate policy.
• Oil prices rose to their highest levels since November last year, lifted
by OPEC-led supply cuts and U.S. sanctions on Iran and Venezuela.
• Gold prices stood firm at two-week highs as the dollar inched lower, while
equities rose on increased expectations of a U.S.-China trade deal, capping
bullion’s gains.

CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 71.31/71.34 February 15 -$135.45 mln -$8.76 mln
10-yr bond yield 7.58 pct Month-to-date $358.71 mln -$100.14 mln
Year-to-date $283.36 mln -$905.99 mln

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]

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